Final Proj Ct on Pantaloon

7/31/2019 Final Proj Ct on Pantaloon

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Guide certificate


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Declaration

I hereby declare that I have carried out Summer Training Project on the topic entitled Customer

Profiling & Purchase Parameters at pantaloon retail store.

I further declare that this project work is based on my original work and no part of this project

has been published or submitted to anybody.

SHAKTI KUMAR SINGH


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PREFACE

Summer training at any business organization makes the students more practical and habitual to

analyze the situation in more crucial a refined way, which ultimately contributes a later stage of

practice. It also helps in filling up the gap between theoretical and practical experience. The

business winner will be those organizations that size and expert opportunity by strategically

positioning themselves.

The Objective of this project is to find out the awareness of individual towards the Retail sector.

And other most important objective of this project to know about customer profiling and

purchase parameter

During preparing this project we meet many investors who have decided to buy a dresses. We

use some source of information to prepare this project. We prepare this project on behalf of

Pantaloons retail store.. Hence this framework is derived from the practice adopted by the

companies in order to sustain and grow.

We are serving the following pages that will endow the reader with insight in to the Indian retail

sector from the corporate view- point. This study has been very useful learning experience

enriching knowledge in the field of retail sector.

SHAKTI KUMAR SINGH


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Introduction


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Retail is Indias largest industry, accounting for over 10 per cent of the countries GDP and

around eight per cent of the employment. The market size of Indian retail industry is about US

$312 billion Organized retailing comprises only 4.5 per cent of the total retailing Estimated at

around US$ 8.7 billion

The organized retail sector is expected to grow to US $ 70 billion by 2010 International retailers

India's vast middle class with its expanding purchasing power and its almost untapped Retail

industry is key attractions for global retail giants wanting to enter newer markets. The Australian

government's National Food Industry Strategy and Astride initiated a test marketing food retail in

India wherein 12 major Australian food producers have tied up with India-based distributor AB

Mauri to sell their products directly at retail outlets. US-based home delivery and logistics

company, Specialized Transportation Inkwell enter the Indian market through a strategic alliance

with Patel Retail, a subsidiary of Patel Integrated Logistics.Wal-Mart has announced its plans for

India in partnership with Bharti,US coffee chain Starbucks is well on its way to set up its first

store in India this Year.US based Tommy Hilfiger has tied up with Creative Portico, a Mumbai

based Home Textiles Company, to sell its home textiles and furnishings in India. Alfred Dunhill,

a UK-based luxury mens brand, has tied up with Brand house. Retail Ltd. for its India venture

and will be opening four stores. The worlds largest furniture retailer, Idea, has established an

office in Gorgon for market research and is holding talks with domestic

.


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TABLE OF CONTENTS

REVIEW PAGE NO.

Executive summary 07-18

Brief history of the organization.19-34

SWOT analysis ..35-39

Award.40-44

Board of director.45-57

Org. structure.58-60

Mission, vision and philosophy61-63

Objective 64-70.

Research methodology 71-74


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Executive summary


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The Pantaloon group, a leading retailing group in India. In March 2006, the group renamed itself

as the 'Future Group' and was further divided into six verticals - Future Retail, Future Brands,

Future Space, Future Capital, Future Media, and Future Logistics. 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 Future Group shall deliver Everything,

Everywhere, Every time for Every Indian Consumer in the most profitable manner We shall be

efficient, cost- conscious and committed to quality in whatever we do

.Rewrite rules. Retain values

.Mr. Kishore Biyani

Website:www.pantaloon.com

Company Outlet:

Pantaloons:: cross river mall

Address : Shahadara New Delhi
http://www.pantaloon.com/http://www.pantaloon.com/http://www.pantaloon.com/http://www.pantaloon.com/


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RETAIL MEANING

Retail comes from the French word retailer which refers to "cutting off, clip and divide" in terms

of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small

quantities" in 1433 (French). It's literal meaning for retail was to "cut off, shred, paring".

Business of selling products and services to the public as the ultimate consumer. Retailing

involves selling many different products and services, either from a store location or in direct

selling through vending machines and in-home presentations, mail order, and so on.

First retailers in India include BATA, Pantaloon, Bombay Dyeing, Spencers The case highlights

the emergence and evolution of PRIL from a small garment manufacturer to the retailer in India

by the early 21st century. It examines the evolution and growth of PRIL until the mid 1990s, and

then traces the rationale behind the launch of its first retail format Pantaloons, a family

departmental store. It discusses in detail the marketing and promotional efforts undertaken by

PRIL for Pantaloons, which made the store one of the most successful lifestyle stores in India in

the early 2000s. The case then examines the reasons for PRIL's entry into discount store and food

store businesses through Big Bazaars and Food Bazaars and discusses in detail the strategies and

marketing efforts put in place by PRIL to promote these formats. Recent trends in the Indian

retailing industry, changing requirements and preferences of consumers, Understanding changing

consumer lifestyles.


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Background

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 sellers 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. Biyani was a commerce graduate with a post-graduate diploma in marketing.

