“SUCCESS OF PANTALOONS RETAIL

INDIA LIMITED
– INDIAN WAL-MART”

SUBMITTED TO:

SUBMITTED BY
JAGJOT SINGH
ENROLLMENT NO.
 ABSTRACT

The thesis is focused on finding out the concept of value retailing followed by the
Pantaloons Retail India Limited in India and to do an empirical study and analysis on one
of its business lines “The Food Bazaar”. The aim was also to find out that how the
concept of private labeling has proved to be beneficial for the growth of the organization.
The research was conducted to find out the ways and methods that the company has been
following in the business of organized retailing including the hypermarket concept. The
research was conducted in NCR region (Noida & Gurgaon) with the sample size of
around 300 customers and primary information was collected from them in the form of
questionnaire. Also the financial statements of past four years were analyzed to find out
the financial performance of the company. After doing the brief analysis about each of
the verticals of the Pantaloons Retail India Limited, an in-depth research was conducted
on its food bazaar business line in order to find out that from where the modern consumer
prefers to shop from and what ratio of his income is he willing to spend on various food
items. The objective was to figure out that what are the various parameters that a shopper
takes into account before he buys a particular item and how comfortable is he when he is
buying from malls rather than the from the local kirana shops. The study was also done
on consumer’s perception on the concept of “brand + bargain” and the analysis about the
same has been mentioned at the end.

ii
 Thesis Synopsis

1) Title of the proposed thesis: success of Pantaloons retail India limited-the

Indian wal-mart.

2) Objective of the thesis:

 To understand the concept of value retailing followed by pantaloons retail

India limited in India.
 To understand the concept of lifestyle retailing by the company.
 To understand the management of the company, its expansion plans, growth
strategies, challenges and competitive strength and a complete analysis of its
business model.
 To understand the concept of hypermarket and power of private labels by
the company.
 To do the empirical study on food bazaars

3) Research design :

 Research – Descriptive

 Data source – Primary Data

 Research Approach – Survey Method

 Research Instrument – Questionnaire

 Questionnaire type – Structured non-disguised

 Type of questions – Both Close-ended & Open-ended

 Sampling Unit – Individual

iii
 Sampling Frame – NCR

 Sampling Procedure – Simple Random sampling to select 5 stores and

convenience for select customer/shoppers.

 Sample size – 300 customers approx

4) Scope of the thesis :the scope of the thesis is as follows:-

 Complete information about Indian retail industry

 The company background- pantaloon retail India
 In-depth analysis about ‘Brand + Bargain shopping’
 Empirical study on food bazaar o consumer perception research methodologies
 Analysis
 Suggestions and recommendations
 conclusion

iv
 ACKNOWLEDGEMENTS

I would like to extend my heartfelt gratitude to all those who have contributed towards the
successful completion of my thesis. Foremost among them is Mr. Bharat Khera for his
helpful and generously extended support and by sparing his valuable time to guide and
suggest us towards completion of this project.
I do owe a deep sense of gratitude to all the members of Pantaloons Retail India and
all those who stood with me and for their continuous support and co-operation during the
thesis. They too have contributed in no mean amount towards the success of my endeavors. I
also thank the Director and the faculty of my institute for giving me an opportunity to do the
thesis.

v
 Table of Contents
Page No.

Abstract
Synopsis
Acknowledgements

1. Indian Retail Industry 1

1.1 Some Key Facts 2
1.2 International retailers 2
1.3 Retail Omnibus 3
2. Company background 5
2.1 Major Milestones 6
2.2 Management of the Company 10
2.3 Expansion Plans 10
2.4 Challenges 10
3. Pantaloon Competitive Strengths 12
4. Pantaloon strategy 15
5. Characteristics of Select Retail Formats 16
6. Business Analysis of Pantaloon Model 19
7. Major verticals 23
7.1 Pantaloons 23
7.2 Big Bazaar 24
7.3 Food Bazaar 26
7.4 Fashion Station 27
8. Brand factory 28
8.1GINI & JONY FREE WORLD 29
8.2 BLUE SKY 29
9. Data Analysis 30
9.1 Big Bazaar Revenue Mix 30
9.2 Pantaloon Revenue Mix 30
9.3 Value Revenue Mix 31
9.4 Lifestyle Revenue Mix 31
9.5 Revenue Mix 32
9.6 Retail Space Mix 32
9.7 Performance of various formats on 31.12.2006 33
9.8 Pillars Going Forward For 2010 33
10. Bottlenecks and Challenges with Indian Retailers 34
11. Performance of Pantaloon Retail 36
11.1 Point of sale 36
11.2 Sourcing of merchandise 36
11.3 Selling of Merchandise 36
11.4 Higher Inventory turns 36
12. Key risks 37
13. The power of private labels by Pantaloons 39

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14. Detailed Financials 41
14.1 Income Statement 41
14.2 Balance Sheet 42
15. TABLES 44
15.1 Table No.1 44
15.2 Table No.2 46
15.3Table No.3 46
16. Empirical Studies on Food Bazar 48
16.1 Research methodology 48
17. Analysis 50
17.1Choice of retail store for grocery shopping 50
17.2 Expenditure on various food items 50
18. List of references 51
19. Appendice 52
19.1Questionnaire 52

vii
 1

SUCCESS OF PANTALOONS RETAIL INDIA LIMITED

– INDIAN WAL-MART –

1. Indian Retail Industry: Strategies, Trends and

Opportunities 2007
Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP
and around eight per cent of the employment. Retail industry in India is at the crossroads.
It has emerged as one of the most dynamic and fast paced industries with several players
entering the market. But because of the heavy initial investments required, break even is
difficult to achieve and many of these players have not tasted success so far. However,
the future is promising; the market is growing, government policies are becoming more
favorable and emerging technologies are facilitating operations.
Retailing in India is gradually inching its way toward becoming the next boom industry.
The whole concept of shopping has altered in terms of format and consumer buying
behavior, ushering in a revolution in shopping in India. Modern retail has entered
India as seen in sprawling shopping centers, multi-storeyed malls and huge
complexes offer shopping, entertainment and food all under one roof. The Indian
retailing sector is at an inflexion point where the growth of organized retailing and
growth in the consumption by the Indian population is going to take a higher growth
trajectory. The Indian population is witnessing a significant change in its
demographics. A large young working population with median age of 24 years,
nuclear families in urban areas, along with increasing workingwomen population and
emerging opportunities in the services sector are going to be the key growth drivers
of the organized retail sector in India.
 2

1.1 Some Key Facts

- Retail is India’s largest industry, accounting for over 10 per cent of the country’s
GDP and around eight per cent of the employment.
- The market size of Indian retail industry is about US $312 billion
- Organized retailing comprises only 4.5 per cent of the total retailing market and is
estimated at around US$ 8.7 billion
- The organized retail sector is expected to grow to US $ 70 billion by 2010

1.2 International retailers

India's vast middle class with its expanding purchasing power and its almost untapped
retail industry are key attractions for global retail giants wanting to enter newer markets.

