Indian Organized Retailing: Ready for the paradigm shift

Retailing presents an important role world over in increasing yield across a wide in a range of consumer goods and services. Its development and reflection can be observed in countries like U.S.A., U.K., Mexico, Thailand and China. Wealth of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also profoundly supported by the retail sector. In the United States retail industry is the second-largest industry in establishment wise and employment wise.

Containing one of the maximum densities of retail outlets per capita in the world and lowest per capita retail space, the retail sector in India is much unorganized, only 2% of the Indian retail sector is organized as against 20%, 80% and 70% in the case of China, the United States and the United Kingdom (UK), respectively. The contribution of the Indian retail sector to the total employment has been 7% compared to 6%, 11.7% and 11% in China, the US and the UK, respectively.

It has highest outlet density in world, around 12 million outlets, and considered as growing as a biggest industry - long way to go. It is considered as largest employment generator after agriculture - about 8% of population. Retailing in India is one of the widespread private industries in the world with total sales exceeding US$8 trillion in 2002 and currently the retail sector in India has been growing at average 7% per annum (based on 1999-2002 figures). India's retail market currently stands at $330 billion and has evidence of a 10% average increase over the last five years. Today the Indian retail industry offers employment to over 74 million people (7% of the population).

The future of retail industry in India

The size of the Indian retail market was estimated to Rs 7.4 trillion in 2002. The size of organized retailing is of USD 4.5 billion with a growth rate of 8.5% denoted only 2% of the overall market last year. The organized retail sector is expected to grow at 6% by 2010 and touch a retail business of $ 17 billion as against its current growth level of 3% which at present is estimated to be $ 6 billion, according to the study undertaken by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). The Study has revealed

It's now 'Destination India' for global retailers who earlier gave a 'go by' to the country catching the first plane to China, says A T Kearney in its latest report. The report titled The Global Retail Development Index 2005, warns global retailers to make a kill at the India markets before its prime retail space gets exhausted.

Clearly acknowledging the changing lifestyles of the middle class populace, the report says this category has higher disposable income as more and more young couples go to work. It recognizes India as the third largest growing economy in Asia, and says its population will overtake that of China's by 2050, achieving the distinction of the most populated country on earth.
Stating China's retail market has shown 9 percent annually, the report projects India's retail sector at US $330 billion to grow by 10 percent each year.

By knowing India is the destination to invest money for business, more and more foreign retailing giants are keenly interested to generate revenue from India and are eager to spreading their wings in India, indirectly, via the licensee/franchisee route, Foreign Direct Investment (FDI).

Recently, looking forward to growth of organized retail sector, government of India increased the foreign direct investment limit (49 percent). According to the report - The Indian Council for Research on International Economic Relations (ICRIER) on 'FDI in Retail Sector: India' on July 14, 2005, recommends that the opening up of the FDI regime should be steady-over a 3 to 5 year timeframe - to give the domestic industry sufficient time to regulate the changes. In the starting stage FDI up to 49 per cent should be permitted which can be increased further 100 per cent in 3 to 5 years, depending on the growth of the sector.

Considering foreign direct investment (FDI) policy of Indian Government, AT Kearney forecasts global retailers like Wal-Mart, Carrefour and Tesco to waste no time in creating their move into India via partnerships with local retailers. They also forecast franchise model retailers such as Marks & Spencer and Benetton Group adopted. According to AT Kearney, top Indian retailers like Pantaloon, Westside and Big Bazaar may fight back these moves by rising scale and developing logistics and supporting technology.

The world's population is hovering to expand 50% by 2050. At present, the upper-middle class consists of an estimated 40 million people. They have annual incomes of US$600,000 each in terms of Purchasing Power Parity (PPP). The middle-middle class comprises about 150 million people, each with PPP incomes of US$20,000 per year each. The lower-middle class comprises about 110 million people. One of the prime demographic drifts in current period is the changing age profile in India. The country is progressively identified a "young" nation, with about 35 per cent of India's population is less than 14 years of age. The median age of India's population is 24 years. Youth are in general primitive adopters of most modern products and concepts.

