GROUP A SMART RIDERS

By:- Group No. 10 SEN HALL

PANTALOONS RETAIL (INDIA) LTD

VIKAS MISAR

INTRODUCTION

Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in over 71 cities and towns and 65 rural locations across India.The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central.

Pantaloons is among India's largest chains of fashion stores. Pantaloons Fresh Fashion, with its focus on 'fresh look, feel and attitude' offers, trendy and hip collections that are in sync with the hopes and aspirations of discerning young and 'young-at-heart' consumers.
Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion is followed internationally. This 'fresh fashion' destination allows customers to shop for the latest in fashion apparel and accessories throughout the year in an attractive and visually 3 stimulating ambience.

Pantaloons Fresh Fashion stores have presence with stores not just in Metros but also in smaller towns. All stores have a wide variety of categories like casual wear, ethnic wear, formalwear, party wear and sportswear for Men, Women and Kids. Marketing intermediaries whose job is to help move goods from the raw-material state to producers and then on to consumers create utility Utility is an economic term for the value, or want-satisfying ability

The success of a firm often depends on its ability to take orders, process them, and get the goods to customers / Distribution Channels

 Fifth

largest globally

India

is positioned as the leading destination for retail investment Indias retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010 Retail sector is expected to contribute to 22 per cent of India's GDP by 2010.

Indias leading retail groups, operating multiple retail formats across the market, part of Future Group The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, an Indian hypermarket chain, Food Bazaar, a supermarket chain, and Central, a chain of destination malls Collaborated with Indias leading boutique film company Vinod Chopra Films

Our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do.

BOARD OF DIRECTORS
SHAILESH HARI Chairman & Non-Executive Independent Dr KISHORE BIYANI Managing Director S DORESWAMY Non-Executive Independent Director Dr. DARLIE KOSHY Non-Executive Independent Director BALA DESHPANDE Non-Executive Independent Director

BHAKTI GOPIKISHAN BIYANI Non-Executive Director Director RAKESH BIYANI Executive Director Director VIJAY BIYANI Executive Director KAILASH BHATIA Executive Director ANIL HARISH Non-Executive Independent Director

CHIEF FINANCIAL OFFICER C.P. TOSHNIWAL COMPANY SECRETARY DEEPAK TANNA STATUTORY AUDITORS NGS & CO. RISK ADVISORS ERNST & YOUNG PVT. LTD

BANKERS BANK OF INDIA AXIS BANK LTD. ANDHRA BANK CORPORATION BANK HDFC BANK LTD. IDBI BANK LTD. STATE BANK OF TRAVANCORE UCO BANK STANDARD CHARTERED BANK THE FEDERAL BANK LTD. UNION BANK OF INDIA SHARE TRANSFER AGENTS LINK INTIME INDIA PVT. LTD. C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai 400 078. Tel . No. + 91 22 2596 3838 Fax No. + 91 22 2594 6969
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OFFICE
REGISTERED OFFICE & CORPORATE OFFICE Knowledge House, Shyam Nagar, Off Jogeshwari-Vikhroli Link Road, Jogeshwari (East), Mumbai 400 060. Tel. No. : + 91 22 3084 1300 Fax No. : + 91 22 6644 2201

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2009-10 STRONG SAME STORE SALES GROWTH, COUPLED WITH INCREASED OPERATIONAL EFFICIENCY PROVIDED A FRESH IMPETUS TO THE BUSINESS. During the year, with a limited amount of capital employed into the retail business, the company managed a signifi cant increase in the overall turnover. An incremental turnover of nearly ` 2,500 Crores was achieved on a limited capital employed of ` 620 Crores, translating into an incremental capital employed ratio of close to 4% or a three-fold increase in the overall balance sheet effi ciencies correlated to top-line.
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LINES OF BUSINESS