After spending five years in managing his family business of trading textile and yarn, he started

with apparel manufacturing in the mid-1980s. Is Kishor Biyani a retailer or a fund manager?

That question might well be asked of him in the not too distant future. Over the last few months,

Future Capital Holdings (FCH), led by CEO Sameer Sain, has stitched together a fully integrated

financial services business model.


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Management business in India with almost $830 million in assets. Now, it has big plans in

insurance, retail lending and forex services. Whether we have a consumer who wants to

leverage future income to realise his aspirations today, or wants to save and invest, or buy

protection for his family, we want to be a part of it, says Sain. He believes that in 5 -7 years,

FCHs bottom line will be bigger than the retail business! In the insurance business, the Future

Group has managed to wrest a 74 per cent stake in a joint venture by investing just Rs 100 crore

(its JV partner invested the same amount for a 26 per cent stake). Italian Assicurazioni Generali,

ranked 21 on the Fortune 500 list, is a good fit for us because they derive almost 17 per cent of

their sales from mall assurance. They have also partnered another retailer in the Philippines,

says Sain. Biyani estimates that with just a 1 per cent footfall conversion rate, the insurance

business would have over 2 million customers. That would earn him huge fees on distribution

and catapult the company to amongst the largest private insurance players by way of number of

policies sold. Despite the global economic recession and a consequent slowdown in the Indian

economy, organized retail continued to make headway although at a slower pace in 2009.

Nonetheless, if the current retail landscape is compared with that of 2004, it has undeniably

become a much larger environment. Retail stalwarts such as Wal-Mart, Tesco and Marks &

Spencer have already made inroads into the Indian retail industry and with multi-billion dollar

investments.


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The Retail boom has also led to the opening of a large number of single brand outletsacross the

country. With big brands and bigger outlets across all segments, from Appareland Footwear,

Watches, Books and Stationary to Jewelry and Consumer Durables, the sweep is indeed broad.

in to sample the depth and breadth of this amazing sector. Types of Retail verticals operating in

India.

Food and Beverage

Health and Beauty

Clothing and Footwear

Home Furniture and Household Goods

Consumer Durable Goods

Leisure and Personal Good

Economic slowdown serves as reality check for retailers

The global economic crisis and its impact on India resulted in a slowdown of the Indian economy

in 2009. This caused consumers to tighten their purses, and the availability of financial support

for retail expansion dried up. This put a halt to the unprecedented expansion seen over the review

period. Lower consumer confidence resulting from the recession, as well as job losses, resulted

in fewer visits to retail stores, and consequently sales plummeted for major retailers. With

consumers becoming highly discretionary, spending on non-essential items such as lifestyle

goods was highly impacted, making it one of the worst performing categories.


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Retailers with financial backing weather the storm

Credit from banks and other lenders has been difficult to obtain in the current environment, and

retailers have suffered severely as a result. Some retailers are unable to pay rental fees because

all lines of credit have dried up. In such a tough operating environment, retailers under the

umbrella of a diversified holding company with access to internal funds are faring better than

other players. For example, Reliance Retail and Aditya Birla Retail emerged relatively unscathed

compared with smaller players such as Subhiksha and Vishal Retail.

Internet retailing grows at phenomenal pace

Due to the increased penetration of credit cards and availability of computing facilities to a wider

population, Internet retailing is witnessing stellar growth. Internet retailers offer products at

discounted prices to consumers compared with store-based retailers and bargain-hunting

consumers are latching on to this fact. This has become even more pronounced in light of the

economic downturn as consumers have become increasingly sensitive to price.

Indias attractiveness stands over long term

Indias burgeoning middle class offers considerable promise for organized retailing, which is

expected to remain attractive to organized retailers over the long term. Liberalization and

financial reforms would remain a key factor in the expansion of the organized retail

environment. Currently, foreign direct investment is not allowed in single brand retail, and it

proved a major hurdle in IDEAs billion-dollar plans in mid-2009 to enter the organized retail

environment. However, with a stable government in place at the centre.


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Impact Of Recession On The Indian Retail Market

The retail market in India is facing slowdown with the ongoing financial crisis happening across

the world markets. Since the markets always have internally linked with each other, the impact

of the crisis is generally shared among all. The following circumstances are creating unwelcome

interruptions to the Indian retail industry. The industry hopes for the best alternations to

overcome the acrimonious situations. Markets in recession worldwide and India too: The current

meltdown in the world markets is shaking the globe today. Not even a single country seems to be

off the hook. The high level of inflation has been a wet blanket for the global markets. The roots

of the world markets are nearly pulled away with the heavy downfall of the American financial

giants. Amongst many countries, India too not exempted from the impact of world financial

crisis. All this is leading to a temporary recess for the markets from a regular busy schedule.

However,These fluctuations are not new for global market. For the decades long, markets, across

the world, have been witnessing such ups and downs. But the ultimately fact is that the market

growth rate is always constantly high when comparing to such downfalls Economic slowdown

The Financial crisis is adding to the pressure on global economies. The International Monetary

Fund (IMF) now sees the world entering a major slowdown.