Permitting the investment of 49 % from foreign investors (FDI policy), it would result in market growth and expansion. Retail is hugely labor-intensive sector for young men and women who presently do not have any means to go to college they will also have employment opportunity in this sector. Similarly it will create employment in various levels and sectors including ITES industry, and ultimately it leads to both direct and indirect boom in employment. Various studies have specified that given the level of investment envisaged, retail sector has the potential to generate an additional eight million jobs, both direct and indirect.

.Growth in organized retail sector will be booming in coming years
.The great scope of lifestyle retailing in India
.More employment opportunities will arise in many sectors
.Customer will be benefited due to tuff brand competition
.Increases Investment opportunity
.India will emerges as a brand conscious country
.India will become a sourcing destination for many countries
.Crystal clear opportunity in Real estate, Tourism, Transportation (though good chain supply management practice require), and growth of other related sectors including ITEs.

The organized retail player to formulate its entry into Chandigarh and Noida, in Uttar Pradesh with two large format stores each widen across 35,000 sq.ft, also has one store at Rajouri Garden in New Delhi and one each in Ludhiana and Jalandhar in Punjab. The Amritsar store started in October 2002 and Faridabad in January 2003.

Recently, Reliance Capital, part of the Anil Dhirubhai Ambani Enterprise, picked up a 13.2 per cent equity stake in Celebrity Fashions; it is the premium Indian Terrain menswear brand. The Rs 140-crore Chennai-based Celebrity Fashions having two sections, one for delivering to the domestic market and another exporter of ready-made garments. In just four years, Indian Terrain has become a Rs 29-crore brand.

Indian Terrain was commenced on September 2000 in 11 counters to begin, which is growing at 15%, has a turnover of close to Rs 35 crore, and chases openly with brands like Raymond's, ColorPlus and Allen Solly. Indian Terrain is being positioned as a brand for the global Indian. Celebrity Fashions, supplies to American and UK brands and retailers like Timberland, JC Penney, Diesel, Banana Republic, Nautica and Marlboro.

Spencer's Hypermarket is India's desired retail chain of Hypermarket stores; it is part of the RPG Group. Its first store started in Hyderabad in June, 2001. This store provides the widest range of products by aiming a single point contact between the brand owners and customers.

The group has decided to set up approximately 20 such hypermarkets all over India with in June 2006. The total cost will be around Rs 300 crore, which will be made through internal accruals, debt and equity. The group has also determined cities such as Kochi, Pune, Ahmedabad, Chandigarh, Coimbatore and Nasik for the hypermarkets, and the each store would cost approximately Rs 20 crore.

The products sold include apparel wears, groceries, fresh vegetables and fruits, dairy and frozen products, fresh chicken, apparel, home appliances, white goods, and luggage to name a few.

Century Textiles' strategy to decrease fabric exports and concentrate on the local branded apparel market has decided to market its products through exclusive brand outlets, planning to add another 20 stores this year. Last year, it set up 19 retailing stores. On an average about three or four stores would be added every month. For instance, in August it set up a store each in Enakulam and New Delhi. With this, the average turnover of its stores rose substantially to Rs 22 lakh a store compared with an average of Rs 4 lakh - Rs 5 lakh earlier.

Its apparel brand `Cottons by Century' which accounted a turnover of Rs 1.6 crore in 2002-2003, and of Rs 10.5 crore in 2004-2005. The current year's turnover is projected to be between Rs 25 crore and Rs 27 crore.

Many retailers in New Delhi, Mumbai, Bangalore, Hyderabad and Chennai have generated good revenues. Fashionable wedding garments stores, Diwan Saheb, Snow White, Jainsons, Big Jo's in New Delhi, Roopam, Sheetal of Mumbai, Jade Blue in Ahmedabad, Kapsons of Chandigarh and Naidu Hall of Mumbai have observed great opportunity for further development.

