INDUSTRY PROFILE

The Indian retail Industry is the fifth largest I the world. Comprising of organized and unorganized sectors, India retail in one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industries in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs.35000, crore in 2004-05 to Rs. 109,000 crore by the year 2010.

Growth of Indian Retail:

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010. According to report by North bride capita, the retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of time , the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.

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Retail formats in India

Hyper marts / supermarkets: large self-servicing outlets offering products from a variety of categories.  Mom-and-pop stores: they are family owned business catering to small sections: they are individually handled retail outlets and have a personal touch

 Departmental stores: are general retail merchandisers offering quality products and services

 Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered.

 Shopping malls: the biggest from of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof.

 E-trailers: are providing online buying and selling of products and services.  Discount stores: these are factory outlets that give discount on the MRP.

 Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought can be via vending machine.

 Category killers : small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBOS.

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 Specialty stores: are retail chains dealing in specific categories and provide deep assortment. Mumbais Crossword Book Store and RPGs Music World are a couple of examples.

Challenges facing Indian retail Industry:

 The tax structure in India favors small retail business  Lack of adequate infrastructure facilities  High cost of real estate  Dissimilarity in consumer groups  Restrictions in Foreign Direct Investment  Shortage of retail study options  Shortage of trained manpower  Low retail management skill

Future

The retail industry in India is currently in Growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.

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COMPANY PROFILE

In our Concern was started in 1985 as a Departmental Store in Erode named as Sangeetha Shopping Centre. Encouraged by the response of the public a Mega Departmental Store was started in the year 1999 under the name as Shri Kannan Departmental Store (p) Ltd., (as SKDS has branches I all parts of Tamilnadu and presently operating 34 Departmental Stores of Various sizes. SKDS Group Annual Turnover is Rs. 436 Cores. And it has strong and committed human resource of around 4500 people. Shri T. Thanushgaran is Chairman cum Managing Director of this company. He actively engaged as a Executive Committee Member in Tamilnadu Chamber of Commerce & Industry- Madurai and he got vocational excellence award by Lions Club of Coimbatore. We are proud to state that we have been selected as the best Departmental Store for the Region for the year 2010 by The Ministry of Food Processing Industries (MOFPI) jointly with the Food Forum of India, and we will also strive to keep up the same momentum in the years to come. The Chairman was started expanding his chain of shops not only in cities like Salem, Karur and Triupur but also in small towns like Avinashi and totally covered the whole Kongu region and now finally entered South Tamilnadu (Madurai) too. Now totally are 32 chain shops in

Tamilnadu. It got converted into private limited at the year of 2000. Approximately 5lakhs customers are stepping into SKDS. The City Union Bank is acting as their backbone for their rapid growth. More than 4000 employees are working. The companys approx turnover is about 500 crores.  Managing Director Mr. D.Navanitha Krishnan  Chief General Manager -- Mr.s. Murugesan.  Deputy General Manager (Siva Sakthi Branch) Mr.Jeyakumar

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The company celebrated their 25th silver jubilee function last year grandly by organizing some social welfare programs like Blood donation camp along with Rotary club. They also conduct blood donation camp periodically also. They owning a old age home Karuvelambadu Senior Citizen Welfare Association, apart from this they go for public welfare activities like Temple cleaning, etc,. The company future plan is to enter Chennai after a year. After Madurai, the next stop for Shri Kannan will be Tiruchi. Chairman quoted in Economic Times that We are on an

expansion spree and will open one new store every month, the retail chain would reach Chennai by 2011 and is planning not less than 20 stores in the state capital, currently the company is reorganizing its business and accounting structure. Like big retailers, we also want to go public and turn this company into a top player in Indian retail market, VISION Excellence in Quality & Service at the Lowest price possible MISSION Leader in Catering the needs of all levels of people by achieving excellence TAG LIINE All under one roof AWARD The company got Most Admired Regional F&G Retailer of the Year 2010 (Coco Cola Golden Spoon award)from Food Forum of India. At Present : With 34 outlets, present across 15 cities, a total retail space of 575 million sq.ft and a retail turnover of INR4500 million, Kannan Departmental Stores is a fronturner in the regional retail spectrum in Tamilnadu.

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Kannans popularity amongst its 11 million plus customer base is reflected in its football pattern and average transaction value (ATV) which stands at a healthy INR 400.  All this achieving a 20% YOY Growth over the previous year. We under stand the business of retailing better than most of hers do. We ensure that our customers enjoy best in class customer experience through a range of customer focus initiatives that include:  Store Geography  Store Location  Store Visibility  Pricing  Schemes & offers  Customer conveniences Location: The company is located at various cities in all over Tamilnadu but the main branch will be located in Gandhipuram. SKDS has a popular retail sector in Tamilnadu a socially responsible company with an eco- friendly image. Employee strength Today, with over 4000 employees working in SKDS.

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