BIG BAZAAR

Retail is Indias largest industry, accounting for over 10 percent of the countrys GDP and around 8 percent of the employm

industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with seve

entering the market. But because of the heavy initial investments required, break even is difficult to achieve and man

players have not tasted success so far. However the future is promising; the market is growing, government policies are

more favorable and emerging technologies are facilitating operations. Retailing in India is gradually inching its way toward

the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, us

revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storeyed

huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion po

the growth of organized retailing and growth in the consumption by the Indian population is going to take a high

trajectory. The Indian population is witnessing a significant change in its demographics. A large young working popul average age of 24 years,nuclear families in urban areas, along with increasing working-women population and

opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India. Reta

largest industry accounting for over 10 percent of the countrys GDP and around 8 percent of the employment The mar

Indian retail industry is about US $312 billion. During the past decade, Private Final Consumption Expenditure has bee

driver of economic growth in India. The $350 Billion Consumption spending provides the single biggest business opportun

and is divided into some key categories led by food, fashion and home products. Future Value Retail Limited is a who subsidiary of Pantaloon Retail (India) Limited. This entity has been created keeping in mind the growth and the current

companys value retail business, led by its format divisions, Big Bazaar and Food Bazaar. The company operates 120 Big Baz

170 Food Bazaar stores, among other formats, in over 70 cities across the country, covering an operational retail space

million square feet. As a focussed entity driving the growth of the group's value retail business, Future Value Retail L

continue to deliver more value to its customers, supply partners, stakeholders and communities across the country and

growth of modern retail in India. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a lar

home solutions store, Collection i, selling home furniture products and eZone focused on catering to the consumer e

segment. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian co space.Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting

hearts of customer who is God said by the business tycoons. There is always a first mover advantage in an upcoming

India, that advantage goes to BIG BAZAAR. It has brought about many changes in the buying habits of people. It h

formats, which provide all items under one roof at low rates, or so it claims. In this project, we will study its marketing stra

promotional activities. Big bazaar, the flagship retail chain of the Future Group, is on the verge of achieving a unique milest

History of World Retail by being the first hypermarket format in the globe to rollout fastest 101 stores in a short spa

years. Currently, Big Bazaar has 98 stores in the country, including the recently opened store in Mysore on September 2

Further to this, Big Bazaar will be opening three more stores in a single day i.e. 30th September 2008, which will take th

count to 101 stores in the country. These three stores opening shortly in Pune (Kalyani Nagar), Cuttack (Darga Bazaar)

(Rajouri Garden).Big bazaar, journey began in October 2001, when the young, first generation entrepreneur Kishore Biyan

the countrys first hypermarket retail outlet in Kolkatta (then Calcutta). In the same month, two more stores were added

in Hyderabad and Mumbai, thus starting on a successful sojourn which began the chapter of organized retailing in India. Sp

this momentous occasion and remembering the days of conceptualising the hypermarket idea Mr. Kishore Biyani said, W decided to name the format as Bazaar because we had designed the store keeping the Indian mandi style in mind. Since

the hypermarket was big than an average mandis, the thought came to name it as Big Bazaar. However, we had freez

punch line Isse Se Sasta Aur Achha Kahi Nahi much before we met the creative agency to design the final logo of Bi

Though, Big Bazaar was started purely as a fashion format including apparel, cosmetics, accessory and general merchandis

Food Bazaar format was added as Shop-In-Shop within Big Bazaar in the year 2002. Today, Big Bazaar, with its wide

products and service offering, reflects the aspirations of millions of Indians. The journey of Big Bazaar can be divided into t

one pre and the other post January 26th, 2005, when the company rewrote the retail chapter in India, with the introdu

never- before sales campaign Sasbe Sasta Din. In just one day, almost the whole of India des cended at various Big Bazaa the country to shop at their favourite shopping destination. Further, what followed was the time and again rewriting of

Retail experience, wherein understanding of the Indian consumers reflected in the products and services offered

innovative deals, expanding in the tier II and tier III towns, tying up with branded merchandise to offer exclusive pro

services to its customers. Big bazaar is present today in 59 cities and occupying over 5 million sq.ft. retail space and drivin

million footfalls into its stores. The format is expecting the number of footfall in the stores to increase by over 140 mill

financial year. Over the years, Mr. Biyani for his vision and leadership, and Big Bazaar for its unique proposition to its c have received every prestigious consumer awards both nationally and internationally. Says Rajan Malhotra, President,

Convergence, Big Bazaar, What is important in our journey is not the number of stores, but the customers faith in us. It

and the Indians, which have helped us, reach this feat in such a short time span and today our country is creating a his

World organized Retail. Rajan Malhotra, who is also the first employee of Big Bazaar, joining the organization in early 2

Since beginning, we have kept Big Bazaar as a soft brand, which reflects the India and the Indianess. We believed in gro the society, participating and celebrating all regional and local community festivals, giving customers preferences above

else. Every Big Bazaar is a small family by its own and the head of the family Karta is the store manager. Kishore Biyan

of the Future Group, has a vast understanding of the consumers insight, has inculcated the habit of observing, und

customers behaviour, in every employee of the group. Future Group is confident of the Indian Retail Story. The Grou

slowed down its expansion plans despite the fiscal woes in the economy present today. Future Group plans to have 300 st

expecting revenues of Rs 13,000 crore by year 2011.Big Bazar, is the chain of retail stores of the big banner Pantaloon Re

Ltd., which in turn is a segment of Kishore Biyani, regulated Future Group of Companies. Moreover the customer friendly

and the organized retailing of products also makes Big Bazar one of the successful retail companies in India. Big Bazar Ove Bazar, a part of the Pantaloon Group, is a hypermarket offering a huge array of goods of good quality for all at affordable

Bazar with over 50 outlets in different parts of India, is present in both the metro cities as well as in the small towns. Big

no doubt made a big name in the retail industry of india, moreover shopping here is further made a memorable experienc

varied rates of discounts on products as well as discount vouchers available in a variety of amounts, like INR 2000, INR 4000, INR 5000 and INR 10000 on all Big Bazar products and accessories.

VISION

The variety of product range in Big Bazar. This large format store comprise of almost everything required by people from income groups. It varies from clothing and accessories for all genders like men, women and children, playthings, stationary footwear, plastics, home utility products,cosmetics, crockery,home textiles, luggage gift items, other novelties, and products and grocery.The added advantage for the customers shopping in Big Bazar is that there are all time disc promotional offers going on in the Big Bazar on its salable product. The significant features of Big Bazar: Shopping in the B a great experience as one can find almost everything under the same roof. It has different features which caters all the ne shoppers. Some of the significant features of Big Bazar are:The Food Bazar or the grocery store with the department se and vegetablesThere is a zone specially meant for the amusement of the kids. Furniture Bazar or a large section de furnitures. Electronics Bazar or the section concerned with electronic goods and cellular phones. [FutureBazaar.com] or shopping portal which makes shopping easier as one can shop many products of Big Bazar at the same price from h regulated customer care telecalling services.

The following are few of the sections at Big Bazar: 1. Books 2. Cameras 3. Computers & Peripherals 4. Electronics 5. Gift V Health and Fitness 7. Home & Kitchen 8. Jewelery 9. Memory & Storage 10. Mobiles & Phones 11. Movies & Videos 12. W Womens wear 14. Mens wear 15. Childrens wear 16. Others

NEW DELHI: Kishore Biyani-promoted Future Group company Pantaloon Retail is hiving off four of its business divisions, inc Bazaar and Food Bazaar, into independent subsidiaries, keeping the option open for listing them in future.The Board of Retail today approved setting up of wholly-owned subsidiary companies for Big Bazaar, Food Bazaar, Speciality Reta Activities and Property and Mall Management Division. When contacted, a company official told reporters from Mumba hiving off the different business divisions were done keeping in mind the independent growth each division had achieve gives us the option of listing them in future at an appropriate time the official added The company said the respective would be transferred on a going concern basis to the respective subsidiaries, subject to receipt of all requisite statutory necessary approvals. Big Bazaar is Future Groups flagship hypermarket format, while Food Bazaar is a chain of sup focussing on eatable items. Pantaloons speciality retail business activities take care of its various joint ventures such as the with Lee Cooper and also with French innerwear major, Etam. Under the Property and Mall Management Division, the Fut already has two malls in Mumbai and had recently opened one in Siliguri .

Executive Summary Retailing is emerging as a sunrise industry in India and is presently the largest employer after agriculture. In the year 200 of Indian organized retail industry was Rs 28,000 Crores, which was only 3% of the total retailing market. Retailing in its pre started in the latter half of 20th Century in USA and Europe and today constitutes 20% of US GDP. It is the 3rd largest segment in USA. Organized retailing in India is projected to grow at the rate of 25%- 30% p.a. and is estimated to astounding Rs 1,00,000 Crores by 2010. The contribution of organized retail is expected to rise from 3% to 9% by the e decade. The projection for the current year ie 2005 is Rs 35,000 Crores. In India, it has been found out that the top 6 cities for 66% of total organized retailing. With the metros already been exploited, the focus has now been shifted towards cities. The 'retail boom', 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to the year 2004, Rs 28,000 Crores organized retail industry had Clothing, Textiles & fashion accessories as the highest c (39%), where as health & beauty had a contribution of 2%. Food & Grocery contributed to 18% whereas Pharma Re contribution of 2%. Pantaloon Retail (India) Limited, is India leading retailer that operates multiple retail formats, the operates over 5 million square feet of retail space, has over 450 stores across 40 cities in India and employs over 18,000 pe

Company Profile:Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyl of the Indian consumer marker. Headquartered in Mumbai (Bombay), the company operates over 5 million square fee space, has over 450 stores across 40 cities in India and employs over 18,000 people. The companys leading forma Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket cha the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Statio 10, Bazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com. A subsidiary company, Hom

Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home products and E-Zone focused on catering to the consumer electronics segment. Pantaloon Retail was recently aw International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Reta Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, group catering to the entire Indian consumption space.