Surat's Dhiraj Sons Fashion World achieved sales of Rs 9.45 cr in 2003 and Rs 10.5 cr in 2004 respectively. Dhiraj Sons Fashion has been expanding with three more outlets in the end of 2005 in Surat, Navsari and Kamrej.

Besides these, in metro cities new hypermarkets, supermarkets and private mega stores like Adani's Super market, V-mart etc in Ahmedabad, CrossRoads, Planet M in Mumbai and many giant stores are increasingly established and further planning to expand their business in many regions.

that the retail sector will grow at GDP 7% by 2010 and enlarge its market share to $ 280 billion from its present estimated level of $ 200 billion.
Releasing the study on `Retail Scenario in India', ASSOCHAM President, Mr. Mahendra K. Sanghi has revealed that the organized sector retailing is all set to grow at much faster speed than unorganized sector and the higher growth speed will alone be responsible for its higher market share which has been projected for $ 17 billion.

The organized retail industry in India is a merely 3% which only highlights the huge opportunity and is poised to grow to Rs1100 bn by 2010 - said Krish Iyer, chairperson of the two day conclave of chapter of India Retail Forum 2005 (IRF).

The following aspects will activate quick growth in demand for consumer products in India in the following years:

.Increasing income and development in infrastructure are increasing consumer markets and speeding up the convergence of consumer tastes.
.Decreasing of custom duties of CE, Personal care Dairy products etc
.Swing in consumer demand to foreign brands
.GDP growth rate of 6-8% and promise to economic reform actions
.Low per capita expenditure directing to latent demand potential
.Growing middle class population and increasing non-refundable income
.Entrance of MNCs and ample choice for consumers, Liberalization of market for consumer goods, Spectacular change in purchasing behavior and ambition for better lifestyle
.Increasing awareness by stylish market communication model
.The media uprising and the publicity and brand promotion actions, Internet is making consumer more accessible, TV channels which are guiding about global products for local markets.
.A number of 40 million Indians have the same buying habits as Americans
.Increase in disposable income of middle class and increase high and middle income population, 100 mn 17-21 year olds - population advantage
.The urban consumer -getting exposed to international lifestyles
.Greater levels of education

The metro cities of India now changing their faces from mills to large malls, the new concepts of delivering retailing goods, are shifted to huge hypermarkets, mega stores, super markets and multi-markets where the consumer are quite comfortable with finding their consuming need at one umbrella, called the one-stop shop. Here you may be able to buy your groceries, kids' outfits and even you can choose birthday gift for a friend and many brands of clothing, jewellery, footwear, fashion accessories, beauty care including cosmetics, toiletries, hair dyes and perfumes etc.

All over India, about 300 malls are projected by 2006 and 600 by 2009, with the main hub as Delhi with the planning of over 100 malls in the next 3 years. Due to this, it will lead to larger shift towards service economy and ultimately the real estate will be in boom.

In near future, franchising in retailing will become known as the higher recognition mode of retailing and as consequence the availability of various brands in both foreign and Indian companies the fashion retailing will become flourishing.

In India the ready-to-wear retail business started in the early 1950s, with the brands such as Liberty Shirts, Zodiac Ties. By now fashion is considered as a significant fragment for the branded as well as retail market in India. Fashion has motivated the retail growth in India and it keeps up its importance in all types of markets, malls and stores. As the mall spread out carries on, it is expected that Indian retail industry by 2006-07 would require over 50 million sq ft of quality space across the country and about 50 per cent of this space allocated for fashion lifestyle retailing. Probably Rs 20,000 crore retail sales are forthcoming in the fold of organized retail business from the fashion sector only.

According to Arvind Singhal, Managing Director of KSA Technopak India Pvt., the present market size of retail in India (organized, unorganized and also sector wise break up) are as follows:

Unorganized market: Rs. 583 000 crore
Organized market: Rs. 5000 crore.
Covers organized Food and Grocery Rs. 600 crore.

Food excludes hotel & restaurants.
(This eliminates government and co-operative retail pursuits.)
The metro cities of India are estimated to account for 66% of the organized retail market with 36% share textiles and clothing, 17% to jewellery & watches and 14% to food & grocery. The contribution of the fashion wares will be over 95% in the department stores and in hypermarkets like Big Bazaar the share could reach high as 70%.

