22356319 Pantaloon Retail India Ltd

8/6/2019 22356319 Pantaloon Retail India Ltd

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` PANTALOON RETAIL INDIA LTD

By: Sunny Ahuja 47

Supriya Kumari 48

MMM-A


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CONTENTS

Part one : Concept Page no. 1&2

Part two : Company Profile Page no. 3&4

Part three : Group Companies Page no. 5&6

Part four : Sector Synopsis Page no. 7-10

Part five : Major Industry Page no. 11-14

Contributors

Part six : Retail Format Page no. 15

Part seven : Company Outlets Page no. 16&17

Part eight : Product Offerings Page no. 18&19

Part nine : Channel of Page no. 20

Distribution

Part ten : Company Strategies Page no. 21&22

Part ten : Future Plan Page no. 23


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CONCEPT

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 seller 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.

The history of PRIL can be traced to the mid -1980s, when Biyani, a commerce graduate

quit his family business of trading textiles and yarn to start manufacturing apparels. In

1987, PRIL was incorporated as Manz Wear Pvt Ltd and manufactured readymadetrousers under the Pantaloon brand. On September 20,1991 , Manz Wear Pvt Ltd, went

public and in 1992, the name was changed to Pantaloon Fashions (India) Limited (PFIL).

At that time , the company was distributing its garments across India through multi-brand

garments stores.

In 1992, the company inaugurated its first exclusive mens store called Pantaloons Shoppe

and by 1995, the number of stores had grown to 70, with most of them being franchisee

outlets . Biyani felt that the best way to realize the potential of the retail sector was to

launch departmental stores owned and managed by the company. In august 1997, the first

departmental store called Pantaloons was opened in the city of Kolkata with an

investment of Rs 0.7 million. Later the investment in this store was raised to Rs 50million and Rs 0.4 million was spent on advertising it, an unheard sum for a retailer to

spend on advertising at that time . The store was a success and recorded revenues of Rs

100 million within the first year of operations. It was the first retail store in India that

marketed apparel for the entire family, unlike other stores, which catered to a single

market segment such as men, women, or kids. In 1999, the companys name was changed

to Pantaloon Retail (India) Limited (PRIL).

This is Pantaloon Retail (India) Limited, (a Pantaloon Knowledge Group Company) -

Indias face of organized retail business. It is Indias leading retailer that now operates

multiple retail formats in both the value and lifestyle segment of the Indian consumer

market. Headquartered in Mumbai (Bombay), the company operates over 7 millionsquare feet of retail space, has over 1000 outlets (including shop-in-shops) across 53

cities in India and employs over 25,000 people.

Presently, in to five lines of businesses fashion and footwear, food, general

merchandise, leisure & entertainment and home the company operates multiple delivery

formats : the fashion store format under the Pantaloons brand; the showcase seamless


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mall under the Central brand; the hypermarket discount store format under the Big

Bazaar brand; the food & grocery retail format under the Food Bazaar brand, and apparel

stores under Fashion Station. Some of its other formats include, Home Town, Depot,

Shoe Factory, Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara.

The Company plans entry in telecommunications retail and other lines of businesses such

as wellness and beauty as well as books and music, besides pantalooning a portal for e-

retailing in the near future as another delivery format.

INTRODUCTION: 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 7

million square feet of retail space, has over 1000 stores across 53 cities in India and

employs over 25,000 people.

VISION: Future Group shall deliver Everything,Everywhere, Every time for Every Indian Consumer in the most profitable manner

MISSION:We shall be efficient, cost- conscious and committed to quality in whatever

we do.

CORE VALUES:Rewrite rules. Retain values

REGISTERD AND CORPORATE OFFICE:

Pantaloon Knowledge House, Shyam Nagar, Off. Jogeshwari Vikhroli Link Road,

Jogeshwari (East), Mumbai 400 060.

