MANTHAN

REPORT 2020
Retail sector

National Institute of Agricultural Extension Management (MANAGE)

Rajendranagar, Hyderabad, 500030

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INDEX

S.No Topic Pg. No

1 Introduction 3

2 Global retail industry 4

3 Indian retail industry 5

4 Indian retail formats 7

5 Major players in India 9

6 Government initiative to promote retail 14

7 Foreign direct investments and policy 15

8 Rural retail 19

9 Impacts of COVID 19 on retail industry 21

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Introduction
The retail market is mature and highly competitive in the developed economies
of Europe and North America. On the other hand, the developing economies of
Asia-Pacific, Middle East, and Latin America have been instrumental in driving
the market growth. Consumer spending, which typically accounts for around
two-thirds of the GDP, has been a key indicator of the health of the retail
market. Moreover, the increasing strength of online shopping has been a major
driver. Apart from this, the growing Smartphone penetration across countries is
driving the e-commerce channel.
India is one of the world’s fastest growing e-commerce markets, driven by
robust investment in the sector and rapid increase in the number of internet
users. India is the world’s fifth largest global destination in the retail space. In
the FDI Confidence Index, India ranks 11th in A.T. Kearney annual survey
emerging as one of the most dynamic and fast-paced industries due to the entry
of several new players. Total consumption expenditure is expected to reach
nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts
for over 10 per cent of the country’s Gross Domestic Product (GDP) and around
8 per cent of the employment. The Retail Industry was valued at USD 23,460
billion in 2017 and is expected to register a CAGR of 5.3% during the forecast
period (2018 - 2023), to reach USD 31,880.8 billion by 2023.
Internet of things is also revolutionizing the retail industry, the market was
valued at USD 193.60 billion in 2019 and is expected to reach USD 657.31
billion by 2025, at a CAGR of 21% over the forecast period 2020 - 2025. With
the development of wireless networking technologies, the emergence of
advanced data analytics, a reduction in the cost of connected devices, an
increase in cloud platform adoption, the market is expected to grow at a positive
rate.
Retail industry value Forecast Internet of things
2023, 800
2017, 31880 $
35000
30000 26430 $ 600
25000
20000 400
US $

15000
10000 200
5000 5.3 %
0 21%
0
2019 2025
2015 2020 2025
Year Internet of things

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Market Size:

Retail industry reached US$ 950 billion in 2018 at a CAGR of 13 per cent and
expected to reach US$ 1.1 trillion by 2020. Online retail sales are forecasted to
grow at the rate of 31 per cent year-on-year to reach US$ 32.70 billion in 2018.
Revenue generated from online retail is projected to grow to US$ 60 billion by
2020.

Revenue of India’s offline retailers, also known as brick and mortar (B&M)
retailers, is expected to increase by Rs 10,000-12,000 crore (US$ 1.39-2.77
billion) in FY20.India is expected to become the world’s fastest growing e-
commerce market, driven by robust investment in the sector and rapid increase
in the number of internet users. Various agencies have high expectations about
growth of Indian e-commerce markets.

Global retail industry

Retail has played a major role world over in increasing productivity across a
wide range of consumer goods and services. The impact can be best seen in
countries like U.S.A., U.K., Mexico, Thailand and more recently in China.
Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and
Dubai are also heavily assisted by the retail sector. Retail is the second-largest
industry in the United States both in number of establishments and number of
employees.
Global retail sales were projected to amount to around 30 trillion U.S. dollars by
2023, up from approximately 23 trillion U.S. dollars in 2017. The retail industry
encompasses the journey of a good or service. This typically starts with the
manufacturing of a product and ends with said product being purchased by a
consumer from a retailer. Retail establishments come in many forms such as
grocery stores, restaurants, and bookstores.

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 Global retail sales forecast
35
30
25
20
15
10
5
0
2017 2018 2019 2020 2021 2022 2023
Sales in trillion US $ 22.7 23.96 25.04 26.07 27.24 28.47 29.76
Source : https://www.statista.com/statistics/443522/global-retail-sales/

Indian retail industry:

The Indian retail market was estimated to be worth roughly about $600 billion
at the beginning of 2015, and is expected to expand to $1.3 trillion by 2020.
92% of the revenue is generated by the unorganized sector (consisting of
traditional outlets not under the tax net), according to a report by KPMG.

Modern trade (supermarkets, hypermarkets, and other organized retail stores)

accounted for $60 billion. E-commerce is estimated to be worth $6 billion and is
projected to increase to $70 billion by 2020.

