Food Retail India 2009

Food Retail in India
Industry Profile
Reference Code: 0102-2058

Publication date: August 2009
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India - Food Retail

© Datamonitor (Published August 2009) Page 2
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market Value
The Indian food retail market grew by 10.6% in 2008 to reach a value of $263.7
billion.
Market Value Forecast
In 2013, the market is forecast to have a value of $392.4 billion, an increase of 48.8%
since 2008.
Market Segmentation I
Convenience stores and gas stations form the most important channel in the market,
accounting for 66.9% of the total value.
Market Segmentation II
India generates 23.3% of the revenues in the Asia-Pacific food retail market.
India - Food Retail

CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
CHAPTER 1 Market Overview 7
1.1 Market Definition 7
1.2 Research Highlights 7
1.3 Market Analysis 8
CHAPTER 2 Market Value 9
CHAPTER 3 Market Segmentation I 10
CHAPTER 4 Market Segmentation II 11
CHAPTER 5 Competitive Landscape 12
CHAPTER 6 Leading Companies 15
6.1 Pantaloon Retail 15
6.2 Bharti 19
6.3 Reliance Industries Limited 20
6.4 Spencer's Retail 24
6.5 Aditya Birla Group 25
6.6 Apna Bazaar 27
CHAPTER 7 Market Forecasts 28
7.1 Market Value Forecast 28
CHAPTER 8 Macroeconomic Indicators 29
India - Food Retail

CONTENTS
CHAPTER 9 Appendix 31
9.1 Methodology 31
9.2 Industry Associations 32
9.3 Related Datamonitor Research 32
CHAPTER 10 Appendix 33
10.1 Methodology 33
India - Food Retail

CONTENTS
LIST OF TABLES
Table 1: India Food Retail Market Value: $ billion, 2004-2008..........................................9
Table 2: India Food Retail Market Segmentation I: % Share, by Value, 2008.................10
Table 3: India Food Retail Market Segmentation II: % Share, by Value, 2008................11
Table 4: Key Facts: Pantaloon Retail (Pantaloon) ..........................................................15
Table 5: Key Financials: Pantaloon Retail (Pantaloon) ...................................................18
Table 6: Key Facts: Bharti Retail ....................................................................................19
Table 7: Key Facts: Reliance Industries Limited .............................................................20
Table 8: Key Financials: Reliance Industries ..................................................................23
Table 9: Key Facts: Spencer’s Retail..............................................................................24
Table 10: Key Facts: Aditya Birla......................................................................................25
Table 11: Key Facts: Apna Bazaar ...................................................................................27
Table 12: India Food Retail Market Value Forecast: $ billion, 2008-2013 .........................28
Table 13: India Size of Population (million) , 2004-2008...................................................29
Table 14: India GDP (Constant 2000 Prices, $ billion), 2004-2008...................................29
Table 15: India Inflation, 2004-2008 .................................................................................29
Table 16: India Exchange Rate, 2004-2008 .....................................................................30
India - Food Retail

MARKET OVERVIEW
CHAPTER 1 MARKET OVERVIEW
1.1 Market Definition
The food retail market includes the retail sales of all food products, both packaged
and unpackaged. Beverages includes retail sales of all alcoholic and non-alcoholic
beverages. All on-trade sales of food and beverage are excluded. All currency
conversions are calculated at constant average 2008 exchange rates.
For the purpose of this report, Asia-Pacific is deemed to comprise Australia, China,
Japan, India, Singapore, South Korea, and Taiwan.
1.2 Research Highlights
The Indian market generated total revenues of $263.7 billion in 2008, representing a
compound annual growth rate (CAGR) of 12.3% for the period spanning 2004-2008.
Convenience stores and gas stations proved the most lucrative sales channel for the
Indian market in 2008, generating total revenues of $176.5 billion, equivalent to
66.9% of the market's overall value.
The performance of the market is forecast to decelerate, with an anticipated CAGR of

8.3% for the five-year period 2008-2013, which is expected to drive the market to a
value of $392.4 billion by the end of 2013.
India - Food Retail

MARKET OVERVIEW
1.3 Market Analysis
India’s food retail market has grown more rapidly than any other in the Asia-Pacific
region during the 2004-2008 period. Despite deceleration forecast for the 2008-2013
period, it should continue to perform strongly.
The Indian market generated total revenues of $263.7 billion in 2008, representing a
compound annual growth rate (CAGR) of 12.3% for the period spanning 2004-2008.
In comparison, the Chinese market increased with a CAGR of 9.8%, and the
Japanese market remained virtually unchanged, over the same period, to reach
respective values of $313.6 billion and $387 billion in 2008.
Convenience stores and gas stations proved the most lucrative sales channel for the
Indian market in 2008, generating total revenues of $176.5 billion, equivalent to
66.9% of the market's overall value. In comparison, sales through food and drinks
specialists generated revenues of $83.4 billion in 2008, equating to 31.6% of the
market's aggregate revenues.
The performance of the market is forecast to decelerate, with an anticipated CAGR of

8.3% for the five-year period 2008-2013, which is expected to drive the market to a
value of $392.4 billion by the end of 2013. Comparatively, the Chinese market will
increase with a CAGR of 6.6%, and the Japanese market will decline with a
compound annual rate of change (CARC) of -0.02%, over the same period, to reach
respective values of $430.8 billion and $386.7 billion in 2013.
India - Food Retail

MARKET VALUE
CHAPTER 2 MARKET VALUE
The Indian food retail market grew by 10.6% in 2008 to reach a value of $263.7
billion.
The compound annual growth rate of the market in the period 2004-2008 was 12.3%.
Table 1: India Food Retail Market Value: $ billion, 2004-2008
Year $ billion INR billion % Growth
2004 165.6 7,256.9

