INTRODUCTION

The Retail Sector is the largest sector in India after agriculture, accounting
for over 10 per cent of the country’s GDP and around 8 per cent of the
employment. India has the most unorganized retail market in the world.
Most retailers of the unorganized retail market have their shop in the front
and house at the back. The Retail Industry in India is today amongst the
fastest growing industries with several players entering the market.
Currently, the organized retail sector accounts for only 2 per cent
indicating a huge potential market opportunity. India is being seen as
most attractive market by retail investors from all over the world. Retail is
clearly the sector that is poised to show the highest growth in the next
five years. The sector is set for a revolution, as both the present players
and new entrants are gearing up to explore the market. The present size
of the organized retailing sector is approximately 3% and is expected to
grow to 25-30% by the year 2010. There are about 300 new malls, 1500
supermarkets and 325 departmental stores currently under construction.
Many players are coming up with huge investments, due to which the
present 12 million mom-and-pop shops and kirana stores fear losing their
business. Most predictions say that the sector might reach to US$ 400-600
billion by
the year 2010. Global retail giants such as Wal-Mart, Tesco, Germany's
Metro AG and many others are ready to enter the retail markets. The
rising demands of branded products and increase in purchasing power
have lured these companies to enter the market. Modern retail
development in India is focused on the cities like Mumbai, Pune,
Ahmedabad, Delhi and the National Capital Region, Chennai, Banglore,
Hyderabad, Kolkata. The leading Indian retailers are Bata India Ltd, Big
Bazaar, Crossword, Vishal Mega Mart., Food Bazaar, Globus Stores Pvt.
Ltd., Liberty shoes Ltd., Music World Entertainment Ltd., Pantaloon Retail
India Ltd., Shoppers Stop, Subhiksha, Titan Industries etc.

MODERN RETAIL STRUCTURE:-

It includes-

Malls like Ansal Plaza (New Delhi), Nucleus (Pune), Centre Stage (Noida)
etc Discount Stores like Brand Factory, Loot, M&B Factory, Subhiksha,
Big Apple, and Reliance Fresh.

Department Stores like Shoppers Stop, Big Shop, and Pantaloons.

Hypermarkets/ Supermarkets like Big Bazaar, Vishal Mega Mart.

Convenience Stores like Spencer’s Daily, Tru Mart, Choupal, More.

Multi Brand Outlets like Globus.

CURRENT SCENARIO:-

A glimpse of the international retail-

47 global fortune companies & 25 of Asia's top 200 companies are
retailers
Dominated by developed countries US, EU & Japan constitute 80% of
world retail sales. Biggest player in India is Pantaloon Retail India Limited.

PERCENTAGE OF ORGANIZED RETAIL:-

USA - 85%
Taiwan - 81%
Malaysia - 55%
Thailand - 40%
Brazil - 36%
Indonesia - 30%
Poland - 20%
China - 20%
India - 3%
According to A.T. Kearney GLOBAL RETAIL DEVELOPMENT INDEX, India
was
placed at 1st position in the year 2005. However within 2 years of time i.e
2007, it is
being placed at 2nd position jointly with China and after Vietnam.

GROWTH OF RETAIL SECTOR:-

The following are the reasons for growth of retail sector in India- Increase
in disposable income of consumers, Increase in consuming desire, Low
share of organized retailing. Purchasing power of Indian urban consumer
is growing and branded merchandise in categories like Apparels,
Accessories, Food, and even Jewellery, are slowly becoming lifestyle
products. Retailers are taking benefit of this growth and accordingly are
aiming to expand. Indian retail is expanding at a fast pace. India's retail
industry, which is currently valued at nearly $350 billion, is expected to
double in size by 2015. The Indian Retail Industry is gradually moving
ahead towards becoming the next boom industry. Modern Large-Format
retail, efficiently connects the producers and the consumers and is helpful
to both in the long run. In India there is a huge wastage of fresh fruits and
vegetables. In this scenario, the Large-Format Retail provides all
important infrastructures to carry the farm produce to the consumers with
lesser wastage. In this way the farmers get better returns and the
consumer better quality and price.
VISHAL RETAIL PVT. LTD. HISTORY

