22356319 pantaloon retail india ltd
TRANSCRIPT
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` PANTALOON RETAIL INDIA LTD
By: Sunny Ahuja 47
Supriya Kumari 48
MMM-A
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CONTENTS
Part one : Concept Page no. 1&2
Part two : Company Profile Page no. 3&4
Part three : Group Companies Page no. 5&6
Part four : Sector Synopsis Page no. 7-10
Part five : Major Industry Page no. 11-14
Contributors
Part six : Retail Format Page no. 15
Part seven : Company Outlets Page no. 16&17
Part eight : Product Offerings Page no. 18&19
Part nine : Channel of Page no. 20
Distribution
Part ten : Company Strategies Page no. 21&22
Part ten : Future Plan Page no. 23
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CONCEPT
The Organized retail industry in India did not evolve till the early 1990s. Until then, the
industry was dominated by the un-organized sector . It was a seller market, with a limited
number of brands, and little choice available to customers. Lack of trained manpower, tax
laws and government regulations all discouraged the growth of organized retailing in
India during that period. Lack of consumer awareness and restrictions over entry of
foreign players into the sector also contributed to the delay in the growth of organized
retailing. This allowed the un-organized sector to rule the Indian retailing industry. It was
during this time that the foundation of PRIL was laid by Biyani.
The history of PRIL can be traced to the mid -1980s, when Biyani, a commerce graduate
quit his family business of trading textiles and yarn to start manufacturing apparels. In
1987, PRIL was incorporated as Manz Wear Pvt Ltd and manufactured readymadetrousers under the Pantaloon brand. On September 20,1991 , Manz Wear Pvt Ltd, went
public and in 1992, the name was changed to Pantaloon Fashions (India) Limited (PFIL).
At that time , the company was distributing its garments across India through multi-brand
garments stores.
In 1992, the company inaugurated its first exclusive mens store called Pantaloons Shoppe
and by 1995, the number of stores had grown to 70, with most of them being franchisee
outlets . Biyani felt that the best way to realize the potential of the retail sector was to
launch departmental stores owned and managed by the company. In august 1997, the first
departmental store called Pantaloons was opened in the city of Kolkata with an
investment of Rs 0.7 million. Later the investment in this store was raised to Rs 50million and Rs 0.4 million was spent on advertising it, an unheard sum for a retailer to
spend on advertising at that time . The store was a success and recorded revenues of Rs
100 million within the first year of operations. It was the first retail store in India that
marketed apparel for the entire family, unlike other stores, which catered to a single
market segment such as men, women, or kids. In 1999, the companys name was changed
to Pantaloon Retail (India) Limited (PRIL).
This is Pantaloon Retail (India) Limited, (a Pantaloon Knowledge Group Company) -
Indias face of organized retail business. It is Indias leading retailer that now operates
multiple retail formats in both the value and lifestyle segment of the Indian consumer
market. Headquartered in Mumbai (Bombay), the company operates over 7 millionsquare feet of retail space, has over 1000 outlets (including shop-in-shops) across 53
cities in India and employs over 25,000 people.
Presently, in to five lines of businesses fashion and footwear, food, general
merchandise, leisure & entertainment and home the company operates multiple delivery
formats : the fashion store format under the Pantaloons brand; the showcase seamless
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mall under the Central brand; the hypermarket discount store format under the Big
Bazaar brand; the food & grocery retail format under the Food Bazaar brand, and apparel
stores under Fashion Station. Some of its other formats include, Home Town, Depot,
Shoe Factory, Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara.
The Company plans entry in telecommunications retail and other lines of businesses such
as wellness and beauty as well as books and music, besides pantalooning a portal for e-
retailing in the near future as another delivery format.
INTRODUCTION: Pantaloon Retail (India) Limited, is Indias leading retailer that
operates multiple retail formats in both the value and lifestyle segment of the Indian
consumer market. Headquartered in Mumbai (Bombay), the company operates over 7
million square feet of retail space, has over 1000 stores across 53 cities in India and
employs over 25,000 people.
VISION: Future Group shall deliver Everything,Everywhere, Every time for Every Indian Consumer in the most profitable manner
MISSION:We shall be efficient, cost- conscious and committed to quality in whatever
we do.