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Brief history of

organization


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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 16 million square feet of retail space, has over

1000 stores across 73 cities in India and employs over 30,000 people. The companys leading

formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian

hypermarket chain, Food Bazaar, a supermarket chain, blends the 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 Brand Factory, Blue Sky, all,

Top 10 and Star and Sitar. The company also operates an online portal, futurebazaar.com.

Future Value Retail Limited is a wholly owned subsidiary ofPantaloon Retail (India)

Limited. This entity has been created keeping in mind the growth and the current size of the

companys value retail business, led by its format divisions, Big Bazaar and Food Bazaar.

The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other formats, in

over 70 cities across the country, covering an operational retail space of over 6 million square

feet. As a focussed entity driving the growth of the group's value retail business, Future Value

Retail Limited will continue to deliver more value to its customers, supply partners, stakeholders

and communities across the country and shape the growth of modern retail in India.
http://www.futurebazaar.com/http://www.futurebazaar.com/


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A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-

format home solutions store, Collection i, selling home furniture products and ezone focused on

catering to the consumer electronics segment. Pantaloon Retail is the flagship company of Future

Group, a business group catering to the entire Indian consumption space. Subsequently, with

evolution of retail industry in India and change in consumer aspirations, Group/Company

diversified Pantaloon portfolio of offerings to include other retail goods. Currently,

Group/Company sell readymade apparels and a wide range of household merchandise and other

consumer goods such as footwear, toys, watches, toiletries, grocery items, sports items, crockery,

gift and novelties. It began its retailing operations in India way back in 1987. Currently, it

manufactures and sells ready-made garments through its own retail outlets and two discounting

stores. Group follows the concept of value retail in India. In other words, Pantaloon business

approach is to sell quality goods at reasonable prices by either manufacturing ourselves or

directly procuring from manufacturers (primarily from small and medium size vendors.


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Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of Indias leading

business houses with multiple businesses spanning across the consumption space. While retail

forms the core business activity of Future Group, group subsidiaries are present in consumer

finance, capital, insurance, leisure and entertainment, brand development, retail real estate

development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the

group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural

locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around

30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format

retail strategy that captures almost the entire consumption basket of Indian customers. In the

lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of

seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that

combines the look, touch and feel of Indian bazaars with the choice and convenience of modern

retail The groups specialty retail formats include supermarket chain - Food Bazaar, sportswear

retailer - Planet Sports, electronics retailer - eZone, home improvement chain -Home Town and

rural retail chain - Aadhaar, among others. It also operates popular shopping portal.

www.futurebazaar.com.


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Future Group believes in developing strong insights on Indian consumers and building

businesses based on Indian ideas, as espoused in the groups core value of Indianness. The

groups corporate credo is, Rewrite rules, Retain values. Company Background Pantaloon

Retail India Founded in 1987, by Mr. Kishore Biyani, Pantaloon Retail in Indias leading Retail

Company. It is the flagship company of the future group. Starting its 1st outlet in

1997,Pantaloons in Kolkata, it currently has over 4 mm sq. ft. of area under business. The

company operates under multiple formats hypermarket, apparel stores, specialty stores under

various brands including Big Bazaar, Pantaloon, Food Bazaar, Collection, E Zone,etc. The

company also operates an online portal, futurebazaar.com.Pantaloon Retail (India) Limited is

today recognized as one of the pioneers in the business of organized retailing in the country with

a turnover of over Rs.2,884.43millions for fiscal 2006, as opposed to a turnover of Rs.1,463.12

million for fiscal 2005and Rs.881.04 million for fiscal 2004. During the same period Pantaloon

profit after tax was Rs.124.75 million, Rs.30.20 million and Rs.3.82 million, respectively. As a

result, Pantaloon sales increased between fiscal 2004 and fiscal 2006 at a CAGR of 80.94% and

Pantaloon profit after tax increased between fiscal 2004 and fiscal 2006 at a CAGR of471.44%.

Pantaloon Retail is one of the leading retail houses in India. As of November 15,

2006,Group/Company operated 46 retail stores, including three stores which are operated by

Pantaloon franchises. These 46 stores are spread over about 1,113,000 square feet and are

located in 17 states across India. In efforts to strengthen Pantaloon supply chain,

Group/Company has set up seven regional distribution centers and an apparelmanufacturing

plant.


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Competition

Although there are a few stores operating in this segment such as Giant in Hyderabad, it is

mostly international chains such as Wal-Mart and Carrefour that are the better known names as

discount stores worldwide. Meanwhile, the general retailers in Mumbai are not too pleased about

the concept of discount stores.Group/Companycant figure out from where such stores get their

margins. It must have a feasible revenue model to sustain the venture. The company is facing

limited competition from the organized retailers but strong competition exists from the

downtown centers unorganized.