The Registered Office of the Company was shifted from Venkatesh Bhavan, 4th Floor

86 Mirza Street, Mumbai 400003 to Pantaloon House, G 11 , M.I.D.C. Cross Road A,

Andheri East, Mumbai (400 093 )

Tel: (+91 22) 56442200 Fax: (+91 22) 56442201.Website:www.pantaloon.com


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COMPANY PROFILE

PantaloonRetail Indialimited

(India)Limited

Life styleRetailing

Valueretailing

Entertainment leisure

ntaloo Central Fashionstation

allMeLA

BigBazaar

FoodBazaar


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Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retailformats in both the value and lifestyle segment of the Indian consumermarket. Headquartered in Mumbai (Bombay), the company operates over 7 million squarefeet of retail space, has over 1000 stores across 51 cities in India and employs over 25,000people.

The companys leading formats include Pantaloons, a chain of fashion outlets, BigBazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blendsthe 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, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station,aLL, Top 10, mbazaar and Star and Sitara. The company also operates an online portal,futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, alarge-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by theUS-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year2007 at the World Retail Congress held in Barcelona.

Pantaloon Retail is the flagship company of Future Group, a business group catering to theentire Indian consumption space.


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GROUP COMPANIES

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 gloriousfuture brings to us our strength, our ability to learn, unlearn and re-learn, our ability to

evolve.

Future Group is one of the countrys leading business groups present in retail, asset

management, consumer finance, insurance, retail media, retail spaces and logistics. The

groups flagship company, Pantaloon Retail (India) Limited operates over 7 million

square feet of retail space, has over 1000 stores across 53 cities in India and employs

over 25,000 people. Some of its leading retail formats include, Pantaloons, Big Bazaar,

Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail

format, futurebazaar.com.

Future Group companies includes, Future Capital Holdings, Future Generali India

Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar

and Bowling Co. Future Capital Holdings, the groups financial arm, focuses on asset

management and consumer credit. It manages assets worth over $1 billion that are

being invested in developing retail real estate and consumer-related brands and hotels.

The groups joint venture partners include Italian insurance major, Generali, French

retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based

Lee Cooper and India-based Talwalkars, Blue Food and liberty shoes.


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BOARD OF DIRECTOR

Mr. Kishore Biyani Mr. S Doreswamy

Managing director Director

Mr. Gopikishan Biyani Mr. Darlie Koshy

Wholetime Director Director

Mr. Rakesh Biyani Mr. Anil Harish

Wholetime Director Director

Mr. Shailesh Haribhakti Ms. Anju Podda

Director Director

Ms. Bala Deshpande Mr. Ved Prakash Arya

Director Director

FOUNDER: Mr. Kishore Biyani


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SECTOR SYNOPSIS

Retail is the world largest private industry with global retail sales of roughly USD 8

trillion. In India, however, the retail sector has seen a high level of fragmentation with a

large share held by unorganized players.

The domestic consumption story of India is at a point of inflection. The Indian economygrew at an unprecedented rate of 9.4% during 2006-07 with the Gross Domestic Producttouching a trillion dollars at market prices. Private final consumption expenditurecontinued to be a key driver for this growth and is estimated to be US $560 billion. On aconservative estimate the potential market size for retailing is around 56% of privateconsumption or around US $310 billion. Over the last couple of years, modern retail hasemerged as one of the fastest growing sectors in the Indian economy. The modern retailsector in India is around 4.6% of the wider retail market, compared to 20% and 38% inChina and Brazil respectively. This provides an enormous opportunit y for modern

retailers to benefit from rising consumption expenditure as well as capture a larger pie ofthe wider retail market. The modern retail sector is expected to enjoy 30-35% CAGR(compounded annual growth rate) and gain 11% share of the retail market within the nextfour years. The optimism that is now associated with the modern retail sector has nowfound many votaries. Among them, consultancy firm, AT Kearney has identified India asthe world's most attractive emerging market retail destination for the third consecutiveyear. Favorable demographics, booming consumerism and strong economic growth areacting as a key catalyst. Changing attitudes towards consumption and a rising propensityto consume highlight the fundamental shifts that are taking place in a traditionallydebtaverse society, in which conspicuous consumption was once frowned upon.

