Project on Pantaloon & Reliance

8/9/2019 Project on Pantaloon & Reliance

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PROJECT REPORT ON

Comparison between Two RetailCompany

PANTALOON RETAIL LTD Vs RELIANCE RETAILLTD

UNDER GUIDENCE SUBMITTED BYMR. AJAY KUMAR PATHAK PRAVEJALAMSIDDIQUI

(FACULTY OF MARKETING) PGDM (2009-11)ROLL NO. 55,

SEC B

INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH

9THKM, STONE, DELHI-MEERUT ROAD, DUHAI,

GHAZIABAD.

www.iamrindia.com

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Pantaloon Retail (India) Limited, is a large Indian retailer, which

is part of the Future Group, and operates multiple retail formats inboth the value and lifestyle segment of the Indian consumer market.

Headquartered in Mumbai, the company has over 1,000 stores

across 71 cities in India and employs over 30,000 people , and as of

2010, it was the country's largest listed retailer by market

capitalization and revenue.

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Pantaloon Retail is the flagship enterprise of theFuture Group. Pantaloon Retail (India) Limited hasspread across various businesses and cities in India.

Pantaloon owns multiple retail formats and is able tocater to a large section of the society.

The organization made an incursion into the modernretail (fashion) in 1997. Big Bazaar, a hypermarketchain, was introduced in the year 2001, with an Indiantouch of convenience and hygiene. Food Bazaar, foodand grocery chain, and Central Mall located at variousMetros are other important parts of the group

The companys brands include Pantaloons, a chain of fashion

outlets, Big Bazaar, a hypermarket chain and Food Bazaar, a

supermarket chain. Some of the company's other regional brands

include, Depot, Shoe Factory, Brand Factory, Blue Sky, aLL, Top

10 and Star and Sitara.

Business AreaThe Future Group operates through six verticalsFuture Retail covering retail business

Future Capital catering to financial products & servicesFuture Brands managing all the brands owned or managedby group companiesFuture Space managing real estate businessFuture Logistics managing supply chain and distributionFuture Media developing and managing retail media space

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Business StrategyTargeting greater market share by entering intoformats such as departmental stores, supermarket,hypermarkets, malls etc.

Developed a Dual StrategyOf opening smaller versions in its flagship stores likeBIGBAZAAROpening larger Independent Stores.

Currently adopted retail format by the group:

Lifestyle Segment-PantaloonCentralValue SegmentBig BazaarFood Bazaar

Private LabelsPantaloons apparel retail business derives its 75 percent of sales from its private label such as:

John Miller shirts JM Sports

Lombard Pantaloon

Bare Leisure Bare Denim

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Annabelle Mix Match

Akkriti

Major Strategic AlliancesPRIL has entered into 50:50 JV with Ginni & Jonnyknown brand for kidsSole Franchisee of Mark& Spencer, Guess andWomens Secret in IndiaPRIL holds a 51 per cent stake in JV with LibertyShoes called FootMartruns stores under the name ofShoe Factorylocated in shopping malls and also opened as

independent stores

Reliance Retail is the retail business wing of the Reliance business.

Many brands like Reliance Fresh, Reliance Footprint, Reliance

Time Out, Reliance Digital, Reliance Wellness, Reliance Trendz,

Type PrivateBSE:523574

Founded India

Headquarters Mumbai

Key people Kishore Biyani, MD & Group CEO

Industry Retail

ProductsDiscount Stores

Supercenters

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http://www.ril.com/html/business/business_retail.htmlhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/stockreach/stockreach.htm?scripcd=523574http://www.bseindia.com/stockreach/stockreach.htm?scripcd=523574http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/stockreach/stockreach.htm?scripcd=523574http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Hypermarkethttp://www.ril.com/html/business/business_retail.html


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Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore,

Reliance Home Kitchens, and Reliance Jewel come under the

Reliance Retail brand.