The company is present across several lines of business which have various formats (stores) Plywood, The Dollar Store (JV) Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10, Fashion Station, Big Bazaar, Lee Cooper (JV),IPM MEERUT(JV) General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics Bazaar, Furniture Bazaar, KB'S FAIR PRICE, Food Rite Electronics - eZone, Electronic Bazaar, STAPLES (JV) Home Improvement - Home Town Furniture - Collection i, Furniture Bazaar, Home Bazaar E-tailing (Online Shopping) - www.futurebazaar.com Books & Music - Depot Leisure & Entertainment - Bowling Co., F123, TGIF (Thank God it's Friday!) Wellness - Star & Sitara, Tulsi Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM, Future Axiom, T 24, One Mobile (in alliance with TATA Teleservices) Consumer Durables - Koryo, Sensei, IPAQ Service - E Care, H Care , Design & Service Malls - Central (Bangalore, Hyderabad, Pune, Mumbai, Vadodara, Gurgaon, Indore, Ahmedabad, Thane) 12 Investment & Savings - Insurance: ULIP, Pension, Endowment etc.

Menswear Ladies wear Kids wear Footwear Lee-cooper, etc. Cosmetics Sportswear Perfumes & Handbags Lingerie

RIG, John miller, JM sports etc. Honey, Annabelle, Mix & Match, etc. Chalk, Bare7214, etc Lakme, Garniere, etc Addidas, Reebok, etc Hugo, Tommy Hilfiger, etc

The material distribution structure that moves a product from the manufacturer to the consumer or user. The marketing structure that, as a part of the distribution channel, ensures the achievement of marketing objectives 70% of their business is done by selling their own products

Direct Channel

Manufacturer

Consumer

Indirect Channels
Manufacturer Retailer Consumer

Manufacturer

Wholesaler

Retailer

Consumer

Manufact urer

Agent

Wholesaler

Retailer

Consumer

In store Pantaloons keep 70% of products of their own brand. Remaining 30% include complete inventories of nonapparels & and some apparels brands like UMM, Rang Munch, Bare Denim, leisure Denim & Rig etc

Manufacturer (own) () Manufacturer (other) FKS (Pantaloon) s)

Retailer

Consumer

Retailer

Consumer

Decision to stop the supply of its ready-made garments to other outlets Pantaloon has decided to open up Distribution Collection Center (DCC) in the four major metro cities of the country They are among the very few retailers who make serious and optimum use of barcodes and ERPs

RETAIL FORMAT OBSERVED AT PANTALOONS

Custome r Service
Store Design & Display
Merchandis e Assortme nt

Retail Strategy

Pricing
Commun ication Mix

Locati on
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STORE LOCATION

The location of a retail store occupies an important place in retail strategy. It not only conveys the image of the store, but also influences the merchandise mix and the interior layout of the store. While the merchandise mix can be changed and prices can be adjusted, it is difficult to change the decision on store location.
It is located in posh locality in the centre of the city. Further the easy availability of transport facilitates makes the location really accessible for shopping. Pantaloons is situated very close to the main road. Pantaloons being a three floor building have great visibility. To enhance the visibility pantaloons has put its sign board on the top of the building.

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MERCHANDISE ASSORTMENT
Pantaloons have applied the concept of category management in its day-to-day merchandising function as against the traditional brand management merchandising practice followed by most retailers. Category managers look at sales and margins of each brand in a category. The whole idea of category management is to create products across length and breadth of a category at different price points, fabrics, design, shape, seasons, colour and size.

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PRODUCT OFFERINGS
MENS WEAR John Miller JM Sports Bare Denim Rig Ajile Lombard T-2000 Bare Leisure

LADIES WEAR Honey Akkriti Annabelle Mix & Match Ajile Rig

KIDS WEAR Chalk Bare 7214 ACCESSORIES Cosmetics Stationary for kids Books & Magazines
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PRODUCT OFFERINGS CHART

.