It will be fashion again that will observe optimum development with provisos of organized retail development with over 1000 branded leading showrooms and over 20 very huge department stores opening in the next two years.

The popular set ups are:

. Mall or Hypermarket
. Large supermarkets, about (3,500 - 5,000 sq. ft. area)
. Mini supermarkets, about (1,000 - 2,000 sq. ft. area)
. Convenience store, about (7, 50 - 1,000 sq. ft. area)
. Discount/shopping list grocery stores
. Regional chains, independent stores, Apparel Chain Multi Brand Stores
. Traditional retailers attempting by presenting self-service as well as value-added services such as credit, free home delivery etc.

.Malls - Most malls offer floor space out to individual shops on rent, and these are attracted by the cost-cutting measure ensuing from the sharing of costs.

.Branded stores - Special showrooms run by quality brands have been the catalysts in approaching up the Indian retail scenario. This concept is now being applied to set up organized retailing to the second rung towns.
.Departmental stores - Departmental stores are estimated to take over the apparel business from selected brand showrooms. Among these the leading success is Shoppers Stop which established in Mumbai and now has nine large stores (over 30,000 Sq.feet) across India.
.Speciality stores- Stores such as the Bangalore based Kids Kemp, the Mumbai based book retailer Crossword, RPG's MusicWorld are concentrating on specific market segments and have recognized themselves strongly in their sectors.

Many Indian retail companies are expanding their business in various cities and many garment companies are opening / plan to open their super stores for fashion retailing like Rs 300-crore Bangalore-based Sonal Garments expanded their business of shirts and T-shirts with brand name Calzini, Pantaloon added Home Solutions Retail India in Mumbai called MeLA, Westside plans to open six or even more outlets particularly in the cities of Bangalore, Delhi, Kolkata and Baroda, recently in Bangalore, the Raymond group started its second exclusive Park Avenue store and company will shortly open its first Manzoni store in New Delhi and there are many company are still widening their wings in various cities.

.Pantaloon Retail (India) Limited - - The Family Store, Big Bazaar - The Discount Hypermarket & Food Bazaar - Food & Grocery Super Market, CentralMalls
.Trent Limited (Tata Group) - Star India Bazaar, Westside
.Shopper's Stop Limited (K. Rajeha Group) - Shopper's Stop
.The Piramals Retail Business Group ( Piramal Holdings) - Crossroads and Pyramid
.ITC Lifestyle Retailing ( ITC Group) - Wills lifestyle, John Players, Wills Sport
.S Kumars Nationwide Limited - S Kumars , Reid & Taylor, Tamariind
.Raymond Apparel Limited - Raymond, Park Avenue, Parx, Manzoni and ColorPlus
.Zodiac Clothing Co Ltd - Zodiac, Zod
.Madura Garments - Van Heusen, Louis Philipe, Allen Solly, Peter England, Esprit
.Globus Stores Pvt. Ltd - F21, Ethnicwear, Workwear
.Givo Limited
.Provogue (India) Limited ( Formerly Acme Clothing Pvt Ltd) - Provogue
.Indus League Clothing Ltd - Indigo Nation, Scullers
.Kewal Kiran Clothing Pvt Ltd - Killer, Lawman, Easies and Integriti
.Mohan Clothing Co Pvt Ltd Blackberrys'
.Arvind Brands Limited - Flying Machine, Newport, Ruf & Tuf in Jeans and Excalibur
.Siyaram Silk Mills Ltd - Oxemberg
.Indus Clothing - Lee Cooper
.Hindustan Impex Pvt Ltd - Oobe
.Levi Strauss (India) Pvt. Ltd - Dockers
.Ebony Stores
.Indian Terrain Clothing Pvt Ltd
.RPG Enterprises - (Spencer's Hypermarkets, Health & Glow, Music & Food World)
.Century Textiles
.Regional chains or stores

