2. C hanging Indian Retail Trends Prepared by : Mukesh Kumar Pgdrm-2b

3. Share of Retailing in Employment Across Different Countries Country Employment(%) India 8% USA 16% Poland 12% Brazil 15% China 7% Source: Presentation to FICCI by Alan Rosling (Chairman, Jardine Matheson Group): “International Experience on Policy Issues.”

4. Retail Trade in India and South East Asia

6. Indian Retail: Rural/Urban Split Source : National Account Statistics; Monthly per capita Expenditure and Technopak Analysis

8. Source: Navdanya/ Research Foundation for Science, Technology and Ecology Indian Retail Sector : Bases Of Ownership

9. Source: Presentation to FICCI by MBN Rao (Chairman, Indian Bank): “ Strategy for Financing Service Sector” (Sept. 15, 2004)

10. Source : P.G.Chengappa, Lalith Achoth, Arpita Mukherjee, B.M.Ramachandra Reddy and P.C.Ravi, Evolution of Food Retail Chains: The Indian Context, 5-6th Nov. 2003, www.ficci.com

11. India #1 Emerging Retail Growth Market Source:- A.T. Kearney Global Retail Development Index (GRDI)

12. Average Sales Per Sft Per Annum

13. ...High Private Consumption Source : Central Statistical Organization (CS0) and Technopak Analysis GDP US$804 Bn Private Consumption US $ 482 Bn(60%) Public Spending & Gross Capital Formation 40% Retail US $ 300 Bn (62%) Non-retail US $ 182 Bn (38%) Urban US$ 135 Bn (45%) Rural US $ Bn(55%)

14. Size of the Economy Sources • 2006 GDP :Central Statistical Organization (CS0) • Growth Rates :Goldman Sach’s BRIC report (For details please refer to the appendix of this presentation)

15. Growing retail market Source:- KSA Technopak analysis

17. F.D.I.

18. Why Only India....? India's GDP Growth Second Highest In The World

22. F.D.I. GOOD OR BAD?

23. 1 Wal-Mart USA 256329 43.7 79.1 20.9 2 Carrefour France 79609 77.4 50.7 49.3 3 Ahold Netherlands 63325 84.0 15.8 84.2 4 Metro Gr German 60532 50.5 52.9 47.1 5 Kroger USA 53791 70.2 100.0 0.0 6 Tesco UK 50326 74.6 80.1 19.9 7 Target USA 48163 17.8 100.0 0.0 8 Rewe German 44251 75.6 71.4 28.6 9 Costco USA 41693 61.0 81.5 18.5 10 Aldi German 41011 83.6 63.0 37.0 Source: M+M Planet Retail (www.planetretail.net) Top 10 retail Giants Rank Company Origin Net Sales-03 ($mn) Grocery Sales (%) Domestic Sales (%) Foreign Sales (%)

24. Wal-Mart’s : Backdoor Entry

25. The World Of Wal-Mart

31. Impact On : Traditional Retailers & Modern Retailers

36. G1 Shift In Channel Mix Reduced by 16% Grows by 28%

37. G2 Shift In Channel Mix Reduced by 18% Grows by 34%

38. G3 Shift In Channel Mix Reduces by 8%

40. Lessons From Other Countries contd. From China:- In year 1994- 26% cap In year 2002-49% cap In year2004-100% cap

41. Kishore Biyani’s-Fair Price Store “ After the fight in organized retail with biggies entering it, now its turn of unorganized market to hot up.” -Times Of India

43. Giants Coming To Support Good News For Small Retailers Small retailers are likely to witness support from suppliers with players like HUL, Marico, Godrej & Tata Tea already helping ‘Kirana’ stores in store design, inventory management, computerization and accounting systems

45. T H A N K Y O U !