Plantoon Brands

Non Plantoo n Brands

Womens Mens Womens

Mens

Formals Lombard Knighthood

Casuals

Ethnic

Formals Annabelle

Casuals Honey Agile

Formals

Casuals

Formals Scullers

Casuals Jealous21 Bare RIG UMM Lee Copper

Ethnic Rang Manch Trisha Mix & Match Aakriti

Aakriti RIG F Factor UMM Agile Bare T2006 JM Sports Lee Copper

Pepe John Miller Urbaba Scullers Indigo Nation

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POPULAR BRANDS

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STORE LAYOUT
Pantaloons follows a free form store layout. No particular format is followed anything is placed anywhere but strategically. Pantaloons fall under following categories- Departmental stores, Malls, E-retailers Here when it comes to arranging the clothes, same type of clothes are put up together in different sizes so that same clothes are available for every size at one point only.

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STORE LAYOUT AT DIFFERENT LEVELS

Ground Level Ladies Formal Ladies Denim Cosmetics and Fragrances Fine Jewellery Blue Sky (Sunglasses and Watches) Fashion Accessories Customer Service Desk

First level Spring (Designer wear for men and women)Ladies Formal Ladies Ethnic Night ware and Lingerie Kids Wear Infant Necessities Toys Footwear Ladies Wash Room Drinking Water

Second Level Mens Occasions Wear Mens Formal Mens Ethnic Denim Wear Mens Casuals Active Wear , Sporting Goods Teen Boys Mens Washroom Drinking Water

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STORE DESIGN
Exterior Store Design

The exterior appearance of a store silently announces what customers can expect inside. Good exterior visual merchandising attracts attention, creates interest and invites the customer into the business.

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STORE DESIGN
Interior Store design Flooring and Ceiling Graphics & Sign ages Lighting Music Store security Colour & Fragrance

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SPACE ALLOCATION AND UTILIZATION

Furniture and fixtures Walk Ways and Entries Sound type and density Odour type and density Visual merchandisingMerchandise Type and Density

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DISPLAY AREAS, WALKWAYS & DOORS

Pantaloons stores have very attractive display areas, in which they put the dummies, accessories & all. They have a broad walkway & doorways.

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SUPPLY CHAIN MANAGEMENT AT PANTALOONS

Pantaloon Retail is the first company in the organized retail sector in India to win an accredited ISO Certificate exclusively for its Supply Chain & Logistics function.

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PRICING
High turnover

Low Margin

High Margin

Low turnover
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Since Pantaloons provides products to a potentially large number of customers at affordable prices, it falls in the High Turnover - Low Margin Category.

PRICING
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.

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CUSTOMER RELATIONSHIP MANAGEMENT

To survive in the tough competition Pantaloon uses different strategies to attract customers and to retain them.
Events Fests Loyalty programs Gift Vouchers

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LOYALTY PROGRAMS new world of exclusive benefits Green Card is passport to a whole
and privileges.
Benifits
Discounts on all purchases Upgrade Enrolment Add-on Card to Family Members End of Season Sale Preview Green Channel Green Drop Green Exchange Green Service Desk Green offers & Promotions

7 Star 10% Upgrade Kit 2 Yes Yes Yes 90 days Yes Yes

5 Star 7.5% Upgrade Kit 2 Yes Yes Yes 60 days Yes Yes

3 Star 5% Upgrade Kit 1 Yes Yes No 60 days Yes Yes

1 Star
Gift Voucher of Rs.200/- on new enrolment

Welcome Kit 1 Yes Yes No 60 days Yes Yes

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PROMOTIONAL STRATEGY
GIFT VOUCHERS

GREEN CARDS

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POSITIONING STRATEGY
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. They are targeting youth and even women, since they are the ones defining most purchasing decisions.