• The Australian government's National Food Industry Strategy and Astride

initiated a test marketing food retail in India wherein 12 major Australian food
producers have tied up with India-based distributor AB Mauri to sell their
products directly at retail outlets.
• US-based home delivery and logistics company, Specialized Transportation Inc,
will enter the Indian market through a strategic alliance with Patel Retail, a
subsidiary of Patel Integrated Logistics.
• Wal-Mart has announced its plans for India in partnership with Bharti,
• US coffee chain Starbucks’ is well on its way to set up its first store in India this
year.
• US based Tommy Hilfiger has tied up with Creative Portico, a Mumbai based
home textiles company, to sell its home textiles and furnishings in India.
• Alfred Dunhill, a UK-based luxury men’s brand, has tied up with Brand house
Retail Ltd. for its India venture and will be opening four stores in the country.
• The world’s largest furniture retailer, Ikea, has established an office in Gurgaon
for market research and is holding talks with domestic companies to open stores
in India.
 3

Some of the international players that have already entered India include McDonald's,
Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony, Sharp,
Kodak, and Medicine Shoppe among others.

1.3 Retail Omnibus: Four Reports on the Retail Scene in India

The Omnibus edition of Pantaloon retail papers spans this very happening sector, which
not only brings so much joy to the inveterate shoppers in terms of retail therapy, but also
employment and livelihood to tens of thousands of Indians.

India’s GDP growth rate is a healthy 9% for 2005-06 – and this has had its ripple effect
on all industries – more so the Retail sector, of which only 3% organized until now.

• The Indian retail industry accounts for 10% of GDP and 8% of employment.
• India is being touted as the next big retail destination with an average three year
compounded annual growth rate of 46.64%.
• The Indian economy is poised to take the third position in the world in terms of
Purchasing Power Parity by the year 2010.
• The Indian Retail Market is a Rs. 1,200,000 million market as per the Images
India Retail Report 2007.
• Organized Retail market is zooming ahead with an annual growth rate of 30%.

The Retail sector is vibrant with growth happening in all related areas – be they malls,
hypermarkets or single brand luxury stores, they have dotted the commercial landscape of
the metros, and have even percolated to the Tier II and Tier III cities.

Malls are fast becoming sought-after entertainment hotspots. From a situation where
there were no malls about a decade ago, the country will have over 300 malls translating
to over 100 million sq.ft. in available mall space by the end of 2007.
 4

Food and Grocery retail holds the most potential, as almost 99% of it is unorganized. A
number of big players are entering the field of organized food retail like Reliance, Aditya
Birla Group and the Bharti Group, which has tied up with the world’s largest retailer –
Wal-Mart. All these major players are expected to show an annual growth rate of 25 –
30%.

The Retail boom has also led to the opening of a large number of single brand outlets
across the country. With big brands and bigger outlets across all segments, from Apparel
and Footwear, Watches, Books and Stationary to Jewelry and Consumer Durables, the
sweep is indeed broad.

The Retail Sector is definitely witnessing a growth phase and everyone wants to make
their presence felt in order to take their share of this huge pie. Take a gourmet trip – dig
in to sample the depth and breadth of this amazing sector.

Types of Retail verticals operating in India

• Food and Beverage
• Health and Beauty
• Clothing and Footwear
• Home Furniture and Household Goods
• Consumer Durable Goods
• Leisure and Personal Goods
 5

2. Company Background – Pantaloon Retail India

Founded in 1987, by Mr. Kishore Biyani, Pantaloon Retail in India’s leading Retail
Company. It is the flagship company of the future group. Starting its 1st outlet in 1997,
Pantaloons in Kolkata, it currently has over 4 mm sq. ft. of area under business. The
company operates under multiple formats – hypermarket, apparel stores, specialty stores
under various brands including Big Bazaar, Pantaloon, Food Bazaar, Collection, E Zone,
etc. The company also operates an online portal, futurebazaar.com.
Pantaloon Retail (India) Limited is today recognized as one of the pioneers in the
business of organized retailing in the country with a turnover of over Rs.2,884.43
millions for fiscal 2006, as opposed to a turnover of Rs.1,463.12 million for fiscal 2005
and Rs.881.04 million for fiscal 2004. During the same period Pantaloon profit after tax
was Rs.124.75 million, Rs.30.20 million and Rs.3.82 million, respectively. As a result,
Pantaloon sales increased between fiscal 2004 and fiscal 2006 at a CAGR of 80.94% and
Pantaloon profit after tax increased between fiscal 2004 and fiscal 2006 at a CAGR of
471.44%.

Pantaloon Retail is one of the leading retail houses in India. As of November 15, 2006,
Group/Company operated 46 retail stores, including three stores which are operated by
Pantaloon franchises. These 46 stores are spread over about 1,113,000 square feet and are
located in 17 states across India. In efforts to strengthen Pantaloon supply chain,
Group/Company has set up seven regional distribution centers and an apparel
manufacturing plant.

The company is headquartered in Mumbai with zonal offices at Kolkata, Bangalore, and
Gurgaon (Delhi). It has 4 kinds of stores; Pantaloon stores, Central Malls, ALL Stores,
Fashion Stations and Mela Store. In the Value segment, Group/Company cater to the
masses through Pantaloon Big Bazaar, Food Bazaar outlets and Gold Bazaar Stores with
over 6.5 lakh sq. ft. retail space across Kolkata, Mumbai, Thane, Pune, Hyderabad,
Bangalore, Nagpur, Ahmedabad, Kanpur, Chennai and Gurgaon (Delhi).
 6

Subsequently, with evolution of retail industry in India and change in consumer

aspirations, Group/Company diversified Pantaloon portfolio of offerings to include other
retail goods. Currently, Group/Company sell readymade apparels and a wide range of
household merchandise and other consumer goods such as footwear, toys, watches,
toiletries, grocery items, sports items, crockery, gift and novelties.

It began its retailing operations in India way back in 1987. Currently, it manufactures and
sells ready-made garments through its own retail outlets and two discounting stores.
Group follows the concept of value retail in India. In other words, Pantaloon business
approach is to sell quality goods at reasonable prices by either manufacturing ourselves
or directly procuring from manufacturers (primarily from small and medium size vendors
and manufacturer). Group/Company endeavor to facilitate one-stop-shop convenience for
Pantaloon customers and to cater to the needs of the entire family. Group/Company
believes this concept as helped us grow to Pantaloon current size within a short time
frame of four years.

2.1 Major Milestones

1987: Company incorporated as Manz Wear Private Limited. Launch of Pantaloons

trouser, India’s first formal trouser brand.
1991: Launch of BARE, the Indian jeans brand.
1992: Initial public offer (IPO) was made in the month of May.
1994: The Pantaloon Shoppe – exclusive menswear store in franchisee format launched
across the nation. The company starts the distribution of branded garments through multi-
brand retail outlets across the nation.
1995: John Miller – Formal shirt brand launched.
1997: Pantaloons – India’s family store launched in Kolkata.
2001: Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain
launched.
2002: Food Bazaar, the supermarket chain is launched.
 7

2004: Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - India’s first seamless
mall is launched in Bangalore.
2005: Fashion Station - the popular fashion chain is launched
ALL – ‘a little larger’ - exclusive stores for plus-size individuals is launched
2006: Future Capital Holdings, the company’s financial arm launches real estate funds
Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and
consumer credit.

In order to reduce costs and take advantage of economies of scale Company have
embarked on backward integration of Pantaloon products.