Future Group Manifesto Future the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encour explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glori brings to us our strength, our ability to learn, unlearn and re-learn, our ability to evolve. We, in Future Group, will not w Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consu development. There by, we will effect socio-economic development for our customers, employees, shareholders, asso partners. Our customers will not just get we hat the eye need, but also get them where, howan dw hen they need. We w post satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will ev will not just spot trends, we will set trends by marrying our understanding of the Indian consumer to their needs of tomo this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearn this process, do just one thing. MISSION

We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, crea realty, making consumption affordable for all customer segments for classes and for masses. We shall infuse Indian b confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us success Core Values 1.Indian ness : confidence in ourselves. 2.Leadership: to be a leader, both in thought and business. 3.Respect & Humility: to respect every individual and be humble in our conduct. 4.Introspection: leading to purposeful thinking. 5.Openness: to be open and receptive to new ideas, knowledge and information. 6.Valuing and Nurturing Relationships: to build long term relationships. 7.Simplicity & Positivity: Simplicity and positivity in our thought, business and action. 8.Adaptability: to be flexible and adaptable, to meet challenges. 9.Flow: to respect and understand the universal laws of nature.

CODE OF CONDUCT

Indian bazaars with the from moms along with their demanding kids to comfort, convenience and senior citizens with t children in tow. quality that modern Built on an inclusive platform that welcomes retailing brings. Launched in consume socio-economic strata, a visit August 2001, Big Bazaar has to Big Bazaar is not only about shopping but now become the about spending quality time with the family. destination of modern retailing for all sections of Achievements Indian c There are Big Bazaar is helping India make up lost time. It 80 Big Bazaar stores in 45 is currently in the midst of the fastest including expansion of a smaller towns hypermarket like Sangli, format Durgapur, anywhere in Panipat, the world. Palak 30 stores Ambala, Meerut, in June 2006, Kolhapur and Big Bazaar will Market Haldia. Attracting over 100 million be embla retail industry is one of the biggest money customers every year, it has on 120 new spinners in the world, notching up democratised shopping in India and stores by trillion (Rs. 2.64 crore crore) in turnover become synonymous with great J (Source: Euromonitor Study). In India the sector promotions that offer quality There could is worth Rs. 720,000 crore billion) products at affordable prices. be several ways of measuring growing at between 11% and 12% annually Sp anywhere success of a retail chain. (Source: CII-McKinsey Report). between 30,000 However, if figures were to Despite i size, the business is almost square feet and be taken as the most entirely controlled by the unorganised sector. 150,000 sq

authentic claim of having While organised retail makes up 70% to 80% of feet of retail space, arrived, then Big Bazaar business in developed countries, in India a typical Big Bazaar already there. For more it is pegged at a lowly 2% (Source: Cr store offers over than 100 million people on Indias Retail Industry).This is by far the 160,000 products who walk past lowest in the world and even far below across categories counters, each year, it is comparable countries in Asia. In apparel, general now the preferred shopping organised retailing accounts for 20% of all merchandise, food, destinat Panipat to Pallakad, business, while in Indonesia it is 25%, in cosmetics, home needs, Big Bazaars tagline, Is se sasta aur a Philippines 35%, in Thailand it is pegged at electronics, furniture, nahi is a source of cheer and happiness. 40% and in Ma reputed to be 50% communications, books, This has been recognised by the numerous (Source: Euromonitor Study). music pearl jewellery and even value awards that Big Bazaar has won in the past Big Bazaar is credited with bringing organi services like consumer credit, beauty twelve months. The brand has been adjudged mega retailing to India. The project w gyms and travel services. the Best Value Retail Store and Best Retail conceived as a uniquely Indian hypermarket in a O weekend evening, a Big Bazaar Destination at the Images Retail Forum for format that combined the look, touch and feel s host to over 10,000 customers four consecutive years, beginning 2004. CNBC Awaaz, in association with ACNielsen-O which conducts a study across 21 major cities and some 10,000 consumers, on their most preferred brands, overwhelmingly for Big Bazaar. Both in 2006 and 2007, Big Bazaar won the Consumer Award for the most preferred large grocery store. It won the award for Value Retailing and Retail Destination of the Year by Reid & Taylor in 2006 and in the also won the Readers Digest Platinum Trusted Brand Award. History The first Big Bazaar store, with an area of about 24,0 feet, opened on VIP Road, Kolkata in August 2001. This was followed by stores in Hyderabad, Bangalore, Mumbai and Gu initial categories on offer were apparel, general merchandise and food. Later, several brands from categories like e furniture, music, communications and books were added to the bouquet of products. Big Bazaar implemented SAP in 2005 stores in the most efficient manner that technology could provide. With an increasing number of customers 26 SUPERBRAN

value for money: Exchange was an innovative promotion Big Bazaar has launched by Big Bazaar in 2005 to provide also ti a customers an opportunity to get rid of their host of well-know junk and in return shop for a wide range of brands w products at a discount. exclusive lines In-store communications in Big Bazaar are created especially unique and rather ensure that no one for the store. These misses out on an opportunity to gain from include Levis, Lee special offers, service around a trolley Cooper, Wrangler with the product inside, announcing the scheme. and Disney. Not only is this entertain helps customers pick up the product from the Recent trolley instead of walking up to the rack where Developments it is o Big Bazaar, a part To make sure that non-English speaking of the Future customers dont feel alienated the Group, is communication is also conducted in the driving a number of local language. The communication is always initiativ unambiguous and direct. Money, a credit facility is in an Brand Values patronising its stores, it was time for Big Bazaar exp stage in several outlets. Cleartrip Brand Big Bazaar stands for delivering value for to reach out to them. To pay tribute and travel and tours and Talwalkars for gym and money. Customer service and shopping comfort them how much appreciated, health club services have also been launched in are at the core of Big Bazaars philosophy. Big Bazaar laun branded credit card. In many stores recently. With a view to bringing Innovation and initiative define its brand association bank, the Big Bazaar-ICICI value to more people, Big Bazaar is taking its character. It strives to reach out to its customers B card made its first appearance in brand to Tier II and Tier III towns as well. Big by imbibing the local flavour and melting 2002. Bazaar is also using the huge footfalls to its the local geography. As an extension of its customer relationship stores t concepts initiatives it also launched Shakti, a credit card and ideas. The customer for housewives, in February 2006. The response this generates unique, for it required no proof of income. helps in refining a launch Today the Big Bazaar-ICIC branded before a full fledged card is one of the largest loyalty credit card roll out. programmes in the country. Big Bazaar agglomeration of multiple, carefully chosen categories and brands. Within the store, Big Bazaar has created several sub c Depot is its books and music section; Staples offers office stationery products while Star & Sitara is a beauty salon. Futu provides consumer credit for Big Bazaar has recently launched a campaign products purchased within titled Power of initiative encourages Big Bazaar. customers to add One Rupee to their bill towards donation to a social cause. Big Baza Promotion makes an equal contribution and donates the With a better understanding Big Bazaar has been credited entire to an NGO called Save the of consumer behaviour across with some of the biggest consumer Children India. This is a se which has various cultures and classes, campaigns in the history of Indian retail. been working for the welfare of childre Bazaar has put together a In celebration of Republic Day, Big Bazaar marginalised sections of society. stunning range of ov SKUs. Private created a three-day shopping bonanza called Big Bazaar has recently launched a corporate labels of Big B among the largest Sabse Saste Teen Din. This has now become a campaign which revolves around a family having ap fashion brands in the country. national event that attracts millions of a great time together. The brand anthem These incl mens casual wear customers eager to benefit from the once-in-a- Khushiyon se Bhari Jholi connects with the range and

Knighthood mens formal wear year smart deals. In January 2008, the three-day customers at an emotional level position Pink & Blue are exclusive garments event generated sales worth over Rs. 240 crore Big Bazaar as part of the happy designed for modern kids; Srishti, a label of (US$ 60 million) in 80 Big Bazaar stores. ethnic wear for women; Haute N S August, Indias Independence Day is www.pantaloon.com fashionable western wear for teenage girls; billed as the Ma Day. So successful has Dreamline, a label that caters to an entire this become that to cater to the rush Big Bazaar rang linen, utensils and crockery and stores in many cities stay open till midnight. THINGS YOU DIDNT KNOW ABOUT Dtachi, label that offers outstanding Wednesday Bazaar is the Hafte ka Sabse Sasta Din. It was initially created with the decongesting weekends Big Bazaar and driving footfalls on weekdays. As it transpired, most Big Bazaar stores 2 million walk-in each week into now attract as many customers on Big Bazaar stores Wednesdays as they do on weekends. Collec Bazaar stores cover nearly 4 A property that offers special million square feet of space benefits and privileges to senior ci built around Senior In three days between January 25 and January Citizens Day. 27 2008, Big Bazaar sold over 100,000 pa Challenge was created to Jeans and 200,000 shirts reinforce Big Bazaars value proposition Big Bazaar has a base of ove loyalty of Is se sasta aur accha kahin nahi. The card members scheme simply offers twice the price difference should the item More than 160,000 products are sold at at a Big Bazaar store be found to be Big Bazaar stores more than the market p HISTORY AND MILESTONE