Pantaloon Retail (India) Limited's business strategy was designed to capture thesebenefits of change and the rising consumerism that is evident in the country. In recentmonths, large domestic and international companies are showing strong interest in theretail sector, which your Company has been part of for a decade now. Pantaloon Retail believes that the next phase of India's economic development will happen throughincreased consumption. Rise in consumption in India is setting about a virtuous cycle ofconsumption-led growth and development. Increased consumption is leading to rise inmanufacturing and job creation. This is in turn is leading to income generation and


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wealth creation which is aiding further growth in consumption. Rather than limit itself tojust a few categories in retail, the Company therefore looked at capturing a significantportion of the entire consumption opportunity that the Indian economy provides. Theseare being done through multiple initiatives in existing businesses and also by buildingnew businesses on the peripheries of the retail business. The Company has significantly

strengthened its existing mature businesses and is expanding established retail formatsinto new geographies and cities. At the same time, to capture new consumption trends,the Company has rolled out a large number of new initiatives and retail formats insegments like home improvement, consumer durables, communication products, books,music and entertainment, health, beauty and wellness among others. These specialty retailformats are in many cases the first in India and are expected to garner a significantportion of consumption expenditure going into new categories. During the period underreview, the Company opened 11 Pantaloons, 27 Big Bazaar, 13 stand-alone Food Bazaar,1 Central and 5 Brand Factory. Subsidiary Company, Home Solutions Retail IndiaLimited rolled out 2 Home Town, very-large format stores along with other retailformats. New stores covering around 2 million square feet of retail space were rolled out

taking the total retail space under operation to around 5.2 million square feet as on June2007. The Company plans to increase its retail space by nearly 4.5 million to 5.5 millionsquare feet in the coming year. In order to further leverage its reach and ability to attractincreasing number of customers within its stores, the Company has rolled out new businesses and subsidiaries in the areas of consumer finance, capital, insurance, realestate funds, retail media, brand development and logistics. Each of these new initiativesis a step towards driving more value from its existing retail businesses and at the sametime helps catalyses consumption within its stores.

In late 1990's the retail sector has witnessed a level of transformation. Retailing is being

perceived as a beginner and as an attractive commercial business for organized business

i.e. the pure retailer is starting to emerge now. Organized retail business in India is very

small but has tremendous scope. The total in 2005 stood at $225 billion, accounting for

about 11% of GDP. In this total market, the organized retail accounts for only $8 billion

of total revenue. According to A T Kearney, the organized retailing is expected to be

more than $23 billion revenue by 2010.

In organized retailing will grow faster than unorganized sector and the growth speed will

be responsible for its high market share, which is expected to be $ 17 billion by 2010-11.

Retailing will show good prospects in cities like Mumbai, Delhi, Chennai, kolkata,

Banglore and Kanpur. After Dubai, Singapore and Hong Kong, In India Delhi will be the

next big retail destination, According to Confederation of Indian Industries whosefindings have shown that Delhi has the good resources and good conditions for the retail

sector. Out of the total earnings of the Government of Delhi Rs 11,000 crore, Rs 6,500

crore is achieved from the retail sector.

The organized sector is expected to grow faster than GDP growth in next few years

driven by favorable demographic patterns, changing lifestyles, and strong income growth.


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This organized retail sector mix includes supermarkets, hypermarkets discounted stores

and specialty stores, departmental stores.

Growth drivers in India for retail sector

Rising incomes and improvements in infrastructure are enlarging consumer

markets and accelerating the convergence of consumer tastes

Liberalization of the Indian economy

Increase in spending Per capita Income.

Advent of dual income families also helps in the growth of retail sector.

Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic.

Consumer preference for shopping in new environs

The Internet revolution is making the Indian consumer more accessible to thegrowing influences of domestic and foreign retail chains. Reach of satellite T.V. channels

is helping in creating awareness about global products for local markets.

About 47% of India's population is under the age of 20; and this will increase to

55% by 2015. This young population, which is technology-savvy, watch more than 50

TV satellite channels, and display the highest propensity to spend, will immensely

contribute to the growth of the retail sector in the country.

Availability of quality real estate and mall management practices

Foreign companies' attraction to India is the billion-plus population.