Recently, the lifestyle retailing reported sales at 22.88% at Pantaloon. Pantaloon expects to do a business of Rs 300 cr and by the second year in surplus of Rs. 1000 cr. The standalone stores and home representation in Central and Big Bazaar will start immediately and the first full Home store called Home Town is expected in May 2006. Recently, Pantaloon added another line of business - its venture into home - through its subsidiary Home Solutions Retail India, opened its first home solutions store in Mumbai called MeLA, a pioneer to the launch to provide solutions in home furnishings, furniture, and consumer durables etc., headed by Mr. Raghu Pillai. The size of the sector has been estimated between Rs 70,000 crore - Rs 80,000 crore. The furniture market is estimated at Rs 20,000-22,000 crore. Both are largely addressed by the unorganized market.

Sales for 05-06 continued to be buoyant as the company came up with total net sales of Rs. 145.99 crores in August, the highest since its inception. Sales from value retailing stood at Rs. 85.58 crores, while lifestyle

retailing contributed sales of Rs. 60.41 crores. Value retail displayed a same store growth of 32.72 per cent and lifestyle retailing of 22.88 per cent.

India is the only country in the world where women continue to wear traditional styles of clothes. This truly represents the story of Indian Retail- said Noel Tata, Managing Director, Trent Ltd on recent two day conclave of chapter of India Retail Forum 2005 (IRF), held in Mumbai.

Ninety percent of its profit contributions are from the clothing category only. The other fragment like footwear, cosmetics, jewellery, etc, provides only 10 per cent of the total sales. One of the strongholds of the Westside chain is its instore labels: SRC, 2Fast4U, Gia Richmond, Urban Angels, and Street Blues.

Westside plans to open six or even more outlets particularly in the cities of Bangalore, Delhi, Kolkata and Baroda with a cumulative GLA of 170,000 sq ft., it is existed with 17 outlets in 11 cities with the gross leased area (GLA) of 3.25 lakh sq ft, (has four outlets in Mumbai, three in New Delhi, two each in Bangalore and Ahmedabad, and one each in Kolkata, Chennai, Pune, Hyderabad, Nagpur, and Indore).

It has stated a net profit of Rs 5.23 crore for the quarter ended June 30 2005, up 60.34 per cent from Rs 3.26 crore in the corresponding quarter of the previous year. Total income stands at Rs 75.35 crore, up 51.84 per cent from Rs 49.62 crore in the corresponding quarter of last year.

Shoppers' Stop, with a reliability membership programme for customers called 'First Citizens' with a 3.00 lakh member base, has 16 stores with two more likely to come up shortly. Its net profit has increased by 19 per cent to Rs 3.56 crore for the June 2005 quarter against Rs 3 crore in the last year. Its turnover went up by 30 per cent to Rs 138.3 crore (Rs 106.20 crore). Operating profit (before interest, depreciation and tax) improved by 44 per cent to Rs 91.9 crore from Rs 64 crore in the last year.

In September 1999, Piramal Enterprises entered in ventures into retail with the launch of three retail concepts: Crossroads and a lifestyle department store called Piramyd Megastore; and a family entertainment centre acknowledged as Jammin.

With the beginning of Piramyd Supermarket at Pune in 2001, the group entered the business of food & grocery retail also. The annual turnover of Retail Business Group reached to $ 20 Million (Rs 90 crore) in the end of 2004. The group's retail businesses are all set to take off with a capital investment of $ 25 million over the next coming years in 50 retail outlets spread across the country.

Wills Lifestyle - came out as the foremost fashion forward chain opening 42 stores across the country within the first two years of its business. All together, it is also now going assertive on its mass brand John Players, the trendy brand of men's apparel. It also signed on the famous superstar Hrithik Roshan as the brand ambassador for its apparel brand John Players. ITC begin its fashionable and youthful men's apparel brand, John Players. The brand is sited to be 'style with a playful side'.

The brand 'S.Kumars Value Shop' experience the rising demand for its fabrics and ready to wear. These shops provide S.Kumars suitings, shirtings, Ready to wear shirts, T Shirts and accessories.