The flagship retail chain of the Future Group, is on the verge of achieving a unique milestone in the History of World R being the first hypermarket format in the globe to rollout fastest 101 stores in a short span of seven years. Currently, big 98 stores in the country, including the recently opened store in Mysore on September 26 th 2008. Further to this, big baz opening three more stores in a single day. 30th September 2008, which will take the eventual count to 101 stores in th These three stores opening shortly in Pune (Kalyani Nagar), Cuttack (Darga Bazaar) and Delhi (Rajouri Garden).Big baza began in October 2001, when the young, first generation entrepreneur kishore biyani opened the countrys first hyperma outlet in Kolkatta (then Calcutta). In the same month, two more stores were added one each in Hyderabad and Mum starting on a successful sojourn which began the chapter of organized retailing in India. Speaking on this momentous oc remembering the days of conceptualising the hypermarket idea Mr. Kishore Biyani said, We initially decided to name the Bazaar because we had designed the store keeping the Indian mandi style in mind. Since the size of the hypermarket wa an average mandis, the thought came to name it as Big Bazaar. However, we had freezed on the punch line Isse Se Achha Kahi Nahi much before we met the creative agency to design the final logo of Big Bazaar. Though, Big Bazaar w purely as a fashion format including apparel, cosmetics, accessory and general merchandise, the first Food Bazaar format w as Shop-In-Shop within Big Bazaar in the year 2002. Today, Big Bazaar, with its wide range of products and service offerin the aspirations of millions of Indians. The journey of Big Bazaar can be divided into two phases one pre and the other po 26th, 2005, when the company rewrote the retail chapter in India, with the introduction of a never-before sales campa Sasta Din. In just one day, almost the whole of India descended at various Big Bazaar stores in the country to shop at thei shopping destination. Further, what followed was the time and again rewriting of the Indian Retail experience understanding of the Indian consumers reflected in the products and services offered, creating innovative deals, expand tier II and tier III towns, tying up with branded merchandise to offer exclusive products and services to its customers. Big present today in 59 cities and occupying over 5 million sq.ft. retail space and driving over 110 million footfalls into its s format is expecting the number of footfall in the stores to increase by over 140 million by this financial year. Over the Biyani for his vision and leadership, and Big Bazaar for its unique proposition to its customers, have received every p consumer awards both nationally and internationally. Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaa important in our journey is not the number of stores, but the customers faith in us. Its the India and the Indians, which h a us, reach this feat in such a short time span and today our country is creating a history in the World organized Re Malhotra, who is also the first employee of Big Bazaar, joining the organization in early 2001 adds, Since beginning, we Big Bazaar as a soft brand, which reflects the India and the Indianess. We believed in growing with the society, particip celebrating all regional and local community festivals, giving customers preferences above everything else. Every Big B small family by its own and the head of the family Karta is the store manager. Kishore Biyani, the CEO of the Future Gr vast understanding of the consumers insight, has inculcated the habit of observing, understanding customers behaviou employee of the group. Future Group is confident of the Indian Retail Story. The Group has not slowed down its expan despite the fiscal woes in the economy present today. Future Group plans to have 300 stores and is expecting revenues of crore by year 2011.

STRATEGY BUSINESS UNIT

Indian retail sector is witnessing one of the most hectic marketing activities of all times. The companies are fighting for m and heart share which can finally be converted to market share. There is always a first mover advantage in an upcoming India, that advantage goes to Big Bazaar. It has brought about many changes in the buying habits of people. It has create which provide all items under one roof at low rates, or so it claims. In this project, we will study its marketing strategies. B main competitors are other business houses which are planning to enter the market as well as long established Kirana sto feel threatened by huge retail chains. FOR THE GREAT INDIAN MIDDLE CLASS

Kishore Biyani led the companys foray into organized retail with the opening up of the Big Bazaar in the year 2001. It i Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. It was started as a hypermarket format in Mu approx. 50,000 sqft of space. Its values and missions are to be the best in Value Retailing by providing the cheapest prices goes the tag- line Is se sasta aur achcha kahin nahin It sells variety of merchandise at affordable rates, the prices of which it claims are lowest in the city. Usually the items a together for offers as on the lines of Wal-mart and Carrefour and it also offers weekend discounts. It currently operates o than 100 stores and top 25 stores register a cumulative footfall of 30 lakh a month on an average. 4Ps OF MARKETING
"Marketing"

is the promotion of products, especially advertising and branding. Marketing practice tends to be seen as industry, which includes advertising, distribution and selling. Marketing mix is a deciding factor in formulating marketing t for the success of a particular brand, commodity or company. The components of marketing mix are: 1.Product 2.Price 3.Promotion 4.place PRODUCT:

Big Bazaar offers the maximum variety for each category of product. The product is the same in every store in the city but options are more in Big Bazaar. Also, the quantity for each product is not limited to large packs only. The commodities s retail chain also includes its own products which get a ready distribution network. The own products of Big Bazaar i World fashion magazine which is not available anywhere else. So costs are low for such products. PRICE:

Price is the critical point in a competitive industry. Big Bazaar works on a low cost model. It considers its discounted price There is an average discount of 7-8% on all items in respect to their MRP. Prices of products are low because it is able to se directly from the manufacturer. There are huge synergies in terms of bulk purchasing, central warehousing and trans These all factors help the retailer to keep low prices. PLACE:

Place means the location of the business. Big Bazaar has always worked on low-cost locations. It targets semi-urban popu its placement. Its strategy is to find a cheap location and it never goes for hot spots in the city. It relied on promotional a make up for unattractive locations. Another strategy used by Big Bazaar to overcome location disadvantage is use of inter launched a merchandise retailing site www.futurebazaar.com which targets high-end customers ready to use credit promotion of this website is done through advertisement on Google. The website is put as sponsored link.

Promotion

Big Bazaar has huge promotion budgets. The biggest idea behind all advertisements is to make people do bulk shopping. T types of promotional strategies of big bazaar. One is the holistic advertisement which promotes the brand and creates among people. It is not targeted at promoting each store but only creates an image of Big Bazaar as low-cost shopping o store has advertised through TV, road shows and also started reality show-typed promotional campaign The Big Bazaar C Promotions like Sabse Sasta Din are a very successful strategy to get footfall. In this products across categories such as furniture, electronics, utensils and food products at the lowest possible prices, coupled with attractive promotional schem of the most attractive offers being a 20-litre branded microwave oven with grill for Rs 2,499, jeans and trousers for Rs 19 laptops for Rs 22,990. Other type of promotion is the particular store oriented promotion which includes speaki loudspeaker in nearby blocks. Leaflets are given in local newspaper. There are promotional efforts even inside the store. B Free type of promotions are very common. Original prices are cut down and new prices are shown, of which customer t notice. There are loyalty schemes which reward regular clients. Promotion is also done through co branded with icici bank.

Big Bazaars New Marketing Strategy: Big Bazaar has launched new marketing strategy which is based on Guerrilla Marketing. Guerrilla marketing warfare strate type of marketing warfare strategy designed to wear-down the enemy by a long series of minor attacks, using principles and hit-and-run tactics. Attack, retreat, hide, then do it again, and again, until the competitor moves on to other marke guerrilla force is divided into small groups that selectively attack the target at its weak points. In the world of cut throat co corporate use extension of the same strategy in marketing. Corporate like Coke, Pepsi, etc have been using the same for q time now and the latest entrant is our very own Future Group- Big Bazaar, Pantaloons, Future Bazaar, eZone are all p group and they are taking on the biggies like Shoppers Stop, Lifestyle, and Tatas WestsideIn order to do the sa me, Fut have come up with 3 catchy/cocky and cheeky ad campaigns which surely do catch our eyes and surely one cant resist ap the same. Keep West-aSide. Make a smart choice!Shoppers! Stop. Make a smart choice!Change Your Lifestyle. Make a sma Future Expectations Big Bazaar is planning to have 300 hypermarkets in the country by 2010- 11. The company may also increase its annual t Rs. 13,000 crore by 2010-11, up from Rs. 3,600 crore last fiscal on the back of its expansion. The company has also gone saying that it would have another 35 stores by the end of its fiscal in June 2009 to take the total number to 135. To achiev are targeting a turnover of Rs. 5,000 crore in the current fiscal year and have formulated plans for reaching a figure of crore by 2010-11 fiscal. For the expansion, the company would be looking at both the metros andTier I cities, besides Tie smaller cities.The marketing strategy seems to be perfectly on track as the Big Bazaarhypermarkets had a footfall of 11 fiscal and the company is aiming for an increase in the numbers up to 14 crore this year. The average size of a B hypermarket is 30,000 sq ft to one lakh sq ft. Advertising: The departmental store chain Big Bazaar has launched a commercial sometime back to promote 'The Great Exchange O commercial portrays how customers can exchange any old and broken items (junk) and get new products at a discounted Big Bazaar. The 30 seconds film unfolds through the eyes of a cabbie in a busy city street, he is intrigued by the disruptive well-dressed office executive carrying a bundle of old newspaper and walking through a crowded place. The cabby then young office going lady in western wear carrying a rusty bucket filled with broken utensils, the cabbie is absolutely confo continues to follow her with a broken tyre in his hand and comes across another absurd situation of a highly placed exe chauffeur driven car with a broken commode on the top of the car. Penultimate situation reveals everybody is heading to Bazaar for the exchange offer; the cabbie comes out of the store happy and excited after getting an amazing deal for hi Moving images are interspersed with supers that hi-light the amazing prices a consumer can get for his junk. The sound tr typicalka ba da guy's shout as he walks through City Street calling for junk. The month of January and February is generally affair in terms of customer footfalls and revenue generation. Innovative, out of the box promotions is one of the effectiv draw customer attention and shore up the revenue. Historically Exchange schemes have been used to induce better sales, a strong appeal with the Indian mindset of getting value even for their junk, states an official release from Big Bazaar.