What started as a humble one store enterprise in 1986 in Kolkata

(erstwhile, Calcutta) is today a conglomerate encompassing around 183
showrooms in 110 cities / 24 states. India’s first hyper-market has also
been opened for the Indian consumer by Vishal. Situated in the national
capital Delhi this store boasts of the single largest collection of goods and
commodities sold under one roof in India. VRPL was incorporated on July
23, 2001 under the Companies Act, 1956 as Vishal Retail Private Limited.
VRPL was converted to a public limited company on February 20, 2006. At
the time of incorporation, the registered office of VRPL was situated at 4,
R. N. Mukherjee Road, Kolkata 700 001. Subsequently VRPL’s registered
office was shifted to 54/4C, Strand Road, Kolkata 700 006 on August 1,
2001 and on February 14 2004, VRPL’s registered office was shifted to
Mouza Kuch Pukur, P.S. Bhangore, 24 Paragnas (South), West Bengal. On
December 29, 2005, VRPL’s registered office was shifted to RZ-A-95 & 96,
Road No. 4, Street No. 9, Mahipalpur Extension, New Delhi 110 037, which
is the present registered office of the Company. The fresh certificate of
incorporation consequent on change of name was granted to our
Company on February 20, 2006 by the Registrar of Companies, West
Bengal. With a business purchase agreement dated November 23, 2001
executed between VRPL and Mr. Ram Chandra Agarwal (carrying on
proprietorship business in the name of M/s The Vishal Garments) and Mrs.
Uma Agarwal (carrying on proprietorship business in the name of M/s
Vishal Garments), VRPL acquired the business of “M/s The Vishal
Garments” and “M/s Vishal Garments”, and the said businesses were
transferred to VRPL as a going concern with effect from December 15,
2001. With a business purchase agreement executed between VRPL and
M/s Vishal Fashions Private Limited, they acquired the business of
manufacturing of readymade garments as a going concern with effect
from March 31, 2003. VRPL went into backward integration by acquiring a
manufacturing unit for readymade garments.

DETAILS OF DIRECTORS:-

Mr. Ram Chandra Agarwal, 43 years, is VRPL’s Chairman and Managing

Director. He holds a bachelor’s degree in commerce from St. Xavier’s
College, Kolkata. Mr. Agarwal has more than 20 years of experience in the
retail industry and has been with VRPL since their inception in 1997. He
started the business under the name of “Vishal Garment” with a small
store at 9, Lal Bazaar Street, Kolkata. Mr. Agarwal has made efforts for the
development of the value retailing industry in India and is well known for
his business acumen.
Mrs. Uma Agarwal, 33 years, is an executive Director of VRPL. She holds
a bachelor’s degree in arts. Mrs. Agarwal has more than 7 years of
experience in the retail industry. She has been associated with accounts
department of VRPL.
Mr. Surendra Kumar Agarwal, 46 years, is an executive Director of
VRPL. He holds a bachelor’s degree in commerce. Mr. Agarwal has more
than 17 years of experience in the retail industry. He has been associated
with store development and management at various locations of VRPL.
Mr. Bharat Jain, 45 years, is an independent Director of VRPL. He holds
bachelor’s degree in commerce. Mr. Jain is engaged in the business of
leather garments and accessories and has more than 23 years of work
experience. Mr. Jain joined VRPL Board on May 8, 2006.
Mr. Rakesh Aggarwal, 44 years, is an independent Director of VRPL. He
holds a master’s degree in commerce. Mr. Aggarwal is currently engaged
in roto-moulding industry has more than 20 years of work experience. Mr.
Aggarwal joined VRPL Board on October 31, 2006. Mr. Ram Chandra
Aggarwal is the husband of Mrs. Uma Agarwal and brother of Mr. Surendra
Kumar Agarwal. None of our other Directors are related to each other.