CORE VALUES:Rewrite rules. Retain values
REGISTERD AND CORPORATE OFFICE:
Pantaloon Knowledge House, Shyam Nagar, Off. Jogeshwari Vikhroli Link Road,
Jogeshwari (East), Mumbai 400 060.
The Registered Office of the Company was shifted from Venkatesh Bhavan, 4th Floor
86 Mirza Street, Mumbai 400003 to Pantaloon House, G 11 , M.I.D.C. Cross Road A,
Andheri East, Mumbai (400 093 )
Tel: (+91 22) 56442200 Fax: (+91 22) 56442201.Website:www.pantaloon.com
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COMPANY PROFILE
PantaloonRetail Indialimited
(India)Limited
Life styleRetailing
Valueretailing
Entertainment leisure
ntaloo Central Fashionstation
allMeLA
BigBazaar
FoodBazaar
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Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retailformats in both the value and lifestyle segment of the Indian consumermarket. Headquartered in Mumbai (Bombay), the company operates over 7 million squarefeet of retail space, has over 1000 stores across 51 cities in India and employs over 25,000people.
The companys leading formats include Pantaloons, a chain of fashion outlets, BigBazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blendsthe look, touch and feel of Indian bazaars with aspects of modern retail like choice,convenience and quality and Central, a chain of seamless destination malls. Some of its
other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station,aLL, Top 10, mbazaar and Star and Sitara. The company also operates an online portal,futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, alarge-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment.
Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by theUS-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year2007 at the World Retail Congress held in Barcelona.
Pantaloon Retail is the flagship company of Future Group, a business group catering to theentire Indian consumption space.
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GROUP COMPANIES
Future the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write
rules yet unwritten; create new opportunities and new successes. To strive for a gloriousfuture brings to us our strength, our ability to learn, unlearn and re-learn, our ability to
evolve.
Future Group is one of the countrys leading business groups present in retail, asset
management, consumer finance, insurance, retail media, retail spaces and logistics. The
groups flagship company, Pantaloon Retail (India) Limited operates over 7 million
square feet of retail space, has over 1000 stores across 53 cities in India and employs
over 25,000 people. Some of its leading retail formats include, Pantaloons, Big Bazaar,
Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail
format, futurebazaar.com.
Future Group companies includes, Future Capital Holdings, Future Generali India
Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar
and Bowling Co. Future Capital Holdings, the groups financial arm, focuses on asset
management and consumer credit. It manages assets worth over $1 billion that are
being invested in developing retail real estate and consumer-related brands and hotels.
The groups joint venture partners include Italian insurance major, Generali, French
retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based
Lee Cooper and India-based Talwalkars, Blue Food and liberty shoes.
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BOARD OF DIRECTOR
Mr. Kishore Biyani Mr. S Doreswamy
Managing director Director
Mr. Gopikishan Biyani Mr. Darlie Koshy
Wholetime Director Director
Mr. Rakesh Biyani Mr. Anil Harish
Wholetime Director Director
Mr. Shailesh Haribhakti Ms. Anju Podda
Director Director
Ms. Bala Deshpande Mr. Ved Prakash Arya
Director Director
FOUNDER: Mr. Kishore Biyani
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SECTOR SYNOPSIS
Retail is the world largest private industry with global retail sales of roughly USD 8
trillion. In India, however, the retail sector has seen a high level of fragmentation with a
large share held by unorganized players.
The domestic consumption story of India is at a point of inflection. The Indian economygrew at an unprecedented rate of 9.4% during 2006-07 with the Gross Domestic Producttouching a trillion dollars at market prices. Private final consumption expenditurecontinued to be a key driver for this growth and is estimated to be US $560 billion. On aconservative estimate the potential market size for retailing is around 56% of privateconsumption or around US $310 billion. Over the last couple of years, modern retail hasemerged as one of the fastest growing sectors in the Indian economy. The modern retailsector in India is around 4.6% of the wider retail market, compared to 20% and 38% inChina and Brazil respectively. This provides an enormous opportunit y for modern
retailers to benefit from rising consumption expenditure as well as capture a larger pie ofthe wider retail market. The modern retail sector is expected to enjoy 30-35% CAGR(compounded annual growth rate) and gain 11% share of the retail market within the nextfour years. The optimism that is now associated with the modern retail sector has nowfound many votaries. Among them, consultancy firm, AT Kearney has identified India asthe world's most attractive emerging market retail destination for the third consecutiveyear. Favorable demographics, booming consumerism and strong economic growth areacting as a key catalyst. Changing attitudes towards consumption and a rising propensityto consume highlight the fundamental shifts that are taking place in a traditionallydebtaverse society, in which conspicuous consumption was once frowned upon.
