Agriculture Officer Batch 2009, Belapur,

Mumbai
RETAIL REVOLUTION IN INDIA ,
IMPACT ON AGRICULTURE AND AGRICULTURE
LENDING, ROLE OF MARKETING IN TAPPING
GROWTH OPPORTUNITY

Presented by-
Mr. S. Bagada Mr. R. R. Kumar
Dr. R. Somnathe Mr. D. R. Kamdi
Mr. Rakesh Kumar Mr. S. R.. Nalawade
Ms. Shweta Prasad Ms. Suriyasree.S
Ms. Jeyashree.G
 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% - India’s 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/ Large Consumer Direct
scale Co-op Mktg/Channel
Medium Size
Retailers Stores less Retailing
Retailer

1.Super Market. 1.Co-op stores. 1.In home Selling.

1. Mobile
Retailers, 2.Departmental Stores. 2 .Sahakari Bhandars. 2.Telemarketing.
Hawkers. 3.Mail Order sale.
3.Discount stores.
2. Convenience 4.Vending
stores. 4.Manufacturer’s
Machine
3. Specialty Showroom
Stores 5.Super stores.
(Combination
Stores,Hypermarkets)
GROWTH OF RETAIL IN INDIA
 GROWTH OF RETAIL IN INDIA
CONTD…
INDUSTRY REVOLUTION
 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
 GROWTH OF RETAIL IN INDIA
CONTD…
 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 V’s - Value, Variety and Volume.
 GROWTH OF RETAIL IN INDIA
CONTD…
FACTORS FOR GROWTH OF ORGANISED RETAIL
SECTOR
 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 ..,

 Multiple drivers leading to a consumption boom:

 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.
CHANGING SCENERIO OF SUPPLY CHAIN
 IMPACTS ON AGRICULTURE AND
AGRICULTURE LENDING
 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.
IMPACTS ON AGRICULTURE AND
AGRICULTURE LENDING CONTD…

 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.
IMPACTS ON AGRICULTURE AND
AGRICULTURE LENDING CONTD…
 Entry of retail giants leads to
-greater investment in farm technology (Bharti,
Pepsi,Reliance)
-Aggregate demand for bank credit
-Help bankers in credit expansion & monitoring .
 Contract farming spreads very fast

- Farmers to get better price

- Improves farm production through modern
techniques
ROLE OF MARKETING IN TAPPING
GROWTH OPPORTUNITY

Importance of Marketing.
 Organisations around the world strive to
develop products and services that appeal to
their customers
 Aim to differentiate their offering in the
increasingly-crowded global marketplace.
 Customers satisfaction should be the
ultimate objective of marketing
 ROLE OF MARKETING IN TAPPING
GROWTH OPPORTUNITY

 Finance for contract farming in Agri Business wherever

possible.
 Identify Supply chain in contract farming activity.
 Finance all the players of supply chain such as processor,
distributor, logistics, retailers, farmers etc.
 Identify the Missing links in the supply chain.
 Finance the Missing links and try to cover under one umbrella
 Promote cross selling.
 Backward linkages
DEALERS OF
SEEDS,
FERTILISERS,
PESTICIDES, ETC.

FARMER

BANK
Forward linkages

WHOLESALER
RETAILER
CONSUMER
 STRATEGIES TO TAP THE
GROWTH OPPORTUNITIES
 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.
STRATEGIES TO TAP THE GROWTH
OPPORTUNITIES CONTD…
Innovative & 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.
THANK YOU