India Retail Sector Analysis Indian retailing industry has seen phenomenal growth in the last five years

(2001-2006). Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of Indian retail sector. RNCOS India Retail Sector Analysis (2006-2007) report helps clients to analyze the opportunities and factors critical to the success of retail industry in India. Key Findings

Organized retail will form 10% of total retailing by the end of this decade (2010). From 2006 to 2010, the organized sector will grow at the CAGR of around 49.53% per annum. Cultural and regional differences in India are the biggest challenges in front of retailers. This factor deters the retailers in India from adopting a single retail format. Hypermarket is emerging as the most favorable format for the time being in India. The arrival of multinationals will further push the growth of hypermarket format, as it is the best way to compete with unorganized retailing in India. Key Issues and Facts Analyzed The research report also addresses the issues and the facts that are critical to the success of Indian retail industry in general & organized retail industry in particular.

Evaluation of current market trends. Profile discussion of key players in this sector. Analysis of various challenges and opportunities before the industry. Key Highlights of the Report

What is the market size and scope of the Organized Retail in India? What and where are the growth prospects and issues related to the industry? What are the factors driving growth in this sector? Size of organized market segment wise and its growth prospects. Who are the major players in Indian Retail Industry, their presence and strategies being used by them and their market positioning? What are the opportunities & challenges in front of the retailers in India and emerging trends there? Key Players Analyzed

This section covers the key players currently operating in the Indian retail industry including Future Group, Trent Ltd, RPG Enterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India Ltd, Provogue India Ltd, Videocon Appliances Ltd., I.T.C. Ltd, Godrej Agrovert Ltd, and DCM - Hariyali Kisaan Bazaar. Research Methodology Used Information Sources Information has been sourced from namely, books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to access to more than 3000 paid databases. Analysis Method The analysis methods include the following: Ratio Analysis, Historical Trend Analysis, Linear Regression Analysis using software tools, Judgmental Forecasting and Cause and Effect Analysis. TABLE OF CONTENT 1. Analyst View 2. Research Overview 3. Industry Overview 3.1 Global Retail Sales 3.2 Global Retail Market 3.3 Emerging Retail Markets of the World 3.4 Comparison of Indian Retail Sector with Worldwide Retail Sector 4. Indian Retail Industry 4.1 Unorganized Retail Sector 4.2 Organized Retail Sector - Retail Formats 4.2.1 Specialty Stores 4.2.2 Super Markets 4.2.3 Franchisee Outlets 4.2.4 Hypermarket & Convenience Stores - A Critical Evaluation 4.2.5 Shopping Malls - Key to Organized Retail Growth in India 4.3 Organized Retail Sector - Product Segments 4.3.1 Organized Retail Sector - Key Facts 4.3.2 Food & Beverages 4.3.3 Apparel & Footwear 4.3.4 Consumer Durables 4.3.5 Health & Body Care Product Segments 4.3.6 Penetration Level of Organized Retail By Product 4.4 Rural Retail

4.4.1 Product Penetration 4.4.1.1 Shampoos 4.4.1.2 Skin Care Products 4.4.1.3 Food & Beverages 4.4.1.4 Household & Consumer Durables 4.5 Retail - Advertising & Marketing 5. Industry Analysis 5.1 Consumer Behavior 5.1.1 Rural Consumer 5.1.1.1 Consumer Behavior - Low Income Group 5.1.2 Urban Consumer 5.2 Drivers 5.2.1 Low Rental Space 5.2.2 Growing Consumer Class 5.2.3 Disposable Income 5.2.4 Growing Economy 5.2.5 Increasing Wage Level 5.3 Opportunities 5.3.1 Growing Consumer Class in Urban India 5.3.2 Third Party Manufacturing 5.3.3 Packaged Food/Agricultural Products 5.3.4 Introduction of Private Labels 5.3.5 Mergers & Acquisitions 5.3.6 New Specialty Retail Formats 5.3.7 Growing Urbanization 5.4 Challenges 5.4.1 Differences between Urban & Rural Consumers 5.4.2 Fragmented Market 5.4.3 Managing Channel Conflicts 5.4.4 Fraud in Retail is Expensive 5.4.5 Improvement in Infrastructure & Logistics Needed 5.4.6 Store Location 5.4.7 Merchandise 5.5 Future Outlook, 2010 5.5.1 Emerging Trends 6. Mergers & Acquisitions 7. Competitive Landscae 7.1 Major Players 7.1.1 Future Group 7.1.2 Trent Ltd. 7.1.3 RPG Enterprise 7.1.4 Vishal Retail Ltd. 7.1.5 Shoppers Stop Ltd.

