WHY INDIA

SLEPT ANALYSIS
FDI IN RETAIL

BY
HASSAN AL BANNA

HASSAN AL BANNA
• Retail industry in India amounted
to US$ 353 billion in 2008
• The annual growth of the retail market
in India is expected to be around 8 %.
• By 2010 organized retail is expected to
rise to US$ 51 billion.
• It accounts for 10% of the country's
GDP
HASSAN AL BANNA
 SLEPT Analysis
POLITICAL / LEGAL ECONOMIC SOCIO-CULTURAL TECHNOLOGICAL

Environmental Type of economic Income distribution Recent technological

regulation and system development
protection
Tax policies Government Population growth Technology’s impact on
intervention product offering
International trade Infrastructure quality Lifestyle changes Impact on value chain
regulations and structure
restrictions
Consumer protection Economic growth rate Education Rate of technological
diffusion
Employment laws Inflation rate Living conditions Government research
spending
Political stability Stages of the business Demographics Energy use and cost
cycle
Safety regulations Taxation Fashion , hypes Changes in internet

Pricing regulation Consumer confidence Attitude New inventions and development

HASSAN AL BANNA
 legal
POLICY STATUS
APMC act The act has been amended
but yet to be adopted.
Octroi and Entry No octroi or entry tax.
Tax
Stamp duty Peak stamp duty for
commercial property is 6 %.
Rent control act Have been liberalized
following the adoption of the
model rent control act
suggested by the center.
HASSAN AL BANNA
 FDI in retail
India is the ideal country to make Foreign
Direct investments in because of its features
like :

• Developing economy
• Low salaried employees
• Abundant human resources
• 51% FDI is allowed in single brand retailing

HASSAN AL BANNA
 Economic profile of West Bengal
POPULATION 80176197
MALES 41465985
FEMALES 38710212
SEX RATIO (females/1000 males) 934
DENSITY OF POPULATION 904
(Persons/Square Km)
URBAN POPULATION % 28.03%
LITERACY RATE 68.6
MALE LITERACY in % 77
MALE LITERATE in numbers 27452426
FEMALE LITERACY in % 59.6
FEMALE LITERATE in numbers 19743975
BIRTH RATE (PER 1000) 20.3
DEATH RATE (PER 1000) 6.6
NSDP at current prices Rs 143538 Corers
PER CAPITA NSDP at current prices Rs 17769
HASSAN AL BANNA
 Economic profile of Bihar
POPULATION 829988509
MALES 43243795
FEMALES 39754714
SEX RATIO (females/1000 males) 921
DENSITY OF POPULATION 1132
(Persons/Square Km)
URBAN POPULATION % 10.47
LITERACY RATE in % 47
MALE LITERACY in % 59.7
MALE LITERATE in numbers 20644376
FEMALE LITERACY in % 33.1
FEMALE LITERATE in numbers 10465201
BIRTH RATE (PER 1000) 30.9
DEATH RATE (PER 1000) 7.9
NSDP at current prices Rs Corers Rs 51345 Corers
PER CAPITA NSDP at current prices Rs 6015
HASSAN AL BANNA
 Economic profile of Orissa
POPULATION 36706920
MALES 18612340
FEMALES 18094580
SEX RATIO (females/1000 males) 972
DENSITY OF POPULATION 236
(Persons/Square Km)
URBAN POPULATION % 14.97
LITERACY RATE in % 63.31
MALE LITERACY in % 75.3
MALE LITERATE in numbers 11992333
FEMALE LITERACY in % 50.5
FEMALE LITERATE in numbers 7844722
BIRTH RATE (PER 1000) 23.1
DEATH RATE (PER 1000) 0.9
NSDP at current prices Rs Crores Rs 37891 Corers
PER CAPITA NSDP at current prices Rs 10103
HASSAN AL BANNA
 Technology
• RFID for inventory control.
• I-Scan- allows the customer to scan
merchandise as they pick products off-
the-shelf.
• IP cameras going for as low as Rs
7,000, the technology is ripe for
deployment.

HASSAN AL BANNA
 Quick overview
Yardstick Situation in 04-05 Situation in 07-08
Value of retail sales Rs. 10,20,000 crore Rs 12,00,000 crore

Annual growth rate 5% 5.7%

Value of organized Rs 35,000 crore Rs 55,000 crore
market
Share of organized 3.4% 4.6%
market in the sector
Forecasts (after 5 Over Rs. 1,00,000 crore Rs. 2,00,000 crore
years) about size of
organized retail
market
Forecasts about Around 30% Around 40%
growth rate of
organized retail
market
HASSAN AL BANNA
Promoter/chairman Company /group Value of equity Business
/family head holdings (Rs
crore)

Kishore Biyani & Pantaloon Retail 2,332.83 Retail

associates
Nikhil Chturvedi & Provogue(India) 213 Retail
family
K. Raheja & family Shoppers' Stop 1,285.40 Retail

Urvi Piramal & Piramyd Retail 276.78 Retail

family

HASSAN AL BANNA
HASSAN AL BANNA