GROWTH OF ORGANISED RETAIL IN INDIA

The total retail sector in India is estimated at around USD 320 billion.

Estimated organized retail in India to reach 12% to 13% of the total retail market by

2010 with sales of Rs 1700-1800 billion.


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According to this years Global Retail Development Index India is positioned as theleading destination for retail investment. This followed from the saturation in western

retail markets and we find big western retailers like Wal-mart and Tesco entering into

Indian market. Indias retail industry accounts for 10 percent of its GDP and 8 percent

of the employment to reach $17 billion by 2010. There are about 300 new malls,

1,500 supermarkets and 325 departmental stores being built in the cities very soon.

In organized retailing will grow faster than unorganized sector and the growth speed

will be responsible for its high market share, which is expected to be $ 17 billion by

2010-11.The organized sector is expected to grow faster than GDP growth in next

few years driven by favorable demographic patterns, changing lifestyles, and strong

income growth. This organized retail sector mix includes supermarkets, hypermarkets

discounted stores and specialty stores, departmental stores. For example, Spencer

network has 69 stores, which includes seven Spencer hypermarkets, three Spencer

super markets and 49 Spencer .

Break up of consumers expenditure in organized retail


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Percentage of Organized Retail

USA - 85%

Taiwan - 81%

Malaysia - 55%

Thailand - 40%

Brazil - 36%

Indonesia - 30%

Poland - 20%

China - 20%


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MAJOR INDUSTRY CONTRIBUTORS

Name US $ Million

Future Group (Pantaloon) 444

Shoppers Stop 133

Landmark (Lifestyle) 80

Trent 53


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Subhiksha 44

Vishal Mega Mart 25

India is witnessing an unprecedented consumption boom. The economy is growingbetween 7 and 9 percent and the resulting improvements in income dynamics along

with factors like favorable demographics and spending patterns are driving the

consumption demand.

Indian Retail Industry is ranked among the ten largest retail markets in the world.

The attitudinal shift of the Indian consumer in terms of "Choice Preference", "Value

for Money" and the emergence of organized retail formats have transformed the face

of Retailing in India. The Indian retail industry is currently estimated to be a US$

200 billion industry and organized Retailing comprises of 3 per cent (or) US$6.4

Billion of the retail industry. With a growth over 20 percent per annum over the last

5 years, organized retailing is projected to reach US$ 23 Billion by 2010.

The Indian retail industry though predominantly fragmented through the owner -run "

Mom and Pop outlets" has been witnessing the emergence of a few medium sized

Indian Retail chains, namely Pantaloon Retail, RPG Retail, Shoppers Stop, Westside

(Tata Group) and Lifestyle International.

Given the attractiveness of the Indian retail sector, foreign retailers like Wal-Mart,

Carrefour SA( Europe's largest retailer) and Tesco Plc( the UK's largest retailer)

were keen to enter this growing market, despite the Indian retail sector being closed

to foreign direct investment (FDI). In February 2006, the Indian Government had

announced its decision to allow FDI of upto 51% in single brand retailing. Wal-Mart

had said that India is high on its priority and that it is closely monitoring the

Government's policy on FDI in the retail sector.

In the last few years, Indians have gone through a dramatic transformation in

lifestyle by moving from traditional spending on food, groceries and clothing to

lifestyle categories that deliver better quality and taste. Modern retailing satisfies

rising demand for such goods and services with many players entering the

bandwagon in an attempt to tap greater opportunities. According to the 'Global Retail

Development Index (GRDI) 2006' by the management consulting firm 'A.T.

Kearney', India has retained it's topmost position in the annual study of retail

investment attractiveness among 30 emerging markets.