Brand Ambassador: A brand ambassador is a celebrity (or an attractive or interesting person) used to help advertise a product or services. B has roped in cricketer Mahendra Singh Dhoni as the Brand Ambassador for its new range of fashion apparel. Dhoni would a series of advertisements across all media. Dhoni and Big Bazaar have a lot of synergies as the Indian one-day internatio captain stands for the aspirations of youths, while Big Bazaar is looked up to by millions of Indians to fulfill their aspirations

way, Big Bazaar make full use of the marketing mix for a new venture which earlier belongs to the unorganized retail kirana stores. Application of the best marketing practices helps Big Bazaar in a great way. MANAGEMENT TEAM Mr.KishoreBiyani,(ManagingDirector) Mr.GopikishanBiyani,(WholetimeDirector) Mr.RakeshBiyani,(WholetimeDirector) Mr.VedPrakashArya,(Director) Mr.ShaileshHaribhakti,(IndependentDirector) Mr. S Doreswamy, (Independent Director) Dr.DOKoshy,(IndependentDirector) Ms.AnjuPoddar,(IndependentDirector) Ms.BalaDeshpande,(IndependentDirector) Mr. Anil Harish, (Independent Director) Rakesh Biyani ,CEO ( Retail )

Anshuman Singh, CEO - (Value Fashion ) Damodar Mall, CEO - (Incubation & Innovation) Hans Udesh ,CEO - ( General Merchandising ) Hemchandra Javeri ,CEO (Home Solutions Retail (India) Ltd. ) Kailash Bhatia ,CEO ( Integrated Merchandising Group )

Madhumati Lele ,CEO - (Services ) Rajan Malhotra ,CEO - (Big Bazaar ) Sadashiv Nayak CEO - (Food Bazaar) Sanjeev Aggarwal ,CEO ( Pantaloons) Vishnu Prasad ,CEO - (Central & Brand FactorykurbenMoodliar ) President- Operations (Value Retailing) Mayur Toshniwal [Head - Operations (North Zone)] Rajesh Joshi [Head - Operations (West Zone)] Rohit Malhotra [Head - Operations (South Zone)] Sandeep Marwaha [Head - Operations (East Zone)] Sanjay Jog (Head - Human Resources)

Ushir Bhatt (Executive Board Member) Atul Takle (Head - Corporate Communications) Prashant Desai [Head - Group IR & New Ventures (PE)] Vinay Shroff (Head - Supply Chain Management) PRODUCTS

Big Bazaar is based on 3-C theory of Kishore Biyani. The 3-C symbolize Change, Confidence and Consumption, and accord theory, "Change and confidence is leading to rise in Cons They divided Indian customers in three categories: India One Consuming class, constitutes only 14% of Indian population. They are upper middle class and most of customers have disposable income. Initial focus of Big Bazaar. India Two

Serving class which includes people like drivers, house-hold helps, office peons, washer-men, etc. For every India One, there a India Two and have around 55% of Indian population.

India Three Struggling class, remaining population of India,Cannot afford to inspire for better living, have hand-to-mouth existen cannot be addressed by current business models.The potential customers of Big Bazaar are India One and India Two. The insights were developed by close observation of the target set. The insights that came out were: - The clean and shiny envir modern retail stores creates the perception that such store are tooexpensive and exclusive, and are not meant for India Two. finds moves and find a lot of comfort in crowds, they are not individualistic. They prefer to bein queues. Indian-ness is no ades hi, its about believing in Indian ways of doing things. Indian customers prefer to purchase grains, grams, etc., after touc so its better not to sell inpolythene packs. Big Bazaar has counters where you can touch wheat, rice, sugar, etc., before p Advertisements about schemes and offers through local newspapers, radio in local languages, inspirescustomer more traditional ways. The guards, salesman at the Big Bazaar outlets should not look smarter than customer, so they prefern tie, etc., in their uniform. Hypermarkets in India should be situated in city unlike western countries where they are loc from city India Two finds moves and find a lot of comfort in crowds, they are not individualistic. They prefer to bein queu ness is not abouts w after touching them, so its better not to sell inpolythene packs. Big Bazaar has counters where you can touch wheat, rice, s before purchasing. Advertisements about schemes and offers through local newspapers, radio in local languages, inspire more than the traditional ways. The guards, salesman at the Big Bazaar outlets should not look smarter than custome prefernot to have tie, etc., in their uniform. Hypermarkets in India should be situated in city unlike western countries w are located awayfrom city. Purchased bags / goods should be sealed at check-out as customer can enter and exit multiple Indians, shopping is an entertainment; they come in groups, with families so Big Bazaar shouldoffer something for every family. That also led separate section for clothes, vegetables, food, etc., that is multiple clusters within a bazaar. De diversity tracing cell to cater local patterns, demands, festivals, as every region of customers has unique demands. advertising: The Essential of Brand Building Process

Advertising is an essential component of brand building. The advertisement and brand building is done through various techniques used are: - Tag-line: Big Bazaar tag-lines are the key components of advertising. These tag-lines are modified to demographic profile of customers. These catch-phrases appeared on hoardings and newspapers in every city where Big B launched. Everybody understood and connected easily with these simple one-liners. The catch-liners include "Hindi - Chane k

kaaju", "Bengali - Ruierdame illish", "Hindi - Stall ke bhaw balcony", etc

TVAds: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar commercials are shown on various c India. Presently, Fashion@Big Bazaar commercial is aired.

Road-sideAdvertisements: Big Bazaar bill-boards are displayed on prime locations in various cities as a brand building exe display the catch-phrases now-a-days.

RadioAds: This technique is used in cities like Sangli (Tier 1 / Tier 2 cities). Now-a-days, it is replaced by advertiseme channels. This informs customers about all new happenings at Big Bazaar.

Fashion Shows: "FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo" is the latest invention of the Indian iconic brand. In a take the Fashion to the masses, Big Bazaar, the flagship hypermarket brand of retail chain of Future Group, organized a Fashion Show on the streets of Bandra, Mumbai.

Brand Endorsement by Celebrity: Big Bazaar is always associated with celebrities for advertising and marketing of its br The current campaign is starred by Brand Ambassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. Earli Reshammiya and Sanath Jaisuriya were associated with Big Bazaar.

Factors that Shaped Big Bazaar During its Life Cycle The Big Bazaar brand name is in its growth stage. Pantaloon Group faced various small and large scales troubles in the in stage of the brand. Present years are the high growth years in retail sphere as market has high potential to sustain growth are increasing, more and more firms are coming to market, foreign players are entering into retail sector, and pie of organ is increasing in retail sector. The factors that shaped the brand during its life cycle are: -

Influence of Sarvana Stores Located in Theyagraya Nagar, ChennaiMany people think that Big Bazaar was inspired by Wa the truth is that Kishore Biyani and histeam members are neither inspired by US ways of doing retailing nor they have b much. Thecredit for foundation and inspiration goes to Saravana Store, a family-run 25-years-old store, whosephilosophy margin, high turnover. In that store, food, groceries, clothes, everything had aseparate section. It had around 120 peo manage crowd. The single shop was doing business of more thanINR 200 Crore per year. This shop was the template for Big B

Observing Customers Regularly Regular customer feedback is also an influential factor for the success of Big Bazaar. The Big Bazaar has a separate team tha customer they approach particular products. For example, u stores where the most expensive and catchy item is placed at the front display, Big Bazaar places the "Value for Money" item out points. Imbibed Entrepreneurial Spirit in Organization Decision making power is given to every level of employees at Big Bazaar. Kishore Biyani has given risk- taking power, w exposure of entrepreneurial spirit in every employee. Everybody in Big Bazaar operates with speed and confidence when i decision making.

Use of Technology, Scenario-Planning & Story-Telling Big Bazaar planning and design used advance technologies like scenario-planning and story-telling. These techniques w used for store-design layout, store-location selection. The strategy to use user-focused, prototype-based development the brand adapt to the fast-changing external environment.

Design Management Design-led thinking helped Big Bazaar to achieve Bazaar strategy to focus on design led to creation of Idiom, an independent design and consultancy firm, based in Bangalore one of the few organizations in India having economists, ethnographers and sociologists working across various teams a Design Management team.

Basic Product Product aggregation and supplies Fresh Products Fruits Vegetables Non Veg Bakery Dairy & Frozen Products Staples Processed Food Beverages Personal Care Home Care

Foodland Associates Foodland Associates are independent retailers who source their products from us and avail of retail solution comprehensive or in part. They are classified into Bronze, Silver, Gold or Platinum Associates, depending upon the scale o and level of engagement.Needless to add, we offer our associates unique advantages exclusive promotions, consume Seminar on Logistics &Supply Chain Management, IASMS, BANGALORE, INDIA28 schemes, loyalty bonus etc. To become a Associate, all you need to do is to get in touch with our Sales Representatives to avail of the multiple benefits. MERGER OR JOINT VENTURE

Pantaloon Retail (India) disclosed a marginal decline in standalone net profit for the quarter ended March 2010. During th the profit of the company declined 5.47% to Rs 325.00 million from Rs 343.80 million in the same quarter previous year for the quarter declined 63.33% to Rs 6,021 million, while total income for the quarter fell 63.31% to Rs 6,031.30 mil compared with the prior year period. It posted earnings of Rs 1.58 a share during the quarter, registering 19.66% de previous year period. Issue of warrants

Pantaloon Retail (India) Ltd has approved issuance of 1,00,00,000 Warrants at a price of Rs. 400/- per Warrants aggrega 400,00,00,000/- to one of the Promoter Group entity with an option to the Warrant holders to acquire same number shares within a period of 18 months pursuant to provisions of Chapter VII of Securities & Exchange Board of India (issue o Disclosure Requirements) Regulations, 2009 relating to Preferential issues. JV with Uk based company

Pantaloon Retail has entered into a 50:50 joint venture (JV) with C & J Clark International, a company incorporated in U Single brand retailing of the `Clarks` branded footwear and allied products. The joint venture would also be engaged in business of Clarks branded products in India. The joint venture activities would be carried out by a separate joint venture company. With venture, Pantaloon Retail has taken a strategic business decision to enlarge its business activities and have a better footpri as well as wholesale of branded footwear and allied products in India. Merge of consumer business with itself

