-1-
• To understand the working of the various departments.
• To enable us to gain an insight into the corporate world.
• To understand the various responsibilities and duties carried out
by each department.
• The study is aimed at understanding how an organization
practically works in a real situation.
-2-
Methodology adopted for the study
Sources of Data
Primary Data
The data collected for the first time through observation and interview
method. The data is also collected by observing the working of various
departments. It is also obtained by the help of staff members.
Secondary Data
The data is collected by secondary sources also. The data is collected
through company manual, product brochure, company website, annual
report and other sources.
-3-
INDUSTRY PROFILE
-4-
centers, and sprawling complexes which offer food, shopping, and
entertainment all under the same roof.
In the Indian retailing industry, food is the most dominating sector and is
growing at a rate of 9% annually. The branded food industry is trying to
enter the India retail industry and convert Indian consumers to branded
food. Since at present 60% of the Indian grocery basket consists of non-
branded items.
India retail industry is progressing well and for this to continue retailers
as well as the Indian government will have to make a combined effort.
-5-
stores. Most of the organized retailing in India have started recently and
is concentrating mainly in metropolitan cities.
The growth in the Indian organized retail market is mainly due to the
change in the consumer’s behavior. This change has come in the
consumer due to increased income, changing lifestyles, and patterns of
demography which are favorable. Now the consumer wants to shop at a
place where he can get food, entertainment, and shopping all less than
one roof. This has given Indian organized retail market a major boost.
-6-
Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion.
Bharti Telecoms an Indian company is in talks with Tesco a global giant
for a £ 750 million joint venture. A number of global retail giants such as
Walmart, Carrefour, and Metro AG are also planning to set up shop in
India. Indian organized retail market will definitely grow as a result of
all this investments.
-7-
The growth of scope in the Indian retail market is mainly due to the
change in the consumer’s behavior. For the new generation have
preference towards luxury commodities which have been due to the
strong increase in income, changing lifestyle, and demographic patterns
which are favorable.
The scope of the Indian retail market has been seen by many retail giants
and that’s the reason that many new players are entering the India retail
industry. The major Indian retailers are:
• Pantaloons Retail India Ltd
• Shoppers Stop
• Bata India Ltd
• Music World Entertainment Ltd
Judging the scope for growth in the India retail industry many global
retail giants are also entering the Indian retail market. They are:
• Tesco
• Metro AG
• Wall- Mart
The scope for growth in the Indian retail market is seen mainly in the
following cities:
-8-
Mumbai, Delhi, Pune, Ahmedabad, Bangalore, Hyderabad, Kolkata,
Chennai
The scope of the Indian retail market is very vast. And for it to reach its
full potential the government and the Indian retailers will have to make a
determined effort.
The opportunities in Indian organized retail sector are many for this
sector is witnessing a boom.
The retail industry in India amounted to US$ 200 billion in 2006, and out
of this amount the Indian organized retail sector amounted to US$ 6.4
billion. The opportunities in India organized retail sector can be judged
from the fact that by 2010 it is expected to rise to US$ 23 billion.
-9-
malls, and 1500 supermarkets are being built which shows the
tremendous opportunities in the organized retail sector in India.
Also, the rise in the working population which is young, pay- packets
which are hefty, more nuclear families in urban areas, rise in the number
of women working, more disposable income and customer aspiration,
western influences and growth in expenditure for luxury items. All these
are the factors for the growth in Indian organized retail sector.
- 10 -
In fact, India retail industry is the fastest growing industry in India and it
accounts for 10% of the country's GDP. In 2006, the retail industry in
India amounted to US$ 200 billion and out of this; the organized retail
sector in India amounted to US$ 6.4 billion. By 2010, the Indian
organized retail sector is expected to rise to US$ 23 billion. In 2003, the
Indian organized retailing sector accounted for more than 4.5 million sq.
ft of space absorption by malls.
Many Indian companies have entered the retail industry in India and this
is also a factor in the growth of Indian organized retail sector. Reliance
Industries Limited is planning to invest US$ 6 billion in the organized
retail sector in India by opening 1500 supermarkets and 1000
hypermarkets. Bharti Telecoms is planning a joint venture worth £ 750
million with Tesco a global retail giant. Pantaloons is planning to invest
US$ 1 billion in order to increase its retail space to 30 million square
feet. Such huge investments are also a factor in the growth of the
organized retail sector in India.
Global retail giants are also entering the retail industry in India and this
is also one of the factors in the growth of the organized retail sector in
India. The global retail giants who are entering the organized retail
sector in India are:
Wall- Mart
Tesco
Carrefour SA
Metro AG
- 11 -
The factors for growth in Indian organized retail sector are many and
that’s the reason behind its massive growth. But for this to continue both
the Indian retailers and the government will have to work together.
