Ahmedabad retail scenario

7/29/2019 Ahmedabad retail scenario

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Ahmedabad

Group 1

Section D


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AHMEDABAD

Ahmedabad is situated in the state of Gujarat in the western India.

Largest city in Gujarat.

Seventh largest cityand eighth largest metropolitan area of India.

Fastest growing cityof India, and ranked third as the fastest growing city worldwide.

City is well connected by road, rail and air to national capital, New Delhi and countrys

financial capital, Mumbai and other major cities like Bangalore, Chennai, Hyderabad,

Kolkata.

GDP of Ahmedabad was 89 billion USD in 2010.

Area is 205 sq Km.

The Government has started vibrant Gujarat program to attract more foreign investment.


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AHMEDABAD

Ahmedabad is the largest industrial centre in Gujaratand has been an important

base of commerce, trade and industry.

Ahmedabad has seen great prosperity because of its proximity to Surat and its

access to the hinterland of Gujarat.

Though dusty roads and bungalows used to dot the city once, Ahmedabad is now

witnessing a major construction boom and an increase in population. City has also

seen a significant rise in information technology and scientific industries.

Ahmedabad ranks 92nd in the list of Top-100 cities of the world, as far ascompetitive spirit is concerned. EIUs report reveals that Ahmedabad has

witnessed double-digit growth in GDP and has the potential to grow even faster.


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Before 2009, GDP of India is

growing at approximately 9%.

In 2009-10, GDP growth of India

reduced because of recession andafter that it start growing at good

pace.

This high growth of GDP and high

proportion of middle class people

made India Top 3rd favoureddestination for FDI.

Since India is most attractive place

for foreign investors, now among

all states, which state is attractive?


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WHY GUJRAT

3rd fastest growing city in world (2010 byForbes magazines)

Top contributor of Indian economy (22%

of Indian export contributed by Gujrat)


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Connected to major ports of UK, Australia,

Middle East and East Asian economies

Gateway to land locked states in India.

Good attraction for exports (connectivity)

STRATEGIC LOCATION


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Population growth of Gujrat is 22.31% as compared to 17% of India. So itwould be a great attraction for retailers as it is and will be a city with large

number of consumers.

Density of Ahmedabad has increased from 727 to 890. Retailers can havemore consumers per sq km, so he can cater to larger consumer base with lessno. of stores (saves cost , time)


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Clothing and shoes (5.10%) and markets37.9%) - retail

Approximately 43% of expenses of consumersis in retail sector.

Great attraction for retailer.

Ahmedabad is among top 5 cities in terms ofPurchasing power.

Population Purchasing

power

1 Mumbai 18,414,288 53.18

2 Delhi 16,314,838 63.15

3 Bangalore 8,499,399 75.98

4 Hyderabad 7,749,334 65.88

5 Ahmedabad 6,352,254 58.54


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GDP of

Gujrat

% growth GDP of

India

% growth

2004-05 203,373 - 2,971,464 -

2005-06 233,776 14.95 3,253,073 9.48

2006-07 253,393 8.39 3,564,364 9.57

2007-08 281,273 11.00 3,896,636 9.32

2008-09 300,341 6.78 4,158,676 6.72

2009-10 330,671 10.10 4,507,637 8.39

2010-11 365,295 10.47 4,885,954 8.39

2011-12 390,421 6.78 5,222,027 6.88

Gujarat is Indias most industrialized and urbanized economy. Manufacturing sector

contributes 28% of GDP.Government policies encourage enterprenual spirit, infrastructure growth and has

prime location.

FDI in retail is against national interests because it will not only dislocate the small and

unorganized retailers but also result in their unemployment

550 mn people under age of 5 years


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Central Business Districts

CG ROAD & SG ROAD

Although Manekchawk, Ashram Road and CG Road have not

completely lost their charm and are still part and parcel of

trading activities, SG Road has emerged as the new central

business district of Ahmadabad

SG ROAD: Came up in 2000

CG ROAD: Came in late 80s


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Secondary Business

Districts

Relief Road, Gandhi Road,

Ashram Road

Gandhi Road is more of

wholesale whereas Relief

Road which is in old

Ahmadabad is for Retail.