2005 186.2 8,156.9 12.40%
2006 210.4 9,217.2 13.00%
2007 238.5 10,449.0 13.40%
2008 263.7 11,555.6 10.60%
CAGR, 2004-2008: 12.3%
Source: Datamonitor DATAMONITOR
Figure 1: India Food Retail Market Value: $ billion, 2004-2008
$ billion % Growth
300 16.0%
14.0%
250
12.0%
200
10.0%
% Growth
$ billion
150 8.0%
6.0%
100
4.0%
50
2.0%
0 0.0%
2004 2005 2006 2007 2008
India - Food Retail

MARKET SEGMENTATION I
CHAPTER 3 MARKET SEGMENTATION I
Convenience stores and gas stations form the most important channel in the Indian
food retail market, accounting for 66.9% of the total value.
Food & drink specialist stores account for a further 31.6%.
Table 2: India Food Retail Market Segmentation I: % Share, by Value,

2008
Category % Share
Convenience stores & gas stations 66.90%

Food & drink specialists 31.60%
Hypermarkets/supermarkets and discounters 1.10%
Other channels 0.30%
Cash & carries and warehouse clubs 0.10%
Total 100.0%
Figure 2: India Food Retail Market Segmentation I: % Share, by Value,

2008
Food & drink

specialists Hypermarkets /
31.6% supermarkets and
discounters
1.1%
Other channels
0.3%
Cash & carries and

Convenience stores warehouse clubs
& gas stations 0.1%
66.9%
India - Food Retail

MARKET SEGMENTATION II
CHAPTER 4 MARKET SEGMENTATION II
India generates 23.3% of the revenues in the Asia-Pacific food retail market.
Japan is the most lucrative market in the region, accounting for 34.2% of the total.
Table 3: India Food Retail Market Segmentation II: % Share, by Value,

2008
Geography % Share
Japan 34.20%
China 27.70%
India 23.30%
Rest of Asia-Pacific 11.30%
South Korea 3.40%
Total 100.0%
Figure 3: India Food Retail Market Segmentation II: % Share, by Value,

2008
Rest of A sia-
Pacif ic South Korea
11.3% 3.4%
India
23.3% Japan
34.2%
China
27.7%
India - Food Retail

COMPETITIVE LANDSCAPE
CHAPTER 5 COMPETITIVE LANDSCAPE
The food retail industry will be analyzed taking the retailers as players. The key
buyers will be taken as end-consumers, and food manufacturers, farmers, and
agricultural co-operatives as the key suppliers.
In India, food retail, particularly the hypermarket/supermarket sector, is less

developed than in Western economies. Some companies, including conglomerates
like Aditya Birla, are expanding rapidly in this competitive space. Many small stores
are independently run, often by families and without technical or accounting
standardization. The ratio of such retailers to consumers is high, allowing the latter
great freedom to move between at will, strengthening buyer power.
The sheer volume of potential customers in key areas of the food retail industry
diminishes the standing of any individual customer. The revenue generated by any
particular consumer is minimal and, in itself, expendable. Yet insofar as they may
represent a set of wider interests across consumers, retailers cannot afford to
disregard the relevant sensitivities of buyers. Price and convenience are two central
concerns however they are not necessarily the only factors. The response of food
retailers must accommodate many diverse interests.
Whilst loyalty towards a specific retailer is common at a small, local scale for various
personal reasons, larger retailers struggle to maintain a strong loyalty that is not
secondary to the need for a competitive pricing scheme, a perceived quality of
product range, or other defining feature. Although high brand recognition does not
automatically translate into consumer loyalty, if it is supported by a product range in
which popular food products are central, the retailer can often draw indirectly on the
loyalty base that certain food manufacturers have established. With switching costs
generally absent in this area, however, a degree of independence remains for
consumers and other retailers may offer attractive alternatives.
Specialty or luxury retailers can, due to the high level of product differentiation, justify
price levels that would otherwise be unsustainable yet the limited volume of
consumers places restraints on the power of such players. Buyer power, overall, is
moderate.
India - Food Retail

Suppliers to the food retail industry include food manufacturers, and farmers and
agricultural co-operatives. In order to ensure stability and offset the dangers of local
sourcing problems or price fluctuations, large retail companies often attempt to
maintain relationships with a wide range of suppliers. This diffuses dependency,
minimizing the risks to retailers, and strengthening their standing in relation to
suppliers. For this system however, the region must be able to support sufficient
supply chains, and the necessary infrastructure. This is not always the case in the
Indian market, which poses one of the key challenges to retailers, restoring a degree
of power to those who control the limited supply routes in such cases.
Long-term contractual obligations are avoided where possible, however, and

switching costs kept to a minimum. With a firm hold on key distribution channels, the
leading retailers can dominate negotiations with certain suppliers. This is often
impossible for smaller retailers such as specialist or luxury outlets. The limited
number of suppliers in niche areas and the centrality of product quality or preparation
type limits the available range of sourcing options. With switching costs subsequently
higher, the balance of power shifts somewhat from smaller retailers to specialist
suppliers.
Mainstream retailers evade this difficulty due to the large number of suppliers.
Frequently offering only limited product differentiation – in the absence of strong
branding – core products are replicated quickly and the pressure to undercut other
suppliers becomes significant. Whilst the need to satisfy consumer demand for
popular products bolsters the relevant manufacturers, many others face a high
degree of retailer mobility as they shift suppliers in accordance with pricing pressures.
Supplier power is no more than moderate.
Large-scale, established retailers hold a natural advantage in operating businesses

that benefit significantly from economies of scale, allowing aggressive pricing
schemes that are not viable for smaller retailers. Strong branding exercises and fast
paced expansion deepen this asymmetry. Nevertheless, they are not invulnerable to
the threat of new entrants. Exit and entry costs within the industry are relatively low in
regions that offer the relevant infrastructure, encouraging potential entrants. Given
the entrenched status of many large-scale retailers, and the gradual emergence of
heavier branding, direct head-to-head competition is extremely difficult for new
retailers.
The fragmentation of the industry does allow space for smaller retailers to flourish
however, sheltered within local niches, and strong market growth is attractive to more
ambitious entrants.
India - Food Retail