Retail major Pantaloon Retail (India) will merge the consumer durable business of its subsidiary with itself. The board has demerger of consumer durables and home improvement business from Home Solutions Retail (India). Following the demerger, the said units would be merged with Pantaloon Ret Further, the company would acquire the sports retail business from its wholly-owned subsidiary, Winner Sports. Company Profile

Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value an segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 16 million squ retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.The companys leading forma Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket cha the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara. The operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other formats, in over 70 cities across the country, co operational retail space of over 6 million square feet. As a focussed entity driving the growth of the group's value retai Future Value Retail Limited will continue to deliver more value to its customers, supply partners, stakeholders and co across the country and shape the growth of modern retail in India. CORPORATE SOCIAL RESPONSIBILITY

For long, we have resisted the temptation of setting up a corporate social responsibility department that has a select few e working with a defined budget and regularly speaks out on the good work that it does. The p rimary reason for th organization, we could never find a difference in the work we do every day and the good work that a responsible orga supposed to do. It has always been our belief that being an ethically, socially and environmentally responsible organiza best and the most efficient way to earn the trust and goodwill of millions of customers and stakeholders. As a sustainabl that nurtures its supply partners, which cares for its community, empowers its employees and strives to be a positive cha in society, we are confident that your company will be the one which retains the trust of society and builds a strong foun long-term, sustainable growth. Beginning this year, we implemented a 52-week calendar of events, to celebrate within Ce reflects every Indian festival, sporting, lifestyle and leisure events from around the world as well as social causes like En Day. There is little to distinguish 14-year old Mohammad Arafat Shaikh and 13-year old Bidal Shaikh from the rest of t Mumbais Nagpada area. Except that they have a passion for basketball and are part of the US-based National Associations (NBA) Basketball without Borders initiative. Supported by Spalding, the sports brand retailed and marketed Sports, the initiative uses basketball to influence positive social change and features current and former NBA players personnel working as camp coaches. WE ARE BEACON OF HOPE FOR THOSE IN ADVERSITY

In his native village, Sethu Raghunatha Pattinam situated 433 kilometers from Chennai, 23-year old M Veerappan could ha to do what the rest of the 300 villagers do farming and wood cutting. His father barely earned Rs 150 a day and with a m two sisters to care for, Veerappan chose to stand out. On completing his schooling, Veerappan earned himself a d electronics from a nearby institute in Karamathur. It also happens to be one of the centers Pantaloon Retail recruits fro Veerappan is an assistant maintenance officer at Pantaloons store in Chennai. Veerappan is among the thousands of e recruited by the company through rural recruitment drives in association with rural educational institutes, NGOs and go bodies. Initiatives like the Rural Employment Generation Mission, Government of Andhra Pradesh alone has helped us re than 500 people. The company has also been an active recruiter in the North East. It has also tied-up with Chennai-bas Career Creators which brings together young mothers and housewives willing to take up flexi-time and part-time jobs at These form part of our initiatives to act as positive change agents of society, and spread the benifits of modern retail in ar we do not have business operations. Those recruited through these channels form a loyal and committed work force, willin with the organization. As an organization, we firmly believe that talent is our biggest asset and to continuously identify, n train talented professionals, we have set up a specialized unit, Future Learning & Development. This has set up 3 equipped with the latest training tools and curriculum in Ahmedabad, Bangalore and Kolkata to train existing manpow new talent and also provide training solutions to other companies.We have also tied up with Indira Gandhi National Open (IGNOU) to offer retail industry focused certified courses through these campuses. The vision is to make more Indians e with a specific focus on socially and economically disadvantaged sections of the society. The company leverages it experience and approach to learning to bridge the skill gap and provide trained manpower to group companies as w industry. We continue to make a conscious effort as an employer to be as widely representative of the country as a who includes geography, religion, community, caste and socioeconomic class. Our goal is to provide quality training and emplo all those who might choose to work with us.

WE ARE EMPOWERING WOMEN ENTREPRENEURS AND PRODUCERS

We believe that it is our responsibility to engage more meaningfully with communities residing in and around many of our well as provide those without the means to improve their economic and social well being. Initiatives are today focused on platform and providing distribution and market outreach to womenled organizations engaged in producing food produc and handicrafts. These not only help us act as positive change agents for society, but also provide ethnic and traditiona that urban India so often craves for.An immensely successful initiative of this nature was Yatra, a joint effort between and Yashaswini, a self help group platform. The purpose was to encourage the efforts of underprivileged women trade establishing a channel for them to sell their produce in a profitable manner.Our interactions with several womens ne Maharashtra resulted in us establishing a connect with about 200 such groups from remote villages. More than 300 wo these groups were offered a chance to sell their produce during special promotions in front of Big Bazaar stores. The id serve our customers, in an authentic manner, the rich, diverse traditional cuisine of Maharashtra. These items were spec from each geographical region within the state. Spread over 4 days and with the assistance of volunteers from Yashaswini our own staff, Yatra turned out to an extremely popular event at all the Big Bazaar stores. Sales increased throughout the saw the women sellers take home at least as much as Rs.500 each on all 4 days. A sum total of 19 Big Bazaar stores, acros participated and shared the platform with at least 40 groups each time. An intresting outcome of this activity has also be products out of these Yatras were selected as winner products which are now being regularly stocked at Big Bazaar outle initiatives with self help groups and local indigenous communities have been initiated in the states of Assam, Karnataka, K Delhi and have met with very encouraging response from customers and the communities we serve In addition, almost Bazaar and Food Bazaar store now has a customer advisory board. These advisory boards are composed of well known pe or respected individuals who live in and around the stores. These customer advisory boards regularly meet to review and store managers and the staff on improving customer experience, product assortment and social initiatives.

FINANCIAL HIGHLIGHTS The operating results of the company for the year under review are as follows
PARTICULARS

2004-05

2003-04

6,645.41 1,333.33 5,312.08 3.20 1,453.77 3,855.11 3,808.13 7,663.23

3320.47 879.28 2441.19 7.46 455.87 1977.86 3424.99 5402.86

Profit before depreciation & tax Less: Depreciation Profit before tax Less: Earlier Year's Income Tax Less: Provision for tax Profit after tax Profit brought forward from previous year Surplus available for appropriation
APPROPRIATION

549.94 77.14 385.51 6,650.64

287.06 37.52 98.89 4979.38

Proposed Dividend Provision for dividend tax Transfer to general reserves Balance carried to Balance Sheet

BALANCE SHEET AS AT JUNE 30, 2010

Schedule As At June 30,2010 (` in Crores) SOURCES OF FUNDS : Shareholders Funds Share Capital Share Capital (Pending Allotment) Equity Warrants Reserves & Surplus Loan Funds Secured Loans Unsecured Loans Deferred Tax Liability APPLICATION OF FUNDS : Fixed Assets Gross Block Less : Depreciation Net Block Capital work-in-progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash & Bank Balances Loans & Advances Other Current Assets Less : Current Liabilities & Provisions Current Liabilities Provisions Net Current Assets 5 As At June 30,2009 (` in Crores)

1 19B (2) 19B 13(b) 2

41.23 64.66 122.88 2527.48 2756.25 1236.03 150.19 1386.22 72.43 4214.90 1417.04 294.89 1122.15 59.68 2002.91 1270.67 123.57 100.54 421.68 1.34 1917.80 863.42 24.22 887.64 1030.16 4214.90

38.06 22.88 2211.48 2272.42 2525.53 324.86 2850.39 116.10 5238.91 1876.45 307.69 1568.76 345.23 954.03 1787.84 177.25 109.34 1202.56 5.75 3282.74 891.39 20.46 911.85 2370.89 5238.91

3 4

6 7 8 9 10

11 12

SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS 19 The Schedules referred to above form an integral part of the Balance Sheet

As per our Report of even date attached For NGS & CO. Chartered Accountants

For and on behalf of Board of Directors

Shailesh Haribhakti Chairman Vijay Biyani Wholetime Director Dr. Darlie O. Koshy Director C. P. Toshniwal Chief Financial Ofcer

Kishore Biyani Managing Director Kailash Bhatia Wholetime Director S. Doreswamy Director Deepak Tanna Company Secretary

Rakesh Biyani Wholetime Director Gopikishan Biyani Director V. K. Chopra Director

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2010
Schedule INCOME Sales & Operating Income Other Income EXPENDITURE Cost of goods consumed & sold Personnel cost Operating & other expenses Finance Charges Depreciation 13 14 5934.37 84.63 6019.00 15 16 17 18 5 4062.53 279.58 1000.20 288.24 161.88 5792.43 Prot before taxes and exceptional item Less : Exceptional Item Prot Before Tax Less : Adjustment for earlier years Income Tax Less : Tax Expenses Prot After Tax Add : Balance brought forward Less : Dividend and dividend tax paid to Qualied Institutional Buyers Available for Appropriation Debenture Redemption Reserve Transfer to General Reserve Proposed Dividend Proposed Dividend on Preference Share Tax on Proposed Dividend Balance carried to Balance Sheet Earnings Per Share in ` (Face value ` 2) Basic & Diluted - Equity Basic & Diluted - Class B series 1 Refer Note No. 20 of schedule 19B SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS 19 The Schedules referred to above form an integral part of the Prot & Loss Account As per our Report of even date attached For NGS & CO. Chartered Accountants Shailesh Haribhakti Chairman Vijay Biyani Wholetime Director Dr. Darlie O. Koshy Director C. P. Toshniwal Chief Financial Ofcer Kishore Biyani Managing Director Kailash Bhatia Wholetime Director S. Doreswamy Director Deepak Tanna Company Secretary Rakesh Biyani Wholetime Director Gopikishan Biyani Director V. K. Chopra Director For and on behalf of Board of Directors 558.97 25.00 17.95 17.13 0.00 2.91 495.98 558.97 8.46 8.56 1.97 380.54 408.14 7.94 8.04 14.06 11.57 408.14 19B (16) 226.57 19B (2) 12.93 213.64 (3.17) 37.25 179.56 380.54 1.13 216.23 0.27 75.38 140.58 267.56 6341.70 6.06 6347.76 4429.95 274.26 969.05 318.22 140.05 6131.53 216.23 2009-10 (` in Crores) 2008-09 (` in Crores)