Indian retail industry

unorganized sector organized sector
8%

92%

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Categories of Indian retail market
 Traditional outlets (vegetable, fruit, and grain markets and fairs)
 Established outlets (corner shops, kiosks, independent stores, department
stores, supermarkets, hypermarkets, speciality stores, franchise stores,
discount stores, and wholesale cash-and-carry outlets)
 Cooperative/government stores (mother dairy stores, khadi and village
industry outlets, cottage industries emporiums, defence canteens, and
fair-price shops)
 E-commerce (online travel ticket and hotel accommodation, leisure
goods, electronic goods, entertainment electronics, etc.)

Channels in Indian Retail industry

 They are the direct channels (producer to customer)
 Retailer channel (producer to retailer to customer)
 Wholesale channel (producer to wholesaler to retailer to customer)
Agent/broker channel (producer to agent/broker to wholesaler to retailer
to customer)
 Modern retail stores abroad use “omnichannel” strategies to seamlessly
integrate channels and let the customer decide when, where, and how to
buy

Unorganized sector Organized Sector

food & Grocery Apparel Apparel
Telecom Food service Food grocery
jewellery pharmacy Telecom
Consumer electronics
5% 3%

6% 19%
7%
6%
9%
6%
70% 69%

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The major factors responsible for the growth of organized
retailing in India:
Retail Industry, one of the fastest changing and vibrant industries, has
contributed to the economic growth of our country. Within a very short span of
time, Indian retail industry has become the most attractive, emerging retail
market in the world.

Demand side Supply side

Retail formats in India:

Store formats
 HyperMarket - Hypermarket offers a large basket of products, ranging
from grocery, Fries & processed food, beauty & healthcare products, etc.
Example – Spencer’s, Big Bazaar
 Cash & Carry - These are large B2B focused retail formats, buying &
selling in bulk for various commodities and carry several thousand stock
keeping. Example – Metro
 Supermarkets - A supermarket is a grocery store, which deals with food
and household goods. They provide products for reasonable prices and of
medium to high quality. Example – More

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  Department Stores - Department stores have a large layout with a wide
range of merchandise mix, usually in cohesive categories, Example: -
Ebony, Shoppers Stop, Westside
 Specialty Stores - Specialty stores are a single category, focusing on
individuals and group clusters of the same class with high product
loyalty. Examples – Woodland, Archies, etc
 Discount Store - A discount store is a retail store offering a wide range
of products, mostly branded, at discounted prices or apparel or footwear
brands. Example – Brand factory, Nike, Levi’s Convenient Store - A
convenience store is a relatively small retail store located near a
residential area (closer to consumer), open long hours, 7 days a week and
carrying a limited range of staples and groceries. Example - In & Out

Non-store formats
 Catalog Retailers - Customers place orders after seeing products that
appear in a mailed catalog. A third-party shipper then delivers orders.
Five stores of Hyper City Argos have already begun their operations in
Thane and more are on their way. Croma of Infiniti Retail Ltd has a
different version and Future Group is busy making its strategy for the
same
 E-tailers - E-tailing is a subset of e-commerce, which encapsulates all
“commerce” conducted via the Internet. It refers to that part of e-
commerce, which entails the sale of product merchandise and does not
include the sale of services viz. railway tickets, airlines tickets, job
portals, etc. There are thousands of online only retail sellers. These
retailers offer shopping convenience including being open 24X7
 Vending - Vending machines are an automatic machine from where we
can purchase items like cold drinks, chocolates by thronging coins in it.
While most consumers are well aware of vending machines, allowing
customers but newer devices are entering the market containing more
expensive and larger products

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Service retailers

Service retailers are those, which provide different services to customers. The
benefits are experienced instantly by consumers like shoe polisher or barber
shops.
There are four levels of retail service
 Self-service - The cornerstone of all discount stores, self-service allows
customers to save money by carrying out their own locate-compare-select
process
 Self-selection - Customers find their own goods, although they can ask
for help
 Limited service - These retailers carry more shopping goods, and
customers need more information and assistance. The stores also offer
services (such as credit and merchandise return privileges)
 Full service - Salespeople are ready to assist in the locate-compare-select
process. The high staffing cost, the higher proportion of specialty goods,
slower-moving items, and more services, add up to high-cost retailing

Major players in Indian retailers:

Reliance retail Limited- Revenue: ₹1,30,566 cr

Future retail limited- Revenue: ₹ 22,225 cr

Avenue Supermarts Ltd- Revenue: ₹ 21,137 cr

Aditya Birla Fashion & Retail Ltd- Revenue:

₹ 8,270 cr

Shoppers stop- Revenue: ₹ 3,487 cr

Trent Limited- Revenue: ₹ 2,708 cr

V-Mart retaillimited- Revenue: Rs 1,674 Cr

Infiniti Retail Ltd

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1. Reliance retail limited

India’s largest retailer by reach, scale, revenue, profitability, and India’s

biggest retail company. Established presence across key consumption baskets
and holds a leadership position in food, consumer electronics and fashion
retailing. 10,415 stores covering 22 million sq ft area Reliance Retail operates
the most extensive store network in the country. It is first Among top retail
companies in India.

● Revenue: ₹1,30,566 cr
● Retail Stores: 10,415
● Employees: More Than 1 Lakh

Reliance Retail became the first retailer in India to cross the Rs 1,00,000
crore turnover milestone and is now ranked 94th in Deloitte’s Global Powers of
Retailing 2019 list. Reliance Retail also crossed the 10,000 store count
milestone.
India’s biggest retail company is engaged in the business of retailing products
and services across five key consumption baskets:

● a) Fashion and Lifestyle,

● b) Consumer Electronics,
● c) Grocery,
● d) Petro Retail and
● e) Connectivity

2. Future retail limited

Future Retail operates some of India’s most popular retail chains serving
millions of customers in more than 400 cities in every state of the country
through digital platforms and over 2000 stores that cover over 16 million square
feet of retail space.

● Revenue: ₹ 22,225 cr

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  Retail stores: 1511
● Employees: More Than 1 Lakh

Reliance Retail became the first retailer in India to cross the Rs 1,00,000
crore turnover milestone and is now ranked 94th in Deloitte’s Global Powers of
Retailing 2019 list. Reliance Retail also crossed the 10,000 store count
milestone.
India’s biggest retail company is engaged in the business of retailing products
and services across five key consumption baskets:

● a) Fashion and Lifestyle,

● b) Consumer Electronics,
● c) Grocery,
● d) Petro Retail and
● e) Connectivity

2. Future retail limited

Future Retail operates some of India’s most popular retail chains serving
millions of customers in more than 400 cities in every state of the country
through digital platforms and over 2000 stores that cover over 16 million square
feet of retail space.

● Revenue: ₹ 22,225 cr
● Retail Stores: 1511
● Employees: 45,949

Future retail is the second-largest top retail company in India after reliance
retail. The company’s presence through Big Bazaar hypermarkets and more
recently through Foodhall gourmet stores, allows it to target the entire cross
section of customers. It is one of the largest listed retail companies in India.

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 ● Market Cap: 17,847 Cr.
● ROE: 21.34 %
● Sales Growth (3Yrs): 47.70 %
● Promoter holding: 49.51 %
● Debt to equity: 1.16
● Price to book value: 5.41
●
From live kitchens and tasting sessions to international cuisine and home
appliances to go with it, from exotic vegetables to a wider range of dairy
products, learnings, skill sets and insights from Food hall is finding its way into
Big Bazaar.

3. Avenue Supermarts Ltd

DMart is a one-stop supermarket chain that aims to offer customers a wide

range of basic home and personal products under one roof. Each DMart store
stocks home utility products – including food, toiletries, beauty products,
garments, kitchenware, bed and bath linen, home appliances and more.

● Revenue: ₹ 21,137 cr
● Retail Stores: 176
● Employees: 7,713

DMart was started by Mr. Radhakishan Damani and his family to address the
growing needs of the Indian family. From the launch of its first store in Powai
in 2002, DMart today has a well-established presence in 188
locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh,
Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab, and Rajasthan.

● Market Cap: 144,023 Cr.

● ROE: 17.45 %
● Sales Growth (3Yrs): 32.58 %
● Promoter holding: 79.73 %
● Debt to equity: 0.13
● Price to book value: 23.10

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The supermarket chain of DMart stores is owned and operated by Avenue
Supermarts Ltd. (ASL). The company has its headquarters in Mumbai. The
brands D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour, etc
are brands owned by ASL.