For foreign players, government regulation has a strong influence on ease of market
access. India has tended to adopt a protectionist stance in retail, with multi-brand
retailing subject to caps on foreign direct investment, while the single-brand retail
sector, and also the wholesale sector, more accessible to foreign investment. The
threat from new entrants is moderate.
The chief alternative to food retail is food service. Supported by strong marketing
campaigns in the case of fast food companies, and cultural traditions with respect to
sit-down restaurants, both types represent a relevant alternative for many consumers.
However, they do not constitute a complete substitute for reasons of cost, health and
more basic preferences. This alternative, for the vast majority of people, accompanies
food retail rather than replacing it completely.
Another substitute is found in subsistence agriculture in which individuals or families

farm food to provide for their own personal needs. Despite the introduction of market
capitalism it remains common in many rural areas which are yet to be captured by the
industry. Movement between the two systems is predominantly in the direction of food
retail, however discontent with the decline of traditional lifestyles and its associated
valueshas sparked the occasional exception. Nevertheless, the threat from
substitutes overall is weak.
Competition is often fierce within the food retail industry. The lack of substantial
switching costs for consumers places pressure on retailers to secure their custom.
The limited level of differentiation across the basic product range pushes larger
retailers into competitive pricing policies. Price wars are frequent, intensified by the
increase in consumer awareness generated by ‘comparison sites’. Whilst some
companies operate in other industries (for example, conglomerates like Reliance
Industries) and can absorb the temporary impact of declining food sales, or high
supply prices, for many, food retail lies at the heart of the business. This basic
dependency gives rise to aggressive competition, assessed as moderate overall.
India - Food Retail

LEADING COMPANIES
CHAPTER 6 LEADING COMPANIES
6.1 Pantaloon Retail
Table 4: Key Facts: Pantaloon Retail (Pantaloon)
Address: Knowledge House, Shyam Nagar, Off Jogeshwari Vikhroli

Link Road, Jogeshwari East, Mumbai 400 060, IND
Telephone: 91 22 3084 1300
Fax: 91 22 6644 2222
Website: www.pantaloon.com
Financial Year-End: June
Ticker: 523574
Stock Exchange: Bombay
Source: Company Website DATAMONITOR
Pantaloon Retail is a subsidiary of Indian company Future Group. It primarily

operates multiple retail formats in both the value and lifestyle segments in India. It
operates over 1000 stores across 71 cities in India, and occupies retail space of
about 12 million square-feet. The company offers its products in various lines of
businesses such as food, fashion, home and electronics, telecom and IT, general
merchandise, leisure and entertainment, wellness and beauty, books and music. The
company also offers products through its Internet retailing store futurebazaar.com.
Pantaloon offers food products through retail formats such as Brew Bar, Cafe
Bollywood, Chamosa, Food Bazaar, and Sports Bar. Brew Bar offers over 15 brands
of domestic and imported beer. Brew Bar also offers snacks and set meals. Cafe
Bollywood (Bollywood refers to the Indian film industry) is a fast food retail chain
offering eateries in a Bollywood ambience. It offers Indian street food, burgers,
pizzas, and juices. Chamosa is a chain of Indian snack counters and is mostly
located in and around high traffic areas. Food Bazaar aims to offer customers a blend
of Western-style supermarket and traditional Indian market, and supplies a wide
range of pre-packed commodities. There are approximately 200 Food Bazaar outlets
in more than 65 Indian cities. Sports Bar is a concept bar that focuses on the world of
sports. Sports Bar offers domestic and imported spirits, beers and wines.
India - Food Retail

LEADING COMPANIES
Pantaloon offers fashion related products under banners such as aLL, Big Bazaar,
Blue Sky, Brand Factory, Celio, Central, Navaras, Pantaloons and Planet Sports. aLL
is a fashion store for plus size men and women. It offers ready-to-wear fashionable
clothes and accessories in western wear, Indo-western or ethnic wear in both formal
and casual categories. Big Bazaar is a fashion and general merchandise
hypermarket. It offers fashion products, home furnishings, utensils, crockery, cutlery,
and sports goods. Blue Sky stores offer branded and private label sunglasses and
watches. Some of the private label watch brands which Blue Sky offers are Cube,
Koenig, RIG, Lombard and UMM.
Brand Factory operates a chain of discount stores that offer apparels for men,
women, and infants along with accessories, cosmetics, footwear, sportswear,
luggage, and home linen. These discount stores stock fashion brands such as Levis,
Pepe Jeans, Dockers, Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis
Phillip, Allen Solly, Reid and Taylor, Gini and Jony, amongst others. Celio, a market
leader in men's ready to wear clothing in France, is retailed through selected stores of
Pantaloons and Central in India.
Central, the mall concept of Pantaloon, offer over 300 brands across categories such
as apparel, footwear and accessories for women, men, children and infants, and the
product ranges such as, music, books, coffee shops, food courts, super markets
(food bazaar), fine dining restaurants, pubs and discotheques. Central also offers
services such as travel, finance, investment, insurance, concert/cinema ticket booking
and bill payments. Navaras is a jewelry store that offers branded jewelry in a
hypermarket set-up. Pantaloons stores offers fashion products such as casual,
ethnic, formal, party and sports wear for men, women and kids. Planet Sports is a
sports and lifestyle specialty retail chain with extensive offerings for sportswear and
equipment across all categories including running, tennis, training, golf, fitness,
basketball, motor sports as well as other lifestyle products.
In the general merchandise category, Pantaloons operates retail formats such as Big
Bazaar, Big Bazaar Wholesale Club, Blue Sky, Brand Factory, Central, Navaras,
Pantaloon and Shoe Factory. Big Bazaar is a retail store chain in a hypermarket
format that offer fashion products, home furnishings, utensils, crockery, cutlery, and
sports goods. Shoe Factory, a footwear retail store chain offers branded footwear and
accessories to men, women and kids.
India - Food Retail

