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Guide certificate
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Declaration
I hereby declare that I have carried out Summer Training Project on the topic entitled Customer
Profiling & Purchase Parameters at pantaloon retail store.
I further declare that this project work is based on my original work and no part of this project
has been published or submitted to anybody.
SHAKTI KUMAR SINGH
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PREFACE
Summer training at any business organization makes the students more practical and habitual to
analyze the situation in more crucial a refined way, which ultimately contributes a later stage of
practice. It also helps in filling up the gap between theoretical and practical experience. The
business winner will be those organizations that size and expert opportunity by strategically
positioning themselves.
The Objective of this project is to find out the awareness of individual towards the Retail sector.
And other most important objective of this project to know about customer profiling and
purchase parameter
During preparing this project we meet many investors who have decided to buy a dresses. We
use some source of information to prepare this project. We prepare this project on behalf of
Pantaloons retail store.. Hence this framework is derived from the practice adopted by the
companies in order to sustain and grow.
We are serving the following pages that will endow the reader with insight in to the Indian retail
sector from the corporate view- point. This study has been very useful learning experience
enriching knowledge in the field of retail sector.
SHAKTI KUMAR SINGH
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Introduction
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Retail is Indias largest industry, accounting for over 10 per cent of the countries GDP and
around eight per cent of the employment. The market size of Indian retail industry is about US
$312 billion Organized retailing comprises only 4.5 per cent of the total retailing Estimated at
around US$ 8.7 billion
The organized retail sector is expected to grow to US $ 70 billion by 2010 International retailers
India's vast middle class with its expanding purchasing power and its almost untapped Retail
industry is 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 Inkwell 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 mens brand, has tied up with Brand house. Retail Ltd. for its India venture
and will be opening four stores. The worlds largest furniture retailer, Idea, has established an
office in Gorgon for market research and is holding talks with domestic
.
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TABLE OF CONTENTS
REVIEW PAGE NO.
Executive summary 07-18
Brief history of the organization.19-34
SWOT analysis ..35-39
Award.40-44
Board of director.45-57
Org. structure.58-60
Mission, vision and philosophy61-63
Objective 64-70.
Research methodology 71-74
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Executive summary
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The Pantaloon group, a leading retailing group in India. In March 2006, the group renamed itself
as the 'Future Group' and was further divided into six verticals - Future Retail, Future Brands,
Future Space, Future Capital, Future Media, and Future Logistics. Headquartered in Mumbai
(Bombay), the company operates Over 7 million square feet of retail space, has over 1000 stores
across 53 cities in India and employs over 25,000 people Future Group shall deliver Everything,
Everywhere, Every time for Every Indian Consumer in the most profitable manner We shall be
efficient, cost- conscious and committed to quality in whatever we do
.Rewrite rules. Retain values
.Mr. Kishore Biyani
Website:www.pantaloon.com
Company Outlet:
Pantaloons:: cross river mall
Address : Shahadara New Delhi
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RETAIL MEANING
Retail comes from the French word retailer which refers to "cutting off, clip and divide" in terms
of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small
quantities" in 1433 (French). It's literal meaning for retail was to "cut off, shred, paring".
Business of selling products and services to the public as the ultimate consumer. Retailing
involves selling many different products and services, either from a store location or in direct
selling through vending machines and in-home presentations, mail order, and so on.
First retailers in India include BATA, Pantaloon, Bombay Dyeing, Spencers The case highlights
the emergence and evolution of PRIL from a small garment manufacturer to the retailer in India
by the early 21st century. It examines the evolution and growth of PRIL until the mid 1990s, and
then traces the rationale behind the launch of its first retail format Pantaloons, a family
departmental store. It discusses in detail the marketing and promotional efforts undertaken by
PRIL for Pantaloons, which made the store one of the most successful lifestyle stores in India in
the early 2000s. The case then examines the reasons for PRIL's entry into discount store and food
store businesses through Big Bazaars and Food Bazaars and discusses in detail the strategies and
marketing efforts put in place by PRIL to promote these formats. Recent trends in the Indian
retailing industry, changing requirements and preferences of consumers, Understanding changing
consumer lifestyles.