Today, the company is possessing three brand names in their retailing, S. Kumar's, Reid & Taylor and Tamarind. S. Kumar's is the oldest brand of the company with over 55 years of brand equity and exclusive strengths. Today these brands have evolved to cover Fashionable blended suiting for everyday wear. Skimmer's polyester viscose and polyester cotton blend fabrics are presented in over 150 basic shades.

It plans to invest Rs 400 crore in developing its four textile and apparel businesses over the next two years. The company has invested Rs 100 crore in doubling its fabric ability. It is also introducing a home textiles brand, Carmichael House, later this year and plans to cover the export market. It is also plan to introduce the brand 'Balmoral' next year and also planning to launch ladies garments business by 2007.

Recently, Raymond Apparel Limited, a 100 per cent subsidiary of Raymond Group, is entering on a separate retail strategy for its Park Avenue, Parx and Manzoni brands. As part of the strategy, the company is to begin exclusive stores in selected cities in adding to it existence in The Raymond Shop network and multi-brand outlets. Primarily, the company process to open 15 stores this year on its own and after that expand them through a mix of company owned and franchisee based. Recently in Bangalore, the company started its second exclusive Park Avenue store and company will shortly open its first Manzoni store in New Delhi.

The Raymond Shop has been open up organized retailing in the country early around five decades ago. They have also widespread their network overseas having around 25 shops in 15 plus cities of Middle East, Srilanka, Bangladesh and Nepal. The Raymond Shop retail chain engages a space of 1 million square feet built-up area. The Raymond Shop is a quality retail store providing complete wardrobe solutions for men's, which covers top-of-the-line brands - Raymond, Park Avenue, Parx, Manzoni and ColourPlus.

Raymond Apparel Limited in 2004 achieved sales of Rs 260 crore (Rs 2.6 billion) at retail level.The brands also presented superior growth with ColourPlus piece Rs 95 crore (Rs 950 million) (ex-factory) and Rs 135 crore (Rs 1.35 billion) (retail-level), Park Avenue Rs 110 crore (Rs 1.1 billion) (ex-factory) and Rs 150 crore (Rs 1.5 billion) (retail-level). Parx Rs 60 crore (Rs 600 million) (ex-factory) and Rs 88 crore (Rs 880 million) (retail-level).

The House of Zodiac, a menswear manufacturing company, 50 years old, started in 1954 by M.Y. Noorani as a trading company. Noorani performed well in exports as well established business in Europe for good quality ties and shirts. In India Zodiac name became a synonym for ties as the company come in the field of men's accessories with Cuff links, Belts, Wallets and Handkerchiefs. To approach the new generation Zodiac has introduced Zod, which is extremely fashionable, trendy range of shirts.

At present, Zodiac has manufacturing facilities in Karnataka, Gujarat, Daman and Dubai. The manufacturing capacity of all the facilities put together is close to 60, 00,000 units per annum. At present, Zodiac sells to approximately 2000 multi-brand retailers and have over 80 exclusive Zodiac showrooms spread across the country.

Zodiac's retail network covers over 1000 outlets and over 50 exclusive Zodiac Retail Stores range across the country. The tie-up between Zodiac and Ciro Citterio, a UK-based company has facilitates Zodiac sell its formal shirts under its renowned brand, in 130 stores across the United Kingdom. Zodiac had previously put into same provisions effectively with The Bijenkorf in Holland as well as chooses retailers in Germany.

Madura Garments is introducing the lifestyle apparel brand Esprit by September 2005. Madura Garments, with this introducing is anticipated to perform in the premium casual wear market, with importance on women's wear where Esprit is traditionally known for. Madura Garments, which has market-leading brands like Van Heusen, Louis Philipe, Allen Solly and Peter England is launching Esprit lifestyle brand on September. Madura Garments may also carry the Armani brand to block the gap in the super-premium branded apparel market.