LEADING COMPANIES
Pantaloon has presence in the leisure and entertainment space through an affiliated
company, Galaxy Entertainment. Pantaloon's F 123, a gaming and entertainment
zone, offers a range of gaming options ranging from bowling, pool, interactive video
games, bumper cars along with fun foods and services for junior and adult
banqueting. The company also operates Bowling Co., a family entertainment centre,
in Mumbai. In a joint venture with Blue Foods, Pantaloon operates food courts, fine
dine specialty restaurants, thali restaurants, banquets and multiple kiosks with brands
such as Copper Chimney, Bombay Blue, Noodle Bar, Spaghetti Kitchen and The
Spoon.
The company operates specialty stores in the wellness and health retailing. It
operates Star & Sitara and Fit & Healthy. Star & Sitara provides skin and hair related
beauty services for men and women. Fit & Healthy section housed within Big Bazaars
and Food Bazaars provides health products and health related tips, information and
advice.
Pantaloon has presence in the books and music category through 'Depot' which
offers books, music CDs and cassettes, home videos, multimedia (CD-ROMs)
products and gift items. In the home and electronics retailing, the company offers the
furniture, furnishings, home accents and electronic products through Collection I,
Furniture Bazaar, Electronics Bazaar, e-zone, Home Bazaar and Home Town retail
formats.
In the telecom and IT category, the company offers products such as gadgets, mobile
phones, accessories, download kiosks, airtime recharges, landline instruments, blue
tooth accessories, and mobile trinkets. The retail store brands that offer these
products are Gen M, One Mobile, and M Port.
India - Food Retail

LEADING COMPANIES
Key Metrics
The company recorded revenues of INR 58,665 million (approximately $1,338.9

million) during the financial year ended June 2008 (FY2008), an increase of 76.2%
over FY2007. The net profit was INR 208.9 million (approximately $4.8 million) in
FY2008, a decrease of 41.7% over FY2007.
Table 5: Key Financials: Pantaloon Retail (Pantaloon)
Metric 2004 2005 2006 2007 2008

Revenues 150.6 241.0 427.3 759.7 1,338.9
Net Income 4.5 8.8 12.3 8.2 4.8
Profit Margin 3.0% 3.7% 2.9% 1.1% 0.4%
Total Assets 94.4 152.2 356.5 746.0 1,526.0
Total Liabilities 73.1 101.6 235.8 473.9 1,017.7
All in $ millions, except for employee numbers and margins
Source: Company Filings DATAMONITOR
Figure 4: Revenues & Profitability: Pantaloon Retail (Pantaloon)
Revenues Net Income Profit Margin
1,600.0 4.0%
1,400.0 3.5%
1,200.0 3.0%
Profit Margin (%)

US$ Millions
1,000.0 2.5%
800.0 2.0%
600.0 1.5%
400.0 1.0%
200.0 0.5%
0.0 0.0%
2004 2005 2006 2007 2008
Year
India - Food Retail

LEADING COMPANIES
6.2 Bharti
Table 6: Key Facts: Bharti Retail
Address: Aravali Crescent, 1, Nelson Mandela Road, Vasant Kunj,

Phase II, New Delhi-110070, IND
Telephone: 91 11 4666 6100 / 6500
Fax: 91 11 4166 6137
Website: www.bharti.com
Bharti Retail is a wholly owned subsidiary of Bharti Enterprises Limited. The parent
company has businesses including telecommunications, training and education
services, fruit and vegetables (through a joint venture with Del Monte), and financial
services (through joint ventures with AXA), as well as retail.
The two main formats operated by Bharti Retail are Easyday neighborhood stores,
and Easyday Market compact hypermarkets. The first stores opened for business in
2008. As of November 2008, Bharti operated around 12 neighborhood stores.
Bharti also has a joint venture with Wal-Mart that offers wholesale cash-and-carry and
supply chain management functions. Its first cash-and-carry outlet, under the Best
Price Modern Wholesale banner, opened in Amritsar, in May 2009.
Key Metrics
No financial details are available for this company.
India - Food Retail

LEADING COMPANIES
6.3 Reliance Industries Limited
Table 7: Key Facts: Reliance Industries Limited
Address: Maker Chambers IV, Nariman Point, Mumbai 400 021,