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COMPETITION

Being one of the pioneers of the organized retail sector,the company has an Established business model along with an unparalleled understanding of Indian consumers and their needs best. During the year, the government has initiated some dialogue on the opening up of the retail sector to foreign direct investment (FDI) in a calibrated manner. This may result in some foreign players, along with new domestic players entering the sector in the near future. Some of the worlds leading retailers are already present in the country either through joint ventures and franchisee agreements with local players or through cash-and-carry operations.

They view these developments as a positive opportunity as the entry of new players would only expand the modern retail market which is currently merely 5%-7% Penetrated.
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Investment The Companys investment portfolio has increased marginally from ` 954.03 Crores in 2008-09 to 1024.65 Crores (excluding PRIL investment of ` 978.50 Crores into FVRL) in 2009-10.The increase in investment during the year is mainly by way of subscription of shares in Subsidiaries/Associates/Joint Ventures.

Sales The Companys sales and other operating income has increased from 6341.70 Crores to ` 8926.08 Crores, an increase of 40.75% over the previous year. The Company has also recorded same store growth of10.64% during the year.
Net Profi t Net profit t of the Company for the year under review stood at ` 230.16 Crores as compared to ` 140.58 Crores in the previous year, an increase of ` 89.58Crores and 63.72% over the previous year. 38

Loans and Advances Loans and advances stood at ` 1027.77 Crores in 2009 10, a decrease of ` 174.78 Crores over the previous fi nancial year. The major component of loans and advances represents advance lease deposits for the stores paid to lessors and advances given to suppliers Capital employed The capital employed in the business increased by ` 598.49 Crores in 2009-10. This is refl ected in the liabilities side of the balance sheet through an increase in borrowings by ` 64.80 Crores and an increase in shareholders funds by ` 533.69 Crores. Return on capital employed has increased from 14.73% to 16.69%.

Dividend The Company has proposed a dividend of ` 0.80 (40%)Equity shares of the Company including Class B Shares,and on warrants if converted on or before the Book Closure date declared for dividend.
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Strength Pioneer in the industry, largest market share and capitalization. Reputation for value for money(Competitive pricing), convenience and a wide range of products all in one store Presence in major cities Highly Strategic human resource management and development. It invests time and money in training people, and retaining them. Most trusted and respected brand by the consumers Being financially strong helps pantaloons retail India deal with any problems, ride any dip in profits and out perform their rivals Development and Innovation are high at Pantaloons India with regards to it products and consumer preferences and lifestyle changes which keep its ahead of it competitors. Weakness Pantaloons does not function internationally, which has an effect on success, as they do not reach consumers in overseas markets. PRIL is the Worlds largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control Since Pantaloons Retail India Ltd sell products across many sectors, it may not have the flexibility of some of its more focused competitors. 40

SWOT ANALYSIS

Opportunities Huge untapped market (The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by 2010 making India one of the largest consumer markets of the world) Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and reach INR 1, 00, 000 Crore by 2010. To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets New locations and store types offer PRIL opportunities to exploit market development. Opportunities exist for PRIL to continue with its current strategy of large, super centres. Rural Retailing Threats Being number one means that you are the target of competition.(Extra competition and new competitors entering the market could unsteady pantaloons retail India) A slow economy or financial slowdown could have a major impact on pantaloons retail India business and profits. Consumer lifestyle changes could lead to less of a demand for pantaloons retail India products/services Price wars between competitors, price cuts and so on could damage profits for pantaloons retail India. The actions of a competitor could be a major threat against pantaloons retail India, for instance, if they bring in new technology or increase their workforce to meet demand

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It was a great experience to explore the retail sector of Pantaloons .Shopping in India has witnessed a revolution with the changes in the consumer buying behavior and the whole format of shopping altered. It is expected that by 2010, India may have 600 new shopping centers. Pantaloons ranks in the pyramid of Indian Retail with its brilliant consumer centered approach and marketing. To compete in this sector one needs to have up-to-date market information for planning and decision-making. The second most important requirement is to manage costs widely in order to earn at least normal profits in face of stiff competition

THANK YOU
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