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Background
The organized retail industry in India did not evolve till the early 1990s. Until then, the industry
was dominated by the un-organized sector. It was a sellers market, with a limited number of
brands, and little choice available to customers Lack of trained manpower, tax laws and
government regulations all discouraged the growth of organized retailing in India during that
period. Lack of consumer awareness and restrictions over entry of foreign players into the sector
also contributed to the delay in the growth of organized retailing. This allowed the un-organized
sector to rule the Indian retailing industry. It was during this time that the foundation of PRIL
was laid by Biyani. Biyani was a commerce graduate with a post-graduate diploma in marketing.
After spending five years in managing his family business of trading textile and yarn, he started
with apparel manufacturing in the mid-1980s. Is Kishor Biyani a retailer or a fund manager?
That question might well be asked of him in the not too distant future. Over the last few months,
Future Capital Holdings (FCH), led by CEO Sameer Sain, has stitched together a fully integrated
financial services business model.
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Management business in India with almost $830 million in assets. Now, it has big plans in
insurance, retail lending and forex services. Whether we have a consumer who wants to
leverage future income to realise his aspirations today, or wants to save and invest, or buy
protection for his family, we want to be a part of it, says Sain. He believes that in 5 -7 years,
FCHs bottom line will be bigger than the retail business! In the insurance business, the Future
Group has managed to wrest a 74 per cent stake in a joint venture by investing just Rs 100 crore
(its JV partner invested the same amount for a 26 per cent stake). Italian Assicurazioni Generali,
ranked 21 on the Fortune 500 list, is a good fit for us because they derive almost 17 per cent of
their sales from mall assurance. They have also partnered another retailer in the Philippines,
says Sain. Biyani estimates that with just a 1 per cent footfall conversion rate, the insurance
business would have over 2 million customers. That would earn him huge fees on distribution
and catapult the company to amongst the largest private insurance players by way of number of
policies sold. Despite the global economic recession and a consequent slowdown in the Indian
economy, organized retail continued to make headway although at a slower pace in 2009.
Nonetheless, if the current retail landscape is compared with that of 2004, it has undeniably
become a much larger environment. Retail stalwarts such as Wal-Mart, Tesco and Marks &
Spencer have already made inroads into the Indian retail industry and with multi-billion dollar
investments.
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The Retail boom has also led to the opening of a large number of single brand outletsacross the
country. With big brands and bigger outlets across all segments, from Appareland Footwear,
Watches, Books and Stationary to Jewelry and Consumer Durables, the sweep is indeed broad.
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 Good
Economic slowdown serves as reality check for retailers
The global economic crisis and its impact on India resulted in a slowdown of the Indian economy
in 2009. This caused consumers to tighten their purses, and the availability of financial support
for retail expansion dried up. This put a halt to the unprecedented expansion seen over the review
period. Lower consumer confidence resulting from the recession, as well as job losses, resulted
in fewer visits to retail stores, and consequently sales plummeted for major retailers. With
consumers becoming highly discretionary, spending on non-essential items such as lifestyle
goods was highly impacted, making it one of the worst performing categories.
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Retailers with financial backing weather the storm
Credit from banks and other lenders has been difficult to obtain in the current environment, and
retailers have suffered severely as a result. Some retailers are unable to pay rental fees because
all lines of credit have dried up. In such a tough operating environment, retailers under the
umbrella of a diversified holding company with access to internal funds are faring better than
other players. For example, Reliance Retail and Aditya Birla Retail emerged relatively unscathed
compared with smaller players such as Subhiksha and Vishal Retail.
Internet retailing grows at phenomenal pace
Due to the increased penetration of credit cards and availability of computing facilities to a wider
population, Internet retailing is witnessing stellar growth. Internet retailers offer products at
discounted prices to consumers compared with store-based retailers and bargain-hunting
consumers are latching on to this fact. This has become even more pronounced in light of the
economic downturn as consumers have become increasingly sensitive to price.
Indias attractiveness stands over long term
Indias burgeoning middle class offers considerable promise for organized retailing, which is
expected to remain attractive to organized retailers over the long term. Liberalization and
financial reforms would remain a key factor in the expansion of the organized retail
environment. Currently, foreign direct investment is not allowed in single brand retail, and it
proved a major hurdle in IDEAs billion-dollar plans in mid-2009 to enter the organized retail
environment. However, with a stable government in place at the centre.