The Indian organized retail sector's impact changed the lifestyle of the
Indian consumers drastically. The evident increase in consumerist
activity is colossal which has already chipped out a money making
recess for the Indian organized retail sector.
Since the liberalization policy of 1990, the Indian economy, and its
consumers are getting whiff of the latest national & international
products, the with help of print & electronic media. The social changes
with the rapid economic growth due to trained personnel’s, fast
modernization; enhanced availableness of retail space is the positive
effects of liberalization.
- 12 -
• Demographical changes and improvements in the standard of
living Change in patterns of consumption and availability of low-cost
consumer credit
• Improvements in infrastructure and enhanced availability of retail
space
• Entry to various sources of financing
- 13 -
Emerging trends in Indian organized retail sector
The emerging trends in the Indian organized retail sector would help the
economic growth in India.
The emerging trends in the Indian organized retail sector are also adding
up to the development of the Indian organized retail sector. The
relaxation by the government on regulatory controls on foreign direct
investments has added to the process of the growth of the Indian
organized retail sector.
The infrastructure of the retail sector will evolve radically in the recent
future. The emergence of shopping malls is increasing at a steady pace in
the metros and there are further plans of expansion which would lead to
150 new ones coming up in India by 2008. As the count of super markets
is going up much faster than rate of growth in retail sector, it is taking
the lions share in food trade.
- 14 -
The success of this retail sector would also lie in the degree of
penetration into the lower income strata to tap the possible customers in
the lowest levels of society. The demands of the buyers would also be
enhanced by more access to credit facilities.
With the arrival of the Transnational Companies (TNC), the Indian retail
sector will undergo a transformation. At present the Foreign Direct
Investments (FDI) is not encouraged in the Indian organized retail sector
but once the TNC'S get in they inevitably try to oust their Indian
counterparts. This would be challenging to the retail sector in India.
- 15 -
Growth of Retail Companies in India is still not yet in a matured stage
with great potentials within this sector still to be explored. Apart from
the retail company like Nilgiri's of Bangalore, most of the retail
companies are sections of other industries that have stepped in the retail
sector for a better business. The Growth of Retail Companies in India is
most pronounced in the metro cities of India; however the smaller towns
are also not lagging behind in this. The retail companies are not only
targeting the four metros in India but also is considering the second
graded upcoming cities like Ahmadabad, Baroda, Chandigarh,
Coimbatore, Cochin, Ludhiana, Pune, Trivandrum, Simla, Gurgaon, and
others. The South Indian zone have adopted the process of shopping in
the supermarkets for their daily requirements and this has also been
influencing other cities as well where many hypermarkets are coming up
day to day.
- 16 -
RETAIL FORMATS IN INDIA:
- 17 -
Discount store: Standard merchandise sold at lower prices with lower
margins and higher volumes.
Merchandise: A variety of perishable/ non perishable goods.
Example: Viswapriya Group’s Subiksha, Piramal’s TruMart, PRIL’s
Brand factoty
Kirana stores: The smallest retail formats which are the highest in
number (15 million approx.) in India.
Merchandise: Mostly food and groceries.
Space occupied: 50 sq ft and even smaller ones exist.
- 18 -
Malls: The largest form of organized retailing today. Located mainly in
metro cities, in proximity to urban outskirts.
Merchandise: They lend an ideal shopping experience with an
amalgamation of product, service and entertainment, all under a common
roof.
Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft.
Example: Pantaloon Retail’s Central, Mumbai’s I orbit.
- 19 -
• LIFESTYLE :Investing Rs.400 crore-plus ($90 mn) in next five
years on Max Hypermarkets & value retail stores, home and lifestyle
centres.
• Raheja's: Operates Shoppers' Stop, Crossword, Inorbit Mall, and
'Home Stop' formats. Will operate 55 "Hypercity" hypermarkets with
US$100 million sales across India by 2015.
• Piramyd Retail: Aiming to occupy 1.75 million sq.ft retail spaces
through 150 stores in next five years.
• TATA (Trent Ltd.): Trent to open 27 more stores across its retail
formats adding 1 mn sq.ft of space in the next 12 DLF malls. Titan
industries to add 50-plus Titan and Tanishq stores in 2006.
- 20 -
The Tata Group-Formats: Westside, Star India Bazaar, Steel junction,
Landmark, and Titan Industries with World of Titans showrooms,
Tanishq outlets, Chroma.