Pantaloon Retail (India) Limited's business strategy was designed to capture thesebenefits of change and the rising consumerism that is evident in the country. In recentmonths, large domestic and international companies are showing strong interest in theretail sector, which your Company has been part of for a decade now. Pantaloon Retail believes that the next phase of India's economic development will happen throughincreased consumption. Rise in consumption in India is setting about a virtuous cycle ofconsumption-led growth and development. Increased consumption is leading to rise inmanufacturing and job creation. This is in turn is leading to income generation and
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wealth creation which is aiding further growth in consumption. Rather than limit itself tojust a few categories in retail, the Company therefore looked at capturing a significantportion of the entire consumption opportunity that the Indian economy provides. Theseare being done through multiple initiatives in existing businesses and also by buildingnew businesses on the peripheries of the retail business. The Company has significantly
strengthened its existing mature businesses and is expanding established retail formatsinto new geographies and cities. At the same time, to capture new consumption trends,the Company has rolled out a large number of new initiatives and retail formats insegments like home improvement, consumer durables, communication products, books,music and entertainment, health, beauty and wellness among others. These specialty retailformats are in many cases the first in India and are expected to garner a significantportion of consumption expenditure going into new categories. During the period underreview, the Company opened 11 Pantaloons, 27 Big Bazaar, 13 stand-alone Food Bazaar,1 Central and 5 Brand Factory. Subsidiary Company, Home Solutions Retail IndiaLimited rolled out 2 Home Town, very-large format stores along with other retailformats. New stores covering around 2 million square feet of retail space were rolled out
taking the total retail space under operation to around 5.2 million square feet as on June2007. The Company plans to increase its retail space by nearly 4.5 million to 5.5 millionsquare feet in the coming year. In order to further leverage its reach and ability to attractincreasing number of customers within its stores, the Company has rolled out new businesses and subsidiaries in the areas of consumer finance, capital, insurance, realestate funds, retail media, brand development and logistics. Each of these new initiativesis a step towards driving more value from its existing retail businesses and at the sametime helps catalyses consumption within its stores.
In late 1990's the retail sector has witnessed a level of transformation. Retailing is being
perceived as a beginner and as an attractive commercial business for organized business
i.e. the pure retailer is starting to emerge now. Organized retail business in India is very
small but has tremendous scope. The total in 2005 stood at $225 billion, accounting for
about 11% of GDP. In this total market, the organized retail accounts for only $8 billion
of total revenue. According to A T Kearney, the organized retailing is expected to be
more than $23 billion revenue by 2010.
In organized retailing will grow faster than unorganized sector and the growth speed will
be responsible for its high market share, which is expected to be $ 17 billion by 2010-11.
Retailing will show good prospects in cities like Mumbai, Delhi, Chennai, kolkata,
Banglore and Kanpur. After Dubai, Singapore and Hong Kong, In India Delhi will be the
next big retail destination, According to Confederation of Indian Industries whosefindings have shown that Delhi has the good resources and good conditions for the retail
sector. Out of the total earnings of the Government of Delhi Rs 11,000 crore, Rs 6,500
crore is achieved from the retail sector.
The organized sector is expected to grow faster than GDP growth in next few years
driven by favorable demographic patterns, changing lifestyles, and strong income growth.
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This organized retail sector mix includes supermarkets, hypermarkets discounted stores
and specialty stores, departmental stores.
Growth drivers in India for retail sector
Rising incomes and improvements in infrastructure are enlarging consumer
markets and accelerating the convergence of consumer tastes
Liberalization of the Indian economy
Increase in spending Per capita Income.
Advent of dual income families also helps in the growth of retail sector.
Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic.