Pantaloon Competitive Strengths

It is believed that the following are Pantaloon principal competitive strengths which have

Contributed to Pantaloon current position in the retail sector in India: Strong understanding of

the value retail segment: Pantaloon business plan involves implementation of the concept of the

value retailing, targeting the middle and lower middle income groups, which constitute

majority of the population in India. Group/Company intends to provide quality products at

competitive prices. Group/Company sells a vast range of merchandise across apparels and

accessories, FMCG products, food products and consumer durables with over 63,000

SKUs.Pantaloon emphasis has been to maximize the value that the customers derive in spending

on goods bought in Pantaloon stores. Group/Company endeavor to continuously reduce

Pantaloon costs through variety of measures, such as, in-house production of apparels,

procurement of goods directly from the small and medium size vendors and manufacturers,

efficient logistics and distribution systems along with customized product mix at Pantaloon


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stores depending on the regional customer behavior and preferences. Central to Pantaloon value

retail strategy is to pass on the benefits of cot reduction measures to Pantaloon customers. Strong

and efficient supply chain management: Pantaloon supply chain management involves planning,

merchandizing sourcing, standardization, vendor management, production, logistics, quality

control, pilferage control replacement and replenishment. Pantaloon supply chain management

provides us flexibility to adapt to changing patterns in consumer behavior and Pantaloon ability.

Manufactured by us such as Zapping, Paranoia, Chlorine, Kitten Studio,Famenne, Flourier

Women and Roseau. In fiscal 2006, Pantaloon income from Pantaloon private labels was

Rs.483.50 million, which accounts for 16.76% of Pantaloon total sales for fiscal 2006.

Group/Company believes that Pantaloon focus on Pantaloon private labels and their recognition

in Pantaloon customer segment enables us to differentiate ourselves from Pantaloon competitors.

Group/Company effectively use information technology systems: Group/Company believe that

efficient information technology systems, processes and business applications are essential to

handle retail chain of Pantaloon magnitude. Pantaloon office processes are computerized which

support procurement, supply chain logistics, distribution centers management and store

operations including inventory management and billing. Group/Company is in the process of

implementing SAP. All Pantaloon stores and distribution centers are connected through a

company-wide. Group/Company has a highly experienced and competent management

Team: Group/Company has an experienced management team which is committed workforce.

Pantaloon management team comprises of talented professionals who are highly experience in

the retail sector.


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Awards & Recognition

In the month of July 2006 Big Bazaar won the prestigious CNBC TV18 AwaazConsumers

Award 2006 in the retail category, as the most preferred, large, food& grocery store. At Images

Retail Awards it was adjudges the Best Value Retail Store & Best Retail.

Destination of year 2006

In Readers Digest Consumer Survey 2006, Bazaar won the prestigious Platinum Trusted Brand

Award in the Indian services category Fashion Focus Big Bazaar continues to be a fashion led

delivery format, with fashion comprising About 40% of its revenues. Big Bazaar Getting Bigger

New categories like consumer electronics, furniture, communication, food & beverages,

pharmacies, beauty retail, saloons, books, stationery & music are being added to Big Bazaar.

Pioneering the Hypermarket Format Its the hypermarket format in the value retail segment of

the company; its aim is to capture the middle income value focused customer. Product offerings

are mainly general merchandise and apparels. Apparels form 40% of the total revenue, 60%

being generalmerchandise.The company has maintained 50% of apparel sales from private

labels. It is the fastest growing format in the organized retail space. Pantaloon has

aggressiveplans for this format of taking to total number of outlets to 225 by 2010.Currently its

about 70 outlets. Big Bazaar covers 3-25 mn sq. ft. currently, to increase to 9 mn sq. ft. by

2010.Averagesales per sq. ft. at Rs.8500 can generate a sales of Rs.7650 cr, by 2010.Expected

Gross Margin -24%.Expected EBIDTA 7-9%. This format would face maximum competition

going forward as all the major new Entrants have plans to enter into the hypermarket segment.


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Food Bazaar

The food and grocery retail format of the company is capturing the middle income value focused

customer.FMCG along with dry and wet staples from the main product categories of this format.

The format has been will accepted by the Indian women as it has been able to offer scheme and

discounts on various products because of its economies of scale in operations. The company has

been able to offer all the daily needs related to the food and grocery less than one roof. Pantaloon

retail plans to expand this format (to smaller towns and cities) more rapidly going forward to

achieve further economies of scale. The success of this format has prompted the company to take

this format to smaller towns and cities. Though being a low margins business but higher turnover

nature makes it profitable proposition for Pantaloon. In order to maintain its competitive

advantage in this format, the company needs to invest to improve the back end. Central The

departmental format of the company, aims to cater the upper middle incomeconsumers.Its been

positioned as one stop destination for shopping and entertainment. Central has the same growth

rate of 40%.In the Central Model the company sub leases its spaces to concessionaries, restaurant

and food court managers which assure a fixed rental and a certain percentage of sales, with no

inventory carrying on its books, this constitutes 70% of central sales. Currently the company has

3 Central Stores (2006 end).Central model is highly scalable and would be successful in other

cities where the company. 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 16 million square feet

of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.


