Professional Documents
Culture Documents
PRESENTED BY:
PRATEEK JAIN RAVI SHANKER SIDDHARTH BARUA
Increase in disposable income. Increase In purchase trend Under Shed of middle And Upper Middle
class sector .
Support from government to Ignite the Fuel For Over all Structural
Global exposure.
October 1987, converted into a public limited company in September 1991, renamed as Pantaloon Fashions (India) Limited a year later. and thereafter into Pantaloon Retail (India) Limited in July 1999.
The company operates over 12 million square feet of retail space, has
over 1000 stores across 73 cities in India and employs over 30,000 people.
It captures almost the entire consumption basket of Indian customers. The
Pantaloon Stores
In 1992, the company inaugurated its first exclusive mens
Big Bazaar
In 2001,PRIL opened its first Big Bazaar in Kolkata.
The major USP of Big Bazaar was low price and value price
Food Bazaar
Future Group
In March 2006, the Pantaloon Group as a part of its restructuring &
Future Retail Future Brands Future Space Future Capital Future Media Future Logistics
Establishing subsidies
Joint Ventures
Acquisition of companies
New Subsidies
Old subsidies
Feb 2005Sports Goods and Apparels. Plans to acquire 49% stake in planet sports Pvt. ltd.
Sports goods and apparel retailing company. Cost Rs. 142 mill. BenefitsSole franchisee of marks and Spencer
Brands like puma, Speedo and converse. Feb 2005Restaurant Business Entered restaurant business by establishing pan India restaurants ltd.
Investment of Rs. 90 million Focus on quick service restaurants, food courts and hotels
April 2005Food product Incorporated pantaloon food product ltd, as a subsidiary of PRIL. with 100% stake Investment of Rs. 50 mill. Maintain supplies of food products to its food bazaar stores.
Joint venture with liberty shoes ltd. to form foot mart India ltd.
PRIL. holding 51% while liberty holds 49%. Invested Rs.127.5 mill.
January 2006-
April 2006-
Telecom sector
Entered into Telecom sector by wholly owned subsidiary, Convergem retail India ltd.
Investment of Rs.1 billion. Operate through mortem bazaar, and gen m.
April 2006-
Real Estate
The restructuring and expansion drive prompted Mr. Biyani to bring in new talent and professionalize the business. The group sought to utilize the expertise of the highly qualified and experienced executives to oversee the group's initiatives in various business sectors.
At the senior management level, the group hired high profile executives from reputed organizations like Goldman Sachs , Coca-Cola India, etc.
Atul Kaput
MD and peincipal stategist of Goldman Sachs private equity fund Bharti President & CEO
Neeran Chibber
Communication Products (PRILs Retail Division) Head-Creative Research Team, Future Capital PHF Investment Advisory (Subsidiary of PRIL)
Goldman Sachs Chief Economist & Strategist Inox Leisure MD & CEO
It also had lower attrition rate (8.3 %) when compared to the retail industry as a whole (around 40 % to 50 % p.a)
The Size of the Indian Retail was estimated at US $ 200 Billion in 2006.
Financial Results:
For the year ended June 30 2006 ,Total Income of Rs. 18.72 billion as
Company reported a 66.4% rise in the net profit, i.e Rs. 641.5 million
for 2005-06 as against Rs.385.5 million in the previous fiscal year. Sep.30 2006.
PRIL recorded a net profit of Rs.386.4 million for the quarter ended Increase of around 186% over the corresponding period of the
previous year.
Competitors:
PRIL faced competition from domestic competitors like Shoppers Stop & Trent Ltd.
FDI in India:
In Feb 2006, the Indian Govt. allowed Single Brand retailing in India upto 51%. Biyani was against allowing FDI in Indian retailing sector as he felt that the sector was still at a nascent stage.
Upcoming Competitor:
Reliance retail Limited. The competitor had already begun was evident from the fact that Reliance had poached Raghu Pillai from PRIL.
Countering Competition:
Biyani had plans to enter into wholesale trading. Biyani had plans to launch 18 formats & over 3340 stores. Turning PRIL into a US $ 7 Billion company with over US $ I Billion in Profits by the year 2010. He also planned to split his businesses for raising money separately from the business.
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