- 21 -
SWOT ANALYSIS
A SWOT analysis of the Indian organized retail industry is presented
below:
STRENGTH:
1. Retailing is a "Technology-intensive" industry. It is technology that
will help the organized retailers to score over the unorganized retailers.
Successful organized retailers today work closely with their vendors to
predict consumer demand, shorten lead times, reduce inventory holding
and ultimately save cost. Example: Wal-Mart pioneered the concept of
building competitive advantage through distribution & information
systems in the retailing industry. They introduced two innovative
logistics techniques – cross-docking and EDI (electronic data
interchange)
2. On an average a super market stocks up to 5000 SKU's against a few
hundred stocked with an average unorganized retailer. This will provide
variety in products (required breadth & depth for consumers)
3. As a consequence of high volumes, procurement will be direct from
the Manufacturer. Hence, merchandise can be offered at lower costs.
Weakness:
1. Less Conversion level: Despite high footfalls, the conversion ratio has
been very low in the retail outlets in a mall as compared to the
standalone counter parts. It is seen that actual conversions of footfall into
sales for a mall outlet is approximately 20-25%. On the other hand, a
high street store of retail chain has an average conversion of about 50-
60%. As a result, a stand-alone store has a ROI (return on investment) of
25-30%; in contrast the retail majors are experiencing a ROI of 8-10%
- 22 -
2. Customer Loyalty: Retail chains are yet to settle down with the proper
merchandise mix for the mall outlets. Since the stand-alone outlets were
established long time back, so they have stabilized in terms of footfalls
& merchandise mix and thus have a higher customer loyalty base.
Opportunity:
1. The Indian middle class is already 30 Crore & is projected to grow to
over 60 Crore by 2010 making India one of the largest consumer markets
of the world. The IMAGES-KSA projections indicate that by 2015, India
will have over 55 Crore people under the age of 20 - reflecting the
enormous opportunities possible in the kids and teens retailing segment.
2. Organized retail is only 3% of the total retailing market in India. It is
estimated to grow at the rate of 25-30% p.a. and reach INR 1,00,000
Crore by 2010.
3. Percolating down : In India it has been found out that the top 6 cities
contribute for 66% of total organized retailing. While the metros have
already been exploited, the focus has now been shifted towards the tier-II
cities. The 'retail boom', 85% of which has so far been concentrated in
the metros is beginning to percolate down to these smaller cities and
towns. The contribution of these tier-II cities to total organized retailing
sales is expected to grow to 20-25%.
4. Rural Retailing: India's huge rural population has caught the eye of the
retailers looking for new areas of growth. ITC launched India's first rural
mall "Chaupal Saga" offering a diverse range of products from FMCG to
electronic goods to automobiles, attempting to provide farmers a one-
stop destination for all their needs." Hariyali Bazaar" is started by DCM
Sriram group which provides farm related inputs & services. The Godrej
group has launched the concept of 'agri-stores' named "Adhaar" which
offers agricultural products such as fertilizers & animal feed along with
- 23 -
the required knowledge for effective use of the same to the farmers.
Pepsi on the other hand is experimenting with the farmers of Punjab for
growing the right quality of tomato for its tomato purees & pastes.
Threats:
1. If the unorganized retailers are put together, they are parallel to a large
supermarket with no or little overheads, high degree of flexibility in
merchandise, display, prices and turnover.
2. Shopping Culture: Shopping culture has not developed in India as yet.
Even now malls are just a place to hang around with family and friends
and largely confined to window-shopping.
3. Cultural Variation leads to variation in merchandise in India at
different geographical locations.
- 24 -
COMPANY PROFILE
- 25 -
Pantaloon Retail is the flagship company of Future Group, a business
group catering to the entire Indian consumption space.
Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is
one of India’s leading business houses with multiple businesses spanning
across the consumption space. While retail forms the core business
activity of Future Group, group subsidiaries are present in consumer
finance, capital, insurance, leisure and entertainment, brand
development, retail real estate development, retail media and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over
12 million square feet of retail space in 71 cities and towns and 65 rural
locations across India. Headquartered in Mumbai (Bombay), Pantaloon
Retail employs around 30,000 people and is listed on the Indian stock
exchanges. The company follows a multi-format retail strategy that
captures almost the entire consumption basket of Indian customers. In
the lifestyle segment, the group operates Pantaloons, a fashion retail
chain and Central, a chain of seamless malls. In the value segment, its
marquee brand, Big Bazaar is a hypermarket format that combines the
look, touch and feel of Indian bazaars with the choice and convenience
of modern retail.