Consumer preference for shopping in new environs
The Internet revolution is making the Indian consumer more accessible to thegrowing influences of domestic and foreign retail chains. Reach of satellite T.V. channels
is helping in creating awareness about global products for local markets.
About 47% of India's population is under the age of 20; and this will increase to
55% by 2015. This young population, which is technology-savvy, watch more than 50
TV satellite channels, and display the highest propensity to spend, will immensely
contribute to the growth of the retail sector in the country.
Availability of quality real estate and mall management practices
Foreign companies' attraction to India is the billion-plus population.
GROWTH OF ORGANISED RETAIL IN INDIA
The total retail sector in India is estimated at around USD 320 billion.
Estimated organized retail in India to reach 12% to 13% of the total retail market by
2010 with sales of Rs 1700-1800 billion.
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According to this years Global Retail Development Index India is positioned as theleading destination for retail investment. This followed from the saturation in western
retail markets and we find big western retailers like Wal-mart and Tesco entering into
Indian market. Indias retail industry accounts for 10 percent of its GDP and 8 percent
of the employment to reach $17 billion by 2010. There are about 300 new malls,
1,500 supermarkets and 325 departmental stores being built in the cities very soon.
In organized retailing will grow faster than unorganized sector and the growth speed
will be responsible for its high market share, which is expected to be $ 17 billion by
2010-11.The organized sector is expected to grow faster than GDP growth in next
few years driven by favorable demographic patterns, changing lifestyles, and strong
income growth. This organized retail sector mix includes supermarkets, hypermarkets
discounted stores and specialty stores, departmental stores. For example, Spencer
network has 69 stores, which includes seven Spencer hypermarkets, three Spencer
super markets and 49 Spencer .
Break up of consumers expenditure in organized retail
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Percentage of Organized Retail
USA - 85%
Taiwan - 81%
Malaysia - 55%
Thailand - 40%
Brazil - 36%
Indonesia - 30%
Poland - 20%
China - 20%
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MAJOR INDUSTRY CONTRIBUTORS
Name US $ Million
Future Group (Pantaloon) 444
Shoppers Stop 133
Landmark (Lifestyle) 80
Trent 53
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Subhiksha 44
Vishal Mega Mart 25
India is witnessing an unprecedented consumption boom. The economy is growingbetween 7 and 9 percent and the resulting improvements in income dynamics along
with factors like favorable demographics and spending patterns are driving the
consumption demand.
Indian Retail Industry is ranked among the ten largest retail markets in the world.
The attitudinal shift of the Indian consumer in terms of "Choice Preference", "Value
for Money" and the emergence of organized retail formats have transformed the face
of Retailing in India. The Indian retail industry is currently estimated to be a US$
200 billion industry and organized Retailing comprises of 3 per cent (or) US$6.4
Billion of the retail industry. With a growth over 20 percent per annum over the last
5 years, organized retailing is projected to reach US$ 23 Billion by 2010.
The Indian retail industry though predominantly fragmented through the owner -run "
Mom and Pop outlets" has been witnessing the emergence of a few medium sized
Indian Retail chains, namely Pantaloon Retail, RPG Retail, Shoppers Stop, Westside
(Tata Group) and Lifestyle International.
Given the attractiveness of the Indian retail sector, foreign retailers like Wal-Mart,
Carrefour SA( Europe's largest retailer) and Tesco Plc( the UK's largest retailer)
were keen to enter this growing market, despite the Indian retail sector being closed
to foreign direct investment (FDI). In February 2006, the Indian Government had
announced its decision to allow FDI of upto 51% in single brand retailing. Wal-Mart
had said that India is high on its priority and that it is closely monitoring the
Government's policy on FDI in the retail sector.
In the last few years, Indians have gone through a dramatic transformation in
lifestyle by moving from traditional spending on food, groceries and clothing to
lifestyle categories that deliver better quality and taste. Modern retailing satisfies
rising demand for such goods and services with many players entering the
bandwagon in an attempt to tap greater opportunities. According to the 'Global Retail
Development Index (GRDI) 2006' by the management consulting firm 'A.T.
Kearney', India has retained it's topmost position in the annual study of retail
investment attractiveness among 30 emerging markets.