The company plans to diversify into the business of discounting in a big way, which is
targeted at the growing middle class segment. It has India’s second largest retail chain
with 46 retail outlets and two discounting stores branded as Big Bazaars across the
country at an estimated retail space of 4,01,300 sq. ft. The company plans to double its
retail space in the next couple of years.

Pantaloon has come up with an excellent revenue model, focusing on ‘value for money’
segment. Pantaloon plans to target the upper middle and the middle class segment, which
forms the large chunk of Indian population. This segment is very price conscious and
always looks out for value for money. Pantaloon has already opened two discount stores
at Hyderabad and Calcutta. It also plans to sell household items through its discount
stores along with apparels. Since the company has got strong brands like John Miller and
Pantaloon, coupling it with the discount store model would boost the sales to the larger
population.

Pantaloon successfully launched its discount store chain (branded as Big Bazaar), which
targets the large and growing upper-middle and middle class of Indian society. This is
totally in contrast to the other organized retail players, which focus on high net-worth of
individuals. Pantaloon has the second largest selling space amongst the retailers. Big
 8

Bazaar offers products and services such as a chemist, a photography shop, a bakery,
financial products, automobile accessories, bicycles, and electrical hardware among other
items – the range is vast and fulfils practically every need of the consumer under one
roof. This is backed by complete automation of the retail outlets. After completion of the
central hub at Mumbai the company’s operations would be fully integrated which would
give its operating efficiency a boost?

Big Bazaar has strong own brand names in its portfolio across product categories. The
brands include Pantaloon, John Miller, and Bare. Higher percentage of ‘own brand’ sales
improves margins, thus reducing the break-even level of sales. Big Bazaar has
diversified from apparels to household items in its discount stores. This has enabled
them to enlarge their basket of offerings.

Pantaloon Retail is one of India’s major retailers with presence in following two
segments:

Lifestyle Retailing – Pantaloons, Central, Fashion Station, aLL, MeLa

Value Retailing – Big Bazaar, Food Bazaar.
 9

Pantaloon Retail operations can be summarized in this following diagram

Pantaloon
Retail (India)
Ltd.

Lifestyle Value Entertainment,

Retailing Retailing Leisure and
sports

Pantaloons Central Fashion aLL MeLa

Station

Big Food
Bazaar Bazaar
 10

2.2 Management of the Company

Pantaloon Retail over a period of time has built a strong management team to drive the
company for its high growth phase. Though, Mr. Kishore Biyani is the face of Pantaloon,
the company is not a one man show and has built a strong second and third line of
management, to fulfill its massive expansion and growth plans. Though there have been
concerns regarding lack of talent in the growing retail sector, the company has the best
talent in place to drive each business category.

2.3 Expansion Plans

The concept of discount store resembles the Wal-Mart strategy. In India and especially in
metro cities like Mumbai, Bangalore, Calcutta and Hyderabad, where the population is
dense and consists of a high middle-class population, the concept of discount stores is
graining a lot of acceptance. The company plans to expand rapidly. The next year it plans
to open more stores in Mumbai and Delhi at critical locations.

It has planned to open three Big Bazaars (discount stores) in ‘A-class cities’ like
Bangalore. Pantaloon has already bagged substantial retail space in Hyderabad (60,000
sq. ft.), Kolkata (35,000 sq. ft.) and Bangalore (40,000 sq. ft.). In Mumbai it acquired
50,000 sq. ft. area at each of its locations at Lower Parel, Mulund and the western
suburbs.

2.4 Challenges

The key challenges facing the company are as follows:

 Fund raising – The Company acknowledges that expansion plans of the company
cannot be met from internal resources. This means that the company has to tap external
sources to fund expansion. The company has recently allotted shares to promoters at
SEBI formula price. It plans to borrow heavily to fund its expansion plans. As a
 11

consequence of increased interest payment and depreciation expense, the net profit
margins would remain flat.

 Competition – Although there are a few stores operating in this segment such as
Giant in Hyderabad, it is mostly international chains such as Wal-Mart and Carrefour that
are the better known names as discount stores worldwide. Meanwhile, the general
retailers in Mumbai are not too pleased about the concept of discount stores.
“Group/Company can’t figure out from where such stores get their margins. It must have
a feasible revenue model to sustain the venture”.

The company is facing limited competition from the organized retailers but strong
competition exists from the downtown center’s unorganized.
 12

3. Pantaloon Competitive Strengths

It is believed that the following are Pantaloon principal competitive strengths which have
contributed to Pantaloon current position in the retail sector in India:

1. Strong understanding of the ‘value retail’ segment: Pantaloon business

plan involves implementation of the concept of the ‘value retailing’, targeting the
middle and lower middle income groups, which constitute majority of the
population in India. Group/Company intends to provide quality products at
competitive prices. Group/Company sells a vast range of merchandise across
apparels and accessories, FMCG products, food products and consumer durables
with over 63,000 SKUs. Pantaloon emphasis has been to maximize the value that
the customers derive in spending on goods bought in Pantaloon stores.
Group/Company endeavor to continuously reduce Pantaloon costs through a
variety of measures, such as, in-house production of apparels, procurement of
goods directly from the small and medium size vendors and manufacturers,
efficient logistics and distribution systems along with customized product mix at
Pantaloon stores depending on the regional customer behavior and preferences.
Central to Pantaloon value retail strategy is to pass on the benefits of cot reduction
measures to Pantaloon customers.

2. Strong and efficient supply chain management: Pantaloon supply chain

management involves planning, merchandizing sourcing, standardization, vendor
management, production, logistics, quality control, ‘pilferage’ control
replacement and replenishment. Pantaloon supply chain management provides us
flexibility to adapt to changing patterns in consumer behavior and Pantaloon
ability to add value at various steps/levels. In particular, Pantaloon supply chain
management gains strength from Pantaloon ability to undertake in-house
manufacture, design and development of apparels.
 13

3. Strong and efficient logistics and distribution network: Pantaloon

distribution and logistics network comprises seven distribution centers. Besides,
Group/Company have Pantaloon own fleet of 31 trucks, which helps us to
transport and deliver Pantaloon products in a cost and time efficient manner.
Group/Company believe that Pantaloon distribution and logistics set up is well
networked and allows us to fulfill the store requisition within short time period of
generation and receipt of order, which has helped us to optimize in-store
availability of merchandise and minimize transportation costs. Pantaloon strong
distribution and logistics network has enabled us to dispense with the requirement
of a dedicated storage space at every store, which is an industry practice, and
instead undertake periodical replenishment of depleted stock. Due to adoption of
an efficient racking system, Group/Company are able to benefit from optimum
utilization of the space allocated for display in Pantaloon stores. This provides us
assistance in maintaining a low working capital requirement and less carrying
cost.

4. Group/Company is in a position to leverage Pantaloon geographical

spread: Pantaloon stores and distribution centers are spread in various parts and
regions of the country. This has not only enabled us to build Pantaloon brand
value but also facilitated us to explore cost-effective sourcing from different
locations, identify potential markets and efficiently establish new stores in
different locations. An aggregate of 40 of 46 of Pantaloon existing stores are
located in Tier II and Tier III cities, which, Group/Company believe, enables us to
capture market share in locations where a majority of Pantaloon target customers
are located.

