Retail Market India Retail Market – India January 2012
Nov 22, 2014
Retail Market IndiaRetail Market – India
January 2012
Executive Summary
Market
Retail market in India was valued at INR a tr in 20‐‐ and is expected to grow to INR b tr in 20‐‐
It accounts for c% of the country's GDP and is the second largest employer with d mn people
Traditional retail formats are fast getting replaced by modern organised retail formats
Low organised retail penetration in India translates into huge growth potential for this market
Drivers & Challenges
g p g g p
Drivers– Low organised retail penetration– Rising income levels and consumerism– Growing retail space and mall boom
Challenges– Insufficiencies in supply chain– Shortage of skilled manpower– Real estate issuesChallenges Growing retail space and mall boom
– Increasing availability of credit– Changing demographics and consumer behaviour
Real estate issues
Trends Emergence of innovative retail formats Online and rural retailing
FDI Scenario
Evolution of Retail FDI Policy Current FDI Scenario in Retail Single Brand Retailing in India
Trends Online and rural retailing Integration of various business strategies
Competition
Single Brand Retailing in IndiaMulti Brand Retailing in India
Major Players
Player 1 Player 2 Player 3
2RETAIL MARKET IN INDIA 2012.PPT
Co pet t oPlayer 4 Player 5 Player 6
•Market Overview•Market Overview
•Drivers & Challenges
•Trends
•FDI Scenario
•Investment Scenario
•Competitionp
•Strategic Recommendations
3RETAIL MARKET IN INDIA 2012.PPT
Retail market in India is poised for strong growth in the coming years owing to favourable government support
Retail Market – Overview Market Size and Growth• Indian retail market has experienced high growth over the last decade with a gradual shift towards modern retailing formats
INR tr
%modern retailing formats• It accounts for k% of the country's GDP and is the second largest employer with l mn people, contributing j% of the total employment
• Due to the government now allowing more FDI
z% y
x
g grelaxations, the retail sector in India is poised for strong growth in the near future
Share of Major Retail Segments (20‐‐)0
2014e2010
Segment 1
v%
i%
h%
g%f%e%
d%Category 4
Category 3
Category 2
Category 1
u%
c%
b% a%
Category 7
Category 6
Category 6
Category 5
Category 4Low organised retail penetration indicates huge growth potential
for this market
4RETAIL MARKET IN INDIA 2012.PPT
Source:
Segment 2Category 8
Drivers & Challenges – Summary
Drivers Challenges
Low organised retail penetration
Rising income levels and consumerism
Insufficiencies in supply chain
Shortage of skilled manpower
Growing retail space and mall boom
Increasing availability of credit
Real estate issues
Changing demographics and consumer behaviour
5RETAIL MARKET IN INDIA 2012.PPT
Trends – Summary
Online Retailing Rural Retailing
Key Trends
Integration of various business strategies
Emergence of innovative retail formats
Trends
6RETAIL MARKET IN INDIA 2012.PPT
Public: Domestic Company – Player (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Products and Services
Ticker Symbol
Stock ExchangeHead Office
Key People
Products and Services
Category Products/Services
Category 1 Product 1, Product 2, Product 3
N D i tiCategory 2 Product 1, Product 2, Product 3
Category 3 Product 1, Product 2, Product 3
Name Designation
A
B
C
7RETAIL MARKET IN INDIA 2012.PPT
Source:
D
Public: Domestic Company – Player (2/3)
i i l S h K iFinancial Snapshot Key Ratios
Particulars y‐o‐y change (2011‐10)
2011 2010 2009 2008
Profitability RatiosOperating Margin
Net Profit/LossTotal IncomeINR mnINR mn
Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets20102009
020112008
Financial Summary
• The company incurred a net profit of INR a mn in FY 20‐‐, as compared to net profit of INR b mn in FY 20‐‐
• The company reported total income of INR c mn in FY 20‐‐, registering an increase of d% over FY 20
Return on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)registering an increase of d% over FY 20‐‐
• The company earned an operating margin of e% in FY 20‐‐, a decrease of f percentage points over FY 20‐‐