- 26 -
In 2008, Big Bazaar opened its 100th store, marking the fastest ever
organic expansion of a hypermarket. The first set of Big Bazaar stores
opened in 2001 in Kolkata, Hyderabad and Bangalore.
The group’s specialty retail formats include, books and music chain,
Depot, sportswear retailer, Planet Sports, electronics retailer, Ezone,
home improvement chain, Home Town and rural retail chain, Aadhar,
among others. It also operates popular shopping portal,
futurebazaar.com.
- 27 -
The group’s presence in Leisure & Entertainment segment is led
through, Mumbai-based listed company Galaxy Entertainment Limited.
Galaxy leading leisure chains, Sports Bar and Bowling Co. and family
entertainment centres, F123. Through its partner company, Blue Foods
the group operates around 100 restaurants and food courts through
brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon,
Copper Chimney and Gelato.
Future Group’s joint venture partners include, US-based stationery
products retailer, Staples and Middle East-based Axiom
Communications.
- 28 -
Corporate Statements
We, in Future Group, will not wait for the Future to unfold itself but
create future scenarios in the consumer space and facilitate consumption
because consumption is development. Thereby, we will effect socio-
economic development for our customers, employees, shareholders,
associates and partners.
Our customers will not just get what they need, but also get them
where, how and when they need.
We will not just post satisfactory results, we will write success stories.
We will not just spot trends; we will set trends by marrying our
understanding of the Indian consumer to their needs of tomorrow.
- 29 -
It is this understanding that has helped us succeed. And it is this that will
help us succeed in the Future. We shall keep relearning. And in this
process, do just one thing.
Group Vision
Group Mission
- 30 -
We share the vision and belief that our customers and stakeholders shall
be served only by creating and executing future scenarios in the
consumption space leading to economic development.
We shall ensure that our positive attitude, sincerity, humility and united
determination shall be the driving force to make us successful.
Core Values
Company Timeline
Major Milestones
1997-Company enters modern retail with the launch of the first 8000
square feet store, Pantaloons in Kolkata.
- 32 -
2001-Three Big Bazaar stores launched within a span of 22 days in
Kolkata, Bangalore and Hyderabad.
Sets up India’s first real estate investment fund Kshitij to build a chain of
shopping malls.
- 33 -
Specialised companies in retail media, logistics, IPR and brand
development and retail-led technology services become operational.
Big Bazaar crosses the 100-store mark, marking one of the fastest ever
expansion of a hypermarket format anywhere in the world.
- 34 -
Board of Directors
- 35 -
led Pantaloon Retail’s emergence as the India’s leading retailer operating
multiple retail formats that now cater to almost the consumption basket
of a large section of Indian consumers.
Kishore Biyani led the company’s foray into organized retail with the
opening up of the Pantaloons family store in 1997. This was followed in
2001 with the launch of Big Bazaar, a uniquely Indian hypermarket
format that democratized shopping in India. It blends the look, touch and
feel of Indian bazaars with aspects of modern retail like choice,
convenience and quality. This was followed by a number of other
formats including Food Bazaar, Central and Home Town.
The year, 2006 marked the evolution of Future Group, that brought
together the multiple initiatives taken by group companies in the areas of
Retail, Brands, Space, Capital, Logistics and Media.
Kishore Biyani was awarded the Ernst & Young Entrepreneur of the
Year 2006 in the Services Sector and the Lakshmipat Singhania - IIM
Lucknow Young Business Leader Award by Prime Minister, Dr.
Manmohan Singh in 2006. He was also awarded the CNBC First
Generation Entrepreneur of the Year 2006.
Kishore Biyani was born in August, 1961 and is married to Sangita and
they have two daughters. He recently authored a book, ‘It Happened In
India’ that captures his entrepreneurial journey and the growth of
modern retailing in India
- 36 -
Mr. SHAILESH HARIBHAKTI
Chairman
Mr. S. DORESWAMY
Director
- 37 -
Ms. BALA DESHPANDE
Director
Affiliate Companies
- 38 -
Future Media (India) Limited
- 39 -
The Company would be engaged in sourcing and wholesale distribution
of mobile handsets, accessories and in setting up service centers for
mobile handsets in India.
- 40 -
Future Knowledge Services Limited (FKSL) was incorporated on
January, 2007 and is engaged in the business of business process
outsourcing and knowledge process outsourcing.
The company
operates a consumer finance retail format, Future Money and manages
assets worth over US$ 1 Billion through In division, Kshitij, Horizon
and Future Hospitality Funds. FCH subsidiary companies include Kshitij
Investment Advisory Company Ltd., Ambit Investment Advisory
Company Ltd., and Indivision Investment Advisors Ltd.
