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Table of Contents
Indian Retail Industry A $640bn opportunity by CY2010E Per Capita Income growth to drive spending Retail sales to grow on Private Final Consumption Expenditure PFCE Breakup - An indication of lifestyle change Organised Retail in India Exciting Investment Destination Organised Retail in India - At a Nascent stage High Growth Story - Good times ahead! Category Analysis - Bon Appetite? Not quite... Where Indian Buy? - Hypermarkets to drive growth Drivers of Growth Consumer or Demand - Side Drivers Increasing Disposable Income of Indian Middle class Demographics play for India - The Youngest Population Increase in Working population Reduced Dependency to drive Organised Retail Increase in Credit Cards Internet driving awareness & Online Purchasing Changing Consumer preferences & Dhopping Habits Retailer or Supply - Side Drivers Increased Investments in Retail Tier II & III cities to fuel future growth of Modern Retail Repealing Urban Land Ceiling Act Shortened Supply Chain a benefits consumers Challenges & Risks Acceptance of Organised Retail Supply Chain Inefficiencies Real Estate costs still high compared to global benchmarks Execution risks High Personnel costs Shrinkage Tale of Two Countries - India & China FDI Roadmap for Indian Retail is different from China FDI in Retail does not harm local players Growth to be fuelled by Big-Box stores and Hypermarts Retailing restricted to Big cities in China, unlike India Indian consumers similar to Chinese Consumer Credit growth to sustain Retail growth Conclusions and Our Expectations Outlook & Valuation Valuation Matrix Companies Pantaloon Retail (India) Ltd. Titan Industries Vishal Retail
November 2008 January 30,28, 2008
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