SYNOPSIS

TITLE OF THE THESIS

Challenges and Opportunities of ELECTRONICS MANUFACTURING in INDIA

PROBLEM DEFINITION
It is a known fact that Indian economy is growing at the rate of 8% annually and the average salaries being hiked over 15%, there will be a lot more consumption. Organized retailing is projected to grow at the rate of about 37 per cent in 2007 and 42 per cent in 2008. Organised retail in India has the potential to add over INR 2,000 billion ($45 billion) business by the Year 2010. Over the last few years, many international and national retailers have entered the Indian market on the strength of rising affluence levels of the young Indian population along with the heightened awareness of global brands, international shopping experiences and the increased availability of retail real estate space. But thses retailers must not forget, for the Indian consumer, the mall with their hypermarts are seen as a destination not a place for ones regular shopping because of problems of transportation and parking, shortage of storage space, weather conditions and the preference to eat and buy fresh. The local grocery is where most of the regular shopping is done. Therefore these retailers might face resistance in the initial stage.

HYPOTHESIS
A huge yet limited scope exists for national and global players in the Indian retail Industry.

RESEARCH OBJECTIVE
One of the major focuses will be to understand in depth, the nature and the scenario of the present and the upcoming Retail Industry in India and thereby, analyzing and studying the opportunities and challenges that will be faced by the private retailers in the coming future.

INTRODUCTION
The Indian retail industry, estimated at US $325 billion in 2006, is one of the fastest growing sectors of the Indian economy. Traditionally dominated by small, family-owned retail shops, the industry is making a move to a more modern and organized retail industry structure. Thanks to a healthy economy and rising household incomes, organized retail is emerging as a rapid growth industry in India. According to India Retail Report 2007, the total private consumption touched INR 20,000 billion (US $ 445 billion) at current prices in the calendar year 2006 with organised sector accounting for INR55,000 crore ($12.4 billion) business increasing its share to 4.6 per cent of the total Indian Retail Value that stood at INR12,000 billion ($270 billion). Moving forward, organized retailing is projected to grow at the rate of about 37 per cent in 2007 and 42 per cent in 2008. Organised retail in India has the potential to add over INR 2,000 billion ($45 billion) business by the Year 2010. As the current economic boom in India spreads to Tier II and Tier III cities and towns, reaching out to prospective consumers in these cities is high on the agenda of most retail companies. Retailers consider market presence in these cities and towns key to their growth and profitability. India has the largest young population in the world - over 890 million people below 45 years of age and as the economy grows so does India's middle class. Leading retailers have recorded an increase in sales between 50 to 100 percent in the calendar year 2006 over the previous year. According to India Retail Report 2007, the total private consumption touched INR 20,000 billion (US $ 445 billion) at current prices in the calendar year 2006 with organised sector accounting for INR55,000 crore ($12.4 billion) business increasing its share to 4.6 per cent of the total Indian Retail Value that stood at INR12,000 billion ($270 billion). Moving forward, organized retailing is projected to grow at the rate of about 37 per cent in 2007 and 42 per cent in 2008. Organised retail in India has the potential to add over INR 2,000 billion ($45 billion) business by the Year 2010. Though lucrative opportunities exist across product categories, food and grocery, nevertheless, presents the most significant potential in the Indian context as consumer spending is highest on food The policy makers continue to explore areas where FDI can be invited without hurting the interest of local retail community. Presently Govt allows 51 per cent foreign investment in single-brand retail with prior government permission. FDI is also allowed in the wholesale business In the new scheme of things there could be various entry options for foreign players of different size, formats and offerings tying up with Indian companies.

SCOPE
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The findings of the thesis can be useful to most of the retail companies functioning today and also the ones planning to enter the Indian Retail market in the coming future.

RESEARCH METHODOLOGY
The research material would be collected through both primary as well as secondary research. Primary research would be conducted in the form of personal interviews with the external guide and his associates and also discussions with various respondents. The major source of secondary research would be the internet, magazines and newspapers, books, market research organizations etc.

JUSTIFICATION FOR CHOICE OF TOPIC

India is investing over US $130 billion in infrastructure by the end of this decade. Indian retail industry itself has attracted investment of over INR 200 billion (over $4 billion) in creating infrastructure, systems & shop-fit. The additional retail space is expected to add INR 300 billion ($ 6.67 billion) of business to organised retail. A T Kearneys Global Retail Development Index gives a clear message to global retailers on India: Move now or forego prime locations and market positions that will become saturated quickly. Global retailers that missed out on capturing first-mover advantage in China can make up for it in India. The retail market is changing fast, along with the lifestyles and buying habits of Indias burgeoning population. As people look for ways to spend their money, global retailers should be looking for prime locations. Large Indian retailers have announced launching of separate companies to facilitate entries of global brands.

BIBLIOGRAPHY

Business India India Today Marketing Management By Philip Kotler

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Marketing Research - Text and Cases By H.W. Boyd, R. Westfall and S.F. Stasch Research Methodology By C.R. Kothari Statistical handbook; Govt. of Assam, 1995. The Times of India

Appendices
Respondent Details Name : Gender : Residential Location : Age : Occupation : Phone No. : Questions Asked : Q1. Who takes decisions regarding household shopping (brands to buy ) in your house? Q2.Who does most of the shopping for the household? Q3. What is your monthly shopping expense and how frequently do you visit ? Q4. Do you have modern Retail outlet within 2-3km of your house ? If yes, then which one ? Q5. Are the prices on MRP or less ? Q6. Are the prices cheaper when compared to the local kirana store ? Q7. Are you satisfied with the quality of goods available at these stores ? Q8. Is there enough variety to chose from ? Q9. Are you satisfied with the location of the store and is there sufficient parking available ? Q10. Have you recently visited a hypermarket like Big Bazaar? Do you think shopping at Hypermarkets is better than the regular city markets? Q11. How frequently do you visit these stores? Q12. You will more happy with a store located in or around your locality or a store in the suburbs of the city? Q13. Do you end up buying more than what is required at these stores ?