5. Group/Company possess the ability to identify new locations to promote

Pantaloon business plans: Group/Company believe that Group/Company
possess the ability to identify locations with potential for growth, in particular in
Tier II and Tier III cities. Group/Company have an exclusive site identification
and assessment team, which undertakes systematic analysis of the business
 14

prospects, taking into account factors such as population, literacy levels, nature of
occupation, income levels, accessibility, basic infrastructure and establishment
and running costs. Further Group/Company have a dedicated warehouse for the
purposes of storing the materials essential for setting up of new stores.

6. Group/Company derive substantial revenues from Pantaloon private

labels: Group/Company have a number of private labels for apparels (i.e. apparels
manufactured by us) such as Zeppin, Paranoia, Chlorine, Kittaan Studio,
Famenne, Fleurier Women and Roseau. In fiscal 2006, Pantaloon income from
Pantaloon private labels was Rs.483.50 million, which accounts for 16.76% of
Pantaloon total sales for fiscal 2006. Group/Company believe that Pantaloon
focus on Pantaloon private labels and their recognition in Pantaloon customer
segment enables us to differentiate ourselves from Pantaloon competitors.

7. Group/Company effectively use information technology systems:

Group/Company believe that efficient information technology systems, processes
and business applications are essential to handle retail chain of Pantaloon
magnitude. Pantaloon office processes are computerized which support
procurement, supply chain logistics, distribution centers management and store
operations including inventory management and billing. Group/Company is in
the process of implementing SAP. All Pantaloon stores and distribution centers
are connected through a company-wide virtual network connection which helps to
efficiently manage Pantaloon network of outlets throughout the country.

8. Group/Company have a highly experienced and competent management

team: Group/Company have an experienced management team which is
complemented by a committed workforce. Pantaloon management team
comprises of talented professionals who are highly experience in the retail sector.
This has assisted us in effective management of Pantaloon stores.
Group/Company believe Group/Company have created the right balance of
performance bonuses and other incentives for Pantaloon employees.
 15

4. Pantaloon strategy:

Group/Company intends to pursue the following strategies in order to consolidate

Pantaloon position as one of the leading operators in the ‘value retail’ segment in India.
Pantaloon growth strategy is based on:

1 Increasing Pantaloon penetration in the country by leveraging Pantaloon

supply chain, distribution and logistics network.
2 Emphasis on backward integration.
3 Expansion of FMCG.
4 Procurement from low-cost production centers outside India.
5 Increasing customer satisfaction and Pantaloon base of loyal customers.
6 Continue to upgrade information technology systems and processes.
7 Continue to train employees and seek entrepreneurship from employees.
 16

5. Characteristics of Select Retail Formats

Format Description Size (Sq. ft.) Examples

(India)

Category Offer a narrow 50,000+ 15,000+ Circuit City, RUs,

Specialist variety with a Home Depot,
Killer very deep Nalli’s Kumaran
assortment of the (Chennai),
merchandise. Toykemp
Merchandise may (Bangalore), The
be sold at price Loft (Mumbai,
lower than that. Vijay Sales
(Mumbai)
Convenience Usually located 3,00-8,000 500-1,000 7-Eleven, Speed
near residential mart, In & Out
areas & open long
hours. Offers an
assorted mix of
products
including milk,
break and eggs.
Department Large store 75,000+ 500,1-000 Marks & Spencer,
Store selling several Harrods,
product lines, Selfridges, Macy’s
with each Bloomingdale’s,
operating as a Shopper’s Stop,
department. Pantaloons,
Product mix is Globus, Ebony
largely non-food,
like apparel,
accessories,
 17

books, music,
footwear etc.
level of service is
very high.
Factory Stores which sell 5,000-10,000 5,000-1,000 Levi’s Factory
Outlets branded Outlet, Reebok
merchandise at Factory Outlet,
discount. Levels Wrangler Factory
of service are low, Outlet.
typically, these
are franchise
outlets located
away from the
main markets.
Hypermarket Large self service 80,000-220,000 40,000- Wal-Mart, Big
stores selling a 75,000 Bazaar, Giant,
mix of products, Sabka Bazaar
these stores offer
large depth in the
product mix
which includes
Food non-food
items like apparel,
CD’s, DVD’s
footwear, etc.
The low price for
the products is a
key attraction for
the customer.
Single Price Offer an assorted 5,000-20,000 500+ Family Dollar,
Stores mix of branded Dollar General, 9
and unbranded to 9, 49 to 999
 18

merchandise, to
appeal to the
budget conscious
customer.
Specialty Focus on brand or 5,000-8,000 2,000-5,000 Walgreen’s, Boots,
Stores a particular Crossword, Planet
category. They M, Rhythm House,
offer a narrow Music world
product line but
good depth, level
of service is high.
Supermarket These stores offer 8,000-20,000 800-5,000 Asada, Kroger,
food, laundry and Tesco, Foodworld,
household Food land, Food
maintenance Bazaar, Nilgiri’s.
products. They
are self service,
low cost, low
margin and high
volume operators.
 19

6. Business Analysis of Pantaloon Model

As Group know &, India is not an integrated homogenous market like other western
markets – it’s a hierarchy of markets catering to people at many different income levels 7
tastes. Hence it’s very important to understand the customer and its needs. Pantaloon has
been able to crack this by offering all what the consumers want at different price points.
Pantaloon has created a well niche brand for itself. The company through constant roll
out of different formats is trying to capture the maximum of consumer’s wallet. It has
been able to target 75% of the consumer wallet.

Business Strategy

Targeting the market segment & the product

Understanding the market requirements

Arranging the sourcing and the logistics

Final point of sale through different formats

Strategy to touch all price points to diversify business & improve profitability.
 20

Categories / Formats

Where the consumer spends Retail formats where the consumer

can spend.
Clothing, Tables & Fashion Big Bazaar – Central – Fashion
Station – Gini and Jony – Pantaloon –
All – Planet Retail
Jewelry, Watches & Accessories Blue Sky
Footwear Footwear Bazaar
Health & Beauty Care Services Health Village – Star and Sitara –
Tulsi
Health & Beauty Care Products Turmeric
Consumer Durables Electronic Bazaar – E-zone
Mobile Handsets M Bazaar – M port
Furniture & Fixtures Collection I – Furniture Bazaar – Got
it – Home Town
Food & Grocery Food Bazaar
Catering Service (F&B) Brew Bar – Café Bollywood –
Chamasa – Rain – Sports Bar.
Books, Music & Gifts Depot
Entertainment Bowling Co-FIZ3
 21

PANTALOON RETAIL – No of Stores & Retail Space

Retail Space

Retail Space sq. ft. in mn

4 3.8
3 2.77
2 1.95

1 0.99
0.58
0.32
0
2002 2003 2004 2005 2006 2007

To add 27mn sq.

ft. of retail space
by 2011

No. of Stores

200
No. of Stores

150
100
50
0
2002 2003 2004 2005 2006 2007

Targeting higher consumer wallet share

 22

Recreation & Entertainm ent

80.00%
70.00% Com m unications
60.00%
50.00% Modical & Health Care Services
40.00%
30.00% Furniture, Furnishing, &
Appliances
20.00%
Food, Beverages & General
10.00%
Merchandise
0.00%
Clothing & Footw ear
2002 2004 2007
 23

7. MAJOR VERTICALS

7.1 Pantaloons

Pantaloons lifestyle format of retailing is the apparel store of the company catering to the
ever-changing fashion needs of the customers. Pantaloons cater to the Middle Income &
Upper Middle Income consumers. Pantaloon has been the pioneer & only apparel retailer
to offer several (7) fashion seasons of new & contemporary fashion. The company has
roped in Bollywood stars to promote its apparel offerings.