.The Domestic competitors of Pantaloon in 2005:
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RETAILER REVENUES
(Rs.bn)
TOTAL FLOOR
SPACE (lakh sq ft)
TOTAL NO. OF
OUTLETS
2003-04
2004-05
2003-04
2004-05
(estimated)
2003-04
2004-05
(estimated)
Pantaloon
RPG
Shoppers stop
Lifestyle
WestsideEbony
Piramyd
Globus
6.50 13.00 11.0 30.0 31 74
5.45 8.00 5.2 7.5 110 130-134
4.04 5.45 6.3 8.5 13 40
2.30 3.10 3.2 3.2 7 0
1.20 N.A. 2.3 3.3 14 18/19
0.85 1.00 1.7 2.4 8 12
0.72 1.40 1.3 5.0 3 7/8
N.A. N.A. 1.5 6.0
(next3years)
7 14/15
(next3years)
Pantaloons Retail India Limited, which operates Pantaloons superstores, has around 14
Pantaloon Family Stores and 10 Pantaloon `Shoppes' across the country. In addition, they
also run 4 hypermarkets under the `Big Bazaar' brand. Since the opening of their first
store in 1997, in terms of financial size, Pantaloon has already raced to the front to
become the country's largest public limited retail giant with a turnover of US$ 87 million.
They have managed to do so, among other strategies, by keeping costs down. Their
policy of buying directly from manufacturers (to eliminate the middleman), cash
purchases (to get a cash discount) and optimum stock management has helped them to
pass on the benefits to the customers that work well in this price sensitive market. Their
future plans, to become a US$ 217 million super retailer by 2005, include setting up eight
new Big Bazaars (hypermarkets), four new Pantaloon stores, three independent foodstores and a mall in Bangalore
RPG Group: According to the above-mentioned survey, the most enthusiastic player in
organized retail in India is the Goenka group's RPG Enterprises. RPGs retail empire is
one of the largest in India, having more than a 100 stores that includes Food World - an
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alliance with Dairy Farm International of the Jardine Matheson Group; Music World - a
50:50 joint venture with Dairy Farm International, Health & Glow (cosmetics, health
products and medicines) and Giant (hypermarkets). Primarily based in south India, the
turnover of RPGs retail empire is around US$ 98 million and accounts for nine percent of
the group's turnover.
Landmark Group: Owned by the $600 million Landmark Group, which operates 170
stores worldwide, Lifestyle forayed into the Indian retail market in 1998. Lifestyle India
achieved a turnover of US$ 29 million in 2002-03 with five stores in operation. One of
the primary reasons for their success in India has been their experience in running retail
chains overseas. Their strategic decision to set up everything under one roof versus
setting up separate stores in different segments has stood them in good stead. Another
advantage they have is that Lifestyle has developed its own in-house label, which
comprises 11 percent of total merchandise. In addition, its parent company does bulk
purchases of commodities that are sold at these stores so that the products can be sold at acheaper rate. Lifestyle plans to open six more stores aiming to offer around 500,000
square feet of shopping space by next year and to achieve a turnover of US$ 50 million in
2003-04. Pantaloon and Lifestyle are considered to be the powerhouses of retail in India.
According to industry sources, in the next 12 to 18 months, both these superstores will
offer two million square feet of retail space between them.
K. Raheja Group: The K Raheja promoted Shoppers' Stop, credited with starting the
retail revolution in India, is said to be the leader in department store format. At present,
Shoppers' Stop has 10 stores across India. Shoppers' Stop also runs the 13 stores of the
bookstore chain `Crossword' which it acquired two years ago. The future plans of this
chain, having a turnover of US$ 66 million, are to open 24 more Shoppers' Stop Stores in
the next two years and 12 more Crossword stores by the end of this year. A unique
feature of Shoppers' Stop operations is that their private labels such as Stop, Kasish, Life
and Carrot contribute 20 percent to its turnover.
Tata Group: The US$ 9.7 billion Tata Group's retail arm Trent runs the Westside chain
of stores. Trent has already established 11 Westside departmental stores measuring
20,000 square feet each, in Mumbai, Bangalore, Hyderabad, Chennai, Pune, New Delhi,
Kolkata, Nagpur and Ahmedabad. The company hopes to expand rapidly with similar
format stores that offer a balance between style and price retailing. Future plans include
establishing the Westside brand in all large towns with a population of over 100,000.