- 41 -
Future Generali India Insurance Company Limited (FGIICL) was
incorporated on October 30, 2006 to undertake and carry on the business
of general insurance. The approval for carrying on General Insurance
Business has been received from the Insurance Regulatory and
Development Authority of India (IRDA) on September 4, 2007.
The approval for carrying on Life Insurance Business has been received
from the IRDA in September, 2007.
- 42 -
Future bazaar India Limited (FBIL) is set up as the e-Retailing arm of
the Future Group for providing on-line shopping experience.
Futurebazaar.com was launched on January 2, 2007, and has emerged as
one of the most popular online shopping portals in India. It was awarded
with the “Best Indian Website” award, in the shopping category, by the
PC World Indian Website Awards.
- 43 -
- 44 -
FUTURE GROUP NETWORK
LINES OF BUSINESS
E-tailing
Futurebazaar.com
- 45 -
Having pioneered the retailing business in India, PRIL has now decided
to revolutionize the consumer e-commerce business in India. It intends
to provide customers with a streamlined, efficient and world class
personalized shopping experience, which will be supported with the best
technology platform.
Food
Brew Bar
The Brew Bar is a classy and refined; yet reasonable an egalitarian a bar
with loads of bonhomie!
Cafe Bollywood
- 46 -
Indian street food but with assurance of highest levels of hygiene and
quality.
Chamosa
Food Bazaar
Life is all about good taste and food bazaar aims to ensure the same.
With the low prices, a wide selection of products and guaranteed
freshness, you are bound to find it irresistible.
Sports Bar
- 47 -
A bistro focused on the world of sport, the Sports Bar is complimented
with an unrivalled ambience.
Fashion
aLL
Shop big and shop for big, coz fashion just got a little larger! Fashion for
plus size people.
Big Bazaar
If value for money is what drives your purchase; there can be no better
place for you other than Big Bazaar.
Blue Sky
- 48 -
Accessories like never before....get the best in sunglasses and watches at
your kind of prices.
Brand Factory
The thought behind Brand Factory is to raise the bar of expectation and
experience when it comes to ‘Brand + Bargain Shopping'.
Celio
Central
- 49 -
A showcase, seamless mall for all your needs. Located in the heart of
your city, Central invites you to Shop, Eat, and Celebrate.
With fashion apparel and accessories for all age groups across categories
like men, ladies, kids and infants, Fashion@Big Bazaar is the fashion
destination for all.
Lee Cooper
Navaras
- 50 -
Pantaloons
Planet Sports
Home Solutions
HomeTown
- 51 -
eZone
Furniture Bazaar
Furniture Bazaar offers an entire range of Home Furniture needs that are
utilitarian and affordable in their pricing.
Electronics Bazaar
Currently present within Big Bazaar stores, Electronics Bazaar offers the
best deals in branded electronic goods and appliances.
Home Bazaar
- 52 -
Home Bazaar brings together a vast range of products and services under
one roof for consumers that go into building a house and everything to
make it a ‘Home’.
Collection i
Telecom & IT
Gen M
Gen M, as the name suggests, is for the young and the hip. Gen M offers
a whole array of the latest and the best gadgets and gizmos to tech
junkies.
One Mobile
- 53 -
M bazaar is the first and one of its kind concept offering comprehensive
solutions to satisfy the knowledge, entertainment and communication
aspirations of Individuals.
M – Port
General Merchandise
Big Bazaar
If value for money is what drives your purchase; there can be no better
place for you other than Big Bazaar.
Blue Sky
- 54 -
Accessories like never before....get the best in sunglasses and watches at
your kind of prices.
Brand Factory
The thought behind Brand Factory is to raise the bar of expectation and
experience when it comes to ‘Brand + Bargain Shopping'.
Central
A showcase, seamless mall for all your needs. Located in the heart of
your city, Central invites you to Shop, Eat, and Celebrate.
Navaras
- 55 -
Navaras is a fine 22 carat pure gold and diamond jewellery brand,
retailed from Big Bazaar stores.
Pantaloons
KB's FairPrice
KB’s FairPrice are simple but modern, self service ration shops or
neighborhood stores, spread across an average area of 1,000 to 1,500
sq.ft.
Shoe Factory
- 56 -
Bowling Co.
F 123
Star & Sitara, a unique beauty salon for men and women democratises
salon services and delivers quality service at very affordable prices.
- 57 -
At Fit & Healthy our focus is on helping you stay healthy by providing
access to the best allopathic, ayurvedic and homeopathic medicinal
products.