• The company reported debt to equity ratio of g in FY 20‐‐, an increase of h% over FY 20‐‐
Interest costs (% of Sales)
Liquidity RatiosCurrent RatioCash Ratio
Leverage RatiosDebt to Equity Ratio
b i l iKey Financial Performance Indicators
Indicators Value (05/01/2012)Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
Debt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover
8RETAIL MARKET IN INDIA 2012.PPT
EPS (INR)
PE Ratio (Absolute)Working Capital TurnoverCapital Employed Turnover
Improved DeclineSource:
Public: Domestic Company – Player (3/3)
Key Business Segments Key Geographic Segments
Segment 4
Segment 3
Segment 2
Segment 1
Segment 6Segment 4
Segment 5
Segment 2
Segment 1 Segment 3
0%
Key Recent Developments
0%2011201020092008 2008
0%201120102009
Description News
Overview
• Player is India’s market leader in the social expression industry with over a% market share in the organized sector and presently has b owned outlets along with c franchised outlets
• It exports its products to Country 1, Country 2, Country 3, Country 4, Country 5, Country 6, Country 7, Country 8 Country 9Country 8, Country 9
Collaborations
• Player has entered into a license agreement in Jan 20‐‐ with company the global market leader in O, to open up exclusive retail outlets across India
• It also has exclusive tie‐ups with many other global majors such as Company 1 of USA, Company 2, Company 3, Company 4 and Company 5 of UK
9RETAIL MARKET IN INDIA 2012.PPT
Source:
Expansion Plans • It plans to open up f stores within 20‐‐ and around h in three to five years in City 1 and City 2
Private: Domestic Company – Player (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Products and Services
Website
Year of IncorporationHead Office
Key People
Products and Services
Brands Products/Services
Category 1 Product 1, Product 2, Product 3
Category 2 Product 1, Product 2, Product 3N D i ti
g y , ,Name Designation
A
B
C
10RETAIL MARKET IN INDIA 2012.PPT
D
Source:
Private: Domestic Company – Player (2/3)
i i l S h K iFinancial Snapshot Key Ratios
Particulars y‐o‐y change (2011‐10)
2011 2010 2009 2008
Profitability RatiosOperating Margin
Total Income Net Profit/Loss
0
INR mnINR mn
Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets
0
Financial Summary
Return on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)
02011201020092008
• The company incurred a net loss of INR a mn in FY 20‐‐, as compared to net loss of INR b mn in FY 20‐‐
• The company reported total income of INR c mn in FY 20‐‐, registering an increase of d% over FY 20‐‐
Interest costs (% of Sales)
Liquidity RatiosCurrent RatioCash Ratio
Leverage RatiosDebt to Equity Ratio
b i l i• The company earned an operating margin of e% in FY 20‐‐, an increase of f percentage points over FY 20‐‐
• The company reported debt to equity ratio of g in FY 20‐‐, an increase of h% over FY 20‐‐
Debt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover
11RETAIL MARKET IN INDIA 2012.PPT
Working Capital TurnoverCapital Employed Turnover
Source: Improved Decline
Private: Domestic Company – Player (3/3)
Key Recent Developments
Description News
• Player is the retail arm of ABC operating through two formats supermarket and hypermarket under theOverview
• Player is the retail arm of ABC, operating through two formats, supermarket and hypermarket, under the
brand names, x and y
Expansion Plans
• It plans to open d supermarkets and e hypermarkets by 20‐‐ with an investment of INR f bn
• It is focusing on expansion of retail store network in semi‐urban and rural areas on the back of its
llexperience in smaller towns
Retail Network
• At present, Player has over g supermarkets across the country
• The company also operates M hypermarkets under the brand h in City 1, City 2, City 3, City 4, City 5 City 6
and City 7
Awards and Recognitions • Player was conferred two awards for 'Private Labels' by T in the categories of ‘N’ and ‘U’
12RETAIL MARKET IN INDIA 2012.PPT
Source:
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13RETAIL MARKET IN INDIA 2012.PPT
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