Trent is also planning to venture into food and grocery retailing through a chain of
hypermarkets. Group company Tata Coffee, which holds over 32 percent in Barista
Coffee Company, has targeted 160 espresso bars in India and abroad in the recent future.
Some of the other well-known names in the Indian retail arena are ITC Lifestyle, Globus,
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Nilgiris, Caf Coffee Day, Quickys, Amorettos, Bata, Super Sabka Bazaar, and
Subhiksha etc.
PRIL and its Domestic Competitors
(as of april 2006)
Companies Total Outlets /
Department
Stores
Number of
Cities Covered
Retail Space
Covered (in
million sq.ft)
Employee
Strength
PRIL 99 25 3 12,000
Shoppers stop 20 10 0.75 2,400
Trent 27 14 0.45 1,200
Globus stores 12 8 0.25 NA
RETAIL FORMATS
Traditional Retail Format
Format Definition Value position India examples
Counter stores Food: Family run stores, selling
essentially food items.
High service, low
price
Kirana stores
Kiosks Pavement stalls selling limited
variety of food & beverages.
High service Paan shops
Street markets Regular markets held at fixed
centre retailing food & general
merchandise items.
Large selection,
low price
Village haats
Street vendors Mobile retailers essentially selling
perishable food items-fruits.
High service Vegetable
vendors
Modern Retail Format
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Some of the modern retail format and their value proposition are given below.
Format Definition Value position
Department stores Multiple product categories, usually lifestyle
driven with apparel/accessories dominating.
Service & choice
Super market/
Convenience stores
Food and household products. Convenience
Hyper markets/
Discount stores
Large stores in big box format, with volume
based discounted price.
Price & choice
Specialty stores/
Category Killers
Extensive range of products under a single
category.
Service
Seamless Mall Apparel, Accessories, Lifestyle products,
Entertainment.
Convenience, service
& choice
COMPANY OUTLET
Pantaloon is an aggressive player in the retail space , with a presence across multiple
formats. The ability to repeat its strong performance across newer formats would
determine its future growth.
The first Pantaloons was opened in Gariahat in 1997. Over the years, it has undergoneseveral transitions. When it was first launched, this store mostly sold external brands.Gradually, it started retailing a mix of external brands while at the same time introducedits own private brands. Initially positioned as a family store, it finally veered towardsbecoming a fashion store with an emphasis on 'youth' and clear focus on fresh
fashion.
Today, the fashion store extends to almost all the major cities across thecountry. Pantaloons has established its presence with stores not just in the metros, butalsoinsmallertowns.
Pantaloons stores have a wide variety of categories like casualwear, ethnicwear,formalwear, partywear and sportswear for Men, Women and Kids.
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Pantaloon operates over 7 million square feet of retail space, has over 1000 outlets
(including shop-in-shops) across 53 cities in India and employs over 25,000 people.
PANTALOON OUTLETS
As on 30th june , 2006,the total number of pantaloon stores stood at 21 , with 9
stores opening during the year under review .
These are as follows-
City mall-Ahmedabad 20000sq. ft
Sigma hall-Bangalore 20000sq. ft
Borivali-Mumbai 30000sq. ft
Sahara mall-Luck now 20000sq. ft
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Kalani mall-Indore 20000sq. ft
Runwal mulund-Mumbai 19500sq. ft
Cross river mall-Shahdara 25000sq. ft
Cinepux mall-Mangalore 23550sq. ft
Rajkot 18000sq. ft
PRODUCT OFFERINGS
Pantaloon is positioned as an entire family store and it deals in mens wear, ladies wear
and kids wear. It mainly focuses on its Private label program me because the share of
private label has increased over the previous year and stands at nearly 75%. Below are
some of the companys private labels:
MENS WEAR
John Miller
JM Sports
Bare Denim
Rig
Ajile
Lombard
T-2000
Bare Leisure
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LADIES WEAR
Honey
Akkriti
Annabelle
Mix & Match
Ajile
Rig
KIDS WEAR
Chalk
Bare 7214
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ACCESSORIES
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Cosmetics
Stationary for kids
Books & Magazines
CHANNELS OF DISTRIBUTION
Future logistics solution limited ,a wholly owned subsidiary has been formed to offer
more strategic ,systematic approach to meet group large captive supply chain
management (scm)
On the backing of the group association, alliances and key vendors FLSL will also extend
its services bonquet to them in near future.