Pantaloon currently is the largest apparel retailer in India. The format is rapidly
expanding which itself would create entry barriers for competition. It’s been a high
margin business.

42 stores by 2007 end & 80 by 2010 1.1mn sq. ft. by 2007 end &
2.0mn sq. ft by 2010 Average Sales per sq. ft. of Rs 7,500 can
generate sales of Rs 1,500 crore by 2010

Expected Gross margin – 45%

Expected EBIDTA – 14-16%

Competition in this format is expected to be limited because of the brand image that
Pantaloon has created in the minds of the consumer. Pantaloon has also adopted a private
label strategy, which allows it to differentiate in products & generate higher margins.
Private labels constitute 75% of the apparel sales.
 24

7.2 Big Bazaar

Shop till you drop! Big Bazaar has democratized shopping in India & is so much more
than a hypermarket. There are over 170,000 products under 1 roof that caters to every
need of a family, making Big Bazaar India’s favorite shopping destination.

Awards & Recognition

In the month of July 2006 – Big Bazaar won the prestigious ‘CNBC TV18 Awaaz
Consumers Award 2006’ in the retail category, as the most preferred, large, food
& grocery store.

At Images Retail Awards it was adjudges the Best Value Retail Store & Best Retail
Destination of year 2006

In Reader’s Digest Consumer Survey 2006, Bazaar won the prestigious Platinum Trusted
Brand Award in the Indian services category

Fashion Focus

Big Bazaar continues to be a fashion – led delivery format, with fashion comprising
about 40% of its revenues.

Big Bazaar Getting Bigger

New categories like consumer electronics, furniture, communication, food & beverages,
pharmacies, beauty retail, saloons, books, stationery & music are being added to Big
Bazaar.
 25

Pioneering the Hypermarket Format

It’s the hypermarket format in the value retail segment of the company; its aim is to
capture the middle income value focused customer. Product offerings are mainly general
merchandise and apparels. Apparels form 40% of the total revenue, 60% being general
merchandise. The company has maintained 50% of apparel sales from private labels.

It is the fastest growing format in the organized retail space. Pantaloon has aggressive
plans for this format of taking to total number of outlets to 225 by 2010. Currently its
about 70 outlets.

Big Bazaar covers 3-25 mn sq. ft. currently, to increase to 9 mn sq. ft. by 2010. Average
sales per sq. ft. at Rs.8500 can generate a sales of Rs.7650 cr, by 2010. Expected Gross
Margin -24%. Expected EBIDTA – 7-9%.

This format would face maximum competition going forward as all the major new
entrants have plans to enter into the hypermarket segment.

The company’s aggressive roll out plan for this format is to be able to achieve economies
of scale in souring of products and protect the overall margins.
 26

7.3 Food Bazaar

The food and grocery retail format of the company is capturing the middle – income
value focused customer. FMCG along with dry and wet staples from the main product
categories of this format. The format has been will accepted by the Indian women as it
has been able to offer scheme and discounts on various products because of its economies
of scale in operations. The company has been able to offer all the daily needs related to
the food and grocery under one roof. Pantaloon retail plans to expand this format (to
smaller towns and cities) more rapidly going forward to achieve further economies of
scale.

110 stores by 2007 end, and 250 by 2010 1.2 mn sq. ft. by 2007 end, and 2.50 mn sq.ft.
by 2010. Average sales per sq. ft. at Rs.14,000. Can generate a sales of Rs.3250 cr.
By 2010. Expected gross margin – 15%.

The success of this format has prompted the company to take this format to smaller towns
and cities. Though being a low margins business but higher turnover nature makes it a
profitable proposition for Pantaloon. In order to maintain its competitive advantage in
this format, the company needs to invest to improve the back end.

Central

The departmental format of the company, aims to cater the upper middle income
consumers. It’s been positioned as one stop destination for shopping and entertainment.
Central has the same growth rate of 40%. In the Central Model the company sub leases
its spaces to concessionaries, restaurant and food court managers which assure a fixed
rental and a certain percentage of sales, with no inventory carrying on its books, this
constitutes 70% of central sales.

Currently the company has 3 Central Stores (2006 end). Central model is highly scalable
and would be successful in other cities where the company plans to open.
 27

9 Stores by 2007 end and 22 by 2010.

1.35 mn sq. ft. by 2007 end and 3.5 mn sq. ft. by 2010
Average sales per sq. ft. at Rs.7500
Can generate a sales of Rs.2300 cr. by 2010
Expected Gross Margin – 28%.
Expected EBIDTA – 12-15%

FASHION STATION

15 stores by 2007 end & 80 by 2010

0.15 mm sq.ft. by 2007 end & 1 mn sq.ft. by 2010
Average sales per sq.ft. at Rs. 8000
Can generate a sales of Rs. 770 cr. By 2010
Expected gross margin – 41%
Expected EBIDTA – 12%
 28

8. BRAND FACTORY

Pantaloon’s game plan with this new format is to raise the bar of customer expectations
& experience when it comes to ‘Brand + Bargain shopping’. There is a huge market
opportunity in this category where over 70% of the people shopping at Factory outlets are
under the age group of 30 years who want fashion brands at reasonable price.

Pantaloon retail is trying to fill in one gap in the apparels, offered through Pantaloons
(life style) & Big bazaar (value segment). The company plans to offer all the major
national & international brands.

Pantaloon retail is trying to change the perception of the consumers that factory outlet
shopping is not about seconds’ experience & it is not about buying cheap. Instead, it’s all
about an amazing experience of ‘Buying Smart’.

3 stores by 2007 & 20 by 2010

0.25 mn sq. ft. by 2007 & 1.0 mn sq. ft. by 2010
Average sales per sq. ft. at Rs. 13,000
Can generate a sales of Rs. 1300 cr. By 2010
Expected cross margin – 28%
Expected EBIDTA – 8%
 29

GINI & JONY FREE WORLD

Today’s urban child is like a king in the family, as its importance is increasing &
influencing in all the purchasing decisions of the family. As the urban child is getting
more exposed to the western world through various media, the child today is becoming
smarter & also has started having aspirations. Pantaloon retail wants to capture the
growing aspirations amongst kids. Pantaloon is tapping this mega opportunity by having
a Joint venture with Gini & Jony, one of the leading kids apparel brand.

The size of the kids apparel market is estimated at Rs. 130 bn. The CAGR growth in the
branded apparel segment has been about 46% for the past 3 years.

