1. Retailing Retail is the sale of goods to the end users, not for resale, but for the use and consumption of the purchaser. Retail Industry in India is the second largest employer after Agriculture. It contributes to 10 % of GDP and 6-7 % of the Employment

2. Organised Retailing – USA 80 % USA 80 % Western European Countries 70 % Western European Countries 70 % Argentine 40 % Argentine 40 % Thailand 40 % Thailand 40 % China20 % China20 % Malaysia20 % Malaysia20 % India 06 %** India 06 %** – ** FDI (Foreign Direct Investment is allowed partially) Country Wise Share:

3. Top 7 Global Retailers RankName of RetailerSales Grocery Sales (%) (USD Bn) 1Walmart - USA23544% 2Tesco- UK6375% 3Carrefour-France5884% 4Home Depot -USA5551% 5Kroger - USA5570% 6WalGreens -USA5275% 7Aldi Group- Germany4818%

4. Corporate- Indian Retail CorporateNo of Outlets Remarks Reliance Retail 700+Biggest Retail Chain & fast Expanding, operating in 14 States. Big Bazaar 164Fast Expanding, Big Size Stores Bharti - Walmart 105 03 Retail Stores in NCR, Punjab, UP & Rajasthan, Expanding quickly to South Cash & carry Stores Aditya Birla 500+Concentration in South(acquired Trinethra and Fab Malls) Spencers 210Oldest Retailer in India, operates in 27 Cities Metro-AG- Germany 4Cash and carry stores located at Mumbai, Hyderabad & Kolkatta, Expanding Slowly

5. Growth of organized Retail in India Organized Retail is 5.5 % of the total Retail Industry and expected to Grow by 10% by 2012.   Increasing Consumer aspiration   Growing no of Nuclear families   Growing Size of working women segment   Demand from tier II and III cities and rural markets.   Large young working Population

6. CategoryVolume %Margin % Weightage % Oils305-714 Pulses1716-1822 Rice1712-1316 Flours1112-1410 Spices1022-2820 Sugar96-75 Dry Fruits320-257 Salt125-302 Wheat115-181 Staples Share in Retail Store

7. Buying Behaviors Staples Any item that is washed before cooking, the consumer prefers to buy it loose as it’s economical. Items such as Dals, Rice & Wheat mostly sells In loose. Dals - No National Brand, all are Pvt label of the Retailers. Items like Atta, Edible Oil, Powered Spices, salt etc is sold in packets (Branded), because of its Hygienic aspect.

8. North Plano- Category Wise Stacking Stacking from Left To Right Stacking from Top to Bottom Cont….

9. Plano – Bay Allocation for 32BM Family Bay 32 OIL6.00 Rice6.00 Pulses6.00, Toor2 Flours3.50Mung1 Wheat0.50Chana1 Spices5.00Urad/ Masoor1 Salt0.50Minor pulses1 Sugar2.50 DF2.00 Total32.00

10. Pulses Mix in Modern Retail Major dal - 85 % – – Toor, Urad, Moong and Chana, Kabuli and Masoor Minor dal - 15 % – – Green peas, White Peas, Chitra, Red, Sharmili, Lobia, Soyabean, Moth,

11. Pulses Assortment ItemSelectValueLoose Bins Toor GujaratLaturLatur/Sawa Moong Desi Desi/Import Urad DesiImport Chana BoldMedium Masoor BoldMediummedium Kabuli 42-4458-60 Chitra Import G Peas USACanada

12. Types of PulsesVolumes % Toor Dal24 Chana Dal23 Mung Dal16 Urad Dal10 Peanuts5 Other Dal22 Pack Size% 200 gm5 500 gm44 1 kg43 2 kgs8 Pulses Sales Mix - India

13. Weekly Buying Behavior Monday : 11% Tuesday: 12% Wednesday : 11 % Thursday : 11 % Friday : 16 % Saturday : 20 % Sunday : 19 %

14. Supply Chain & Sourcing Bulk OriginBulk Warehouse Packing Centre Material Flow City Distribution Centre Store 1 Store 2 Store 3 Store 4 Indent Flow

15. Buying of Dals : Small retailer Store: – Buying locally – Buying at High Price. – Lack economies of Scale Bigger Retail chains: – Buy from origins. – Better quality and quality Consistency. – Definite demand, makes buying Easy. – Better bargaining Power. – Can work in Positions if market is bullish. – If market drops: loss of profit/ Averaging of Bulk Price.

16. Pricing Policy

17. Teji - Mandi in Retail Effects are mild – since we operate Pulses Basket Gestation period ( Bulk Buying to supply at store – 10 days) Weekly Benchmarking and Price Change MRP Restrictions In Teji : Unable to take full advantage In Mandi : Buying cost goes down margin increases. Easy to Average ( Since Throughput is high) Loss of profit.

18. Problems / Challenges Getting low income groups to shop at our Stores i.e drivers, maid, labourer High cost of Real estate. Lack of adequate infrastructure, poor roads, Cold chain, Lack of availability of skilled manpower. Unavailability of uniform quality raw material round the year. Govt Regulations, PFA, Package Commodity Act, Weights & Measures, Factory Act. etc. Price war among Retailers

19. Thank You