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Impact Of Recession On The Indian Retail Market
The retail market in India is facing slowdown with the ongoing financial crisis happening across
the world markets. Since the markets always have internally linked with each other, the impact
of the crisis is generally shared among all. The following circumstances are creating unwelcome
interruptions to the Indian retail industry. The industry hopes for the best alternations to
overcome the acrimonious situations. Markets in recession worldwide and India too: The current
meltdown in the world markets is shaking the globe today. Not even a single country seems to be
off the hook. The high level of inflation has been a wet blanket for the global markets. The roots
of the world markets are nearly pulled away with the heavy downfall of the American financial
giants. Amongst many countries, India too not exempted from the impact of world financial
crisis. All this is leading to a temporary recess for the markets from a regular busy schedule.
However,These fluctuations are not new for global market. For the decades long, markets, across
the world, have been witnessing such ups and downs. But the ultimately fact is that the market
growth rate is always constantly high when comparing to such downfalls Economic slowdown
The Financial crisis is adding to the pressure on global economies. The International Monetary
Fund (IMF) now sees the world entering a major slowdown.
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Brief history of
organization
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Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats
in both the value and lifestyle segment of the Indian consumer market. Headquartered in
Mumbai (Bombay), the company operates over 16 million square feet of retail space, has over
1000 stores across 73 cities in India and employs over 30,000 people. The companys leading
formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian
hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian
bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain
of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, all,
Top 10 and Star and Sitar. The company also operates an online portal, futurebazaar.com.
Future Value Retail Limited is a wholly owned subsidiary ofPantaloon Retail (India)
Limited. This entity has been created keeping in mind the growth and the current size of the
companys value retail business, led by its format divisions, Big Bazaar and Food Bazaar.
The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other formats, in
over 70 cities across the country, covering an operational retail space of over 6 million square
feet. As a focussed entity driving the growth of the group's value retail business, Future Value
Retail Limited will continue to deliver more value to its customers, supply partners, stakeholders
and communities across the country and shape the growth of modern retail in India.
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A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-
format home solutions store, Collection i, selling home furniture products and ezone focused on
catering to the consumer electronics segment. Pantaloon Retail is the flagship company of Future
Group, a business group catering to the entire Indian consumption space. 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.
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Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of Indias 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 16 million square feet of retail space in 73 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 The groups specialty retail formats include supermarket chain - Food Bazaar, sportswear
retailer - Planet Sports, electronics retailer - eZone, home improvement chain -Home Town and
rural retail chain - Aadhaar, among others. It also operates popular shopping portal.
www.futurebazaar.com.
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Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the groups core value of Indianness. The
groups corporate credo is, Rewrite rules, Retain values. Company Background Pantaloon
Retail India Founded in 1987, by Mr. Kishore Biyani, Pantaloon Retail in Indias 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.2,884.43millions for fiscal 2006, as opposed to a turnover of Rs.1,463.12
million for fiscal 2005and 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 of471.44%.
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 apparelmanufacturing
plant.
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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/Companycant 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 centers unorganized.
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: 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 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
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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. 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.
Manufactured by us such as Zapping, Paranoia, Chlorine, Kitten Studio,Famenne, Flourier
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 believes that Pantaloon focus on Pantaloon private labels and their recognition
in Pantaloon customer segment enables us to differentiate ourselves from Pantaloon competitors.
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. Group/Company has a highly experienced and competent management
Team: Group/Company has an experienced management team which is committed workforce.
Pantaloon management team comprises of talented professionals who are highly experience in
the retail sector.
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Awards & Recognition
In the month of July 2006 Big Bazaar won the prestigious CNBC TV18 AwaazConsumers
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 Readers 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.
Pioneering the Hypermarket Format Its 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 generalmerchandise.The company has maintained 50% of apparel sales from private
labels. It is the fastest growing format in the organized retail space. Pantaloon has
aggressiveplans 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.Averagesales 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.
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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 less than one roof. Pantaloon
retail plans to expand this format (to smaller towns and cities) more rapidly going forward to
achieve further economies of scale. 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 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 incomeconsumers.Its 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. Pantaloon Retail (India) Limited, is Indias leading retailer that
operates multiple retail formats in both the value and lifestyle segment of the Indian consumer
market. Headquartered in Mumbai (Bombay), the company operates over 16 million square feet
of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.