4. Aditya Birla Fashion & Retail Ltd

Aditya Birla Fashion and Retail Ltd. (ABFRL) emerged after the consolidation
of the branded apparel businesses of Aditya Birla Group comprising ABNL’s
Madura Fashion division and ABNL’s subsidiaries Pantaloons Fashion and
Retail (PFRL) and Madura Fashion & Lifestyle (MFL) in May 2015. Post the
consolidation, PFRL was renamed Aditya Birla Fashion and Retail Ltd.

● Revenue: ₹ 8,270 cr
● Retail Stores: 2714
● Employees: 23,000+
ABFRL is India’s No 1. Fashion Lifestyle entity with combined revenue of
INR 8,118 crore for FY 2019 and EBITDA of INR 619 crore for FY 2019. Birla
Fashion is the largest fashion listed retail companies in India

● Market Cap: 19,737 Cr.

● ROE: 25.56 %
● Sales Growth (3Yrs): 10.39 %
● Promoter holding: 59.09 %
● Debt to equity: 3.12
● Price to book value: 14.67

ABFRL hosts India’s largest fashion network which includes 2,700+ ABFRL
brand outlets, a footprint of 7.5 million sq. ft. of retail space across 750+ cities
and towns, It has ~30 million Loyalty Members as of 31st March 2019.

5. Shoppers stop

Established in 1991, Shoppers Stop is India’s pioneering retailer and

effectively, the highest benchmark in modern retail. Spread across 210 multi-
format stores in 39 cities.

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Revenue: ₹ 3,487 cr
● Retail Stores: 210
● Employees: 7,416

The Company is engaged in the business of retailing a range of household

and consumer products through departmental stores. The Company operates
three business segments: Retail operations, Property options, and Others.

● Market Cap: 3,522 Cr.

● ROE: 7.15 %
● Sales Growth (3Yrs): -8.00 %
● Promoter holding: 63.86 %
● Debt to equity: 5.61
● Price to book value: 0.10
The Company’s Retail operations segment includes trading of apparels, non-
apparels, such as cosmetics, household items, food products, books and
compact discs (CDs). The Company’s Other segment consists of the gaming
business.
Source: https://indiancompanies.in/list-of-biggest-retail-companies-in-india/

Government Initiatives to promote retail industry:

 The Government of India is playing a vital role in making the Indian

retail industry the most lucrative for non-resident Indians (NRIs) and
persons of Indian origin (PIOs)
 The Government of India has taken various initiatives to improve the
retail industry in India. It has allowed 100 percent Foreign Direct
Investment (FDI) in the online retail of goods and services through the
automatic route, thereby providing clarity on the existing businesses of e-
commerce companies operating in India
 The Government of Andhra Pradesh signed pacts worth Rs 1,500 crore
(US$ 222.36 million) in a wide range of sectors including retail and steel

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 and gas with Walmart India, Future Group, Arvind Lifestyle Brands Ltd
and Spencer’s Retail, during the Partnership Summit in Visakhapatnam,
while also unveiling a retail policy aimed to attract retail businesses to
invest in the state
 The Ministry of Urban Development has come out with a Smart National
Common Mobility Card (NCMC) model to enable seamless travel by
metros and other transport systems across the country, as well as retail
purchases
 The Government of India has allowed 51 per cent foreign direct
investment (FDI) in multi-brand retail and 100 per cent FDI in single-
brand retail

 DIPP is likely to consider relaxing the sourcing norms for global retailers
to establish shops in India, as IKEA is asking for further relaxation of
mandatory condition
 The Union Ministry of Finance has provided relief to the Rs 18,000 crore
(US$ 3.25 billion) software industry by replacing a multi-level structure
of tax deducted at source (TDS) on distributors with a single TDS. This
would be deducted by the first distributor—one who directly purchases
packaged software from a developer

FDI policy with regard to Retail in India

● FDI up to 100% for cash and carry wholesale trading and export trading
allowed under the automatic route

● FDI up to 51 % with prior Government approval (i.e. FIPB) for retail

trade of ‘Single Brand’ products, subject to Press Note 3 (2006 Series)

● FDI is not permitted in Multi Brand Retailing in India yet

Entry Options for Foreign Players prior to FDI Policy

Although prior to Jan 24, 2006, FDI was not authorized in retailing, most
general players had been operating in the country. Some entrance routes used
by investors have been explained below:-

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A. Franchise Agreements
It is the easiest way to enter the Indian market. In franchising and commission
agents’ services, FDI (unless otherwise prohibited) is allowed with the approval
of the Reserve Bank of India (RBI) under the Foreign Exchange Management
Act. This is a most usual mode for entrance of quick food bondage opposite a
world. Apart from quick food bondage identical to Pizza Hut, players such as
Adidas, Reebok, Amazon as good as bennet and Coleman, have entered Indian
marketplace by this route.

