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RETAIL REVOLUTION IN INDIA , IMPACT ON AGRICULTURE AND AGRICULTURE LENDING, ROLE OF MARKETING IN TAPPING GROWTH OPPORTUNITY
Presented byMr. S. Bagada Dr. R. Somnathe Mr. Rakesh Kumar Ms. Shweta Prasad Ms. Jeyashree.G Mr. R. R. Kumar Mr. D. R. Kamdi Mr. S. R.. Nalawade Ms. Suriyasree.S
AGENDA
INTRODUCTION GROWTH OF RETAIL IN INDIA CHANGING SCENERIO OF SUPPLY CHAIN IMPACT OF RETAIL ON AGRICULTURE & AGRICULTURE LENDING ROLE OF MARKETING IN TAPPING GROWTH OPPORTUNITY CONCLUSION REFERENCES
INTRODUCTION
India is fifth most attractive emerging retail market: a potential goldmine. Indian retail is largest among all industries(200 billion $). 10% - Indias GDP. Growth rate 20-25% 8% - employment Potentiality to grow 427 billion $ by 2010 and 637 billion $ by 2015.
INTRODUCTION CONTD.
RETAIL FORMATS IN INDIA Malls Speciality stores Discount stores Department stores Hypermarts / Supermarts Convenience stores Multi brand outlets
INTRODUCTION CONTD.
Types of Retailers
Small/ Medium Size Retailer Large scale Retailers Consumer Co-op Stores Direct Mktg/Channel less Retailing
1.Super Market.
1.Co-op stores.
2.Departmental Stores. 2 .Sahakari Bhandars. 2.Telemarketing. 3.Mail Order sale. 3.Discount stores. 4.Vending Machine
2. Convenience 4.Manufacturers stores. Showroom 3. Specialty Stores 5.Super stores. (Combination Stores,Hypermarkets)
Retailing in India can be traced to emergence of the neighborhood "Kirana " stores catering to the convenience of the consumers. Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission 1980s experienced slow change as India began to open up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains
1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. Post 1995 onwards saw an emergence of shopping centers. Targeted to provide a complete destination experience for all segments of society Emergence of hyper and super markets trying to provide customer with 3 Vs - Value, Variety and Volume.
Growth of Indian Economy: Second fastest Emerging opportunities in service sector Capital no longer a constraint easy loans Increase in the young working population Increasing working women population Hefty pay pockets Nuclear families in urban areas Changing Cultural Habits Middle class dwelling revamped
CONTD ..,
Favorable demographics
Growth in income
Increasing population of working women Raising aspirations: Value added goods sales
CONTD..,
Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most
categories of consumption
ITC is experimenting with retailing through its e-Choupal and Choupal Sagar rural hypermarkets. HLL is using its Project Shakti initiative leveraging women self-help groups to explore the rural market.
Corporate investment in retail is likely to be multifaceted . On Supply chain starting from the farmers to the SME goods to consumers. Agricultural front , the organised retailers are providing farmers with inputs. Has increased the net realisations of farmers with disintermediation for middlemen.
To provide the cheapest & best produce, organised retail could help the Indian farmers directly & banks indirectly in agri. Lending .
Investment into cold storage chain will result in significant efficiency on supply chain.
Backward linkages
DEALERS OF SEEDS, FERTILISERS, PESTICIDES, ETC.
FARMER BANK
Forward linkages
WHOLESALER RETAILER
CONSUMER
Effective deployment of agriculture officers with special target . Finance entire commodity chain from farmers to retailers. Targeting standard accounts of other banks. Taking partnership route to drive growth in agriculture. Thrust on investment credit.
& need based products Banks need to prepare big ticket loan Linkage on the lines of farm to fork Promotion of channel credit through corporate customers .
CONCLUSION
The huge potential in Agriculture sector & lack of sufficient rural & semi urban branches in private sector banks, the Nationalised Banks has huge scopes.. It is certain that the competitive battlefield of bankers will shift in the near future. Let us take AGRI. LENDINGS to a higher growth trajectory through new strategies and After all, the colour of money has always been green in India.
REFERENCES
Indian Retail Industry-Its Growth, Challenges And Opportunities- An Article by Dr.M. Dhanabhakyam. Financing Agriculture-A Journal of Agriculture & Rural Development, Jan-Feb-2008 Issue. Morgan Stanley Research Publication, Nov.24, 2006 Economics. Retail Revolution- The Indian Partner, An Article by Sanjeev Chaturvedi, IILM- Business School, Delhi.
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