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The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a

uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the 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 Brand Factory,

Blue Sky, all, Top 10 and Star and Sitar. The company also operates an online portal,

futurebazaar.com.Future Value Retail Limited is a wholly owned subsidiary ofPantaloon

Retail (India) Limited. This entity has been created keeping in mind the growth and the current

size of the companys value retail business, led by its format divisions,Big Bazaar and Food

Bazaar. The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other

formats, in over 70 cities across the country, covering an operational retail space of over 6

million square feet. As a focussed entity driving the growth of the group's value retail business,

Future Value Retail Limited will continue to deliver more value to its customers, supply partners,

stakeholders and communities across the country and shape the growth of modern retail in India.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-

format home solutions store, Collection i, selling home furniture products and rezone focused on

catering to the consumer electronics segment. Pantaloon Retail is the flagship company of Future

Group, a business group catering.


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banking career spans over 31 years and he has served senior management positions in

Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.

Mr. Shailesh Haribhakti, Independent Director

Shri Shailesh Haribhakti is a Chartered Accountant, Cost Accountant, and a Certified

Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered

Accountants and past president of Indian merchant Chambers. He is on the Board of several

Public Limited Companies, including Indian Petrochemicals Corporation Ltd., Abuja

Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.

Mr. S Doreswamy, Independent Director

S. Doreswamy is a former Chairman and Managing Director of Central Bank of India and

serves on the board of DSP Merrill Lynch Trustee Co and Limited among others.

Dr. D O Koshy, Independent Director

Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA headed NID (Ministry of

Commerce, GOI) as Director for 2 terms of office prior to which he was the founding

Chairperson of Fashion Management at the National Institute of Fashion Technology

(Ministry of Textiles, GOI). He is currently the Director General & CEO of ATDC Network

of 58 Institutes / Centers and two premier campuses of Institute of Apparel Management

under the aegis of AEPC (Sponsored by Ministry of Textiles, GOI). Dr. Koshy received the

Delhi IIT Alumni Award for contribution of National Development in 2008. Dr. Darlie


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SWOT analysis


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Pantaloon Retail (India) Ltd. - SWOT Analysis

Report Summary Pantaloon Retail (India) - SWOT Analysis company profile is the essential

source for top-level company data and information. Pantaloon Retail (India) - SWOT Analysis

examines the company's key business structure and operations, history and products, and

Provides summary analysis of its key revenue lines and strategy. Pantaloon Retail (Pantaloon or

'the company'), a part of the Future Group, operates retail chains. The company operates retail

chains Including Pantaloon, a chain of fashion outlets; Big Bazaar, a hypermarket chain; Food

Bazaar, a supermarket chain; and Central, aChain of malls. Its business lines also include Depot,

Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaar And 'Star and

Sitara'. The company operates an online portal named 'futurebazaar.com'. The company is

headquartered in Mumbai, India and employs about 25,000 people. The company recorded

revenues of INR34, 685.6 million (approximately $787 million) in the Financial year (FY) ended

June 2007, an increase of 79.4% over 2006. The operating profit of the company was INR1,

798.9 million (Approximately $41 million) in FY2007, an increase of 49.6% over 2006. The net

profit was INR355.4 million (approximately $8Million) in FY2007, a decrease of 33.8% over

2006.Scope of the Report Provides all the crucial information on Pantaloon Retail (India)

required for business and competitor intelligence needs Contains a study of the major internal

and external factors affecting Pantaloon Retail (India) in the form of a SWOT analysis as wellAs

a breakdown and examination of leading product revenue streams of Pantaloon Retail

(India)Data is supplemented with details on Pantaloon Retail (India) history, key executives,

business description, locations and

Reasons to Purchase


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Support sales activities by understanding your customers' businesses better Qualify prospective

partners and suppliers Keep fully up to date on your competitors' business structure, strategy and

prospects Obtain the most up to date company information available The Pantaloon Retail

(India) - SWOT Analysis company profile is the essential source for top-level company data and

information. Pantaloon Retail (India) - SWOT Analysis examines the companys key business

structure and operations, history and products, and provides summary analysis of its key revenue

lines and strategy. Pantaloon Retail (Pantaloon or the company), a part of the Future Group,

operates retail chains. The company operates retail chains including Pantaloon, a chain of

fashion outlets; Big Bazaar, a hypermarket chain; Food Bazaar, a supermarket chain; and

Central, a chain of malls. Its business lines also include Depot, Shoe Factory, Brand Factory,

Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara. The company operates

an online portal named futurebazaar.com. The company is headquartered in Mumbai, India

and employs about 25,000 people. The company recorded revenues of INR34, 685.6 million

(approximately $787 million)

.


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WITH 5 COMPANY - OWNED BRANDS

COVERING 63 MERCHANDISE CATEGORIES

THE FMCG SPACE, THE COMPANY NOW

ONE OF THE LARGEST PORTFOLIOS IN

THIS SEGMENT.