B. Cash and Carry Wholesale Trading

This is 100% FDI allowed in wholesale trading which involves building a large
distribution infrastructure to assist local manufacturers. The wholesaler deals
only with smaller retailers and not Consumers. Metro AG of Germany was the
first significant global player to enter India through this route.

C. Strategic Licensing Agreements

Some foreign brands give exclusive licences and distribution rights to Indian
companies. Through these rights, Indian companies can either sell it through
their own stores, or enter into shop-in-shop arrangements or distribute the
brands to franchisees. Mango, the Spanish apparel brand has entered India
through this route with an agreement with Pyramid, Mumbai, SPAR entered
into a similar agreement with Radhakrishna Foodlands Pvt. Ltd

D. Manufacturing and Wholly Owned Subsidiaries.

The foreign brands such as Nike, Reebok, Adidas, etc. that have wholly-owned
subsidiaries in manufacturing are treated as Indian companies and are, therefore,
allowed to do retail. These companies have been authorised to sell products to
Indian consumers by franchising, internal distributors, existent Indian retailers,
own outlets, etc. For instance, Nike entered through an exclusive licensing
agreement with Sierra Enterprises but now has a wholly owned subsidiary, Nike
India Private Limited.

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FDI in Single Brand Retail

The Government has not defined the meaning of “Single Brand” anywhere
neither in any of its circulars nor any notifications. I n single-brand retail, FDI
up to 51 per cent is allowed, subject to Foreign Investment Promotion Board
(FIPB) approval and subject to the conditions which is given below:

(a) Only single brand products would be sold (i.e., retail of goods of multi-brand
even if produced by the same manufacturer would not be allowed),

(b) Products should be sold under the same brand internationally,

(c) Single-brand product retail would only cover products which are branded
during manufacturing and

(d) Any addition to product categories to be sold under “single-brand” would

require fresh approval from the government.

FDI in Multi Brand Retail

The government has also not defined the term Multi Brand. FDI in Multi Brand
retail implies that a retail store with a foreign investment can sell multiple
brands under one roof.
In July 2010, Department of Industrial Policy and Promotion (DIPP), Ministry
of Commerce

Need of FDI

 Domestic capital is inadequate for economic growth of the country,

 Foreign capital is usually essential, at least as a temporary measure,
during the period when the capital market is in the process of
development,
 Foreign capital usually brings it with other scarce productive factors
like technical knowhow, business expertise and information about
latest business trends at global level.

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Benefits of FDI

 Improves foreign exchange position of the country,

 Employment generation and increase in production ,
 Helps in capital formation by bringing fresh capital,
 Helps in transfer of new technologies, management skills, intellectual
property
 Increases competition within the local market and this brings higher
efficiencies
 Helps in increasing exports;
 Increases tax revenues

Criticism of FDI

 Domestic companies fear that they may lose their ownership to overseas
company
 Small enterprises fear that they may not be able to compete with world
class large companies and may ultimately be edged out of business
 Large giants of the world try to monopolies and take over the highly
profitable sectors
 Such foreign companies invest more in machinery and intellectual
property than in wages of the local people
 Government has less control over the functioning of such companies as
they usually work as wholly owned subsidiary of an overseas company

FDI is prohibited under the Government Route as well as the

Automatic Route in the following sectors:
● Lottery Business, Gambling and Betting

● Business of Chit Fund

• Nidhi Company

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 • Agricultural (excluding Floriculture, Horticulture, Development of
seeds, Animal Husbandry, Pisciculture and cultivation of
vegetables, mushrooms, etc. under controlled conditions and
services related to agro and allied sectors) and Plantations activities
(other than Tea Plantations)

• Housing and Real Estate business (except development of

townships, construction of residen-tial/commercial premises, roads
or bridges to the extent specified in notification

• Trading in Transferable Development Rights (TDRs).

• Manufacture of Cigars, cheroots, cigarillos and cigarettes, of

tobacco or of tobacco substitutes.

Rural retail in India:

Global consulting firm McKinsey and Co. has projected that India’s rural
market would touch US $ 500 Bn by 2020. Rural markets emerge as a
huge opportunity for retailers as is reflected in the share across most
categories of consumption. These estimates appear to have arrived at
taking literacy, accessibility, degree of penetration, increasing income
levels, distance from major commercial and business hubs, brand
awareness, and concepts of quality increasing consumerism in rural areas.