83 stores by 2007 end & 180 by 2010

Average sales per sq.ft. at Rs. 6,700
Can generate a sales of Rs. 120 cr. By 2010
Expected gross margin – 53%
Expected EBIDTA – 9%

8.2 BLUE SKY

50 Stores by 2007 end, & 125 by 2010

0.04 mn sq.ft. currently & 0.10 mn sq.ft. by 2010
Average sales per sq.ft. at Rs. 10,000
Can generage a sales of Rs. 100 cr. By 2010
Expected gross margin – 32%
Expected EBIDTA – 12%
 30

9. DATA ANALYSIS
9.1 Big Bazaar Revenue Mix

40%
General
Merchandise
Apparels

60%

9.2 Pantaloon Revenue Mix

1%
18%

39%

25%

17%

Big Bazaar Pantaloons Food Bazaar Central Fashion Station

 31

9.3 Value Revenue Mix

1%

37%

62%

Big Bazaar Food Bazaar Fashion Station

9.4 Lifestyle Revenue Mix

48%
52%

Pantaloons Central
 32

9.5 Revenue Mix

100%
90%
31%
80% 43%
52%
70%
60%
50%
40%
69%
30% 57%
48%
20%
10%
0%
2004 2005 2006

Value Life style

9.6 Retail Space Mix

100%
90%
80%
70% 58% 61% 64%
60%
50%
40%
30%
20% 42% 39% 36%
10%
0%
2004 2005 2006

Value Life style

 33

9.7 Performance of various formats on 31.12.2006

Formats No. of Outlets Space (mn sq. ft)

2004 2005 2006 2004 2005 2006
Value Retailing
10 19 29 0.41 0.83 1.15
Big Bazaar
15 30 45 0.11 0.29 0.43
Food Bazaar
0 1 5 0 0.03 0.09
Fashion Station
25 50 79 0.52 1.148 1.67
Total
Lifestyle
12 12 21 0.29 0.29 0.48
Pantaloons
1 3 3 0.13 0.47 0.47
Central
13 15 24 0.42 0.76 0.95
Total

9.8 Pillars Going Forward For 2010

Formats No. of Outlets Space (mn sq. ft)

2007 2010 2007 2010
Value
75 225 3.3 9
Big Bazaar
110 250 1.2 2.5
Food Bazaar
15 80 0.15 1
Fashion Station
3 20 0.25 1
Brand Factory
203 575 4.9 13.5
Total
Lifestyle
42 80 1.1 2
Pantaloons
9 22 1.35 3.5
Central
5 35 0.6 2.7
Home Town
20 86 0.2 0.86
E-Zone
76 223 3.25 9.06
Total
10. Bottlenecks and Challenges with Indian Retailers

Factors Description
Structural • Lack of urbanization
Impediments • Poor transportation
infrastructure
High Cost of • Pro tenant rent laws
Real Estate • Non-availability of
government lands, zoning
restrictions
• Lack of clear ownership
titles, high stamp duty
Supply Chain • Several segments like food
Bottlenecks & apparel reserved for
SSIs
• Distribution, logistics
constraints
• Long intermediation chain
Customer • Local consumption habits
Preferences • Need for variety
• Cultural issues
Availability of • Lack of proper training
talent • Highly educated class does
not consider retailing a
34
Implications
• Lack of awareness of
Indian consumers
• Restricted retail growth
• Growth of small, one-
store formats with
unmatchable cost
structure
• Difficult to find good
real estate in terms of
location & size
• High land cost owing to
constrained supply
• Disorganized nature of
transactions.
• Limited product range
• Makes scaling up
difficult
• High cost & complexity
of sourcing & planning
• Lack of value addition &
increase in costs by
almost 15%
• Leads to product
proliferation
• Increased complexity in
sourcing & planning
• Increase the cost of store
management
• Higher trail & error in
managing retail
operations
 35

profession of choice • Increase in personnel

cost.
Barriers to FDI • FDI not permitted in pure • Limited exposure to best
retailing practices
• Franchisee arrangement
allowed
 36

11. Performance of Pantaloon Retail (India – A Brief note :)

11.1 Point of sale - Real estate is the raw material of a successful retailing business.
Having the right real estate in prime locations is the key for a retail chain, availability of
right real estate would drive the sales, a proper catchments analysis of locations of outlets
is needed to increase the footballs & conversions.

Pantaloon in this regard is a way ahead because it has locked into real estate at prime
locations in all the major cities of India. The company is expected 30 million sq. feet of
prime locations in all the major cities of India. The company is expected 30 million sq.
feet of real space by 2011 covering 80 cities of India.

11.2 Sourcing of merchandise –

Sourcing of merchandise from the right vendor at the right price is an important factor,
because efficiency in buying would ultimately increase te gross margins. Going with
competition in major formats, it would be difficult to improve gross margins. But
competition would not be amongst retailers alone but also amongst vendors to supply at
the most competitive price. Any retailer with significant size will be able to improve its
sourcing. Pantaloon with its projected scale is able to source its merchandise from its
vendor at reasonable rates.

11.3 Selling of Merchandise – Selling the right products to the right consumer is an
important parameter of a retail chain. Pantaloon has been very successful in this
parameter by building different formats catering to different customer needs. Pantaloon
has created a bond with the Indian customer & clearly understand its needs & wants.

11.4 Higher Inventory turns – In any retail chain selling merchandise should move
quickly from the shelves. This could only be achieved by having lower inventory levels
& higher assets turns. Pantaloons inventory has been on a rise mainly because of the
store expansion & fashion constituting 40% of the total sales. Pantaloon assets turns are
not so impressive but going forward it would improve.
 37

12. KEY RISKS

Execution of plans is the biggest risk

The company plans to become 10x its current size in terms of floor area by 2010. There
are a lot of exogenous factors that could impact the company’s plans. Delivery of stores
are behind schedule by an average of 2 quarters for most companies. As these store
deliveries get bunched up for most of the players towards 2009-2010. There could be
further delay in store delivery. Besides, there are multiple clearances to be taken by local
& other authorities, which can prove to be bottleneck.

Rising resource cost to put margin pressure

The employee cost & property costs will be 2 key pressure points for all retailers.
Traditional human resource management methods have been unable to reduce employee
turnover.

Likely equity dilution to finance growth

The company would need capital in the region of USD 600 mn. For its growth plan until
FYO9E. The company would need external funds for its growth. 9% dilution has
already happened Y TID FYO7E.

Strain on management bandwidth

PRIL is expanding into multiple formats & multiple geographics over the next few years.
Besides, it is investing in various non-retailing businesses. The company could face
management bandwidth shortage in a few years from now. Decision making is quite
decentralized with powers devolved to line managers. However, as the company
multiplies, they would need stranger MIS, internal auditing systems, & risk management
to ensure good management of such large entity.

Untested formats like Home solutions & new non-retailing business.

PRIL plans to grow in the home solutions business over the next few years. The market
for home improvement & furnishing is getting bigger due to the increasing number of
 38

residential as well as commercial buildings, & the organized market is almost non
existent. The key reasons for the negligible presence of organized market are the lack of
skilled professional service providers, non existence of contract based layout force &
under investment. Significant amount of training & orientation would be required to
convert the existing labour into professional skilled force.

There are risks associated in entering into business like insurance because the way
financial products & services are bought in India, it will take a significant change in
mindset to start buying from groceries store.
 39

13. The power of private labels by Pantaloons

When PepsiCo’s Frito-Lay decided of boycott Pantaloon’s Food Bazaar due to

differences in terms of trade, it was the latter’s private label which got a boost in shares.
Today Tasty Treat, the ready-to-eat private label of Food Bazaar, is leading with a 16 per
cent share among the rest of the snack brands.