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Awards


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CNBC Awaaz Consumer Awards 2009

Most Preferred Multi Product Chain - Big Bazaar

Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar

Images Fashion Forum 2009

Most Admired Fashion Group of the Year - Future Group

Most Admired Private Label - Pantaloons, the lifestyle format

Critics Choice for Pioneering Effort in Retail Concept

Creation - Central

Coca-Cola Golden Spoon Awards 2009

Most Admired Food & Grocery Retailer of The Year

Most Admired Food Court

Most Admired Food Professional

Indian Retail Forum Awards 2008

Most Admired Retail Company of the year - Future Group

Retail Face of the Year - Kishore Biyani

Best Retailer Of The Year (Hypermarket) - Big Bazaar

Future Group was awarded the Most Admired Retail Company of the year by the Indian Retail

Forum at a glittering ceremony organized in Mumbai. Mr. Kishore Biyani also won Retail Face

of the Year. India Retail Forum (IRF) is a platform for intellectual insights and information


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BOARD OF

DIRECTORS


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WE ARE PROUD TO HAVE BUILT THIS

ORGANIZATION WITH A CULTURE FOCUSED

ON CORE VALUES THAT CAN BUILD UPON

ITSELF IN A POSITIVE MANNER. THIS HAS

ENSURED THAT WE SUSTAIN WHAT IS

UNIQUE TO US AS WE GROW.

Kishor biyani


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Director

Ms. BALA DESHPANDE

Director

Mr. VIJAY KUMAR CHOPRA

Director

COMPANY SECRETARY

Mr. DEEPAK TANNA

STATUTORY AUDITORS

NGS & CO.

RISK ADVISORS

ERNST & YOUNG PVT. LTD


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Brand Factory,

Blue Sky, aLL, Top 10 and Star and Sitara. A subsidiary company, Home Solutions Retail

(India) Limited, operates Home Town, a large-format home solutions store, Collection selling

home furniture products and E-Zone focused on catering to the consumer electronics segment

Having the right real estate in prime locations is the key for a retail chain, availability oversight

real estate would drive the sales, a proper catchments analysis of locations of outlets is needed to

increase the footballs & conversions. Pantaloon in this regard is a way ahead because it has

locked into real estate at prime locations in all the major cities of India. The company is expected

30 million sq. feet of prime locations in all the major cities of India. The company is expected 30

million sq.feet of real space by 2011 covering 80 cities of India. 11.2 Sourcing of merchandise

Sourcing of merchandise from the right vendor at the right price is an important factor, because

efficiency in buying would ultimately increase gross margins. Going with competition in major

formats, it would be difficult to improve gross margins.Butcompetition would not be amongst

retailers alone but also amongst vendors to supply at the most competitive price. Any retailer

with significant size will be able to improve itssourcing.Pantaloon with its projected scale is able

to source its merchandise from its vendor at reasonable rates.
http://en.wikipedia.org/wiki/Brand_Factoryhttp://en.wikipedia.org/w/index.php?title=Home_Solutions_Retail_(India)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Home_Solutions_Retail_(India)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Home_Solutions_Retail_(India)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Home_Solutions_Retail_(India)_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Brand_Factory


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KEY RISKS

Execution of plans is the biggest risk

The company plans to become 10x its current size in terms of floor area by 2010.Thereare a lot

of exogenous factors that could impact the companys plans. Delivery of stores is behind

schedule by an average of 2 quarters for most companies. As these store deliveries get bunched

up for most of the players towards 2009-2010.There could be further delay in store delivery.

Besides, there are multiple clearances to be taken by local& other authorities, which can prove to

be bottleneck. Rising resource cost to put margin pressure The employee cost & property costs

will be 2 key pressure points for all retailers. Traditional human resource management methods

have been unable to reduce employee turnover. Likely equity dilution to finance growth The

company would need capital in the region of USD 600 mn. For its growth plan UntilFYO9E.The

Company would need external funds for its growth.9% dilution has already happened. Strain on

management bandwidth PRIL is expanding into multiple formats & multiple geographic over the

next few years. Besides, it is investing in various non-retailing businesses. The company could

face management bandwidth shortage in a few years from now. Decision making is quite

decentralized .


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Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and

Hyderabad.

2002

Food Bazaar, the supermarket chain is launched.

2004

Central - Indias first seamless mall is launched in Bangalore.

2005

Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and

Planet Retail Sets up Indias first real estate investment fund Kshitij to build a chain of shopping

malls.

2006

Future Capital Holdings, the companys financial is formed to manage over $1.5 billion in real

estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer

finance products. Home Town, a home building and improvement products retail chain is

launched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar.

Future Group enters into joint venture agreements to launch insurance products with Italian

insurance major, Generali

.2007

Future Group crosses $1 billion turnover mark. Specialized companies in retail media, logistics,

IPR and brand development and retail-led technology services become operational.

Pantaloon Retail wins the International Retailer of the Year at US-based National Retail

Federation convention in New York and Emerging Retailer of the Year award at the World

Retail Congress held in Barcelona.