.The Domestic competitors of Pantaloon in 2005:


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RETAILER REVENUES

(Rs.bn)

TOTAL FLOOR

SPACE (lakh sq ft)

TOTAL NO. OF

OUTLETS

2003-04

2004-05

2003-04

2004-05

(estimated)

2003-04

2004-05

(estimated)

Pantaloon

RPG

Shoppers stop

Lifestyle

WestsideEbony

Piramyd

Globus

6.50 13.00 11.0 30.0 31 74

5.45 8.00 5.2 7.5 110 130-134

4.04 5.45 6.3 8.5 13 40

2.30 3.10 3.2 3.2 7 0

1.20 N.A. 2.3 3.3 14 18/19

0.85 1.00 1.7 2.4 8 12

0.72 1.40 1.3 5.0 3 7/8

N.A. N.A. 1.5 6.0

(next3years)

7 14/15

(next3years)

Pantaloons Retail India Limited, which operates Pantaloons superstores, has around 14

Pantaloon Family Stores and 10 Pantaloon `Shoppes' across the country. In addition, they

also run 4 hypermarkets under the `Big Bazaar' brand. Since the opening of their first

store in 1997, in terms of financial size, Pantaloon has already raced to the front to

become the country's largest public limited retail giant with a turnover of US$ 87 million.

They have managed to do so, among other strategies, by keeping costs down. Their

policy of buying directly from manufacturers (to eliminate the middleman), cash

purchases (to get a cash discount) and optimum stock management has helped them to

pass on the benefits to the customers that work well in this price sensitive market. Their

future plans, to become a US$ 217 million super retailer by 2005, include setting up eight

new Big Bazaars (hypermarkets), four new Pantaloon stores, three independent foodstores and a mall in Bangalore

RPG Group: According to the above-mentioned survey, the most enthusiastic player in

organized retail in India is the Goenka group's RPG Enterprises. RPGs retail empire is

one of the largest in India, having more than a 100 stores that includes Food World - an


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alliance with Dairy Farm International of the Jardine Matheson Group; Music World - a

50:50 joint venture with Dairy Farm International, Health & Glow (cosmetics, health

products and medicines) and Giant (hypermarkets). Primarily based in south India, the

turnover of RPGs retail empire is around US$ 98 million and accounts for nine percent of

the group's turnover.

Landmark Group: Owned by the $600 million Landmark Group, which operates 170

stores worldwide, Lifestyle forayed into the Indian retail market in 1998. Lifestyle India

achieved a turnover of US$ 29 million in 2002-03 with five stores in operation. One of

the primary reasons for their success in India has been their experience in running retail

chains overseas. Their strategic decision to set up everything under one roof versus

setting up separate stores in different segments has stood them in good stead. Another

advantage they have is that Lifestyle has developed its own in-house label, which

comprises 11 percent of total merchandise. In addition, its parent company does bulk

purchases of commodities that are sold at these stores so that the products can be sold at acheaper rate. Lifestyle plans to open six more stores aiming to offer around 500,000

square feet of shopping space by next year and to achieve a turnover of US$ 50 million in

2003-04. Pantaloon and Lifestyle are considered to be the powerhouses of retail in India.

According to industry sources, in the next 12 to 18 months, both these superstores will

offer two million square feet of retail space between them.

K. Raheja Group: The K Raheja promoted Shoppers' Stop, credited with starting the

retail revolution in India, is said to be the leader in department store format. At present,

Shoppers' Stop has 10 stores across India. Shoppers' Stop also runs the 13 stores of the

bookstore chain `Crossword' which it acquired two years ago. The future plans of this

chain, having a turnover of US$ 66 million, are to open 24 more Shoppers' Stop Stores in

the next two years and 12 more Crossword stores by the end of this year. A unique

feature of Shoppers' Stop operations is that their private labels such as Stop, Kasish, Life

and Carrot contribute 20 percent to its turnover.

Tata Group: The US$ 9.7 billion Tata Group's retail arm Trent runs the Westside chain

of stores. Trent has already established 11 Westside departmental stores measuring

20,000 square feet each, in Mumbai, Bangalore, Hyderabad, Chennai, Pune, New Delhi,

Kolkata, Nagpur and Ahmedabad. The company hopes to expand rapidly with similar

format stores that offer a balance between style and price retailing. Future plans include

establishing the Westside brand in all large towns with a population of over 100,000.

Trent is also planning to venture into food and grocery retailing through a chain of

hypermarkets. Group company Tata Coffee, which holds over 32 percent in Barista

Coffee Company, has targeted 160 espresso bars in India and abroad in the recent future.