Maharashtra, IND
Telephone: 91 22 2278 5000
Fax: 91 22 2204 2268
Website: www.ril.com
Financial Year-End: March
Ticker: 500325; RELIANCE EQ
Stock Exchange: Bombay; India National Stock Exchange
Reliance Industries (RIL) is a private sector company in India. The company operates
in more than 100 countries around the world. It has production facilities at three major
locations in India and four in Europe.
The company operates through three major business segments: refining,

petrochemicals, and oil and gas, but has other interests such as retail and textiles.
RIL entered the retail sector in 2006, through its Reliance Retail Limited (RRL)
subsidiary. Its first format was Reliance Fresh, a convenience store format of 3,000 –
4,000 square feet, and expansion since then has led to it operating 590 stores in 13
states of India (as of end 2008). Formats include Reliance Digital, the Reliance Mart
hypermarket, and specialty outlets: Reliance Trends for clothing, Reliance Footprints
for footwear, Reliance Jewels forjewellery, Reliance Timeout for books, music and
similar leisure products. Reliance Autozone for automotive aftermarket products, and
Reliance Wellness for health and wellness products.
In its food operations, Reliance has built relationships with producers, developed
processing centers, and can now sell fruit, vegetable, and staples to wholesalers and
institutional customers.
RIL operates the third largest refinery in the world at Jamnagar, Gujarat. The refinery
has a capacity of 33 million tons per year (0.66 million barrels per day of crude
throughput). IN FY2008, the refinery processed 31.8 million tonnes of crude and had
a high utilization rate of 96.4%.
The segment produces liquefied petroleum gas (LPG), propylene, naphtha,

reformate, gasoline, TAME (tertiary amyl methyl ether), jet/aviation turbine
fuel/superior kerosene oil, high speed diesel, sulphur, and petroleum coke. RIL has
production capacities of (in millions of barrels per annum): LPG up to 2.3, propylene
up to 0.7, naphtha up to 4.0, reformate up to 2.7, gasoline up to 4.0, TAME up to 0.
India - Food Retail

LEADING COMPANIES
25, jet, aviation turbine fuel, and superior kerosene oil up to 3.6, high speed diesel up
to 11, sulphur up to 0.5, and petroleum coke up to 2.5.
In FY2008, RIL produced 33,139 kilotonnes (KT) of petroleum products comprising

28,522 KT of gases and distillates and 4,617 KT of fuel oils and solids. RIL markets
its petroleum products through 1,432 retail outlets in India. The company exported
22.1 million tonnes of refined products in FY2008. Asia accounted for 55% of overall
petroleum products exports, Europe accounted for 20%, and Africa 18%.
The petrochemicals segment encompasses the production and marketing operations

of petrochemical products namely, high and low density polyethylene, polypropylene,
polyvinyl chloride, polyester yarn, polyester fibres, purified terephthalic acid,
paraxylene, ethylene glycol, olefins, aromatics, linear alkyl benzene, and polyethylene
terephthalate. The petrochemicals segment manufactures polymers, polyester,
polyester intermediates, and other petrochemicals.
The polymer business has cracker facility at Hazira, as well as its refinery at
Jamnagar. The company operates plants for polyolefins and PVC (polyvinyl chloride)
with licensors like Novacor, Geon, and Union Carbide. The products manufactured
include polypropylene (PP), high density polyethylene (HDPE), and liner low density
polyethylene (LLDPE), polyvinyl chloride (PVC), and poly-olefin (HDPE and PP)
pipes. The products are sold under various brand names including, Repol
(polypropylene), Relene (high density polyethylene), Reon (polyvinyl chloride), and
Relpipe (HDPE and PP). In FY2008, the business produced 1,712 KT of PP, 1,083
KT of PE, and 579 KT of PVC.
RIL is the largest producer of polyester fiber and yarn in the world. The company has
a manufacturing capacity of 2,000 KT per annum with a production plant at Naroda.
The company has a portfolio of about 120 global patents in the polyester domain. It
has a manufacturing capacity of about 2.5 million tonnes. The products manufactured
include staple fiber, filament yarn, texturized yarn, twisted and dyed yarn, stretch
yarns, cotton look, cotluk feel yarns, can dyed, dope dyed, low pill, hollow fibers,
secondary reinforcement products, quality certified sleep products, and polyethylene
terephthalate (PET). The products are offered under the brand names Recron
(texturized yarn, twisted yarn, staple fiber, and filament yarn), Recron Stretch, Recron
Cotluk, Recron Dyefast, Recron Superblack, Recron Superdye, Recron Fibrefill,
Recron 3S, Recron Certified, and Relpet. In FY2008, the business produced 840
kilotons of PFY, 765 kilotons of PSF, and 305 kilotons of PET.
India - Food Retail

LEADING COMPANIES
The polyester intermediates manufactures paraxylene (PX) and purified terephthalic

acid (PTA) and mono ethylene glycol (MEG). In FY2008, the business produced
1,878 kilotons of PX, 2,035 kilotons of PTA, and 801 kilotons of MEG. The company
is also India's largest manufacturer of linear alkyl benzene (LAB) with a 100 KT per
annum plant at Patalganga in technical collaboration with UOP, the product being
marketed under the trade name Relab. The other petrochemicals products produced
include aromatics, solvents, textile grade chips, tri-ethylene glycol (TEG), ethylene
oxide, and di-ethylene glycollab. These are sourced from the cracker and aromatics
plant at Hazira, aromatics plants at Jamnagar and Patalganga, and the linear alkyl
benzene plant at Patalganga.
In the aromatics category, RIL manufactures benzene, toluene, mixed-xylene, and