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The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a
uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch
and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and
Central, a chain of seamless destination malls. Some of its other formats include Brand Factory,
Blue Sky, all, Top 10 and Star and Sitar. The company also operates an online portal,
futurebazaar.com.Future Value Retail Limited is a wholly owned subsidiary ofPantaloon
Retail (India) Limited. This entity has been created keeping in mind the growth and the current
size of the companys value retail business, led by its format divisions,Big Bazaar and Food
Bazaar. The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other
formats, in over 70 cities across the country, covering an operational retail space of over 6
million square feet. As a focussed entity driving the growth of the group's value retail business,
Future Value Retail Limited will continue to deliver more value to its customers, supply partners,
stakeholders and communities across the country and shape the growth of modern retail in India.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-
format home solutions store, Collection i, selling home furniture products and rezone focused on
catering to the consumer electronics segment. Pantaloon Retail is the flagship company of Future
Group, a business group catering.
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banking career spans over 31 years and he has served senior management positions in
Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.
Mr. Shailesh Haribhakti, Independent Director
Shri Shailesh Haribhakti is a Chartered Accountant, Cost Accountant, and a Certified
Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered
Accountants and past president of Indian merchant Chambers. He is on the Board of several
Public Limited Companies, including Indian Petrochemicals Corporation Ltd., Abuja
Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.
Mr. S Doreswamy, Independent Director
S. Doreswamy is a former Chairman and Managing Director of Central Bank of India and
serves on the board of DSP Merrill Lynch Trustee Co and Limited among others.
Dr. D O Koshy, Independent Director
Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA headed NID (Ministry of
Commerce, GOI) as Director for 2 terms of office prior to which he was the founding
Chairperson of Fashion Management at the National Institute of Fashion Technology
(Ministry of Textiles, GOI). He is currently the Director General & CEO of ATDC Network
of 58 Institutes / Centers and two premier campuses of Institute of Apparel Management
under the aegis of AEPC (Sponsored by Ministry of Textiles, GOI). Dr. Koshy received the
Delhi IIT Alumni Award for contribution of National Development in 2008. Dr. Darlie
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SWOT analysis
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Pantaloon Retail (India) Ltd. - SWOT Analysis
Report Summary Pantaloon Retail (India) - SWOT Analysis company profile is the essential
source for top-level company data and information. Pantaloon Retail (India) - SWOT Analysis
examines the company's key business structure and operations, history and products, and
Provides summary analysis of its key revenue lines and strategy. Pantaloon Retail (Pantaloon or
'the company'), a part of the Future Group, operates retail chains. The company operates retail
chains Including Pantaloon, a chain of fashion outlets; Big Bazaar, a hypermarket chain; Food
Bazaar, a supermarket chain; and Central, aChain of malls. Its business lines also include Depot,
Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaar And 'Star and
Sitara'. The company operates an online portal named 'futurebazaar.com'. The company is
headquartered in Mumbai, India and employs about 25,000 people. The company recorded
revenues of INR34, 685.6 million (approximately $787 million) in the Financial year (FY) ended
June 2007, an increase of 79.4% over 2006. The operating profit of the company was INR1,
798.9 million (Approximately $41 million) in FY2007, an increase of 49.6% over 2006. The net
profit was INR355.4 million (approximately $8Million) in FY2007, a decrease of 33.8% over
2006.Scope of the Report Provides all the crucial information on Pantaloon Retail (India)
required for business and competitor intelligence needs Contains a study of the major internal
and external factors affecting Pantaloon Retail (India) in the form of a SWOT analysis as wellAs
a breakdown and examination of leading product revenue streams of Pantaloon Retail
(India)Data is supplemented with details on Pantaloon Retail (India) history, key executives,
business description, locations and
Reasons to Purchase
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Support sales activities by understanding your customers' businesses better Qualify prospective
partners and suppliers Keep fully up to date on your competitors' business structure, strategy and
prospects Obtain the most up to date company information available The Pantaloon Retail
(India) - SWOT Analysis company profile is the essential source for top-level company data and
information. Pantaloon Retail (India) - SWOT Analysis examines the companys key business
structure and operations, history and products, and provides summary analysis of its key revenue
lines and strategy. Pantaloon Retail (Pantaloon or the company), a part of the Future Group,
operates retail chains. The company operates retail chains including Pantaloon, a chain of
fashion outlets; Big Bazaar, a hypermarket chain; Food Bazaar, a supermarket chain; and
Central, a chain of malls. Its business lines also include Depot, Shoe Factory, Brand Factory,
Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara. The company operates
an online portal named futurebazaar.com. The company is headquartered in Mumbai, India
and employs about 25,000 people. The company recorded revenues of INR34, 685.6 million
(approximately $787 million)
.