7.1.6 Bata India Ltd. 7.1.7 Provogue India Ltd. 7.1.8 Videocon Appliances Ltd. 7.1.9 I.T.C. Ltd. 7.1.10 DCM - Hariyali Kisaan Bazaar 7.1.11 Godrej Agrovet Ltd. 7.2 Competitor Analysis 7.2.1 Comparison of Business Strategy of Major Retailers 7.2.1.1 Emerging Strategic Outlook 8. Annexure I: Government Initiatives and Regulations 8.1 FDI in Retail 8.2 Taxes 8.2.1 Direct Taxes 8.2.2 Indirect Taxes

India Retail Sector Analysis India Retail Sector Analysis (2007-2008) Indian retailing industry has seen phenomenal growth in the last five years (2003-2008). Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of Indian retail sector. XYZ India Retail Sector Analysis (2007-2008) report helps clients to analyze the opportunities and factors critical to the success of retail industry in India. Key Findings 1. Organized retail will form 10% of total retailing by the end of this decade (2011). 2. From 2007 to 2011, the organized sector will grow at the XYZ of around 49.53% per annum. 3. Cultural and regional differences in India are the biggest challenges in front of retailers. This factor deters the retailers in India from adopting a single retail format. 4. Hypermarket is emerging as the most favorable format for the time being in India. 5. The arrival of multinationals will further push the growth of hypermarket format, as it is the best way to compete with unorganized retailing in India. Key Issues and Facts Analyzed The research report also addresses the issues and the facts that are critical to the success of Indian retail industry in general and organized retail industry in particular. 1. Evaluation of current market trends.

2. Profile discussion of key players in this sector. 3. Analysis of various challenges and opportunities before the industry. Key Highlights of the Report 1. What is the market size and scope of the Organized Retail in India? 2. What and where are the growth prospects and issues related to the industry? 3. What are the factors driving growth in this sector? 4. Size of organized market segment wise and its growth prospects. 5. Who are the major players in Indian Retail Industry, their presence and strategies being used by them and their market positioning? 6. What are the opportunities and challenges in front of the retailers in India and emerging trends there? Key Players Analyzed This section covers the key players currently operating in the Indian retail industry including Future Group, for ex: xyz Ltd, Airtel Enterprise, xyz Retail Ltd, wholesale Ltd, Tata India Ltd, Research Methodology Used Information Sources Information has been sourced from namely, books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments. Analysis Method The analysis methods include the following: Ratio Analysis, Historical Trend Analysis, Linear Regression Analysis using software tools, Judgmental Forecasting and Cause and Effect Analysis. Table of Contents 1. Analyst View 2. Research Overview 3. Industry Overview 3.1. Global Retail Sales 3.2. Global Retail Market 3.3. Emerging Retail Markets of the World 3.4. Comparison of Indian Retail Sector with Worldwide Retail Sector 4. Indian Retail Industry 4.1. Unorganized Retail Sector 4.2. Organized Retail Sector - Retail Formats 4.3. Specialty Stores 4.4. Super Markets

4.5. Franchisee Outlets 4.6. Hypermarket & Convenience Stores - A Critical Evaluation 4.7. Shopping Malls - Key to Organized Retail Growth in India 4.8. Organized Retail Sector - Product Segments 4.9. Organized Retail Sector - Key Facts 4.10. Food & Beverages 4.11. Apparel & Footwear 4.12. Consumer Durables 4.13. Health & Body Care Product Segments 4.14. Penetration Level of Organized Retail By Product 4.15. Rural Retail 4.16. Product Penetration 4.17. Shampoos 4.18. Skin Care Products 4.19. Food & Beverages 4.20. Household & Consumer Durables 4.21. Retail - Advertising & Marketing 5. Industry Analysis 5.1. Consumer Behavior 5.2. Rural Consumer 5.3. Consumer Behavior - Low Income Group 5.4. Urban Consumer 5.5. Drivers 5.6. Low Rental Space 5.7. Growing Consumer Class 5.8. Disposable Income 5.9. Growing Economy 5.10. Increasing Wage Level 5.11. Opportunities 5.12. Growing Consumer Class in Urban India 5.13. Third Party Manufacturing 5.14. Packaged Food/Agricultural Products 5.15. Introduction of Private Labels 5.16. Mergers & Acquisitions 5.17. New Specialty Retail Formats 5.18. Growing Urbanization 5.19. Challenges 5.20. Differences between Urban & Rural Consumers 5.21. Fragmented Market 5.22. Managing Channel Conflicts 5.23. Fraud in Retail is Expensive 5.24. Improvement in Infrastructure & Logistics Needed 5.25. Store Location