ortho-xylene. Products in solvents category includes remax 1, remax 2, washoil,
renine, heavy aromatics, heavy alkylate, and CBFS. The company produces 52 KT
per annum of textile grade chips product and 1.6 KT per annum of TEG. RIL has a
total installed monoethylene glycol (MEG) capacity of 300 KT per annum and
produces 34 KT of DEG (Diethylene Glycol) annually as a by-product.
In the oil and gas segment, RIL is the largest exploration acreage holder in the private
sector in India with 33 domestic exploration blocks covering 337,000 square
kilometers of total area. In addition, the company owns interest in three exploration
blocks in Yemen; two each in Oman, Kurdistan, and Columbia; and one each in East
Timor and Australia covering an area of about 38,000 square kilometers. RIL also has
five coal bed methane (CBM) blocks covering an area of about 4,000 square
kilometers.
RIL has a 30% participating interest in the producing blocks of Panna-Mukta and
Tapti oil and gas fields in Bombay High offshore block. Panna field comprises 430
square kilometers of area, located 50 kilometers east of the Bombay High field and is
95 kilometers northwest of Mumbai city. The Mukta field is comprised of 777 square
kilometers of area, located 100 kilometers northwest of Mumbai city. In FY2008, the
Panna-Mukta fields produced 1,910,000 tonnes of crude oil and 2,030 million metric
standard cubic meters (MMSCM) of natural gas while the Tapti field produced 3,365
MMSCM of gas and 232,000 tonnes of condensate.
India - Food Retail

LEADING COMPANIES
Key Metrics
Reliance Industries Limited generated revenues of $31,786.1 million in the financial

year ended March 2008, an increase of 25.6% compared to the previous year. The
company's net income totaled $3,483.1 million in fiscal 2008, an increase of 39.9%
compared with 2007.
Table 8: Key Financials: Reliance Industries
2004 2005 2006 2007 2008

Revenues 12,837.6 16,698.6 20,341.3 25,308.1 31,786.1
Net Income 1,177.7 1,728.1 2,069.9 2,489.6 3,483.1
Profit Margin 9.2% 10.3% 10.2% 9.8% 11.0%
Total Assets 13,436.6 14,482.6 17,492.1 26,784.1 34,187.8
Total Liabilities 5,573.4 5,261.1 6,125.0 4,622.1 6,131.9
Employees 11,358 12,113 12,540 24,696 25,487
All in $ millions, except for employee numbers and margins
Figure 5: Revenues & Profitability: Reliance Industries
Revenues Net Income Profit Margin

35,000.0 11.5%
30,000.0 11.0%
Profit Margin (%)

25,000.0 10.5%
US$ Millions
20,000.0 10.0%
15,000.0 9.5%
10,000.0 9.0%
5,000.0 8.5%
0.0 8.0%
2004 2005 2006 2007 2008
Year
India - Food Retail

LEADING COMPANIES
6.4 Spencer's Retail
Table 9: Key Facts: Spencer’s Retail
Address: 7th Floor, 5 Clive Row, Kolkata-700 001, IND

Telephone: 91 33 6625 7893
Website: www.spencersretail.com; www.rpggroup.com/sretail.html
Spencer’s Retail is an India-based multi-format retailer. It is part of the RPG Group.
Established in 1996, and currently present in 66 Indian cities, Spencer’s is one of the
largest retailers in the country. It offers a wide range of products: food and drink,
consumer electronics and household appliances, clothing, leisure products, and other
categories.
The company has more than 1 million square feet of retail space and 275 stores. It
has two main formats. Spencer’s Hyper stores are 15,000 square feet and above in
size. They stock food and non-food items. Spencer’s stores range in area from 1,500
to 15,000 square feet. This format has a sharper focus on food and beverages,
although the larger stores (above 10,000 square feet) may also offer home care
products, basic clothing, and a limited range of electrical and electronic goods.
Parent company RPG was established in 1979. Its businesses include electric power
generation and distribution, power transmission engineering, tire manufacturing,
carbon black production, entertainment, and software and services. In the retail
sector, as well as Spencer’s, RPG owns the Music World chain of recorded music
stores, and in 2007 opened the first of its Books and Beyond stores, which sell books,
toys, and related items.
Key Metrics
Financial details for Spencer’s Retail are unavailable. RPG itself reported unaudited
revenues of INR 30.98 billion ($707 million) in the fiscal year ending March 2009, an
increase of 9% on the previous fiscal year. Net income rose by 15.5% to INR 4.1
billion ($93.6 million).
India - Food Retail

LEADING COMPANIES
6.5 Aditya Birla Group
Table 10: Key Facts: Aditya Birla
Address: Aditya Birla Centre, 1st Floor C Wing, S K Ahire Marg Worli,
Mumbai 400 030, Maharashtra, IND
Telephone: 91 22 6652 5000
Fax: 91 22 6652 5741
Website: www.adityabirla.com
Aditya Birla Group is a privately held multinational corporation engaged in diversified

businesses. The company has a presence in 25 countries, including India, the UK,
Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Australia, the US,
Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, Dubai, Singapore,
Myanmar, Bangladesh, Vietnam, Malaysia and Korea.
The company primarily operates through six subsidiaries: Grasim Industries (Grasim),
Hindalco, Aditya Birla Nuvo, Aditya Birla Retail, Tanfac Industries and Essel Mining &
Industries.
Grasim, a flagship company of the Aditya Birla Group, is engaged in manufacturing

textiles, viscose staple fiber (VSF), cement and chemicals. Its core businesses are
VSF and cement. In cement, Grasim along with its subsidiary UltraTech Cement has
a capacity of 41.6 million tpa and is one of the leading cement players in India.
Textiles Grasim has a nation-wide retail network and also caters to international
fashion houses in US and UK.
The subsidiary company, Hindalco, operates through aluminum and copper divisions.
The aluminum division's product range includes alumina chemicals; and primary
aluminum ingots, billets, wire rods, rolled products, extrusions, foils and alloy wheels.
The copper division produces copper cathodes, continuous cast copper rods and
precious metals. It also provides sulphuric acid, phosphoric acid, di-ammonium
phosphate, other phosphatic fertilizers and phospho-gypsum.
Aditya Birla Nuvo is engaged in the business of garments, viscose filament yarn,
carbon black, textiles and insulators. The company is also involved in life insurance,
mutual funds, equity advisory and investment management, application development,
maintenance and enhancement solutions, customer relations management (CRM),
integrated marketing services, knowledge process outsourcing, non-life insurance
advisory and broking services, and apparel retail and exports businesses.
India - Food Retail