Some of the other well-known names in the Indian retail arena are ITC Lifestyle, Globus,


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Nilgiris, Caf Coffee Day, Quickys, Amorettos, Bata, Super Sabka Bazaar, and

Subhiksha etc.

PRIL and its Domestic Competitors

(as of april 2006)

Companies Total Outlets /

Department

Stores

Number of

Cities Covered

Retail Space

Covered (in

million sq.ft)

Employee

Strength

PRIL 99 25 3 12,000

Shoppers stop 20 10 0.75 2,400

Trent 27 14 0.45 1,200

Globus stores 12 8 0.25 NA

RETAIL FORMATS

Traditional Retail Format

Format Definition Value position India examples

Counter stores Food: Family run stores, selling

essentially food items.

High service, low

price

Kirana stores

Kiosks Pavement stalls selling limited

variety of food & beverages.

High service Paan shops

Street markets Regular markets held at fixed

centre retailing food & general

merchandise items.

Large selection,

low price

Village haats

Street vendors Mobile retailers essentially selling

perishable food items-fruits.

High service Vegetable

vendors

Modern Retail Format


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Some of the modern retail format and their value proposition are given below.

Format Definition Value position

Department stores Multiple product categories, usually lifestyle

driven with apparel/accessories dominating.

Service & choice

Super market/

Convenience stores

Food and household products. Convenience

Hyper markets/

Discount stores

Large stores in big box format, with volume

based discounted price.

Price & choice

Specialty stores/

Category Killers

Extensive range of products under a single

category.

Service

Seamless Mall Apparel, Accessories, Lifestyle products,

Entertainment.

Convenience, service

& choice

COMPANY OUTLET

Pantaloon is an aggressive player in the retail space , with a presence across multiple

formats. The ability to repeat its strong performance across newer formats would

determine its future growth.

The first Pantaloons was opened in Gariahat in 1997. Over the years, it has undergoneseveral transitions. When it was first launched, this store mostly sold external brands.Gradually, it started retailing a mix of external brands while at the same time introducedits own private brands. Initially positioned as a family store, it finally veered towardsbecoming a fashion store with an emphasis on 'youth' and clear focus on fresh

fashion.

Today, the fashion store extends to almost all the major cities across thecountry. Pantaloons has established its presence with stores not just in the metros, butalsoinsmallertowns.

Pantaloons stores have a wide variety of categories like casualwear, ethnicwear,formalwear, partywear and sportswear for Men, Women and Kids.


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Pantaloon operates over 7 million square feet of retail space, has over 1000 outlets

(including shop-in-shops) across 53 cities in India and employs over 25,000 people.

PANTALOON OUTLETS

As on 30th june , 2006,the total number of pantaloon stores stood at 21 , with 9

stores opening during the year under review .

These are as follows-

City mall-Ahmedabad 20000sq. ft

Sigma hall-Bangalore 20000sq. ft

Borivali-Mumbai 30000sq. ft

Sahara mall-Luck now 20000sq. ft


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Kalani mall-Indore 20000sq. ft

Runwal mulund-Mumbai 19500sq. ft

Cross river mall-Shahdara 25000sq. ft

Cinepux mall-Mangalore 23550sq. ft

Rajkot 18000sq. ft

PRODUCT OFFERINGS

Pantaloon is positioned as an entire family store and it deals in mens wear, ladies wear

and kids wear. It mainly focuses on its Private label program me because the share of

private label has increased over the previous year and stands at nearly 75%. Below are

some of the companys private labels:

MENS WEAR

John Miller

JM Sports

Bare Denim

Rig

Ajile

Lombard

T-2000

Bare Leisure


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LADIES WEAR

Honey

Akkriti

Annabelle

Mix & Match

Ajile

Rig

KIDS WEAR

Chalk

Bare 7214


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ACCESSORIES


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Cosmetics

Stationary for kids

Books & Magazines

CHANNELS OF DISTRIBUTION

Future logistics solution limited ,a wholly owned subsidiary has been formed to offer

more strategic ,systematic approach to meet group large captive supply chain

management (scm)

On the backing of the group association, alliances and key vendors FLSL will also extend

its services bonquet to them in near future.