Depot is one of the youngest brands from the Pantaloon stable and is a
tribute to our freedom of thought, speech and expression shared in a
novel fashion with customers as books, multimedia, toys, stationary and
gifts.
- 58 -
FINANCIALHIGHLIGHTS
The operating results of the Company for the year under review are as follows:
(Rs. in Crores)
2008-2009 2007-2008
Sales (Net of Taxes) 6,103.70 4,776.33
Operating Income 238.35 272.58
Other Income 6.06 3.76
Total Income 6,347.76 5052.67
Profit before Depreciation & Tax 356.28 279.01
Less: Depreciation 140.05 83.39
Profit before Tax 216.23 195.62
Less: Earlier Year’s Income Tax (0.27) (0.03)
Less: Provision for Taxation 75.38 69.68
Profit after Tax 140.58 125.97
Add: Profit brought forward from previous year 267.56 215.76
Surplus available for appropriation 408.14 341.73
APPROPRIATION
Proposed Dividend 11.58 10.67
Provision for Dividend Tax 1.97 1.81
- 59 -
Transfer to General Reserve 14.05 12.60
Balance carried to Balance Sheet 380.81 316.65
Ratios
Financial Performance Jun-05 Jun-06 Jun-07 Jun-08 Jun-09
Cost of Goods Sold / Net Sales 66.52% 66.53% 69.36% 69.56% 69.85%
Advertising and Selling Cost / Total Income 3.08% 2.72% 2.80% 2.34% 1.80%
RONW (PAT / Average Net Worth) 24.42% 17.15% 14.82% 8.57% 6.83%
- 60 -
ROCE (PBDIT / Average capital employed) 22.41% 18.30% 17.48% 14.44% 14.73%
Asset Turnover (Total Income / Total Assets) 2.03 1.62 1.36 1.23 1.21
Key Finacial Parameters (Rs in Crores) Jun-05 Jun-06 Jun-07 Jun-08 Jun-09
Profit Before Interest, Tax and Depreciation 93.91 149.64 307.63 464.28 674.50
Basic Earnings (less Extraordinary Income) 3.31 5.06 8.71 7.54 7.94
- 61 -
Growth in Total Income(Rs in Crores)
- 62 -
Growth in PBDIT (Rs in Crores)
ROCE (%)
- 63 -
Debt-Equity Ratio
- 64 -
10-YEAR FINANCIALSUMMARY BALANCE SHEET
Rs. in Crores.
Banalce Sheet as at Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09
Sources of Funds
Equity Share Capital 12.52 13.32 17.32 18.18 19.14 22.00 26.88 29.35 31.86 38.06
Share Application Money - - - - - - - 0.01 - -
Reserves & Surplus 13.07 22.75 36.68 49.50 75.75 196.53 500.02 1,062.82 1,751.50 2,211.48
Warrant Application Money - - - - - 3.00 - - 63.26 22.88
Shareholders Fund 25.59 36.07 54.00 67.68 94.89 221.53 526.90 1,092.18 1,846.62 2,272.42
Deferred Tax Liability - - 1.79 2.92 6.03 13.04 27.92 55.84 67.84 116.10
Secured Loans 31.61 68.22 109.53 141.32 214.76 256.17 428.10 951.93 1,991.77 2,525.53
Unsecured Loans 2.73 1.42 0.30 4.23 21.36 30.04 173.29 347.65 200.01 324.86
Total Loans 34.34 69.64 109.83 145.55 236.12 286.21 601.39 1,299.58 2,191.78 2,850.39
Total Liabilities 59.93 105.71 165.62 216.15 337.04 520.78 1,156.20 2,447.60 4,106.24 5,238.90
Application of Funds
Gross Block 21.24 41.24 77.72 122.98 184.71 251.10 366.01 767.07 1,368.76 1,876.45
Depreciation 3.61 5.22 9.43 15.67 24.32 37.36 56.58 92.47 170.59 307.69
Net Block 17.63 36.01 68.29 107.31 160.39 213.74 309.43 674.60 1,198.17 1,568.76
Capital WIP 9.85 7.86 6.28 3.32 14.44 15.79 86.06 131.13 330.64 345.23
NB + CWIP 27.48 43.87 74.57 110.63 174.83 229.53 395.49 805.73 1,528.81 1,913.99
Investment 0.07 5.07 5.07 5.26 5.26 31.92 161.67 252.01 586.52 954.03
Current Assets
Inventories 37.19 56.33 87.41 114.38 157.60 275.93 507.02 885.96 1,429.84 1,787.84
Debtors 10.05 12.98 17.69 22.32 17.58 12.31 17.03 65.17 113.16 177.25
Cash & Bank Balance 2.28 2.38 4.03 8.07 13.85 21.50 21.77 162.97 121.10 109.34