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2008

Future Capital Holdings becomes the second group company to make a successful InitialPublic Offering in the Indian capital markets

.Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of aImage of shahadara pantaloon


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ORGANISATION

STRUCTURE

Chairman

Mr.SHAILESH HARIBHAKTI


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Managing director

Mr. Kishor biyani

Director

Mr. GOPIKISHAN BIYANI

SAHADARA ORGANIGATION

Store manager

Deepak mangla


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BRAND Future Group Manifesto

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 glorious future brings to us our

strength, our ability to learn, unlearn and re-learn, our ability to evolve. We, in Future Group,

will not wait for the Future to unfold itself but create future scenarios in the consumer space

and facilitate consumption because consumption is development. Thereby, we will effect socio-

economic development for our customers, employees, shareholders, associates and partners.

Our customers will not just get what they need, but also get them where, how and when they

need. We will not just post satisfactory results, we will write success stories. We will not just

operate efficiently in the Indian economy, we will evolve it. We will not just spot trends, we will

set trends by marrying our understanding of the Indian consumer to their needs of tomorrow.

It is this understanding that has helped us succeed. And it is this that will help us succeed in the

Future. We shall keep relearning. And in this process, do just one thing. WE Central was

conceived as being more than just a Shopping destination; instead a community space where

people from all walk of life come and enjoy with their friends and family in a festive, celebratory

Setting. In keeping with this, we made celebrations, something close to Indians hearts, an

integral part of Shopping with us. Beginning this year, we implemented a 52-week Calendar of

events, to celebrate within Central. This reflects every Indian festival, sporting, lifestyle and

leisure events from around the world as well as social causes like Environment Day. We kept

Giving our customers a reason to celebrate, anExcuse visiting the store and they kept coming


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backo us. These events have truly helped Central toDifferentiate itself from the competition and

helped us to connect with our customers at an emotional level. Over a decade of experience in

retailing has taught us the significance of keeping the excitement at the shop floor alive,

irrespective of whether the economy is upon down. Based on the success of this initiative we are

rolling out 52-week events and excitement calendars for our other formats as well. In May 2009,

Central completed five glorious years. What started as a dream in 2004 to redefine lifestyle?

Shopping in India by creating a seamless offering of Shopping, eating and celebration, with the o

of our first mall in Bangalore, is now at a stage where Central is among the fastest growing

lifestyle retail Chains in the country with 10 stores across 7 cities. In the financial year 2008-09

Central opened 2More stores in Indore and Mumbai and added over3, 50,000 square feet of retail

space. The Central in Indore is our biggest store in the country.


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The power of private labels by Pantaloons

When PepsiCos Frito-Lay decided of boycott Pantaloons Food Bazaar due to differences in

terms of trade, it was the latters private label which got a boost in shares. Today Tasty Treat, the

ready-to-eat private label of Food Bazaar, is leading with a 16 percent share among the rest of

the snack brands. Today Pantaloon Retail has 80 products comprising 350 SKUs with five

private labels. Since PepsiCos rejection, it has promptly approached local manufacturers such

asPrakash Snacks in Indore and Pogo Chips in Kolkata to manufacture its snacks brands.Arvind

Chaudhary, CEO (Foods Business), Pantaloon Retail, adds, The purpose of Pantaloon private

labels is to grow the category and fill the gaps between demand and supply. Today

Group/Company have upgraded Pantaloon suppliers with better quality systems and processes

for the snacks category, where there was a gap. The power of private labels is being explored by

most retailers today, as they do not want on be at the mercy of the big manufacturers. At the

same time they also realize that its not going to be easy as it takes time and money to build

private labels. Observes K.Radhakrishnan, Chief Executive. Hypermarkets, Reliance Industries,

While its Pantaloon strategic intent is to build private labels, it is more difficult and takes

longer to build these brands. However, in categories such as commodities, it is easier to build

private labels. At present, nearly 15 percent of Pantaloon hypermarket brands compriseprivate

labels.


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The private label product proposition: Quality and price, primarily, relative to branded. How

strong supplier brands are in the minds of Indian Consumers: Many supplier brands are relatively

new in India, so potentially have less awareness, and therefore, easier for private label products

to supplant supplier brand products. How effectively suppliers innovate: Supplier innovation if

often what allows them to stay ahead of retailer private label? Innovative suppliers can come out

with new products that retailers havent necessarily thought of. How consolidated Indian retail

eventually becomes: The more market share a retailer has, the greater the opportunity to create

the leverage a retailer can put on a supplier. This may be one reason why the UK has greater PL

penetration than the USUK retail is more consolidated than US retail. Right now.


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Objective of

the

Report


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rates between the stores and warehouses, Improved markdown management during, automatic

Replenishments and enhanced business intelligence has Resulted in higher availability of

merchandize within the Store and is leading lead to better customer satisfaction And

productivity. On the food category, the focus is now on building the Private brand piece of

business in a big way and a lot of Work has happened with a separate team working on the

Private brands business. The existing Company-owned Brands have already gained around 18 to

20% share in every category where it is present in. The Company is also about to launch a new

brand called Ektaa which will be? Capturing around 40 SKUs to start with. The objective into

replicate the Companys existing strength in fashion Into the food .


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Research

methodology


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The research methodologies are using only primary data collection. Here primary data

collection is performing through questionnaire A sample size of 50 customers is taken randomly.