Today Pantaloon Retail has 80 products comprising 350 SKUs with five private labels.
Since PepsiCo’s rejection, it has promptly approached local manufacturers such as
Prakash Snacks in Indore and Pogo Chips in Kolkata to manufacture its snacks brands.
Arvind Chaudhary, CEO (Foods Business), Pantaloon Retail, adds, “The purpose of
Pantaloon private labels is to grow the category and fill the gaps between demand and
supply. Today Group/Company have upgraded Pantaloon suppliers with better quality
systems and processes for the snacks category, where there was a gap.”

The power of private labels is being explored by most retailers today, as they do not want
to be at the mercy of the big manufacturers. At the same time they also realize that it’s
not going to be easy as it takes time and money to build private labels. Observes K.
Radhakrishnan, Chief Executive. Hypermarkets, Reliance Industries, “While it’s
Pantaloon strategic intent is to build private labels, it is more difficult and takes longer to
build these brands. However, in categories such as commodities, it is easier to build
private labels. At present, nearly 15 percent of Pantaloon hypermarket brands comprise
private labels.”

The private label product proposition: Quality and price, primarily, relative to branded
alternatives

How strong supplier brands are in the minds of Indian Consumers: Many supplier brands
are relatively new in India, so potentially have less awareness, and therefore, easier for
private label products to supplant supplier brand products
 40

How effectively suppliers innovate: Supplier innovation if often what allows them to stay
ahead of retailer private label. Innovative suppliers can come out with new products that
retailers haven’t necessarily thought of.

How consolidated Indian retail eventually becomes: The more market share a retailer has,
the greater the opportunity to create the leverage a retailer can put on a supplier. This
may be one reason why the UK has greater PL penetration than the US – UK retail is
more consolidated than US retail. Right now, India retail is highly fragmented, so there’s
a long way to go, as KSA’s Maroo observes.
 41

14. Detailed Financials

14.1 Income Statement

Particulars FY04 FY05 FY06 FY07 FY08E

Net sales 6,585 10,840 18,678 35,033 63,200
Operating expenses (6,021) (9,991) (17,258) (32,297) (58,373)
Raw material (4,368) (6,988) (12,455) (23,367) (42,091)
consumed
Freight (116) (251) (383) (841) (1,580)
Power & fuel (121) (220) (374) (701) (1,264)
Employee expenses (345) (659) (1,327) (2,420) (4,079)
Selling & Distribution (322) (499) (697) (1,612) (2,971)
expenses
Administrative (129) (217) (375) (666) (1,580)
expenses
Bad debt provision / (1) (1) 0 (1) (1)
w-offs
Royalty 0 (1) 0 0 0
Other operating (620) (1,155) (1,667) (2,689) (4,806)
expenses
Operating profit 562 849 1,420 2,736 4,827
 42

EBITDA 562 849 1,420 2,736 4,827

Depreciation (88) (133) (208) (327) (451)
Other income 18 50 43 0 0
EBIT 492 766 1,254 2,409 4,376
Interest paid (236) (282) (335) (751) (1,368)
Pre-tax profit (before 256 484 919 1,658 3,008
non-recurring
items)
Pre-tax profit (after 256 484 919 1,658 3,008
non-recurring
items)
Tax (current + (46) (145) (277) (580) (1,053)
deferred)
Tax provided (15) (75) (128) (252) (421)
Deferred tax (31) (70) (149) (348) (632)
Net profit 211 338 643 1,078 1,955
Adjusted net profit 211 338 643 1,078 1,955

14.2 Balance Sheet

Particulars FY04 FY05 FY06 FY07E FY08E

Current assets 2,300 4,039 8,823 16,530 26,238
Cash & bank 138 215 217 245 181
Debtors 176 123 170 196 346
Inventory 1,576 2,759 5,070 9,984 16,748
Loans & advances 410 937 3,355 6,110 8,963
Other current assets 0 5 11 0 0
Non-current assets 1,801 2,614 8,360 7,422 9,018
Investments 33 319 1,406 1,906 2,406
Fixed assets (Net 1,748 2,295 3,954 5,516 6,612
block)
Gross block 1,847 2,511 3,660 6,410 7,910
Less: Depreciation (243) (374) (567) (894) (1,293)
Add: Capital WIP 144 158 861 0 0
 43

Total assets 4,101 6,653 14,183 23,953 35,256

Current liabilities 729 1,455 2,622 3,900 6,126
Creditors 546 895 1,844 2,671 4,460
Tax payable 27 96 198 199 361
Dividends payable 29 35 67 70 70
Tax on dividend payable 4 8 9 10 10
Other current liabilities 113 375 454 950 1,225
Other provisions 10 25 51 0 0
Non-current liabilities 2,427 2,988 6,292 11,771 18,913
Total debt 2,366 2,857 6,013 11,144 17,634
Deferred tax liabilities 60 130 279 627 1,259
Total liabilities 3,156 4,436 8,914 15,671 25,038
Shareholders’ funds 945 2,212 5,269 8,282 10,217
Paid up Capital 191 220 269 281 281
Reserves and Surplus 758 1,995 5,000 8,001 9,936
Share Premium 366 1,251 3,721 5,691 5,691
Retained earnings 381 665 1,166 2,197 4,132
Other reserves 10 79 113 113 113
Less Misc expenditure (4) (3) 0 0 0
Total equity & 4,101 6,653 14,183 23,653 35,256
liabilities
 44

15. TABLES

15.1 Table No.1

Different Format at Pantaloon Retail India

Product Category Concepts Status Format/Offerings

Food Brew Bar Operational Beers, snacks and set meals
Café Bollywood Planned Eateries
Chomosa Operational Snack counter in high traffic
area
Food Bazaar Operational Supermarket
Rain Operational Food and beverages
Sport Bar Operational Focused on sports lovers
Fashion aLL Operational Fashion apparel for plus-size
individual
Big Bazaar Operational Hypermarket
Blue Sky Operational Fashion accessories
Central Operational Seamless malls
Fashion Station Operational Popular fashion
Gini & Jony Operational Kids’ fashion
Pantaloons Operational Department store
Home & Electronics Collection i Operational Home furnishings
Electronics Bazaar Operational Present within Big Bazaar
e-zone Operational Consumer Electronics
Furniture Bazaar Operational Home furniture
Got it Planned One stop shop for home
maintenance
Home Town Planned One stop Destination
Telecom & IT Gen M Planned Hi-tech products
M Bazaar Planned Solutions for knowledge,
entertainment and
communication
M Port Planned Standalone stores/Shop-in-
shop
General Big Bazaar Operational Hypermarket
Merchandise
Blue Sky Operational Fashion Accessories
Central Operational Seamless malls
Footwear Bazaar Planned Footwear and accessories
 45

Navarasa Planned N.A.