LEADING COMPANIES
Aditya Birla Retail began its activities with the 2006 acquisition of Trinethra
SuperRetail, a chain of 170 outlets based in southern India, and continued in 2007
when its own chain of MORE stores was launched. The former Trinethra stores now
also operate under the MORE banner. Aditya Birla has 640 supermarkets and four
MORE Megastore hypermarkets. The retail business employs a workforce of 11,000.
MORE supermarkets are 2,500 square feet and above, while the Megastores have a
minimum of 50,000 square feet retail space. Product lines include fruit and
vegetables, processed food, household and personal products, apparel, and in some
cases also in-store bakery, pharmacy, and other categories.
Tanfac Industries is a joint venture company promoted by the Aditya Birla Group and
the Tamil Nadu Industrial Development Corporation (TIDCO). The company
manufactures and supplies chemicals such as aluminum fluoride, anhydrous
hydrogen fluoride and sulphuric acid. The fluorine based chemicals are applied in
industries such as aluminum smelting, petroleum refining, refrigerant gases, steel re-
rolling, glass, ceramics, sugar, fertilizers and heavy water. Its specialty chemicals are
used as intermediates in the manufacture of pharmaceuticals drugs and
agrochemicals.
Aditya Birla Group's subsidiary, Essel Mining & Industries, is an iron ore mining
company that produces noble ferro alloys. The company's products include calibrated
iron ore lump, inputs for steel making through DRI / BF process, and iron ore fines,
inputs for sinters and pellets, used for making steel.
Key Metrics
Aditya Birla Group posted total revenues of approximately $7.9 billion in 2006, 14%
up on the preceding fiscal year. The company does not report its retail subsidiary
revenues, and more recent consolidated group revenues are also unavailable.
India - Food Retail

LEADING COMPANIES
6.6 Apna Bazaar
Table 11: Key Facts: Apna Bazaar
Address: Post Box No. 3, Khairatabad, Head Post Office, Hyderabad

500004, India
Telephone: 91 40 2323 3199, 2324 3376
Fax: 91 40 2771 9641
Website: www.apnabazaar.org
Apna Bazaar is a one of India’s largest supermarket chains, with 500 retail outlets
selling food, beverages, personal products, and other items. It is operated by the
Consumer Awareness and Research Society trust (CARS), which established the
chain in 1993.
The organization has its own warehouse facilities, which not only store products from
around 500 manufacturers, but also clean and package raw produce from suppliers.
Quality testing to ensure compliance with governmental AGMARK standards is also
carried out here.
Expansion is through a franchising system. Individuals are able to establish outlets of

sizes ranging from ‘Home’ to ‘Mega’, by registering as Coodinators, and paying
CARS an fee of INR 1-5 lakh (approximately $2,000 – $10,000), followed by monthly
royalties of INR10 or 2% of turnover, whichever is higher. Coordinators are also
responsible for providing retail space of the appropriate area and recruiting
supervisors and helpers. CARS for its part takes responsibility for obtaining
government licenses, delivering stock, and providing promotional materials. CARS
suggests that suitable Coordinators might include people outside the normal
workforce: women at home, the unemployed, or retired.
Apna customers must pay an annual membership fee of INR 10 ($0.21) per family.
The fees are intended to fund community projects, and also to help fund CARS
activities. Apna claims that its retail prices are 3-30% lower than the prevailing market
rates. In addition, customer members can obtain services such as legal advice. Apna
aims to have 1,000 – 4,000 members per outlet.
Key Metrics
Apna Bazaar does not publish any financial details.
India - Food Retail

MARKET FORECASTS
CHAPTER 7 MARKET FORECASTS
7.1 Market Value Forecast
In 2013, the Indian food retail market is forecast to have a value of $392.4 billion, an
increase of 48.8% since 2008.
The compound annual growth rate of the market in the period 2008-2013 is predicted
to be 8.3%.
Table 12: India Food Retail Market Value Forecast: $ billion, 2008-2013
Year $ billion INR billion % Growth
2008 263.7 11,555.6 10.60%

2009 289.8 12,698.7 9.90%
2010 314.3 13,772.5 8.50%
2011 340.9 14,934.6 8.40%
2012 366.9 16,075.7 7.60%
2013 392.4 17,193.6 7.00%
CAGR, 2008-2013: 8.3%
Figure 6: India Food Retail Market Value Forecast: $ billion, 2008-2013
$ billion % Growth
450 12.0%
400
10.0%
350
300 8.0%
% Growth
$ billion
250
6.0%
200
150 4.0%
100
2.0%
50
0 0.0%
2008 2009 2010 2011 2012 2013
India - Food Retail

MACROECONOMIC INDICATORS
CHAPTER 8 MACROECONOMIC INDICATORS
Table 13: India Size of Population (million) , 2004-2008
Year Population (million) % Growth
2004 1075.5
2005 1093.6 1.70%
2006 1111.7 1.70%
2007 1129.9 1.60%
2008 1148.0 1.60%
Table 14: India GDP (Constant 2000 Prices, $ billion), 2004-2008
Constant 2000
Year Prices, $ billion % Growth
2004 593.9
2005 647.5 9.00%
2006 708.1 9.40%
2007 772.6 9.10%
2008 832.1 7.70%
Table 15: India Inflation, 2004-2008
Year Inflation Rate (%) % Growth
2004 2.7
2005 3.3 19.00%
2006 6.9 111.30%
2007 8.1 16.90%
2008 9.2 13.50%
India - Food Retail