Future logistic team currently oversee the operation of an existing fleet of over 200

delicated trucks ,contracted from established regional and national transport carrier.

GDS being piloted for outbound deliveries and would be rolled out nationally in nearfuture.

In term of warehouse space nearly 2 million squre feet was operational as on30 dec 2007

consisting of MASTER DISTRIBUTIONCENTRE and other regional dcs

FUTURE LOGISTIC has build about 4 mega merchandising hub of about 250000 feet

located in 4zones of India


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PRICING STRATEGY

-The largest player in the organized retail Pantaloon Retail came-up with 1500 -2000 sqft no-frills KB fair Price shops in this year. They propose to provide branded products at

10% less than the Mrp and 20% off on the local brands, which is similar to what has been

carried out in Big bazaar.

Keeping costs down is clearly the cornerstone of policy at both chains. Pantaloon chief

Biyani ensures cheaper prices by keeping watch at every step.

Says Biyani: "We do three things -- buy directly from the manufacturers so that the

middle man is eliminated. We buy in cash and get a cash discount, and manage our stocks

turns so that we don't have money stuck up. The benefits are passed on to the customers.

Cash discounts (for buying goods upfront in cash) on the other hand could range from 2

per cent to 10 per cent. And the company pushes for a stock turn of 40-50 times a year for

its food items, and once a month for ready to wear.

Backward integration is the name of the game in Pantaloon stores -- and they help to keep

costs down dramatically. Almost 70 per cent of the ready-to-wear products in the store

are manufactured by the group's own garment units. As a result it is able to offer prices in

ready-to-wear that are virtually 30 per cent cheaper than competitors. They increase

there margins by pushing their own in-house labels.

POSITIONING STRATEGY

The first Pantaloons was opened in Gariahat in 1997. Over the years, it has undergone

several transitions. When it was first launched, this store mostly sold external brands.

Gradually, it started retailing a mix of external brands while at the same time

introduced its own private brands. Initially positioned as a family store, it finally veered

towards becoming a fashion store with and emphasis on youths and clear focus on

FRESH FASHION. .
http://www.pantaloon.com/http://www.indiaretailbiz.com/blog/2007/08/10/biyani-announces-entry-into-small-format-last-mile-neighbourhood-retail-space-plans-to-se-up-1500-fair-price-shops-in-two-years/http://www.pantaloon.com/http://www.indiaretailbiz.com/blog/2007/08/10/biyani-announces-entry-into-small-format-last-mile-neighbourhood-retail-space-plans-to-se-up-1500-fair-price-shops-in-two-years/


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PANTALOON Retail is in revamp mode. Changing its positioning from a family-

oriented store to a fashion store, Pantaloon stores are being re launched on the `youth'

platform. Sporting a new baseline, Pantaloon will now carry the `Fresh Fashion'

statement across its 12 stores. India is a young country compared to the others and we

wanted our brand to get associated with this emerging target audience. This is the first

time that we are re launching our stores targeting youth and even women, since they arethe ones defining most purchasing decisions.

FUTURE PLANS

1 The country's largest retailer, Pantaloon Retail, is cooking up plans to significantly

increase its presence in the rapidly growing domestic food industry. The retailer is also

working towards getting closer to the Indian homemaker by offerings in store which will

take away the negative labour back home with a range of products in a` live kitchens'

format, including home style gravies, dals, cooked rice.

2 PANTALOON is increasing number of FOOD BAZAAR outlet from 40 to150

3 Pantaloon to raise funds; plans IPO of Future Capital finance unit

Leading Indian retailer Pantaloon Retail India Ltd has announced that it would sell

shares and warrants to investors and founders of the company to raise over $300 million

and also sell 10% of Future Capital Holdings.


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4. Diversifying its retailing initiatives, the Rs 650-crore Pantaloon Retail (India) is

planning to start its own company parlors at its Big Bazaar outlets.

5 PANTALOON announced its plans to form a joint venture with ITALY based

GENERALI group to tap insurance sector

Documents

22356319 Pantaloon Retail India Ltd