Loans & Advances 6.01 11.10 23.33 21.43 40.95 93.68 297.57 633.85 962.32 1,202.56
Other Current Assets - - - - - 0.46 1.09 1.50 2.16 5.75
Total Current Assets 55.53 82.78 132.46 166.21 229.98 403.87 844.48 1,749.45 2,628.58 3,282.74
Current Liabilities
Creditors 12.41 13.75 23.82 17.64 13.58 78.69 136.08 223.72 310.40 385.38
Other Current Liabilities 9.66 12.04 22.05 44.44 52.91 48.39 93.73 120.15 309.68 506.01
Provisions 1.96 0.98 1.23 4.40 6.95 17.74 15.62 15.71 17.58 20.46
Total Current Liabilities 24.03 26.77 47.10 66.48 73.44 144.82 245.44 359.58 637.66 911.86
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Net Current Assets 31.50 56.01 85.36 99.73 156.54 259.05 599.04 1,389.86 1,990.91 2,370.89
Misc. Expenditure 0.89 0.76 0.63 0.53 0.40 0.28 - - - -
Total Assets 59.93 105.71 165.62 216.16 337.04 520.78 1,156.20 2,447.60 4,106.24 5,238.90
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10-YEAR FINANCIALSUMMARY - PROFIT & LOSS ACCOUNT
P ro fit& Loss
Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09
Account as at
Other Income 0.66 0.44 0.67 0.79 1.33 3.05 3.00 92.03 3.76 6.06
Total Income 137.94 181.02 285.96 445.62 659.64 1,055.85 1,871.97 3,328.77 5,052.67 6,347.76
Cost of Goods
97.19 117.98 186.11 303.50 438.01 700.31 1,243.43 2,245.05 3,512.19 4,429.95
Cons. & Sold
Labour Charges 5.17 8.28 6.51 6.77 6.97 15.27 20.66 14.62 21.28 15.79
Packing Materials 0.76 1.24 2.11 3.10 5.64 12.44 19.22 27.80 40.40 51.74
Power 1.03 2.02 5.34 7.94 12.08 21.95 37.41 61.51 78.20 98.97
Rent 3.08 6.18 10.03 15.71 27.59 47.97 113.46 207.01 326.27 405.76
Personnel Cost 4.18 6.81 13.59 19.13 27.53 50.65 112.07 206.09 274.07 274.26
Advertisement
2.98 6.05 8.77 11.83 18.75 32.56 50.96 93.14 118.28 114.23
Expenses
Transportation
1.08 1.73 2.72 3.43 5.95 12.66 19.08 - - -
Expenses
Misc. Expenditure 9.22 12.00 17.96 24.88 41.72 67.84 106.03 165.92 217.70 282.56
Total Cost 126.53 166.27 262.98 407.44 602.50 961.94 1,722.34 3,021.14 4,588.39 5,673.26
P B D IT 11.41 14.74 22.98 38.18 57.14 93.91 149.64 307.63 464.28 674.50
Finance Charges 5.07 6.22 11.24 17.67 23.94 27.46 36.92 89.76 185.27 318.22
PBDT 6.33 8.52 11.74 20.51 33.20 66.46 112.71 217.87 279.01 356.28
Depreciation 1.07 1.63 4.22 6.35 8.79 13.33 20.82 36.86 83.39 140.05
PBT 5.27 6.89 7.53 14.16 24.41 53.12 91.90 181.01 195.62 216.23
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Prior Period Items (0.00) 0.04 0.01 0.78 0.07 0.03 0.07 0.06 (0.03) 0.27
Current Tax 0.35 0.45 0.39 0.85 1.45 7.28 11.04 30.71 29.16 25.23
Deferred Tax - - 0.10 1.13 3.11 7.01 14.87 27.93 37.28 48.26
PAT 4.92 6.40 7.03 11.41 19.78 38.55 64.16 119.99 125.97 140.58
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Project Overview
BRAND FACTORY
Best Brands.Smart Prices
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The thought behind Brand Factory is to raise the bar of
expectation and experience when it comes to ‘Brand +
Bargain Shopping’. Over the years Factory Outlets have
become distinct shopping destinations with distinct
audiences. With fashion cycles reducing, larger quantities
of stocks are reaching factory outlets. But then what gets
compromised in the process is the brand and its image.
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Brand Factory hosts several Indian and International
fashion brands including Levis, Pepe Jeans, Dockers,
Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis
Phillip, Allen Solly, Reid and Taylor, Gini and Jony
amongst others.
