Presented by :Sonal Saurav PGDM(2008-10) Roll No - 68

8/14/2019 Presented by :Sonal Saurav PGDM(2008-10) Roll No - 68

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Presented By :-Sonal SauravPGDM(2008-10)Roll No - 68


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Vishal Retail Ltd is one of Indias leading value retailers promoted by Mr. Ram Chandra

Agarwal.

Total Revenues up 67.1% from Rs 6,564.0mn(2008) to Rs 10,967.6mn(2009).

EBITDA up 55.3% from Rs 910.4mn to Rs 1,413.4mn.

Net Profits down 33.1% from Rs 302.8mn to Rs 202.4mn.

It focuses on Tier II and Tier III cities, catering to the middle and lower middle class consumers.

It has a strong presence in manufacturing and retailing of apparel, non-apparel and a large

variety of branded FMCG products.

It currently operates 183 showrooms in 110 cities / 24 states. Its outlets cater to


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The Indian organized retail industry is valued at about $300 billion

The overall retail market in India is likely to grow at a CAGR of 5.5%

(at constant prices) to 1,677,000 Cr in 2015.

The organized retail market is expected to grow much faster at a CAGR

of 21.8% (at constant prices) to Rs. 246,000 Cr.

Major Retailers:

Reliance Retail,Future retail,Shoppers Stop,More Retail

Trent Retail,India Bulls(Pyramid Retail),RPG,Bharti-walmart and

Mahindra & Mahindra


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Pay Back Period :-

Total Capital Investment = (1254.30 + 350) lakh

= 1604.30 lakh

Note 350 lakh is the Working Capital that will be introduced in the beginning of 3rd

year.

Net Cash Flows for the next fiveyears=(499.56+556.66+654.78+1703.60+1907.82) lakh.

At the End of 3rd year = 1680.96 lakh

Over recovery of Investment = (1680.96 1604.30) lakh.= 76.66 lakh.

= 1 Month 14 Days.

So, the Pay Back Period = 2 year , 10 month and 17 days.

Internal rate of return = 39%


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Comparison between the sales and areas acquired by all the

section.

Sales

Area


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Conclusions and Recommendations

Pay Back Period.

Internal rate of return.

concessionaire is a big concerne but still they are not treated well.

the ratio of Vishal product to other brands should be 40 : 60 in

FMCG section.the acquiring space. So it should be reduced, through it we can reduce

the rent cost and it will also increase the footfall of the

store.


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CURRENT

EARLIER CLOSE UP DABUR RED PEPSODENT COLGATE VISHAL OTHERS

CLOSE UP 0.2 0.2 0.2 0.2 0 0.2

DABUR RED 0 1 0 0 0 0

PEPSODENT 0.2 0 0.1 0.4 0.3 0

COLGATE 0.33 0 0 0.66 0 0

VISHAL 0 0 0.5 0 0 0.5

OTHERS 0 0 0 0.16 0.5 0.34

Analysis of Brand Shifting for Toothpaste


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Conclusions and Recommendations

As I have discussed about the Research team earlier, with the help of this team

we can know the premium that customers pay to buy good brand name.

Then after we will give some extra discount to the brand on which customer

can shift. As if the researcher says that the users of colgate are paying 5 Rs as

a premium then we will give 6 Rs discount on the pepsodent and others thenthe shifting from colgate to pepsodent and others can take place.

Why i have said it because the shifting to V-fresh took place from the pepsodent

and others. Then after we can increase the price of the pepsodent an others

brand and at the end of the result customer

would shift to V-Fresh.


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Analysis and Solution for Waiting Line Problem

ARRIVAL RATE DISTRIBUTION OF PEOPLE IN STORE PER HOUR ON DAY BASIS.

DAY AVERAGE

SUNDAY 163

MONDAY 75

TUESDAY 72

WEDNESDAY 64

THURSDAY 73

FRIDAY 71

SATURDAY 103

TOTAL 621


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1(10-2) = 72 person per hour.



Monday to Friday :-

= 18 person per hour.

1/ = 3 min 20 sec per person. = 71 customers per hour.

1/ = 51 sec.

Total no of server = 4 (10 am to 2 pm).

= 8 ( 2 pm to 7 pm).

= 5 (7 pm to 10 pm).


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Service Time Distribution

Question :- What percentage of the services will take less than

one minute to process?

Answer : -Since the units are expressed in hours,

P (T < 1 minute) = P (T < 1/60 hour).

Using the exponential distribution, P (T < t ) = 1 - e -t .

Hence, P (T < 1/60) = 1 - e-72(1/60)

= 1 - .3021 = .6979 = 69.75%

INTERPRTATION :This is showing that 70% of the customers

gets the service within 60 sec. So what the store can do, It can go

for separate cash billing counter for bulk and less goods.This

will help the customer to get the service in a very few minute.


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Arrival Rate DistributionQuestion :-What is the probability that exactly 4 customers approached within a period

of 2 min?

Answer:-

Customers arrive at a mean rate of 90 per hour or one customer

after every 40 sec.

Therefore, in a 120 second interval the average number of customers

arriving will be,

= 120/40

= 3 customers

P (x = 4) = (xe-)/x!.

= (34e -3)/4! = 81/24*19.90 = 81/477.66 = 0.1696 = 16.96%

INTERPRETATION:- This thing we can also get with the help of The Table that is

given into Levin & Rubin book. But still there is problem into that table, It will work

until the crosses to 20. We are measuring what is the probability of reaching the

customers to the cash billing counter within the given time of frame. If the probability

is high and we can go for extra counter.


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Presented by :Sonal Saurav PGDM(2008-10) Roll No - 68

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