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WITH 5 COMPANY - OWNED BRANDS
COVERING 63 MERCHANDISE CATEGORIES
THE FMCG SPACE, THE COMPANY NOW
ONE OF THE LARGEST PORTFOLIOS IN
THIS SEGMENT.
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Awards
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CNBC Awaaz Consumer Awards 2009
Most Preferred Multi Product Chain - Big Bazaar
Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar
Images Fashion Forum 2009
Most Admired Fashion Group of the Year - Future Group
Most Admired Private Label - Pantaloons, the lifestyle format
Critics Choice for Pioneering Effort in Retail Concept
Creation - Central
Coca-Cola Golden Spoon Awards 2009
Most Admired Food & Grocery Retailer of The Year
Most Admired Food Court
Most Admired Food Professional
Indian Retail Forum Awards 2008
Most Admired Retail Company of the year - Future Group
Retail Face of the Year - Kishore Biyani
Best Retailer Of The Year (Hypermarket) - Big Bazaar
Future Group was awarded the Most Admired Retail Company of the year by the Indian Retail
Forum at a glittering ceremony organized in Mumbai. Mr. Kishore Biyani also won Retail Face
of the Year. India Retail Forum (IRF) is a platform for intellectual insights and information
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BOARD OF
DIRECTORS
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WE ARE PROUD TO HAVE BUILT THIS
ORGANIZATION WITH A CULTURE FOCUSED
ON CORE VALUES THAT CAN BUILD UPON
ITSELF IN A POSITIVE MANNER. THIS HAS
ENSURED THAT WE SUSTAIN WHAT IS
UNIQUE TO US AS WE GROW.
Kishor biyani
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Director
Ms. BALA DESHPANDE
Director
Mr. VIJAY KUMAR CHOPRA
Director
COMPANY SECRETARY
Mr. DEEPAK TANNA
STATUTORY AUDITORS
NGS & CO.
RISK ADVISORS
ERNST & YOUNG PVT. LTD
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Brand Factory,
Blue Sky, aLL, Top 10 and Star and Sitara. A subsidiary company, Home Solutions Retail
(India) Limited, operates Home Town, a large-format home solutions store, Collection selling
home furniture products and E-Zone focused on catering to the consumer electronics segment
Having the right real estate in prime locations is the key for a retail chain, availability oversight
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 gross margins. Going with competition in major
formats, it would be difficult to improve gross margins.Butcompetition 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 itssourcing.Pantaloon with its projected scale is able
to source its merchandise from its vendor at reasonable rates.
http://en.wikipedia.org/wiki/Brand_Factoryhttp://en.wikipedia.org/w/index.php?title=Home_Solutions_Retail_(India)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Home_Solutions_Retail_(India)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Home_Solutions_Retail_(India)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Home_Solutions_Retail_(India)_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Brand_Factory7/31/2019 Final Proj Ct on Pantaloon
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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.Thereare a lot
of exogenous factors that could impact the companys plans. Delivery of stores is 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 UntilFYO9E.The
Company would need external funds for its growth.9% dilution has already happened. Strain on
management bandwidth PRIL is expanding into multiple formats & multiple geographic 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 .
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Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and
Hyderabad.
2002
Food Bazaar, the supermarket chain is launched.
2004
Central - Indias first seamless mall is launched in Bangalore.
2005
Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and
Planet Retail Sets up Indias first real estate investment fund Kshitij to build a chain of shopping
malls.
2006
Future Capital Holdings, the companys financial is formed to manage over $1.5 billion in real
estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer
finance products. Home Town, a home building and improvement products retail chain is
launched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar.
Future Group enters into joint venture agreements to launch insurance products with Italian
insurance major, Generali
.2007
Future Group crosses $1 billion turnover mark. Specialized companies in retail media, logistics,
IPR and brand development and retail-led technology services become operational.
Pantaloon Retail wins the International Retailer of the Year at US-based National Retail
Federation convention in New York and Emerging Retailer of the Year award at the World
Retail Congress held in Barcelona.