5.26. Merchandise 5.27. Future Outlook, 2010 5.28. Emerging Trends 6. Mergers & Acquisitions 7. Competitive Landscape 7.1. Major Players 7.2. xyz Ltd 7.3. Trent Ltd. 7.4. RPG Enterprise 7.5. Vishal Retail Ltd. 7.6. Shoppers Stop Ltd. 7.7. Bata India Ltd. 7.8. Provogue India Ltd. 7.9. Videocon Appliances Ltd. 7.10. I.T.C. Ltd. 7.11. DCM - Hariyali Kisaan Bazaar 7.12. Godrej Agrovet Ltd. 7.13. Competitor Analysis 7.14. Comparison of Business Strategy of Major Retailers 7.15. Emerging Strategic Outlook 8. Annexure : Government Initiatives and Regulations 8.1. FDI in Retail 8.2. Taxes 8.3. Direct Taxes 8.4. Indirect Taxes List of Tables Worldwide - Top 10 Retailers by Net Sales (in Billion US$), 2007 Worldwide - Top 10 Emerging Retail Markets, 2008 India - Urban Retail Market Split (%), 2008 India - Major Formats of In-Store Retailing India - Retail Formats Adopted by Key Players India - Major Specialty Store Players by Brand, 2008 India - Major Supermarket Players by Brand, No. of Stores and Sales, 2006 India - Comparison of Hypermarkets with Convenience Stores India - Major Product Categories in Organized Retail Sales, 2007 India - Health & Body Care Products Market Value (in Million US$), 2006-2008E India Group - Income Statement (in Rs. Lakh), 2008 XZY Ltd. - Income Statement (in Million Rs.), 2007 & 2008 Airtel Enterprise. - Income Statement (in Million Rs.), 2007 & 2008 Tata India Ltd. - Income Statement (in Million Rs.), 2007 & 2008 India Ltd. - Income Statement (in Million Rs), 2007 & 2008

Appliances Ltd. - Income Statement (in Million Rs.), 2007 & 2008 ABC Ltd. - Key Financials (in Rs. Crore), 2007-2008 India - Retailers and Future Plans List of Figures Worldwide - Retail Sales (in Trillion US$), 2001-2006E Worldwide - Retail Sales by Geographical Region (in Trillion US$), 2006E Worldwide - Comparative Penetration of Organized Retail (%), 2006 India - Market Value of Organized & Unorganized Retailing (in Billion US$), 2006 India - Rural & Urban Retail Market (in Billion US$), 2006 India - Retail by Segment (%), 2006 India - Fastest Growing Retail Formats (%), 2006 India - Number of Shopping Malls (Operational + Under Construction), 2005 & 2007E India - Area Covered by Shopping Malls (in Million Sq. ft.), 2002-2006 India - Numbers of Shopping Malls in Major Cities, 2008E India - Shopping Malls Establishment by Region (%), 2008E India - Space Distribution of Shopping Malls by State (%), 2008E India - Organized Retail Sales Breakup by Product (%), 2006 India - Forecast for Retail Food Industry (in Billion US$), 2007-2011 India - Food Retail Industry Segmentation by Retail Format (%), 2006 India - Forecast for Food, Beverages & Tobacco Sales (in Billion US$), 2007-2011 India - Forecast for Apparel Industry (in Billion US$), 2007-2011 India - Forecast for Footwear & Leather Industry (in Billion US$), 2007-2011 India - Footwear Industry Segmentation (%), 2007 India - Share of Branded & Non-Branded Footwear Industry (%), 2007 India - Share of Organized & Un-Organized Footwear Manufacturing (%), 2007 India - Share in Global Leather & Non-Leather Footwear Industry (%), 2007 India - Refrigerator & Television Sales by Volume (in Million), 2002-2007 India - Ownership Share of Consumer Durables (%), 2007 India - Penetration Level of Organized Retail by Product (%), 2007 India - Forecast for Per Capita Income in Rural Region (in Rs.), 2006-2012 India - Number of Households in Rural Region (in Million), 2002-2010F India - Penetration Level of Shampoo Retailing in Rural Region (%), 2002 & 2007 India - Retail Marketing & Advertising Attractiveness Index India - Key Retail Marketing Concern Rentals Rate Comparison (in US$/ Sq. ft.), 2006 India - Growing Consumer Class & Number of Household (in Million), 1996-99, 2002-03 & 2007-08 India - Disposable Income (in Billion US$), 2002-2007 India - GDP Growth Rate (%), 2003-2006E India - Change in Nominal Wages (%), 2002-2007 India - Urban Consumer Population (in Million), 2003-08 & 2009-11E India - Degree of Challenges to be Faced in Retail Industry

India - Forecast for Retail Market (in Billion US$), 2008-2016 India - Forecast for Retail Industry Segmentation (in Billion US$), 2011 & 2016 India - Forecast for Organized Retail Industry (in Billion US$), 2008-2011

Massive Growth in Retail Sector Retail sector has witnessed an immense growth in the last few years. The key factors responsible for the retail boom have been the change in consumer profile and demographics, increase in the number of international brands available in the Indian market, economic implications of the government, increasing urbanization, credit availability, improvement in the infrastructure, increasing investments in technology and real estate building a world class shopping environment for the consumers. If numbers are to be believed, Indias retail industry is estimated at about USD 350 billion and forecast to be double by 2015. After agriculture, retail is the largest source of employment and has deep penetration into rural India. Retailing contributes to 10% of GDP. As per Associated Chambers of Commerce and Industry of India (ASSOCHAM), the overall retail market is expected to grow by 36%. The organized sector is expected to register growth amounting to Rs 150 billion by 2008. The total size of the market is also expected to increase to Rs 14,790 billion from the current level of Rs 5,880 billion. Retail is amongst the fastest growing sectors in the country and India ranks 1st, ahead of Russia, in terms of emerging markets potential in retail.