VRPL PROMOTERS AND GROUP COMPANIES:-

The following individuals are the Promoters of the Company:

a). Mr. Ram Chandra Agarwal;
b). Mrs. Uma Agarwal; and
c). Mr. Surendra Kumar Agarwal.
The following companies are the Promoters of the Company:
a). Unicon Marketing Private Limited;
b). Ricon Commodities Private Limited; and
c). Vishal Water World Private Limited.
The company has during the year 2008, established its five new
companies by the name of VRL Foods Ltd., VRL Movers Ltd., VRL
Consumer Goods Ltd., VRL Fashions Ltd. & VRL Infrastructure Ltd., none of
the companies have commenced business operations during the year.

segments Offered by Vishal Megamart:

HOME FURNISHING
FOOD MART
SPORTS & FITNESS
FOOTWEAR
TELEMART
MENS
LADIES ACCESSORIES:
KIDS BOYS:
INFANTS:
KIDS GIRLS
TRAVEL ACCESSORIES:
STATIONARY
TOYS & GAMES
LIFESTYLE
HOUSEHOLD

Major Players of Retailing in India:

Retailer Current New Formats. Experimenting With

Format
Shoppers Department Quasi-mall
' Stop Store

Ebony Department Quasi-mall, smaller outlets, adding food

Store retail
Crosswor Large Corner shops
d bookstore
Pyramid Department Quasi-mall, food retail
Store
Pantaloo Own brand Hypermarket
n store
Subhiksh Supermarket Considering moving to self service
a
Vitan Supermarket Suburban discount store
Food Food Hypermarket, Food world express
world supermarket
Globus Department Small fashion stores
Store
Bombay Aggregation of Kiranas
Bazaar
E-food Aggregation of Kiranas
mart

Metro Cash and carry

The Popular In-house Brands of Vishal Mega Mart are:

· Zeppelin : Mens Shirts & Trousers

· Fizzy Babe : Ladies & Kids Girls
· Kitaan Studio : Mens Shirts & Trousers
· Jasmine : Ladies & Kids Girls
· Blues & Khakis : Mens Trousers
· Zero Degree : Kids Boys
· Paranoia : Mens Shirts & T-Shirts
· Soil : Mens Shirts
· Chlorine : Mens Shirts
· Massa Bay : Mens Trousers & Bermudas
· Fume : Mens Shirts, T-Shirts, UnderGarments

Future Prospective:

Vishal Retail Ltd has declared that the company has opened four new
Showrooms at different localities.

The company has opened a store at Shree Ram Palace, Main Delhi
Road, Meerut. This is the company’s second store in Meerut spreading
across an area of 3,600 Sq. ft. (Approx).
The company opened a store at Nauchandi Garh Road, Meerut
commonly called Dreemz, Opp. Samrat Heavens, Meerut. This is the
company’s third store in Meerut covering up an area of 12,000 Sq. ft.
The company has opened a showroom at Enclave, Near BSNL Office,
Ranipur More, Haridwar. This is the company’s first store in Haridwar
spreading across an area of 9,545 Sq. ft. (Approx).
The company opened its store at Arcade, Plot No. 56-58, Dumas Road,
Piplad, Surat. This is company’s second store in Surat spreading across
an area of 38,000 Sq. Ft (Approx).

Vishal Retail Limited is an India-based retail company. It was

established in 1986. It was formerly called Vishal Retail Private Limited
and changed its name to Vishal Retail Limited in 2006.
The company is based in New Delhi, India.
As of August 8, 2007, the company operated 53 retail stores, including
two stores that are operated by its franchisees. It sells readymade
clothes, and a variety of household merchandise and other consumer
 goods, including toys, footwear, toiletries, sports items, watches,
grocery items, crockery, novelties and gifts.
Today, the stock is hovering around Rs 724 on the Bombay Stock
Exchange. Vishal Retail has seen a 52-week high of 812 and low of Rs
423.