Reliance Retail, Ltd. operates retail outlets in India. Its retailoutlets offer foods, groceries, apparel and footwear, lifestyleand home improvement products, electronic goods, and farmimplements and inputs. The companys outlets also providevegetables, fruits, and flowers. It focuses on consumer goods,consumer durables, travel services, energy, entertainmentand leisure, and health and well-being products, as well as oneducational products and services. The company was

founded in 2006 and is based in Mumbai, India. RelianceRetail, Ltd. operates as a subsidiary of Reliance Industries,Ltd

Its a wholly owned subsidiary of Reliance IndustriesLimitedIts a potential player which is entering the domesticretail market with an estimated investment of aroundRs. 250 billion

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The company intend to set up chains ofhypermarkets, supermarkets, discount stores,department stores, convenience stores and specialtystores

These various retail formats and distribution andstocking hubs will be spread across the 784 cities and1600 rural towns in the countryThe company intends to open MBO for the apparelsand consumer durablesThe company already started its operations withReliance FreshsupermarketReliance is following a Twin Modelfor its expansion,

which includes both owning and leasing retail space

Initially targeting the five states of Maharashtra,Gujarat, Punjab, West Bengal and Andhra Pradesh

To establish pan India presence in all formats,targeting not only major metros and cities, but alsothe second-tier, semi-urban and rural centres, thereby

reaching its target of 784 citiesand 1600 rural towns

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Key developments for Reliance RetailLtd.

Vision Express Eyeing Acquisitions

Reliance Retail Ltd and its partner Pearle Europe B.V. plans to open

up to 700 stores of their eyewear retail chain 'Vision Express' across

India in the next seven to eight years. The company is also open to

acquisitions. Vision Express Chief Executive Officer, Guillame

Brouwet said, We want to have a network of 500-700 outlets of

Vision Express over the next seven to eight years. That's the longer

term outlook. We are very much open to acquisitions in India if

some opportunity comes up. But we are not discussing anything atpresent. Pearle Europe is also willing to grow in India in an

inorganic manner. Vision Express is an equal joint venture between

Reliance Retail and Pearle Europ

ASICS Corp. said that it will start selling its products in India in

February. Asics concluded a sales agency contract with a unit of

Indian retailer Reliance Retail Ltd., which operates shoe stores in

cities such as Mumbai and Delhi. The Reliance Retail unit will sell

Asics products at 13 stores. Asics has been a sponsor of the Mumbaimarathon, which is held in January each year, since 2008 as part of

its bid to enter the Indian market

Hamleys will make its India debut with a 22,000-square-feet store at

the popular Phoenix Mills in Mumbai, by February next year.

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Reliance Retail, which has a 20-year-franchise agreement with the

retailer, will set up 20 stores in the first seven years of the

agreement. Besides Mumbai, other cities on the retailer's list include

Delhi, Bangalore and Chennai in the first phase of the launch. The

second store will be launched in Chennai by June next year.

Popular Profiles at Reliance Retail

Raghu Pillai , president and chief executive

K Radhakrishnan, CEO

RajkumarPugalia Executive Vice President

Sriram Mahadevan , Concept Head - Reliance Marts & Supers

Mradul Jauhari, GM

Headquarters Mumbai Area, India

Industry Retail

Type Public Company

Status Operating Subsidiary

Company Size 10,001 or more employees

Founded 2006

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Board of DirectorsMr. Kishore Biyani, Managing DirectorMr. Gopikishan Biyani, Wholetime DirectorMr. Rakesh Biyani, Wholetime DirectorMr. Ved Prakash Arya Director, Operations & Chief OperatingOfficerMr. Shailesh Haribhakti, Independent Director

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Mr. S Doreswamy, Independent DirectorDr. D O Koshy, Independent DirectorMs. Anju Poddar, Independent DirectorMs. Bala Deshpande, Independent DirectorMr. Anil Harish, Independent Director

Partner companiesPantaloon Industries Ltd.Home Solutions Retail (India) Ltd.Future Capital HoldingsConverge M Retail (India) Ltd.Indus League Clothing Ltd.Galaxy Entertainment Corporate Ltd.

Joint Ventures Companies

Planet Retail Holdings Ltd.Footmart RetailGJ Future FashionsCapitaLand Retail IndiaETAM Future Fashions India Pvt. Ltd.