SCHEDULES TO BALANCE SHEET AS AT JUNE 30, 2010

As At June 30,2010 (` in Crores) SCHEDULE 1 : SHARE CAPITAL Authorised 25,00,00,000 Equity Shares of ` 2/- each. 70,00000 Preference Share of ` 100/- each 5,00,00,000 Class B Series 1 Shares of ` 2/- each Issued 19,02,25,121 (17,44,02,921) Equity Shares of ` 2/-each fully paid up 1,59,29,152 Class B Series 1 Shares as Bonus of ` 2/- each fully paid Subscribed & Paid Up 19,02,13,721 (17,43,91,521) Equity Shares of ` 2/- each fully paid 1,59,29,152 Class B Series 1 shares of ` 2/-each fully paid (of the above class B series 1 shares 1,59,29,152 shares allotted as fully paid up by way of capitalisation of share premium) SCHEDULE 2 : RESERVES & SURPLUS Capital Reserve Balance, at beginning of the year Transfer on forfeiture of equity warrants Share Premium Balance, at beginning of the year Add : Premium received during the year Less : Utilised for share issue expenses Less : Utilised for Bonus shares Issued Less : Utilised as per demerger scheme (Note No. 19(B)(2) ) Debenture Redemtpiton Reserve Balance, at beginning of the year Transfer From Prot & Loss Account General Reserve Balance, at beginning of the year Add : Transfer from Prot & Loss Account Prot and Loss Account SCHEDULE 3 : SECURED LOANS (1) Non Convertible Debentures (2) Term Loans From Banks a) Foreign Currency Loans b) Rupee Loans (3) Working Capital Loans From Banks a) Foreign Currency Loans b) Rupee Loan c) Commercial Paper (4) Hire Purchase SCHEDULE 4 : UNSECURED LOANS Long Term Loans from Banks Debenture application money Short Term Loans from Banks Public Deposits Inter Corporate Deposits As At June 30,2009 (` in Crores)

50.00 70.00 10.00 130.00 38.04 3.19 41.23 38.04 3.19 41.23

50.00 10.00 60.00 34.88 3.18 38.06 34.88 3.18 38.06

63.26 63.26 1,717.71 496.81 9.16 330.04 1,875.32 25.00 25.00 49.97 17.95 67.92 495.98 2,527.48 500.00 179.09 262.58 292.60 1.76 1,236.03 99.61 50.58 150.19

63.26 63.26 1,448.04 273.31 0.46 3.18 1,717.71

35.91 14.06 49.97 380.54 2,211.48 97.30 1,671.21 82.39 487.32 185.00 2.31 2,525.53 299.85 25.00 0.01 324.86

SCHEDULES TO BALANCE SHEET AS AT JUNE 30, 2010

Schedule 5 : FIXED ASSETS (` in Crores) GROSS BLOCK DEPRECIATION Up to Adjustment for 01/07/2009 the year* 0.14 32.00 8.93 6.19 106.10 101.82 38.65 2.11 11.75 307.69 170.59 33.68 69.60 28.83 0.58 11.66 174.68 2.95 3.17 4.54 2.42 2.31 56.98 43.30 21.44 0.34 6.34 161.88 140.05 22.62 28.73 0.02 Depreciatio n for the year 0.16 38.11 6.81 5.33 129.40 75.52 31.26 1.87 6.43 294.89 307.69 Up 30/06/201 to 0 Additions Adjustment* / 258.08 13.68 12.74 103.96 343.98 224.91 0.52 72.34 1030.21 521.74 14.05 1876.45 1489.62 1417.04 148.45 57.74 1.01 3.50 315.15 267.56 538.36 463.02 127.37 363.15 23.98 23.99 41.58 30.77 293.72 201.31 1.17 Deductions Adjustment* / NET BLOCK As at 30/06/2009 As 30/06/201 at 0 4.83 1.01 163.20 23.96 18.66 233.75 387.50 236.30 1.63 51.31 1122.15 1568.76 4.83 1.03 204.95 49.74 29.04 280.46 555.58 319.15 1.88 122.10 1568.76 1198.17

Particular s

As at 01/07/2009 As 30/06/201 at 0 4.83

Freehold Land

4.83

Leasehold Land

1.17

Building & leasehold improvements

236.95

Plant & Machinery

58.67

Ofce Equipments

35.23

Computers & Software

386.56

Furniture & Fittings

657.40

Electrical Installations

357.80

Vehicles

3.99

Air Conditioners

133.85

Total

1876.45

Previous Year

1368.76

* Refer note no ( 19B (2), 19B (3) & 19B (27))

SCHEDULES TO BALANCE SHEET AS AT JUNE 30, 2010

As At June 30,2010 (` in Crores) SCHEDULE 6 : INVESTMENTS LONG TERM INVESTMENT Non-Trade In Equity Shares - Quoted, Fully paid up of ` 10/- each unless otherwise stated Subsidiary Company 3,47,79,999 Equity Shares of Future Capital Holdings Limited Others 5,631 Equity shares of Andhra Bank Limited 49,37,935 Equity shares of Galaxy Entertainment Corporation Limited In Equity Shares - Unquoted, Fully paid up ` 10/- each unless otherwise stated Subsidiary Companies 5,100 Equity Shares of CIG Infrastructure Private Limited 3,51,00,000 Equity Shares of Future Agrovet Limited 1,91,60,000 Equity Shares of Futurebazaar India Limited NIL (1,40,00,000) Equity Shares of Future Brands Limited NIL (50,000) Equity Shares of Future Consumer Enterprises Limited NIL (50,000) Equity Shares of Future Consumer Products Limited 1,69,98,000 Equity Shares of Future E-Commerce Infrastructure Limited 4,46,97,790 Equity Shares of Future Knowledge Services Limited 2,82,65,550 Equity Shares of Future Learning and Development Limited 2,74,62,962 (2,45,00,000) Equity Shares of Future Supply Chain Solutions Limited (Formerly Known as Future Logistic Solutions Limited) NIL (50,000) Equity Shares of Future Mall Management Limited (Note No. 19B (3)) 21,06,062 Equity Shares of Future Media (India) Limited NIL (50,000) Equity Shares of Future Merchandising Limited 55,50,000 Equity Shares of Future Mobile and Accessories Limited 6,68,624 (2,01,51,095) Equity shares of Home Solutions Retail (India) Limited (Note No. 19B (2)) 6,64,99,912 (21,00,000) Equity Shares of Future Value Retail Limited (Formerly Known as Pantaloon Future Ventures Limited) 2,40,000 Equity Shares of Winners Sports Limited (Formerly Known as Winner Sports Private Limited) In Preference Shares - Unquoted, Fully paid up of `10/-each unless otherise stated Subsidiary Companies 7,60,000 0.01% Non-Cumulative Redeemable Preference Shares of Winners Sports Limited (Formerly Known as Winner Sports Private Limited) 0.76 0.76 0.01 35.10 19.16 17.00 44.70 28.26 64.50 11.38 5.55 3.61 978.50 27.38 0.01 35.10 19.16 14.00 0.05 0.05 17.00 44.70 28.26 24.50 0.05 11.38 0.05 5.55 165.35 28.50 27.38 0.05 19.03 0.05 19.03 59.53 59.53 As At June 30,2009 (` in Crores)

SCHEDULES TO BALANCE SHEET AS AT JUNE 30, 2010

As At June 30,2010 (` in Crores) In Equity Shares - Unquoted, Fully paid up of ` 10/-each unless otherwise stated Joint Venture Companies 22,03,500 Equity Shares of Apollo Design Apparel Parks Limited 1,00,00,000 Equity Shares of Future Axiom Telecom Limited 7,90,50,000 (5,61,00,000) Equity Shares of Future Generali India Insurance Company Limited 17,90,10,000 (12,94,67,500) Equity Shares of Future Generali India Life Insurance Company Limited 21,19,394(16,50,000) Equity Shares of Staples Future Ofce Products Private Limited 22,81,500 Equity Shares of Goldmohur Design and Apparel Park Limited NIL (25,62,000) Equity Shares of Gupta Infrastructure (India) Private Limited (Note No.19B (3)) 8,66,12,431 (5,08,34,473) Equity Shares of Sain Advisory Services Private Limited 3,81,70,000 (2,71,45,000) Equity Shares of Shendra Advisory Services Private Limited 1,00,000 Equity Shares of Talwalkars Pantaloon Fitness Private Limited of ` 100/- each Others Equity Shares - Unquoted, Fully paid up of ` 10/-each unless otherwise stated 48,281 Equity Shares of Foot-Mart Retail India Limited 20,000 (4,000) Equity Shares of Kalyan Janata Sahakari Bank Limited of ` 25/- each 35,78,278 Equity Shares of Pan India Food Solutions Private Limited 5,79,771 Equity Shares of Planet Retail Holdings Private Limited 5 Shares of Y.A. Chunawala Industrial Co-op Society Limited. (` 250) In Government and Other Securities - Unquoted National Saving Certicates (Deposited with Sales Tax Authorities) Share Application Money Pending Allotment 0.01 130.28 2,002.91 Aggregate Book Value Aggregate Market Value SCHEDULE 7 : INVENTORIES Packing Materials, Branding Material and Stores & Spares Raw Materials Semi nished goods Finished Goods (Including In-Transit) 21.12 4.59 5.33 1,239.63 1,270.67 22.31 12.31 4.81 1,748.41 1,787.84 - Quoted - Unquoted - Quoted 78.61 1,924.30 730.54 0.01 21.29 954.03 78.61 875.42 928.58 0.08 0.05 3.58 2.90 0.08 0.01 3.58 2.90 66.86 10.00 79.05 179.01 27.91 62.88 86.61 38.17 1.00 66.86 10.00 56.10 129.47 13.74 62.88 7.68 50.83 27.14 1.00 As At June 30,2009 (` in Crores)