MACROECONOMIC INDICATORS
Table 16: India Exchange Rate, 2004-2008
Exchange Rate
Year ($/INR)
2004 0.02206
2005 0.02267
2006 0.02207
2007 0.02418
2008 0.02282
India - Food Retail

FURTHER READING
CHAPTER 9 APPENDIX
9.1 Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all
aggregated, analyzed, cross-checked and presented in a consistent and accessible
style.
Review of in-house databases – Created using 250,000+ industry interviews and

consumer surveys and supported by analysis from industry experts using highly
complex modeling & forecasting tools, Datamonitor’s in-house databases provide the
foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news,

analyst commentary, company profiles and macroeconomic & demographic
information, which enable our researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to

country. The parameters of each definition are carefully reviewed at the start of the
research process to ensure they match the requirements of both the market and our
clients
Extensive secondary research activities ensure we are always fully up-to-date with
the latest industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources,

including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that
allow quantitative and qualitative data to be combined with related macroeconomic
and demographic drivers to create market models and forecasts, which can then be
refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused,
accurate and up-to-date
India - Food Retail

FURTHER READING
9.2 Industry Associations
Confederation of Indian Food and Trade Industry (CIFTI)

Federation House, Tansen Marg, New Delhi 110001, India
Tel.: 91 11 373 6305
Fax: 91 11 332 9714
www.cifti.com
Global Food Marketing Institute
655 15th Street, NW, Washington DC, 20005, USA
Tel.: 1 202 452 8444
Fax: 1 202 429 4519
www.fmi.org
9.3 Related Datamonitor Research
Datamonitor Industry Profiles
Global Food Retail

Food Retail in Europe
Food Retail in Asia-Pacific
Food Retail in China
Food Retail in Japan
India - Food Retail

APPENDIX
CHAPTER 10 APPENDIX
10.1 Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all
aggregated, analyzed, cross-checked and presented in a consistent and accessible
style.
Review of in-house databases – Created using 250,000+ industry interviews and

consumer surveys and supported by analysis from industry experts using highly
complex modeling & forecasting tools, Datamonitor’s in-house databases provide the
foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news,

analyst commentary, company profiles and macroeconomic & demographic
information, which enable our researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to

country. The parameters of each definition are carefully reviewed at the start of the
research process to ensure they match the requirements of both market and clients
Extensive secondary research activities ensure we are always fully up-to-date with
the latest industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources,

including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that
allow quantitative and qualitative data to be combined with related macroeconomic
and demographic drivers to create market models and forecasts, which can then be
refined according to specific competitive, regulatory and demand-related factors
India - Food Retail

APPENDIX
Continuous quality control ensures that our processes and profiles remain focused,
accurate and up-to-date
India - Food Retail


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India - Food Retail

Market Value Forecast

India - Food Retail

CHAPTER 1 Market Overview 7

1.1 Market Definition 7

1.2 Research Highlights 7

1.3 Market Analysis 8

CHAPTER 2 Market Value 9

CHAPTER 3 Market Segmentation I 10

CHAPTER 4 Market Segmentation II 11

CHAPTER 5 Competitive Landscape 12

CHAPTER 6 Leading Companies 15

6.1 Pantaloon Retail 15

6.3 Reliance Industries Limited 20

6.4 Spencer's Retail 24

6.5 Aditya Birla Group 25

6.6 Apna Bazaar 27

CHAPTER 7 Market Forecasts 28

7.1 Market Value Forecast 28

CHAPTER 8 Macroeconomic Indicators 29

India - Food Retail

9.2 Industry Associations 32

9.3 Related Datamonitor Research 32

India - Food Retail

Table 1: India Food Retail Market Value: $ billion, 2004-2008..........................................9

Table 2: India Food Retail Market Segmentation I: % Share, by Value, 2008.................10

Table 4: Key Facts: Pantaloon Retail (Pantaloon) ..........................................................15

Table 5: Key Financials: Pantaloon Retail (Pantaloon) ...................................................18

Table 6: Key Facts: Bharti Retail ....................................................................................19

Table 7: Key Facts: Reliance Industries Limited .............................................................20

Table 8: Key Financials: Reliance Industries ..................................................................23

Table 9: Key Facts: Spencer’s Retail..............................................................................24

Table 10: Key Facts: Aditya Birla......................................................................................25

Table 11: Key Facts: Apna Bazaar ...................................................................................27

Table 13: India Size of Population (million) , 2004-2008...................................................29

Table 14: India GDP (Constant 2000 Prices, $ billion), 2004-2008...................................29

Table 15: India Inflation, 2004-2008 .................................................................................29

Table 16: India Exchange Rate, 2004-2008 .....................................................................30

India - Food Retail

CHAPTER 1 MARKET OVERVIEW

1.1 Market Definition

1.2 Research Highlights

The performance of the market is forecast to decelerate, with an anticipated CAGR of

India - Food Retail

1.3 Market Analysis

The performance of the market is forecast to decelerate, with an anticipated CAGR of

India - Food Retail

CHAPTER 2 MARKET VALUE

Table 1: India Food Retail Market Value: $ billion, 2004-2008

Year $ billion INR billion % Growth

2004 165.6 7,256.9

CAGR, 2004-2008: 12.3%

Source: Datamonitor DATAMONITOR

Figure 1: India Food Retail Market Value: $ billion, 2004-2008

Source: Datamonitor DATAMONITOR

India - Food Retail

CHAPTER 3 MARKET SEGMENTATION I

Food & drink specialist stores account for a further 31.6%.