Agriculture Officer Batch 2009,

Belapur, Mumbai
RETAIL REVOLUTION IN INDIA ,
IMPACT ON AGRICULTURE AND AGRICULTURE
LENDING, ROLE OF MARKETING IN TAPPING
GROWTH OPPORTUNITY
Presented byMr. S. Bagada

Mr. R. R. Kumar

Dr. R. Somnathe

Mr. D. R. Kamdi

Mr. Rakesh Kumar

Mr. S. R.. Nalawade

Ms. Shweta Prasad

Ms. Suriyasree.S

Ms. Jeyashree.G

AGENDA

INTRODUCTION
GROWTH OF RETAIL IN INDIA
CHANGING SCENERIO OF SUPPLY
CHAIN
IMPACT OF RETAIL ON AGRICULTURE
& AGRICULTURE LENDING
ROLE OF MARKETING IN TAPPING
GROWTH OPPORTUNITY
CONCLUSION
REFERENCES

INTRODUCTION

India is fifth most attractive

emerging retail market: a potential
goldmine.
Indian retail is largest among all
industries(200 billion $).
10% - Indias GDP.
Growth rate 20-25%
8% - employment
Potentiality to grow 427 billion $ by
2010 and 637 billion $ by 2015.

INTRODUCTION CONTD.
RETAIL FORMATS IN INDIA
Malls
Speciality stores
Discount stores
Department stores
Hypermarts / Supermarts
Convenience stores
Multi brand outlets

INTRODUCTION CONTD.
Types of Retailers
Large
scale
Retailers

Consumer
Co-op
Stores

Direct
Mktg/Channel
less Retailing

1.Super Market.

1.Co-op stores.

1.In home Selling.

Small/
Medium Size
Retailer

1. Mobile
Retailers,
Hawkers.

2.Departmental Stores. 2 .Sahakari Bhandars. 2.Telemarketing.

3.Mail Order sale.
3.Discount stores.

2. Convenience
4.Manufacturers
stores.
Showroom
3. Specialty
Stores

5.Super stores.
(Combination
Stores,Hypermarkets)

4.Vending
Machine

GROWTH OF RETAIL IN INDIA

GROWTH OF RETAIL IN INDIA

CONTD
INDUSTRY REVOLUTION

Retailing in India can be traced to emergence

of the neighborhood "Kirana " stores catering
to the convenience of the consumers.
Era of government support for rural retail:
Indigenous franchise model of store chains
run by Khadi & Village Industries Commission
1980s experienced slow change as India
began to open up economy.
Textiles sector with companies like Bombay
Dyeing, Raymond's, S Kumar's and Grasim
first saw the emergence of retail chains

GROWTH OF RETAIL IN INDIA

CONTD

1990s saw a fresh wave of entrants with a shift

from Manufactures to Pure Retailers.
For e.g. Food World, Subhiksha and Nilgiris in
food and FMCG; Planet M and Music World in
music; Crossword and Fountainhead in books.
Post 1995 onwards saw an emergence of
shopping centers.
Targeted to provide a complete destination
experience for all segments of society
Emergence of hyper and super markets trying
to provide customer with 3 Vs - Value, Variety
and Volume.

GROWTH OF RETAIL IN INDIA

CONTD
FACTORS FOR GROWTH OF ORGANISED
RETAIL SECTOR

Growth of Indian Economy: Second fastest

Emerging opportunities in service sector
Capital no longer a constraint easy loans
Increase in the young working population
Increasing working women population
Hefty pay pockets
Nuclear families in urban areas
Changing Cultural Habits
Middle class dwelling revamped

CONTD ..,

Multiple drivers leading to a consumption

boom:

Favorable demographics

Growth in income

Increasing population of working women

Raising aspirations: Value added goods

sales

CONTD..,

Rural markets emerging as a huge

opportunity for retailers reflected in the

share of the rural market across most categories

of consumption

ITC is experimenting with retailing through its

e-Choupal and Choupal Sagar rural
hypermarkets.

HLL is using its Project Shakti initiative

leveraging women self-help groups to explore
the rural market.

CHANGING SCENERIO OF SUPPLY

CHAIN

IMPACTS ON AGRICULTURE
AND AGRICULTURE LENDING

Corporate investment in retail is likely to

be multifaceted .
On Supply chain starting from the
farmers to the SME goods to consumers.
Agricultural front , the organised
retailers are providing farmers with
inputs.
Has increased the net realisations of
farmers with disintermediation for
middlemen.

IMPACTS ON AGRICULTURE AND

AGRICULTURE LENDING
CONTD

To provide the cheapest & best

produce, organised retail could help the
Indian farmers directly & banks
indirectly in agri. Lending .

Investment into cold storage chain

will result in significant efficiency on
supply chain.

IMPACTS ON AGRICULTURE AND

AGRICULTURE LENDING
CONTD

Entry of retail giants leads to

-greater investment in farm technology
(Bharti, Pepsi,Reliance)
-Aggregate demand for bank credit
-Help bankers in credit expansion &
monitoring .
Contract farming spreads very fast
- Farmers to get better price
- Improves farm production through
modern techniques

ROLE OF MARKETING IN
TAPPING GROWTH
OPPORTUNITY
Importance of Marketing.

Organisations around the world strive

to develop products and services that
appeal to their customers
Aim to differentiate their offering in
the increasingly-crowded global
marketplace.
Customers satisfaction should be the
ultimate objective of marketing

ROLE OF MARKETING IN
TAPPING GROWTH
OPPORTUNITY

Finance for contract farming in Agri Business

wherever possible.

Identify Supply chain in contract farming activity.

Finance all the players of supply chain such as

processor, distributor, logistics, retailers, farmers etc.

Identify the Missing links in the supply chain.

Finance the Missing links and try to cover under one

umbrella

Promote cross selling.

Backward linkages
DEALERS OF
SEEDS,
FERTILISERS,
PESTICIDES, ETC.

FARMER
BANK

Forward linkages
WHOLESALER
RETAILER

CONSUMER

STRATEGIES TO TAP THE

GROWTH OPPORTUNITIES

Effective deployment of agriculture

officers with special target .
Finance entire commodity chain from
farmers to retailers.
Targeting standard accounts of other
banks.
Taking partnership route to drive
growth in agriculture.
Thrust on investment credit.

STRATEGIES TO TAP THE

GROWTH OPPORTUNITIES
CONTD
Innovative

& need based

products
Banks need to prepare big ticket
loan
Linkage on the lines of farm to
fork
Promotion of channel credit
through corporate customers .

CONCLUSION
The huge potential in Agriculture sector
& lack of sufficient rural & semi urban
branches in private sector banks, the
Nationalised Banks has huge scopes..
It is certain that the competitive
battlefield of bankers will shift in the
near future.
Let us take AGRI. LENDINGS to a higher
growth trajectory through new
strategies and After all, the colour of
money has always been green in India.

REFERENCES
Indian Retail Industry-Its Growth,
Challenges And
Opportunities- An
Article by Dr.M. Dhanabhakyam.
Financing Agriculture-A Journal of
Agriculture & Rural Development, JanFeb-2008 Issue.
Morgan Stanley Research Publication,
Nov.24, 2006 Economics.
Retail Revolution- The Indian Partner, An
Article by Sanjeev Chaturvedi, IILMBusiness School, Delhi.

THANK YOU