Head Office

Pantaloon Retail (India) LimitedKnowledge House, Shyam NagarOff Jogeshwari-Vikhroli Link Road

Jogeshwari (East), Mumbai 400 060Tel: +91 22-6644 2200Fax: +91 22-6644 2222Site: www.pantaloon.com

FAINANCIAL STATEMENT

RELIANCE RETAIL & PANTALOON RETAIL

BALANCE SHEET

2009 (Rs. Crore) RELIANCE RETAILLTD

PANTALOONRETAIL LTD.

Source of fund

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Equity share capital 1,573.53 38.06

Share application money 69.25 22.88

Preference share capital - -

Reserves & surplus 1,12,945.44 2,211.48

LOAN FUNDSecured loans 10,697.92 2,525.53

Unsecured loans 63,206.56 324.86

Total 1,88,492.70 5,122.81

NET CURRENTASSETSCurrent assets, loans &advances

56,298.09 3,285.51

Less : current liabilities &

provisions

45,675.71 1,030.72

Total net current assets 10,622.38 2,254.79

Miscellaneous expenses not

written- -

Total 1,88,492.70 5,122.81

The balance sheet show that, source of fund, loan fund, net current

assets is Reliance retail ltd is more than Pantaloon retail ltd.

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PROFIT & LOSS ACCOUNT

2009 (Rs. Crore) RELIANCE

RETAIL LTD

PANTALOON

RETAIL LTD

IncomeOperating income 1,41,959.00 6,661.42

Expenses

Material consumed 1,08,856.78 4,481.95

Manufacturing expenses 4,518.96 115.91

Personnel expenses 2,397.50 275.94

Selling expenses 3,095.27 443.36

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Administrative expenses 2,203.75 672.01

Expenses capitalized -3,265.65 -

Cost of sales 1,17,806.61 5,989.17

Operating profit 24,152.39 672.25

Other recurring income 1,713.38 12.08

Adjusted PBDIT 25,865.77 684.33Financial expenses 1,774.47 317.76

Depreciation 5,195.29 140.05

Other write offs - -

Adjusted PBT 18,896.01 226.52

Tax charges 3,137.34 75.38

Adjusted PAT 15,758.67 151.14

Non recurring items -449.35 -10.29

Other non cash adjustments - -0.27

Reported net profit 15,309.32 140.58

Earnings before

appropriation19,672.61 408.14

Equity dividend 1,897.05 11.57

Preference dividend - -

Dividend tax 322.40 1.97

Retained earnings 17,453.16 394.60

The profit & loss account show that, Reliance retail ltd have got

more profit in 2009 comparison to Pantaloon retail ltd.

RATIO

RELIANCE

RETAIL LTD

PANTALOON

RETAIL LTD

Per share ratiosAdjusted EPS (Rs) 100.13 7.94Adjusted cash EPS (Rs) 133.14 15.30

Reported EPS (Rs) 97.28 7.39

Reported cash EPS (Rs) 130.29 14.75

Dividend per share 13.00 0.60

Operating profit per share(Rs)

153.47 35.32

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Book value (excl rev res)per share (Rs)

- 2.28

Book value (incl rev res)per share (Rs.)

- 2.28

Net operating income pershare (Rs)

902.02 350.01

Free reserves per share (Rs) 704.28 112.87

Profitability ratiosOperating margin (%) 17.01 10.09

Gross profit margin (%) 13.35 7.98

Net profit margin (%) 10.65 2.10

Liquidity ratios

Current ratio 1.23 3.19Current ratio (inc. st loans) 1.08 1.29

Quick ratio 0.90 1.45

Inventory turnover ratio 12.92 3.77

Payout ratios

Dividend payout ratio (net

profit)14.49 9.63

Dividend payout ratio (cash

profit)10.82 4.82

Earning retention ratio 85.92 91.05

Cash earnings retention 89.41 95.36

Annual results in brief

2009 (Rs.crore) RELIANCERETAIL LTD

PANTALOON

RETAIL LTDSales 1,46,328.00 6,341.70

Operating profit 23,683.00 668.44Interest 1,745.00 318.22

Gross profit 23,998.00 356.28

EPS (Rs) 99.35 7.39

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The annual results show that, sales, operating profit, interest, gross

profit &esp. (Rs.) of Reliance retail ltd is much more than Pantaloon

retail ltd.

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