Future logistic team currently oversee the operation of an existing fleet of over 200
delicated trucks ,contracted from established regional and national transport carrier.
GDS being piloted for outbound deliveries and would be rolled out nationally in nearfuture.
In term of warehouse space nearly 2 million squre feet was operational as on30 dec 2007
consisting of MASTER DISTRIBUTIONCENTRE and other regional dcs
FUTURE LOGISTIC has build about 4 mega merchandising hub of about 250000 feet
located in 4zones of India
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PRICING STRATEGY
-The largest player in the organized retail Pantaloon Retail came-up with 1500 -2000 sqft no-frills KB fair Price shops in this year. They propose to provide branded products at
10% less than the Mrp and 20% off on the local brands, which is similar to what has been
carried out in Big bazaar.
Keeping costs down is clearly the cornerstone of policy at both chains. Pantaloon chief
Biyani ensures cheaper prices by keeping watch at every step.
Says Biyani: "We do three things -- buy directly from the manufacturers so that the
middle man is eliminated. We buy in cash and get a cash discount, and manage our stocks
turns so that we don't have money stuck up. The benefits are passed on to the customers.
Cash discounts (for buying goods upfront in cash) on the other hand could range from 2
per cent to 10 per cent. And the company pushes for a stock turn of 40-50 times a year for
its food items, and once a month for ready to wear.
Backward integration is the name of the game in Pantaloon stores -- and they help to keep
costs down dramatically. Almost 70 per cent of the ready-to-wear products in the store
are manufactured by the group's own garment units. As a result it is able to offer prices in
ready-to-wear that are virtually 30 per cent cheaper than competitors. They increase
there margins by pushing their own in-house labels.
POSITIONING STRATEGY
The first Pantaloons was opened in Gariahat in 1997. Over the years, it has undergone
several transitions. When it was first launched, this store mostly sold external brands.
Gradually, it started retailing a mix of external brands while at the same time
introduced its own private brands. Initially positioned as a family store, it finally veered
towards becoming a fashion store with and emphasis on youths and clear focus on
FRESH FASHION. .
http://www.pantaloon.com/http://www.indiaretailbiz.com/blog/2007/08/10/biyani-announces-entry-into-small-format-last-mile-neighbourhood-retail-space-plans-to-se-up-1500-fair-price-shops-in-two-years/http://www.pantaloon.com/http://www.indiaretailbiz.com/blog/2007/08/10/biyani-announces-entry-into-small-format-last-mile-neighbourhood-retail-space-plans-to-se-up-1500-fair-price-shops-in-two-years/ -
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PANTALOON Retail is in revamp mode. Changing its positioning from a family-
oriented store to a fashion store, Pantaloon stores are being re launched on the `youth'
platform. Sporting a new baseline, Pantaloon will now carry the `Fresh Fashion'
statement across its 12 stores. India is a young country compared to the others and we
wanted our brand to get associated with this emerging target audience. This is the first
time that we are re launching our stores targeting youth and even women, since they arethe ones defining most purchasing decisions.
FUTURE PLANS
1 The country's largest retailer, Pantaloon Retail, is cooking up plans to significantly
increase its presence in the rapidly growing domestic food industry. The retailer is also
working towards getting closer to the Indian homemaker by offerings in store which will
take away the negative labour back home with a range of products in a` live kitchens'
format, including home style gravies, dals, cooked rice.
2 PANTALOON is increasing number of FOOD BAZAAR outlet from 40 to150
3 Pantaloon to raise funds; plans IPO of Future Capital finance unit
Leading Indian retailer Pantaloon Retail India Ltd has announced that it would sell
shares and warrants to investors and founders of the company to raise over $300 million
and also sell 10% of Future Capital Holdings.
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4. Diversifying its retailing initiatives, the Rs 650-crore Pantaloon Retail (India) is
planning to start its own company parlors at its Big Bazaar outlets.
5 PANTALOON announced its plans to form a joint venture with ITALY based
GENERALI group to tap insurance sector