SCHEDULES TO BALANCE SHEET AS AT JUNE 30, 2010

As At June 30,2010 (` in Crores) SCHEDULE 8 : SUNDRY DEBTORS (Unsecured) (a) Debts due for more than six months Considered Good Considered Doubtful Less : Provision for Doubtful Debts (b) Other Debts : Considered Good SCHEDULE 9 : CASH & BANK BALANCES Cash in Hand Balance with Scheduled Banks : - in Current Accounts (including in transit) - in Fixed Deposit Accounts (Including Margin Money Deposit of ` 5.89 Crores, 2009: ` 4.12 Crores) - in Unpaid Dividend Accounts SCHEDULE 10 : LOANS & ADVANCES (Unsecured & Considered good) Inter Corporate Deposits Advances Recoverable in cash or in kind for value to be received # Deposits Payments/Deductions of Income Tax ( Net of Provisions) SCHEDULE 11 : LIABILITIES Acceptances Sundry Creditors* Advances from Customer* Other Liabilities @ Interest accrued but not due Unpaid Dividend SCHEDULE 12 : PROVISIONS Proposed Dividend Dividend Tax Gratuity & Leave Encashment 17.13 2.91 4.18 24.22 # Includes ` 0.15 Crores (previous year ` 2.77 Crores) Receivable from Subsidiaries * Includes ` 36.63 Crores (previous year ` 180.67 Crores) Payables to Subsidiaries. @ Includes ` 0.62 Crores (previous year ` 4.15 Crores) Payable to Subsidiaries. 11.57 1.97 6.92 20.46 294.05 446.49 33.61 59.52 29.41 0.34 863.42 413.22 385.95 10.73 81.14 0.07 0.28 891.39 19.57 223.09 175.20 3.82 421.68 5.55 365.40 816.33 15.28 1,202.56 80.02 15.74 0.34 100.54 96.04 4.15 0.28 109.34 4.44 8.87 4.05 0.48 4.53 0.48 4.05 119.52 123.57 21.87 1.76 23.63 1.76 21.87 155.38 177.25 As At June 30,2009 (` in Crores)

SCHEDULES TO PROFIT & LOSS ACCOUNT FOR YEAR ENDED JUNE 30, 2010
2009-10 (` in Crores) SCHEDULE 13 : SALES & OPERATING INCOME Sales Less: VAT / Sales Tax 6088.36 382.29 5706.07 Other Operating Income 228.30 5934.37 SCHEDULE 14 : OTHER INCOME Dividend from Other Investments Prot on Sale of Investments Miscellaneous Income 1.81 75.10 7.72 84.63 SCHEDULE 15 : COST OF GOODS CONSUMED & SOLD Opening Stock Raw materials Semi nished goods Finished goods (Note No.19B (2)) 12.31 4.81 2024.03 2041.15 Add : Purchase Raw materials Finished goods 27.76 3243.17 3270.93 Less : Closing Stock Raw materials Semi nished goods Finished goods 4.59 5.33 1239.63 1249.55 4062.53 SCHEDULE 16 : PERSONNEL COST Salaries, Wages & Bonus Welfare expenses Contribution to Provident & Other Funds Gratuity and Leave Encashment 253.83 10.66 12.76 2.33 279.58 246.58 11.26 14.25 3.67 275.76 12.31 4.81 1748.41 1765.53 4429.95 44.01 4741.14 4785.15 10.22 6.94 1393.17 1410.33 0.15 0.20 5.71 6.06 6423.07 319.72 6103.35 238.35 6341.70 2008-09 (` in Crores)

SCHEDULES TO PROFIT & LOSS ACCOUNT FOR YEAR ENDED JUNE 30, 2010
2009-10 (` in Crores) SCHEDULE 17 : OPERATING & OTHER EXPENSES Labour Charges Packing Material Stores & Spares Branding Material Power & Fuel Repairs & Maintenance Building Plant & Machinery Others 0.29 1.12 14.47 2008-09 (` in Crores)

6
P A N T A L O O N R E T A I L ( I N D I A )

14.82 26.74 0.24 1.39 83.20

2.34 1.15 13.13 15.88 477.07 77.54 7.24 0.25 4.46 0.31 11.32

Rent including lease Rentals Mall Maintenance Charges Rates & Taxes Donation Insurance Auditors Remuneration Commission Advertisement & Marketing Directors Sitting Fees Directors Commission Loss on Sale/Discarded of Fixed Assets (Net) Provision for Doubtful Debts Other Expenses

L 149.52 I M 0.16 I T 0.60 E 8.38 D

121.08 1000.20

SCHEDULE 18 : FINANCE CHARGES Interest : On Debenture and Fixed Loans Others Discounting and Other Charges Exchange Fluctuation Loss 149.24 101.69 48.86 1.25 301.04 Less : Interest Income * On xed deposits Others 0.07 12.73 12.80 288.24 1.32 * Tax deducted at Source

SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 30TH JUNE 2010
A. 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The nancial statements are prepared under historical cost convention on accrual basis and in accordance with applicable accounting standards notied by the Government of India/issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956. 2. Use of Estimates The preparation of nancial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the nancial statements and the results of operations during the reporting period. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods. Difference between the actual results and estimates is recognised in the period in which the results are known/materialized. 3. Fixed Assets and Depreciation Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and all attributable cost of bringing the asset to its working condition for its intended use. Financing and other cost relating to acquisition of xed assets are also included to the extent they relate to the period till such time as the assets are ready for commercial operation. Depreciation is provided on Straight Line Method as per the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except Leasehold improvements which are amortised over the lease period and employee perquisite- related assets which are depreciated over three years. Intangible Assets are amortised over their useful life not exceeding ten years. 4. Investments Current investments are carried at lower of cost and fair value.Long-term investments are stated at cost. Provision for diminution is being made if necessary to recognise a decline, other than temporary in the value thereof. 5. Inventories Inventories are valued as follows : a) b) c) Stores, Spare parts, Packing material and Branding material Raw material & Stitching material Finished goods and Work in Progress : At Cost : At Cost : At the lower of cost or net realisable value

Cost of inventories comprises all costs of purchase and other costs incurred in bringing the inventories to their present condition and location. Cost is computed on weighted average basis. 6. Transaction in Foreign Currency Foreign currency transactions are recorded at the exchange rates prevailing at the date of the transaction. Monetary foreign currency assets and liabilities are translated into Indian rupees at the exchange rate prevailing at the balance sheet date. All exchange differences are dealt with in prot and loss account. 7. Revenue Recognition Revenue is recognised when it is earned and no signicant uncertainty exists as to its realization or collection. Sale of Goods is accounted on delivery to customers. Sales is net of returns, discounts and Value Added Tax/ Sales Tax. Export sales is accounted as revenue on the basis of Bill of Lading. Interest income is recognized on accrual basis. Dividend income is accounted for when the right to receive is established. 8. Retirement and other employee benets Short Term Employee Benets: Short Term employee benets are recognised as an expense at the undiscounted amount in the prot and loss account of the year in which the related service is rendered.

Post Employment Benets: Post employment and other long term employee benets are recognised as an expense in the Prot and Loss account for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determind using actuarial valuation techniques. Acturial gains and losses in respect of post employment and other long term benets are charged to Prot and Loss account. 9. Provision for current and deferred tax a. Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of Income tax Act, 1961. Deferred tax resulting from timing differences between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. b. Tax Expenses comprise of current tax and deferred tax.The provision for current income tax is the aggregate of the balance provision for 9 months ended March 31,2010 and the estimated provision based on the taxable prot of remaining 3 months upto June 30,2010,the actual tax liability, for which, will be determined on the basis of the results for the period April 1,2010 to March 31, 2011. 10. Provisions, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the nancial statements. 11. Impairment of Assets An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to Prot & Loss Account in the year in which the asset is impaired and the impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. For the purpose of assessing impairment, assets are grouped at the lowest level of cash generating units. 12. Leases Leases where signicant portion of risk and reward of ownership are retained by the lessor are classied as operating leases and lease rental thereon are charged to Prot and Loss account. B. 1. NOTES ON ACCOUNTS The previous years gures have been reworked, regrouped, rearranged and reclassied wherever necessary. Amounts and other disclosures for the preceeding year included as an integral part of the current year nancial statements and are to be read in relation to the amounts and other disclosures relating to the current year. Current year gures are not comparable with the previous year due to business restructuring. 2. Demerger of Business Undertaking of Home Solutions Retail (India) Limited into the Company (HSRIL Scheme) Pursuant to the Scheme of Arrangement approved by the Hon'ble High Court of Judicature at Bombay on August 24, 2010, entire assets and liabilities pertaining to business undertaking except Collection i of Home Solutions Retail (India) Limited (HSRIL), a 66.86% subsidiary of the Company, were transferred and stand vested in the Company as a going concern, effective from April 1, 2009 (Appointed Date).The Company has led the certied copy of the court order approving the HSRIL Scheme with the Registrar of Companies (ROC), Mumbai on August 27, 2010 as required under applicable provisions of the Companies Act, 1956. Accordingly, the said scheme became effective from the Appointed Date on August 27, 2010 (Effective Date). Salient features of the Scheme are as under: (a) (b) With effect from the 1st day of April, 2009 (Appointed Date), all the assets and liabilities of the demerged Business Undertaking of HSRIL shall be transferred and vested into the Company. In consideration of the HSRIL Scheme, the Company will issue : i. 59,28,818 Equity shares of face value ` 2/- each fully paid up aggregating to ` 1.19 Crores to the equity shareholders of HSRIL other than the Company; and

ii.