Major rural retailing initiatives:

ITC’s choupal sagar

The ground-breaking effort towards the commencement of rural malls came

from ITC. It had two initiatives in the rural market “Choupal Sagar and e-
choupal”.The company launched rural malls under the banner “Choupal
Sagar”. A rural hypermarket or a rural mall, Choupal Sagar provides
multiple services under one roof, like selling products and buying quality
products for farm and household consumption. n. It offers almost everything

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from toothpastes to televisions, hair oils to motorcycles, mixer-grinders to water
pumps, shirts to fertilizers.

ITC has tied up with agri-institutes to offer farmer training programmes. Then,
plots of land have been earmarked to display large agricultural machinery like
threshers. Other parcels of land have been earmarked for pesticide and fertilizer
companies for demonstrating their products.

ITC also started piloting Choupal Fresh in Hyderabad a year ago, it was a model
to deliver fresh fruits and vegetables to consumers and institutions based on
demand.

TATA Kisan Sansar (TKS)

Tata Chemicals had a chain called Tata Kisan Kendra which offered farmers
agri-inputs to financial advisory functions. Rallis in partnership with ICICI bank
and HUL supported farmers from pre-harvest to post-harvest stage. In 2004,
these two operations merged under the Tata Kisan Sansar(TKS)

TKS today operates in three states, namely: Uttar Pradesh, Haryana and Punjab.
It is active in providing the sophisticated modern technology to the small
farmers and making them harness the gain from ICT.

Godrej - aadhar and manthan

Godrej's agri business started 30 years ago in a modest way, had grown to a Rs
1,000 crore division under Godrej Agrovet and Goldmohur Foods.Godrej
Industries test-launched the concept in Maharashtra and Andhra Pradesh to sell
its own and other products, besides offering soil testing and veterinary services
through Aadhaar

Manthan focuses entirely on supplying quality animal feed so that the animal
produce, dairy and poultry, gets a boost

Aadhaar Retailing Limited. It now operates stores in Gujarat, Maharashtra,

Haryana and Punjab and mainly sells wheat and paddy apart from daily need

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products. The company also provides farmers with solutions to problems
regarding their agricultural output, which includes what kind of crop can they
plant and when, along with techno-commercial suggestions to help them give a
better output

DCM Hariyali Kisaan bazaar

DCM Shriram Consolidated Ltd., which is in consumer finance and insurance

businesses, has diversified into rural malls too under the banner “Hariyali
Kisaan Bazaar” Each "Hariyali Kisaan Bazaar" centre operates in a catchment
of about 20 kms. A typical centre caters to agricultural land of about 50000-
70000 acres and impacts the life of approx. 15000 farmers.

Impacts of COVID 19 on Retail sector:

The COVID-19 pandemic has sent shockwaves throughout global communities,

dislocated international supply chains and triggered steep sell offs in financial
markets.

 As per the survey conducted by Retailers Association of India (RAI), In

the next 6 months, Food Retailers expect to earn 56% as compared to last
year’s revenues and Non-Food Retailers expect to earn 40% as compared
to last year’s revenues. Online purchase of goods is expected to hike by
7% in India

 Retailers Association of India (RAI), National Restaurant Association of

India (NRAI) and The Clothing Manufacturers Association of India
(CMAI) anticipate 25-30% impact on business with a multiplier effect on
subsidiary industries and lasting job losses

 Kirana stores- The impact on them might be minimal and could even be
positive if the supply side is sustained, these stores might even see a
growth in patronage

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 Mass merchandise stores- Supermarkets might have a relatively lesser
impact because they are largely selling essential products, but their higher
inventory levels is an issue

 Consumer durables & IT product stores- Loss of sale and supply chain
bottlenecks from Chinese vendors.

 Apparel and other lifestyle stores- Liquidating stocks is a major constraint

adding to shopper’s behaviour

 Manpower rationalization – Small Retailers are expecting to lay-off 30%

of their manpower going forward, this number falls to 12% for Medium
Retailers and 5% for Large Retailers. Overall, the Industry will see ~20%
of Manpower Reduction due to Covid-19

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 Academic Committee
2019-2021
National Institute of Agricultural Extension Management

(MANAGE)

Rajendranagar, Hyderabad: 500030

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