2 Existing Size of the business and what propels growth in the sector.

(Size analysis has to be detailed wrt to formats and segments food and beverage, grocery, apparels, consumer durables, pharmaceuticals, books, etc) ? Indian retail is one of the pillar of the Indian economy and accounts for 14 to 15 percent of the Indian GDP. Indian retail market is one of the top five retail market in the world . Indian retail market is estimated to be around $450 billion. Organized retailing is 2% of the total retail industry. Food and Grocery- The food and grocery retail business in India is largely organized. The all india consumption in India is close to $9000 billion, with total urban consumption $3300 billion this constitute only 30to 40 percent of total consumption of India. Most food is sold by vendors, roadside, or tiny kirana shop. Indias household spending on food consumption is highest in the world with 48% of income is spend on food and grocery. Apparels- The Indian apparel retail market is growing at 40 to 50 percent annually. As the indian market is teaming up with international brands and with new entrant entering the market creating a 5 billion market for this segment. Companies like shoppers stop, pantaloons are enticing the middle class. Mesn apparel market is 46% of the total apparel market in india. Woman apparel market in india is only 17% of the total market in India and kids apparel market is 37% of the total apparel market in India. Pharmaceutical- pharma industry is estimated at 300 billion and India have around 51 lakh retail stores out of which 15% are chemist. It is highly fragmented with 97% of the market is controlled by unorganised players. Number of pharmacies is more in India from

U.S, China, Europe and combined market share is less than percentage of the combined market. The rural marketing account for only 10 percent of the sales. The pharma retailer get 20% margin. It is growing at a size of 15% per annum. Organised retail industry of pharma is growing in India is growing at 40% as against retail industry growing at 9%. In developed market unorganised sector compromises almost 60% of the stores in India. The 24,000 crore pharma retail market increasingly focuses on healthcare rather than sickcare. Consumer durable It can be classified into consumer electronicsT.V. Audio systems, Video players and consumer appliancesWashing machine, Air conditioner, Micro oven. The consumer durable market is us $ 4.5 billion with organized retailing consisting only 5 percent. The increase in Indian consumer durable goods in india is because of increase in disposable income of the families. Pantaloon is looking forward for starting its own consumer durable store. It is quite a challenge to maintain the consumer durables retail market in India because of the unprecedented challenges that are attached with it. The sector has witnessed a growth in recent years because of real state and increase in housing demand. For Success in the long the company required to developed a wide distribution network. The Indian retail industry is growing because ofFavourable demographics Rising consumer income Emergence of new shopping malls Increasing middle class people with increase in purchasing power Changes in the taste of attitude of Indians

Effect of globalization 1 Formats of organised retail chains - challenges and advantages of each, financial analysis of each format (what are the different costs and the proportion of the costs to total revenue)?
Gems and jewelleryChallenges- Stiff competiton from china Threats of losing the business of polishing diamonds to african countries As there are many jewellers in India and all jewellers wan to increase sales, so there is Competiton in India in gems and Jewellery sector. Advantages in indiaGems and jewellery hub Rich tradition and heritage of craftmanship with high level of skills Low production cost Manufacturing Excellence Effective distribution network Foot wearChallenges- Entry of multinationals Stiff competion from china, vietnam and Brazil because their product is more Competitive

Food and groceryChallenges- Supply chain for this sector is not up to the mark Always crunch of man-power Availability of space a serious problem Numerous legislation which one to grapple with AdvantagesLow labour cost Skilled working professionals Increasing government incentives