63,47,635 0.01% Compulsorily Convertible Preference Shares of face value of `100/- each fully paid up aggregating to ` 63.48 Crores to the equity shareholders of HSRIL other than the Company.

Pending issue of these Equity Shares and, Compulsorily Convertible Preference Shares a sum of ` 64.66 Crores has been shown as Share Capital pending allotment. Accounting (As per the approved scheme) a. b. c. d. e. The Company has recorded all the assets and liabilities, pertaining to the Business Undertaking of HSRIL, at the respective book values appearing in the books of HSRIL. Loans and advances and other dues outstanding between the Company and the Business Undertaking of HSRIL are cancelled. The difference of ` 64.06 Crores between shares to be issued by the Company pursuant to HSRIL Scheme and the net assets of the Business Undertaking acquired are adjusted in the Securities Premium Account of the Company. Company has revalued its investment in HSRIL at its fair values, and adjusted the difference between the book value of the investments and the fair value of the investments against Securities Premium Account. All costs, charges, taxes including duties, levies and all other expenses (including those of the HSRIL) arising out of, or incurred in carrying out and implementing HSRIL Scheme, aggregating to ` 2.00 Crores are adjusted in the Securities Premium Account in the books. f. 3. The results of the operation of Business Undertaking of HSRIL for the period April 1, 2009 to June 30, 2009 has been reected as exceptional item in the Prot and Loss Account. Demerger from the Company (FMML Scheme) Pursuant to the Scheme of Arrangement approved by the Hon'ble High Court of Judicature at Bombay on August 24, 2010, entire assets and liabilities of Mall Management Undertaking and Project Management Undertaking of the Company were transferred to Future Mall Management Limited (FMML), a wholly owned subsidiary (WOS) of the Company and Mall Asset Management Undertaking and Food Services Undertaking of the Company were transferred to Future Merchandising Limited (FML), a WOS of FMML, effective from April 1, 2010 (Appointed Date). The Company has led the certied copy of the court order approving the FMML Scheme with the Registrar of Companies (ROC), Mumbai on August 28, 2010 as required under applicable provisions of the Companies Act, 1956. Accordingly, the said scheme became effective from the Appointed Date on August 28, 2010 (Effective Date).

Salient features of the Scheme are as under:

(a) With effect from the 1st day of April, 2010 (Appointed Date), Mall Management Undertaking and Project Management Undertaking of the Company shall be transferred and vested into FMML and Mall Asset Management Undertaking and Food Services Undertaking of the Company shall be transferred and vested into FML. (b) In consideration of the demerger of the said undertakings to FMML and FML, FMML will issue shares to the shareholders of the Company in following ratio: (i) (ii) 1 fully paid Equity Share of ` 10/- each of FMML shall be issued and allotted for every 20 Equity Shares of ` 2/- each held in the Company. 1 fully paid Equity Share of ` 10/- each of FMML shall be issued and allotted for every 20 Class B (Series 1) shares of ` 2/- each held in the Company. (iii) 1 fully paid up Equity Share of ` 10/- each of FMML shall be issued and allotted for every 20 compulsory convertible preference shares of ` 100/- each held in Company. Fractional shares entitlement would be consolidated in the hands of one person nominated by FMML Board and Equity shares will be issued and allotted to such person to be sold by him after listing. The sale proceeds of these shares will be proportionately distributed to shareholders who were entitled to such fractional shares. Accounting (As per the approved scheme) a. The book values of the assets and liabilities pertaining to the Mall Management Undertaking and Project Management Undertaking transferred by the Company to FMML and Mall Asset Management Undertaking and Food Services Undertaking transferred by the Company to FML are reduced from the book values of the assets and liabilities appearing in the books of the Company.

THE YEAR IN RETROSPECT

NEW RETAIL CONCEPTS
Fashion Station Fashion ka big bazaar The company during the year launched Fashion Station a new format in Value Retailing. It deals with fashion categories of Big Bazaar & some private lables of Pantaloons. It stocks private labels apparel of Big Bazaar stores and other private label of fashion merchandise will be developed over a period of time. First store of this kind was opened in Mulund, Mumbai. The store is positioned between Big Bazaar & Pantaloons that caters to the 'Youth' wanting affordable fashion. The store will be developed as smaller big bazaar for fashion merchandise. The store is a higher store margin than Big Bazaar and will be competing with other departmental stores in fashion merchandise. The company has aggressive roll out plan for Fashion Station. Liberty Shoes Limited for setting up a chain of stores for retailing of footwear and other accessories. The proposed Joint Venture will combine the retail expertise of the company and design sourcing and merchandising expertise of Liberty Shoes Limited. This will provide a focused attention to footwear category, which commands a sizeable portion of the consumer spending. The company will hold 51% and Liberty will hold 49% stake in the new company.
TIE UP WITH EDUCATIONAL INSTITUTIONS FOR CREATING STRONG MANAGEMENT BANDWIDTH FOR THE FUTURE

STRATEGIC INVESTMENT
PLANET SPORTS PRIVATE LIMITED

Pantaloon, formed up a strategic Joint Venture Agreement (JVA) with the renowned speciality retailer Planet Sports during the year. The company has subscribed to 49 per cent equity in Planet Sports Private Ltd. Supreme Tradelinks Private Limited a wholly owned subsidiary of Planet Sports Private Limited is the sole franchisee of the prestigious UK-based retailer : Marks and Spencer in India. It also has the exclusive distribution / licensing rights for well-known brands including Wilson, Puma, Speedo, Converse, Guess & Planet Sports, among others.
GALAXY ENTERTAINMENT CORPORATION LIMITED

Retail is still in a nascent stage in the country and professionals with expertise in this field are few. With a view to creating a strong management base, the company has tied up with some renowned educational institutions like Somaiya Institute of Management Studies & Research & Welingkar Institute of Management Development & Research. Under an exclusive tie up with PRIL, these institutions admit using stringent admission procedures candidates from all across the country. These candidates are then exposed to quality academic inputs from the institutions and practical on the job experience from PRIL. At the end of the duration of the course all candidates are expected to be absorbed by the company. The first such batch of 35 students will be inducted into PRIL management ranks during the course of this financial year. In the coming years, the number of students coming through these courses is expected to increase significantly.

ISSUE OF PREFERENTIAL EQUITY DURING THE YEAR

Your Company had made a preferential allotment of 9,53,335 equity shares of 10/- each at premium of Rs. 102 /- per share on 26th October 2004 to promoters and associates on conversion of first tranche of 10% 2,13,547 unsecured fully convertible debentures of Rs. 1000/- each issued on 11th November 2003. Company had made a preferential allotment of 9,53,653 equity shares of Rs. 10/- each at a premium of Rs. 724.02 per share to Bennett, Coleman & Company Limited on 11th February 2005. The second tranche of conversion of unsecured fully convertible debentures into 9,53,335 equity shares of Rs. 10/- each at a premium of Rs. 102/- per share to promoters and associates was made on 15th April 2005.

PRIL has taken 15.73 % stake in Galaxy Entertainment Limited through preferential allotment. Post subscription, Pantaloon is likely to come out with a mandatory 20 per cent open offer to the shareholders of Galaxy Entertainment Limited. The draft offer letter is pending before SEBI for their approval as on the date. Galaxy owns and operates Sports Bar, Bowling Co. and Rain Restaurant in Mumbai. Growth in entertainment, food & beverages, leisure business will be facilitated by the strong presence and availability of prime space that Pantaloon has in malls across the country. Galaxy Entertainment Corporation Limited will also gain from the management bandwidth that Pantaloon has.
FOOTWEAR JOINT VENTURE

RIGHTS ISSUE
The Board of Directors in their meeting held on August 24, 2005 approved rights issue of one equity share for every five shares held by shareholders in the company at price of Rs.500/- per share. A total of Rs. 224.05 crores will be mobilized through the issue will be utilized for the expansion p l a n s o f t h e C o m p a n y .

The company is proposed to enter into Joint Venture with

RECOMMENDATION OR SUGGESTION Big Bazaar should increase its aisle area for more convenient shopping to itscustomers to compete with Vishal Mega Mart. It should improve its ambience as its closest competitors are having edge over it onthis parameter. Big Bazaar should have more of cash counters so that people does not have to standin long queue in order to get billing. Vishal Mega Mart should work on its advertising, though it is known for its creativeadvertising but the message should reach to each of the target customer so should use more rigorous use of all types of media. It should change its Tagline which gives the same message but is still easilydistinguishable, as most of its competitors are having almost similar tag lines that creates jargon for customer. It can convert shopping in to a great experience by playing some good music.Big Bazaar has to improve its quality of products especially in apparels. Limitations Time was the major constraint, which prevented me to put in more effort.Some people left few questions unanswered.Some of the respondents were not ready to fill the questionnaire. Not all the respondents were cooperative thus it was difficult to convince them for filling up the questionnaire. Some of the respondents might have got biased while filling up the questionnaire.We made my best efforts in conducting the research but might have lacked somewhere because of lack of expertise in conducting such survey based researches.

BIBLIOGRAPHY

http://www.media4exchange.com/ http://www.wark.com/ http://www.ibef.org/ http://www.economicstimes.com/ http://www.bigbazaar.com/ http://www.etretailbiz.com/ http://www.magportal.com/ http://www.retailindustry.about.com/ http://www.adpunch.com/ http://www.hindubusinessline.com/ http://www.scribd.com/ http://www.moneydoccontrol.com/
BOOKS REFERED

Belch. E. George and Belch. A. Michael, Advertising and Promotion Sixth Edition, Tata Mcgraw Hill. Kotler Philip, Marketing management Eleventh Edition, Pearson Education. Beri G.C.,Marketing Research Third Edition, Tata Mcgraw Hill.

SHAILESH HARIBHAKTI