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2008
Future Capital Holdings becomes the second group company to make a successful InitialPublic Offering in the Indian capital markets
.Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of aImage of shahadara pantaloon
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ORGANISATION
STRUCTURE
Chairman
Mr.SHAILESH HARIBHAKTI
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Managing director
Mr. Kishor biyani
Director
Mr. GOPIKISHAN BIYANI
SAHADARA ORGANIGATION
Store manager
Deepak mangla
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BRAND Future Group Manifesto
Future the word which signifies optimism, growth, achievement, strength, beauty, rewards
and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten;
create new opportunities and new successes. To strive for a glorious future brings to us our
strength, our ability to learn, unlearn and re-learn, our ability to evolve. 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
operate efficiently in the Indian economy, we will evolve it. We will not just spot trends, we will
set trends by marrying our understanding of the Indian consumer to their needs of tomorrow.
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. WE Central was
conceived as being more than just a Shopping destination; instead a community space where
people from all walk of life come and enjoy with their friends and family in a festive, celebratory
Setting. In keeping with this, we made celebrations, something close to Indians hearts, an
integral part of Shopping with us. Beginning this year, we implemented a 52-week Calendar of
events, to celebrate within Central. This reflects every Indian festival, sporting, lifestyle and
leisure events from around the world as well as social causes like Environment Day. We kept
Giving our customers a reason to celebrate, anExcuse visiting the store and they kept coming
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backo us. These events have truly helped Central toDifferentiate itself from the competition and
helped us to connect with our customers at an emotional level. Over a decade of experience in
retailing has taught us the significance of keeping the excitement at the shop floor alive,
irrespective of whether the economy is upon down. Based on the success of this initiative we are
rolling out 52-week events and excitement calendars for our other formats as well. In May 2009,
Central completed five glorious years. What started as a dream in 2004 to redefine lifestyle?
Shopping in India by creating a seamless offering of Shopping, eating and celebration, with the o
of our first mall in Bangalore, is now at a stage where Central is among the fastest growing
lifestyle retail Chains in the country with 10 stores across 7 cities. In the financial year 2008-09
Central opened 2More stores in Indore and Mumbai and added over3, 50,000 square feet of retail
space. The Central in Indore is our biggest store in the country.
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The power of private labels by Pantaloons
When PepsiCos Frito-Lay decided of boycott Pantaloons Food Bazaar due to differences in
terms of trade, it was the latters 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 percent share among the rest of
the snack brands. Today Pantaloon Retail has 80 products comprising 350 SKUs with five
private labels. Since PepsiCos rejection, it has promptly approached local manufacturers such
asPrakash 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 on be at the mercy of the big manufacturers. At the
same time they also realize that its not going to be easy as it takes time and money to build
private labels. Observes K.Radhakrishnan, Chief Executive. Hypermarkets, Reliance Industries,
While its 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 compriseprivate
labels.
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The private label product proposition: Quality and price, primarily, relative to branded. 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. 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 havent 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 USUK retail is more consolidated than US retail. Right now.
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Objective of
the
Report
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rates between the stores and warehouses, Improved markdown management during, automatic
Replenishments and enhanced business intelligence has Resulted in higher availability of
merchandize within the Store and is leading lead to better customer satisfaction And
productivity. On the food category, the focus is now on building the Private brand piece of
business in a big way and a lot of Work has happened with a separate team working on the
Private brands business. The existing Company-owned Brands have already gained around 18 to
20% share in every category where it is present in. The Company is also about to launch a new
brand called Ektaa which will be? Capturing around 40 SKUs to start with. The objective into
replicate the Companys existing strength in fashion Into the food .
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Research
methodology
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The research methodologies are using only primary data collection. Here primary data
collection is performing through questionnaire A sample size of 50 customers is taken randomly.