Pantaloons Operational Department store
Shoe Factory Operational Footwear and accessories
Leisure & Bowling Co. Operational Premium family
Entertainment entertainment center
F 123 Operational For leisure and
entertainment
Wellness & Beauty Health Village Planned N.A.
Star Sitara Operational Beauty salon for men and
women
Tulsi Operational Pharmacy
Turmeric Planned ‘Cut-in’ format at Food
Bazaar
Books & Music Depot Operational Books and music
e-tailing Online retailing Operational Futurebazaar.com
Source: Complied by the author from the company website
 46

15.2 Table No.2

Landmark Group’s Presence Across Different Formats of Retail in India

Baby- Shoe Splash Home Lifestyle Max Fashion Funcity Total

shop mart Center Brands
Currently 9 9 9 10 9 2 7 52
Additions 4 4 4 4 4 9 11 2 42
Till Dec’
2006
Total till 13 13 13 14 13 11 18 2 97
Dec’ 06
Source : Company Website

15.3 Table No.3

Presence of Departmental Stores in various cities in India
Location Westside Pantaloon Lifestyle Ebony Shopper’s Globus Pyramid Total
Stop
Ahmedabad 1 2 1 1 5
Amritsar 1 1
Bangalore 3 1 1 2 2 9
Baroda 1 1 2
Chandigarh 1 1
Chennai 1 1 2 1 2 7
Delhi 3 3 1 1 1 1 10
Faridabad 1 1
Ghaziabad 1 1 2 4
Gurgaon 1 1 1 1 4
Hyderabad 1 1 1 1 4
Indore 1 1 1 3
Jaipur 1 1 2
Jalandar 1 1
Kanpur 1 1 2
Kolkata 2 2 2 6
Lucknow 1 1
Ludhiana 1 1
Mangalore 1 1
Mumbai 4 4 3 7 2 1 21
Nagpur 1 1 2
Noida 1 1 2
 47

Rajkot 1 1
Pune 1 1 2 1 5
Thane 1 1
Secunderabad 1
Total 23 22 9 7 19 13 4 98
 48

16. Empirical studies on Food Bazaar by Pantaloon Retail

India Limited on Consumer Perception

16.1 Research Methodology

• Research – Descriptive

• Data source – Primary Data

• Research Approach – Survey Method

• Research Instrument – Questionnaire

• Questionnaire type – Structured non-disguised

• Type of questions – Both Close-ended & Open-ended

• Sampling Unit – Individual

• Sampling Frame – NCR

• Sampling Procedure – Simple Random sampling to select 5 stores and

convenience for select customer/shoppers.

• Sample size – 300 customers

• Contact Method – Personal

• Mode of Collecting Data – The respondents were chosen randomly

and requested to grant interviews. The questions were then asked in
predetermined sequence.
 49

• Data Processing – (i) A number of tables was prepared to bring out

the main characteristics of the collected data. (i) Inferences were
drawn from the collected data.
 50

17. Analysis

17.1Choice of retail store for grocery shopping

95

90

85 N e ig h b o r h oo d
K ir a na
80
S up e r B a zaa r
75

70
D a ily M o n th ly
S u p p lie s R a tio n
 51

ANALYSIS
17.2 Expenditure on various food items
9%
Staples
10% 29% Vegetables, Fruits & Fresh Juices

Edible oils, spices & pickles

8% Bread related & biscuits

Snacks

8% Beverages

Meat & eggs

8% 18%
Dairy Products
10%

18. LIST OF REFRENCES

1. Milestones, an ORG-MARG publication.

2. Philip Kotler, ‘An Outlook for Retailing in India’

3. www.economictimes.indiatimes.com

4. www.retailyatra.com

5. Chain Store Age, “Food Focus Grows Format Exponentially

6. www.pantaloon.com
 52

19. APPENDICIES

19.1 Questionnaire

1. Please rank the following parameters in the order of their importance (on a scale
of 1-6, 1-bing most important and 6-least important)

Parameter Ranking (1-6)

Personal Attention
Facility of home delivery
Facility of credit purchase
Ambience / Touch and feel
Long term discount/ free gift
Parking facility

2. Please tick the appropriate option based on your choice of retail store you buy
your groceries from…?

Neighborhood Big Bazaar Other retail Purchase

Kirana/General Store/super amount
Store bazaar (monthly)
a) Daily Supplies
b) Monthly Ration

3. Please tick the relevant option regarding milk purchase.

Loose milk Packaged milk From dairy (freshly Daily purchase

(delivered at home) milked) (quantity)

4. Please tick the appropriate option (choose only one option for place of
purchase)

Place of purchase Frequency of Purchase

Kirana Super Daily Twice Once Once Once Rupees
 53

Store/sabzi Market/Big a a in 2 a spend

Mandi Bazaar week week week month per
or month
more
Food Items
a) Staple-
Rice, Pulses,
Sugar
b) Vegetable,
Fruit, & Fresh
juices
c) Edibles
oils, Spices &
Pickles
d) Bread
related &
biscuits
e) Snacks-
cornflakes
Chips Maggie
Kurkure etc
f) Beverages-
packed juices
& soft drinks
g) Meat &
eggs
h) Dairy
products-
butter, ghee,
chocolates
Personal Care
a) Cosmetics,
deodorant,
beauty soaps,
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face wash,
shampoo &
oil
b) Toiletries-
tooth paste &
brush shaving
products
c) Sanitary
napkin, baby
product
HOME ESSENTIALS
a) Washing
Soap &
detergent
b) Mosquito
repellent,
broom, toilet
cleaner

5. In the previous question, the categories for which you have selected daily, twice a
week or once a week; select the specific item (tick the option, multiple options allowed)

a) Staples-Rice Rice Sugar Wheat/flour Pulses

pulses, sugar
b) Vegetables, Potato, Seasonal Fresh juice Fruits
Fruits Tomato, onion vegetables
c) Edibles oils, Spices Mustard oil Sunflower oil
spices, pickles
d) Bread related Bread Bakery product Branded biscuits Unbranded
& biscuits (bun, pizza biscuits
base)
e) Snacks- Maggie Packed Snacks Breakfast items
cornflakes, (chips, kurkure)
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chips, Maggie
Kurkure etc.
Beverages- Packed juice Soft drinks Mineral water
packed juices &
soft drinks
Meat & eggs Eggs Chicken Mutton Fish
Dairy Products- Butter Ghee Chocolates
butter, ghee,
chocolates

6. How satisfied are you with your preferred store on the following parameters
(please tick the appropriate option)

Factors Strongly Disagree Neutral Agree Strongly

disagree agree
a) Packed Milk is of better
quality than loose milk
b) Store of some big
company is expensive
c) Packed flour, pulses,
etc. have better quality
than the unbranded
product available at local
kirana store
d) Vegetables, Fruits
would be cheaper in sabzi
market as compared to an
air conditioned shop
e) Vegetables, Fruits are
fresher in sabzi market as
compared to an air
conditioned shop
f) Will not purchase from
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a store, which sells fresh

meat.
g) I will prefer to purchase
vegetables from an air-
condition shop as compare
to sabzi market
h) I will purchase from a
new store which provides
cheaper goods even if I
don’t know the store
owner personally.

Personal Details:

Family size: 1 2 3 4 5 6 & above

Occupation (earning member)

i. Working Professional
ii. Self-employed
iii. Housewife
iv. Student
v. Senior Citizen

Monthly Expenditure:

i. Less than 5000

ii. 5000-10,000
iii. 10,000-15,000
iv. 15,000-20,000
v. 20,000 and above
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Name:
………………………………………………………………………………………..

Address:

a) House no……………………………………………………………………..
b) Sector / sub area / Locality…………………………………………………..
c) Colony / Mohalla……………………………………………………………..
d) City…………………………………………………………………………..

Contact no. with STD code:

……………………………………………………………………………………….

Optional:

Name of family Date of birth Marriage anniversary

member

Thank You

To be filled by the interviewer

Remarks:
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……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
………
Name of the interviewer …………………………………………….Signature.