1. RETAIL SECTOR
The retail scenario is one of the fastest growing industries in India over the last couple
of years. India retail sector comprises of organized retail and unorganized retail
sector. Traditionally the retail market in India was largely unorganized; however with
changing consumer preferences, organized retail is gradually becoming popular.
Unorganized retailing consists of small and medium grocery store, medicine stores,
subzi mandi, kirana stores, paan shops etc. More than 90% of retailing in India fall
into the unorganized sector, the organized sector is largely concentrated in big cities.
Organized retail in India is expected to grow 25-30 per cent yearly and is expected to
increase from ` 35, 000 crore in 2004-05 to ` 109, 000 crore ($24 billion) by 2010.
Quick facts on Indian Retail sector
• Indian Retail sector is the fifth largest global retail destination.
• India retail market is dominated by the unorganized sector.
• The top five companies in retail hold a combined market share of less than
2%.
• The Indian retail market has been ranked by AT Kearney's eighth annual
Global Retail Development Index (GRDI), in 2009 as the most attractive
emerging market for investment in the retail sector.
• Currently the share of retail trade in India's GDP is around 12 per cent, and is
estimated to reach 22 per cent by 2010.
• According to Government of India estimate the retail sector is likely to grow
to a value of ` 2,00,000 crore (US$45 billion) and could yield 10 to 15 million
retail jobs in the coming five years; currently this industry employs 8% of the
working population.
• India continues to be among the most attractive countries for global retailers.
According to the Department of Industrial Policy and Promotion,
approximately US$ 47.43 million was the amount of Foreign Direct
Investment (FDI) inflow as on September 2009, in single-brand retail trading.
More than 80% of the retail sector in the country is concentrated in the large cities. A
study reveals that among the more than 20 locations, for organized retail in India,
Mumbai was found to be the most preferred location followed closely by Bengaluru
in the second position.

2. Key Players in Indian Retail Sector
• AV Birla Group has a strong presence in apparel retail and owns renowned
brands like Allen Solly, Louis Phillipe, Trouser Town, Van Heusen and Peter
England. The company has investment plans to the tune of ` 8000 – 9000
crores till 2010.
• Trent is a subsidiary of the Tata group; it operates lifestyle retail chain, book
and music retail chain, consumer electronic chain etc. Westside, the lifestyle
retail chain registered a turnover of ` 3.58 mn in 2006.
• Landmark Group invested ` 300 crores to expand Max chain, and ` 100
crores on Citymax 3 star hotel chain. Lifestyle International is their
international brand business.
• K Raheja Corp Group has a turnover of ` 6.75 billion which is expected to
cross US$100 million mark by 2010. Segments include books, music and
gifts, apparel, entertainment etc.
• Reliance has more than 300 Reliance Fresh stores; they have multiple formats
and their sale is expected to be ` 90,000 crores ($20 billion) by 2009-10.
• Pantaloon Retail has 450 stores across the country and revenue of over ` 20
billion and is expected to touch 30 million by 2010. Segments include Food &
grocery, e-tailing, home solutions, consumer electronics, entertainment, shoes,
books, music & gifts, health & beauty care services.
Retail and recession
The global economic slump has had its impact on the India retail sector. One of the
earliest players in the Indian retail scenario Subhiksha's operations came to a near
standstill and required liquidity injection. Vishal Retail secured corporate debt
restructuring (CDR) plan from its lenders while other players like the Reliance Retail
run by Mukesh Ambani and Pantaloon led Kishore Biyani by went slow on expansion
plans and even scaled down operations. However, during the last quarter a bit of
confidence was restored as the economy showed signs of growth.
Future Trends
• Lifestyle International, a division of Landmark Group, plans to have more
than 50 stores across India by 2012–13.
• Shoppers Stop has plans to invest ` 250 crore to open 15 new supermarkets in
the coming three years.

3. • Pantaloon Retail India (PRIL) plans to invest US$ 77.88 million this fiscal to
add up to existing 2.4 million sq ft retail space. PRIL intends to set up 155 Big
Bazaar stores by 2014, raising its total network to 275 stores.
• Timex India will open another 52 stores by March 2011 at an investment of
US$ 1.3 million taking its total store count to 120. In the first six months of
the current fiscal ending September 30, 2009, the company has recorded a net
profit of US$ 1.2 million.
• Australia's Retail Food Group is planning to enter the Indian market in 2010.
It has plans to clock US$ 87 million revenue in five years. In 20 years they
expect the India operations to be larger than the Australia operations.
The Road Ahead
Industry experts predict that the next phase of growth in the retail sector will emerge
from the rural markets. By 2012 the rural retail market is projected to have a total of
more than 50 per cent market share. The total number of shopping malls is expected
to expand at a compound annual growth rate of over 18.9 per cent by 2015. According
to market research report by RNCOS the Indian organized retail market is estimated
to reach US$ 50 billion by 2011.