Questionnaire on customer satisfaction at Pantaloons store was prepared and I got it filled from

customers. Based on percentages calculation are done and data is analysed.Data on sale of whole

brand and Wellness categories is being collected and collated in a stoe.store provides data from

27th june 2010 to 15th July 2010.Detailed information can be obtained from the store about the

performance of the brands in the particular category from 27 june 2010 to 15th July 2010.Bar

charts have been made based on real data obtained from between 27th june 2010 to 15th July

2010.Pie charts are made based on data collected and collated from questionnaires filled by 50

customers at the Pantaloons store,Shahadara of brand has also been done from 27 june to 15 July

2010 contribution of single in total sales of store from 27 june 8th July 20010an special

employee motivation programme for achievement of targets from 2th to 10 June 2010 run for

store employees .Research process is a series of systematic steps that are followed to solve a

business problem. It is the framework of the entire plan-of-action. It clearly describes crucial

issues like the studys purpose and objectives, the type of data needed, the technique to be used

for selecting samples, data collecting method, analyzing it, managing costs and other aspects that

are essential for conducting business research.


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SAMPLING DESIGN:-

Sampling is an essential part of the business research process. Sampling is the technique of

selecting a representative part of a population for the purpose of determining the characteristics

of the whole population. During the research, Simple Random Sampling is used to collect data

from the shoppers Because the target population is small, homogeneous, and the sampling frame.

DATA COLLECTION:-

Business research generally uses two types of data:

Primary data- It is collected directly from the respondents using data collection methods

like survey interviews, questionnaires, measurements, direct observation, or tabulation.

Secondary data- It is the data that which already exists and is collected by some other

person or organization. Sources of secondary data include websites, journals, books, et c

This research uses a judicious mix of primary and secondary data to optimize the

Quality of research findings within the allotted time and money.


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Research Process

Research Descriptive

Data source Primary Data

Research Approach Survey Method

Research Instrument Questionnaire

Questionnaire type Structured non-disguised

Type of questions Both Close-ended & Open-ended

Sampling Unit Individual

Sampling Frame NCR

Sampling ProcedureSimple Random sampling to select 5 stores and

Convenience for select customer/shoppers.

Sample size300 customers

Contact Method Personal

Mode of Collecting Data The respondents were chosen randomlyand requested to grant

interviews. The questions were then asked in predetermined sequence.

Data Processing (i) A number of tables was prepared to bring out the main characteristics of

the collected data. (i) Inferences wiredrawn from the collected data.


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LIMITATION


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Limitations:

This project report suffers from following limitations:

1. Questionnaires were filled in evenings, when most of the people are in hurry

And they might not have responded truly to all the questions.

2. Our research is limited to only one store of Pantaloon at Shahdara and sample

Size is of 100 respondents so errors may crop in while generalizing the results.

3. Those who came out of Pantaloon Store after shopping were chosen for getting the

questionnaires filled but they held bulky polyethylene bags due to which they found it difficult to

stand for long and answer the questions.

4. Most of the retail outlets mentioned in our questionnaire may or may not be

Visited by respondents; this affected their response to various questions.


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1. Are you like to purchase in pantaloon.

0%

10%

20%

30%

40%

50%

60%

PENTALOON OTHER

Series1


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2. Whats your buying experience.

0%

10%

20%

30%

40%

BEST AVERAGE

Series1


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3. After purchasing whats warranty condition.

BEST

GOOD

AVERAGE

NON


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4. How much time you use pantaloon.

2-3 time in week

2-3 time in month

more than 3 time in

month


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5. Compaire to other competitor.

BEST

GOOD

AVERAGE

NON


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7. What is the quality of product?

best

good

average

non


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RESEARCH

FINDINGS


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RECOMMENDATIONS

AND

CONCLUSIONS.


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CONCLUSION

This research report aims to study consumer attitude towards Pantaloon and highlights its strengths

and weaknesses in order that Pantaloon can fight the competition in a better way. Though

Pantaloon captures a different market and is giving competition to big players like Vishal mega

mart and big bazaar. Retail in India is a booming sector nowadays and Pantaloon should try to

benefit more from it. Recommendations given should be considered by Pantaloon in order to

emerge as a winner in long run.


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ANNEXURE


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9. How much time you use pantaloon product.

A.2to3 time in week ( ) b. 2to3 time in month ( ) c.more than 3 time in month ( )

10. Compaire to other competitor.

a. Good ( ) b.best ( ) c. average ( ) d.not say

11. Will you purchase again.

A.definitily will ( ) b.probabily will ( ) not purchase ( ) c.not sure ( )

12. Whats quality of product according you .

a. Good ( ) b.best ( ) c. average ( ) d.not say

13. If you contact to customer care service then whats response.

a. Good ( ) b.best ( ) c. average ( ) d.non ( )

14.Anysuggestion

...


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BIBLIOGRAPHY


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Word of thanks

I am very thank full to all the people who help me out to establish this report.

Deepak mangla (store manager of pantaloons Sumit verma (department manager ) Deepak raj (team leader)


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Documents

Final Proj Ct on Pantaloon