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Primarily focused on retailing apparel, accessories and
footwear at discounted prices, these stores (each in excess
of 60,000 square feet) showcase some of the best known
brands including Diesel, Esprit, Levi’s,
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Supply Chain of Brand Factory
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Activities at Store Level
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(b) Raising PO:-
PO (purchase order) for different merchandise is placed and
is released to the vendors by the stores. PO on vendors can
be raised only once each day & its validity will be for one
time and all the delivery and payment conditions are
mentioned in it.
2) Receiving:-
(a)Checking of Delivery in DC
All the Dry DC delivery will be checked by a store staff in
the DC staging area before packing and loading. This is to
minimize delivery count error and ensure that right quantity
is delivered to the stores. Behind this all the activity owner
is Store Manager.
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(b) Receiving Goods in Store: From DC & CPC
Receiving indented goods from the DC & CPC as per the
delivery schedule. At the time of receiving goods from DC
many things which is followed by the SCM, ASCM, &
CSA
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1. Check the deliveries for quantity, damages and freshness
and accept only good products as per shelf life norms.
2. Do not accept any short shelf life or damage quantity
from vendor and reduce it from the invoice if required.
3. Remove all expired products from the shelf and get them
replaced with fresh product without any GRN for the same.
3. In case of books/magazines and music SCM/ASCM
check bar-codes on the books or music CDs delivered by
the vendor & return the unsold items to the vendors.
4. Vendors and store staff check physically check DSD
deliveries for damages and freshness and accept only fresh
saleable products.
Tagging:
All the merchandise from DC and CPC’s are tagged with
security tags to prevent merchandise from shrinkage.
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There are different guidelines for different products to be
tagged.
All the pants and briefs are tagged on the left side of the
pocket, shirts are tagged at the front part between 2nd and 3rd
button and foot wear are tagged to the left wear.
All the accessories are tagged with paper tags and soft tags
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Replenishing merchandise to shelf’s:
After all the above process is done, the respective floor
manager is intimated about the stock to his floor and a gate
pass is generated and he would come and collect the
merchandise and stock to the shelf’s of his floor.
For F&V crates are received carefully for the item not for
sale as per PRIL quality and are removed from the shelf. It
is done by Team lead/Floor manager.
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EXPIRY:
1. Near expiry product is markdown as per the RR rule.
2. An expired product is segregated and is treated as per
following.
Markdown criteria
Up to Rs. 15 or 15 % of selling price (whichever is lower)
& it is done by Store manager.
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Dumping of Damages and Expiry products
5) Returns:
The goods that are not fast moving or having defects or
expired or damged are returned to respective distribution
centres or vemdors.
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TECHNOLOGY AND SOFWARE USED
Internet
Internet is also rapidly evolving as a customer interface,
removing the need of a consumer physically visiting the
store.
ERP System
Various ERP vendors have developed retail-specific
systems which help in integrating all the functions from
warehousing to distribution, front and back office store
systems and merchandising. An integrated supply chain
helps the retailer in maintaining his stocks, getting his
supplies on time, preventing stock-outs and thus reducing
his costs, while servicing the customer better.
CRM Systems
The rise of loyalty programs, mail order and the Internet
has provided retailers with real access to consumer data.
Data warehousing & mining technologies offers retailers
the tools they need to make sense of their consumer data
and apply it to business. This, along with the various
available CRM (Customer Relationship Management)
Systems, allows the retailers to study the purchase behavior
of consumers in detail and grow the value of individual
consumers to their businesses.
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Advanced Planning and Scheduling Systems
APS systems can provide improved control across the
supply chain, all the way from raw material supplier’s right
through to the retail shelf. These APS packages
complement existing (but often limited) ERP packages.
They enable consolidation of activities such as long term
budgeting, monthly forecasting, weekly factory scheduling
and daily distribution scheduling into one overall planning
process using a single set of data
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Objective of the Project
Primary Objective
The primary objective was to know the supply chain of a
retail store in practical
Secondary Objective
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Methodology
The total time spent was 6 weeks and below is the detailed
report of departments observed week wise.
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FINDINGS
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9. Achieving best finacail goals.
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RECOMMENDATIONS
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CONCLUSION
I have learned a lot from this project. After this project I
have a fair knowledge about retail management. This
project has helped me a lot to know about the various
aspects concerned with retail field which people rarely
know about like marketing strategies, promotions activities
involved, inventory management, customer relations,
method of advertisement, services etc.
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BIBLIOGRAPHY
Books Referred
Websites Referred
www.pantaloon.com
www.scribd.com
www.goolge.com
www.imagesretail.com
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