Questionnaire on customer satisfaction at Pantaloons store was prepared and I got it filled from
customers. Based on percentages calculation are done and data is analysed.Data on sale of whole
brand and Wellness categories is being collected and collated in a stoe.store provides data from
27th june 2010 to 15th July 2010.Detailed information can be obtained from the store about the
performance of the brands in the particular category from 27 june 2010 to 15th July 2010.Bar
charts have been made based on real data obtained from between 27th june 2010 to 15th July
2010.Pie charts are made based on data collected and collated from questionnaires filled by 50
customers at the Pantaloons store,Shahadara of brand has also been done from 27 june to 15 July
2010 contribution of single in total sales of store from 27 june 8th July 20010an special
employee motivation programme for achievement of targets from 2th to 10 June 2010 run for
store employees .Research process is a series of systematic steps that are followed to solve a
business problem. It is the framework of the entire plan-of-action. It clearly describes crucial
issues like the studys purpose and objectives, the type of data needed, the technique to be used
for selecting samples, data collecting method, analyzing it, managing costs and other aspects that
are essential for conducting business research.
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SAMPLING DESIGN:-
Sampling is an essential part of the business research process. Sampling is the technique of
selecting a representative part of a population for the purpose of determining the characteristics
of the whole population. During the research, Simple Random Sampling is used to collect data
from the shoppers Because the target population is small, homogeneous, and the sampling frame.
DATA COLLECTION:-
Business research generally uses two types of data:
Primary data- It is collected directly from the respondents using data collection methods
like survey interviews, questionnaires, measurements, direct observation, or tabulation.
Secondary data- It is the data that which already exists and is collected by some other
person or organization. Sources of secondary data include websites, journals, books, et c
This research uses a judicious mix of primary and secondary data to optimize the
Quality of research findings within the allotted time and money.
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Research Process
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 ProcedureSimple Random sampling to select 5 stores and
Convenience for select customer/shoppers.
Sample size300 customers
Contact Method Personal
Mode of Collecting Data The respondents were chosen randomlyand requested to grant
interviews. The questions were then asked in predetermined sequence.
Data Processing (i) A number of tables was prepared to bring out the main characteristics of
the collected data. (i) Inferences wiredrawn from the collected data.
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LIMITATION
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Limitations:
This project report suffers from following limitations:
1. Questionnaires were filled in evenings, when most of the people are in hurry
And they might not have responded truly to all the questions.
2. Our research is limited to only one store of Pantaloon at Shahdara and sample
Size is of 100 respondents so errors may crop in while generalizing the results.
3. Those who came out of Pantaloon Store after shopping were chosen for getting the
questionnaires filled but they held bulky polyethylene bags due to which they found it difficult to
stand for long and answer the questions.
4. Most of the retail outlets mentioned in our questionnaire may or may not be
Visited by respondents; this affected their response to various questions.
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1. Are you like to purchase in pantaloon.
0%
10%
20%
30%
40%
50%
60%
PENTALOON OTHER
Series1
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2. Whats your buying experience.
0%
10%
20%
30%
40%
BEST AVERAGE
Series1
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3. After purchasing whats warranty condition.
BEST
GOOD
AVERAGE
NON
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4. How much time you use pantaloon.
2-3 time in week
2-3 time in month
more than 3 time in
month
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5. Compaire to other competitor.
BEST
GOOD
AVERAGE
NON
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7. What is the quality of product?
best
good
average
non
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RESEARCH
FINDINGS
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RECOMMENDATIONS
AND
CONCLUSIONS.
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CONCLUSION
This research report aims to study consumer attitude towards Pantaloon and highlights its strengths
and weaknesses in order that Pantaloon can fight the competition in a better way. Though
Pantaloon captures a different market and is giving competition to big players like Vishal mega
mart and big bazaar. Retail in India is a booming sector nowadays and Pantaloon should try to
benefit more from it. Recommendations given should be considered by Pantaloon in order to
emerge as a winner in long run.
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ANNEXURE
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9. How much time you use pantaloon product.
A.2to3 time in week ( ) b. 2to3 time in month ( ) c.more than 3 time in month ( )
10. Compaire to other competitor.
a. Good ( ) b.best ( ) c. average ( ) d.not say
11. Will you purchase again.
A.definitily will ( ) b.probabily will ( ) not purchase ( ) c.not sure ( )
12. Whats quality of product according you .
a. Good ( ) b.best ( ) c. average ( ) d.not say
13. If you contact to customer care service then whats response.
a. Good ( ) b.best ( ) c. average ( ) d.non ( )
14.Anysuggestion
...
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BIBLIOGRAPHY
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Word of thanks
I am very thank full to all the people who help me out to establish this report.
Deepak mangla (store manager of pantaloons Sumit verma (department manager ) Deepak raj (team leader)
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