MARKETING STRATEGY OF VISHAL MEGA MART

Product

Vishal Mega Mart offers a wide range of products which starts from
apparels to food items, footwear to home furnishing, crockery to sport
items, child care products to toys, watches, drinks etc. There are many in
house brands promoted by Vishal Mega Mart. In pursuance of their
business plan to diversify their portfolio of offerings, FMCG products play a
key role. FMCG products are usually meant to fulfill the daily needs of
consumers and therefore, VRPL believe retailing of FMCG products will
bring customers to their stores on a frequent basis and this may in-turn
lead to consumption of their apparels. VRPL have a number of private
labels for apparels such as Zepplin, Paranoia, Chlorine, Kitaan Studio,
Famenne, Fleurier Women and Roseau.

Price

Vishal Mega Mart promises its consumers the lowest available price. The
concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used as
promotional tool. Vishal Mega Mart also caters on Special Event Pricing
(Close to Diwali, Christmas, New Year etc.). Selling combo-packs and
offering discount to customers. The combo-packs add value to customer.
Through Bundling, they also reduced the price of the products. In addition
to VRPL’s strategy to continue procurement of goods from small and
medium size vendors and manufacturers which leads to cost efficiencies,
VRPL intend to procure FMCG and apparels from low-cost production
centers located outside India. Towards this objective, VRPL’s propose to
increase their procurement of finished and semi-finished goods from
China and thereby realize economies of scale and pass on the benefits so
accrued to their customers. The efforts of VRPL’s retail business are
targeted towards families having total income which can be classified
under the “lower middle” and “middle” income groups. VRPL follow
uniform pricing policy across their stores in respect of private labels and
non-branded products sold by them. This enhances brand loyalty,
encourages customer confidence and results in operational convenience.
In relation to the other products, the prices may vary between stores on
account of state-specific taxation and vendor policies.

Place

Vishal Mega Mart stores are located in 110 cities with more than 180
outlets. Vishal Mega Mart has presence in almost all the major Indian
cities. They are aggressive on their expansion plans. VRPL intend to
increase their penetration in the country by setting up new stores in cities
where they already have presence, as also entering into new areas in the
country. In particular, they intend to focus on expansion in Tier II and Tier
III cities. VRPL target locations with good infrastructural facilities such as
easy accessibility, provision for water, electricity, parking, security and
other basic amenities

Promotion

Advertising has played a crucial role in building of the brand. Vishal Mega
Mart advertisements are mainly seen in print media i.e. newspapers,
Television with Tina Parekh as there in advertisement, and sometime
road-side bill-boards. VRPL’s category management system is used to plan
promotional schemes. They launch promotional schemes weekly. Apart
from general sales promotion, the category manager formulates
promotional plans for ‘slow movers’. In addition, to promote sales, they
focus on layout
of the stores and positioning, presentation and display of merchandise, in
order to appeal to the customer. In addition, VRPL have introduced, in
association with SBI Cards & Payment Services Private Limited, a co-
branded credit card. VRPL’s propose to continuously undertake such
initiatives to increase the satisfaction of their customers. Some of the
features of the co-branded card include Rs 250 discount voucher on
signing up for the card and a process by which the cardholder earns five
reward points on every
Rs 100 spent. A cardholder accumulates points on the basis of purchases
made and the points accumulated can be redeemed for gifts or
purchases. In September 2005, VRPL entered into a long term advertising
agreement with Bennett, Coleman & Company Limited (“BCCL”). Under
the agreement, they are entitled to fixed discounts for their advertisement
in print publications of BCCL for a period of five years from the date of the
agreement. In addition, BCCL would also act as a facilitator for other print
and nonprint media of the Times Group i.e. internet, radio and television
or any other new medium launched during the tenancy of the agreement.
As a part consideration, VRPL had issued 1,670,605 Equity Shares of Rs.
10 each and 384,190 Preference Shares of Rs. 146 each amounting to an
aggregate of Rs. 300 million.