ManiNagar, Krishna Nagar,

Bapu Nagar, Kuber Nagar,

Sardar Nagar, Drive In Road

and Gurukul

Circle : Primary

Triangle: Neighbourhood

Square : Secondary

Neighbourhood

Business Districts


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Big Bazar in Ahmedabad

1. Near Iskcon Temple, S G Highway, Rudra Point, Ahmedabad, Gujarat

380015

2. Himalaya Mall,Near Indraprast Tower,Drive-in

Road,Gurukul,Ahmedabad,Gujarat 380052

3. Big Bazaar, 10 Acres Mall, Raipur, Ahmedabad

2 in mall and 1 outside malls


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Croma in Ahmedabad

Ahmedabad HimalayaAhmadabad CROMA, Basement of Himalaya Mall,

Indraprasth Tower, Drive in Rod, Memnagar, Ahmadabad, 380052, Gujarat.

Satellite mall Devarc Ahmadabad CROMA, Dev Arc Mall, Junction of Sg Road andSatellite Road, Next to Fun Republic, Ahmadabad, 380053, Gujarat.

Star BazarAhmedabad CROMA,1st, Floor, Star Bazar, Iscon Mall, Jodhpur Char

Rasta, Opp Bidiwala Park, Satellite Road, Ahmedabad-380015.

Croma Store in Sarkhej Gandhinagar Highway

Himalaya mall is the only mall to have BigBazzar and Croma in it

3 in Malls and 1 outside mall


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B

B

BC

C C

Location

Big Bazaar

ChromaShopper Stop

SS

B

CSS


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List Of Shopping Malls in Ahmedabad

Himalaya Mall Shopping Mall Drive In Road,Ahmedabad

Iscon Mega Mall Shopping Mall Bodakdev,Ahmedabad

R3 Mall Shopping Mall Memnagar,Ahmedabad Covered, Honest

Gallops Mall Shopping Mall Sarkhej Gandhinagar Highway,Ahmedabad

10 Acres Mall Shopping Mall Raipur,Ahmedabad

Super Mall Shopping Mall C G Road,Ahmedabad

Satyam Mall Shopping Mall Satellite,Ahmedabad

Freeway Mall Shopping Mall Bodakdev,Ahmedabad

Sarvopari Mall Shopping Mall Bhuyangdev,Ahmedabad

Ahmedabad Central Shopping Mall Ambawadi,Ahmedabad Sardar Patel Mall Shopping Mall Bapunagar,Ahmedabad

Grand Monarch Mall Shopping Mall Satellite,Ahmedabad

Sunrise Shopping Mall Shopping Mall Vastrapur,Ahmedabad

Amrapali Shopping Mall Shopping Mall Ambli,Ahmedabad

Total 14 malls


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Location of all Malls


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RENTAL RATESRENTAL RATES

Sep-12 Jun-12

MAIN STREETS

INR PER

SF/MTH Q-O-Q CHANGE

Y-O-Y

CHANGE

INR PER

SF/MTH Q-O-Q CHANGE

Y-O-Y

CHANGE

C.G.

Road 150 15.40% 15.40% 130 0.00% -7.10%

Law

Garden 120 0.00% 0.00% 120 0.00% 20.00%Satellite

Road 140 7.70% 12.00% 130 0.00% 23.80%

S.G

Highway 90 0.00% 5.90% 90 0.00% 5.90%

MALLS Sep-12 Jun-12

INR PER

SF/MTH Q-O-Q CHANGE

Y-O-Y

CHANGE

INR PER

SF/MTH Q-O-Q CHANGE

Y-O-Y

CHANGE

Vastrapur 100 0.00% 33.30% 100 0.00% 28.20%

S.G Highway 75 -6.30% 7.10% 80 0.00% 23.10%

Drive-in Road 70 -6.70% 7.70% 75 0.00% 7.10%

Kankaria Lake 60 -7.70% 9.10% 65 0.00% 44.40%

Cushman and wakefield


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ANALYSIS

Declining rentals in malls is due to highvacancies across most malls

Lack of new supply and preference for highstreet has led to an increase in growth in

rental.

Low Mall rentals could attract retailers

providing them with a good option

Ahmedabad retail scenario

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