Madura Garments is a part of Indian Rayon and Industries Limited a flagship company of the Aditya Birla Group. India's leading apparel and retail company owns/ have perpetual license for premier brands like Louis Philippe, Van Heusen, Allen Solly, Allen Solly Women's Wear, Peter England, Byford, Elements and SF Jeans, Madura Garments also plays a significant role as a preferred global supplier for international brands such as Marks & Spencer's, Tommy Hilfiger, Polo, Ralph Lauren and several other discerning international buyers.

Launched in 1989, Louis Philippe is menswear lifestyle brand in India has capitalized on its equity as "The Upper Crest" and jumped the Rupees 175 Crore mark (MRP Sales) in the last fiscal.

Madura Garments, in addition to introducing new brands, is increasing the product breadth under its main brands, expanding its retail scope as part of its efforts to have Rs 100 crore brands under its portfolio.

We have plans to achieve this by strengthening our retail presence. Organized retail is increasing its share and with more brands coming to India offering world-class retail experience, retail has become one of the critical growth drivers of the company. However, we see great value in retaining a multi-channel distribution structure. Our company is also focusing on making innovative product offerings to the market. In addition to our premium brands Louis Philippe, Van Heusen, Allen Solly and SF Jeans, we expect great value to come from our popular brand "Peter England" - said Mr. Vikram Rao, Group Executive President, Madura Garments.

Every brand has to cater to its brand promise as regards the personality it caters to & the retail experience to match that personality. This promise can be best demonstrated through Exclusive Brand outlets. This would also fuel growth in the Multi-brand outlets. As such, inspite of new retail formats coming in, the apparel companies still have to expand their own retail network. However, there is obviously scope of learning from the new retail formats - added Mr. Vikram Rao.

Embarked on in January 1998, Globus is a division of the Rajan Raheja group. The company stated its first store in 1999 at Indore (spread over a GLA of 22,500 sq ft.) followed by the opened its second store in Chennai (with GLA of 31,000 sq ft) (T-Nagar). Soon to follow was another in Chennai located in Adyar. The flagship store in Mumbai was started on 1st November 2001 at up market Hill Road, Bandra. In April 2003, Globus started its glamorous new outlet in New Delhi in South Extension Part-2. In October & December of 2003 the sixth & seventh stores were started in Bangalore in Koramangala & Richmond Road correspondingly, and expanding an additional 8 to 10 stores by end of 2005 with two outlets in Mumbai, three in the NCR, and one each in Kanpur, Pune and Hyderabad. The largest of these would be established in Noida with a GLA of 25,000 sq ft.

The concentration on apparel is not astonishing since the clothing category produced sales to the tune of 80 per cent of total sales in 2004. Cosmetics/perfumes and jewellery also contributes a share of 10 per cent each.

Givo Ltd. was set up in 1993, in technical collaboration with Marzotto S.p.A of Italy, for manufacture, sale and export of readymade high-fashion garments like suits, trousers, shirts, jackets in wool, wool blends, and cool wool fabric, both for men as well as women's wear.

The outlets handled by the company itself, Givo managed by franchised SBEs and franchised MBCs. The total number of SBEs stayed continued at three in three cities in 2003 and 2004. The company will be expanding its existence in SBEs to seven outlets increase over seven cities in end of 2005. The company will be expanding its existence in MBCs to 30 outlets increase over 20 cities in 2005.

Recently, GIVO has been setting up technical and financial collaboration with Marzotto Spa of Italy which supplies industrially manufactured classic men's wear, using state of art equipment imported from Europe. GIVO exports a major portion of its production to USA, Canada, Europe & Middle East.

The Company was started on November 11, 1997 as Acme Clothing Private Limited. The Company introduced the fashion brand 'Provogue' in March 1998 and within a short span of seven years; it has created strong brand uniqueness.

The brand is retailed through choosy stores in the country and foremost Chain Stores like Shopper's Stop, Lifestyle, Globus and Westside etc. Provogue is also retaliating by a chain of outlets called "Provogue Studio" at 40 locations in India.

Indus-League Clothing Ltd., was set up on 14th April 1999 by a team of eight top-flight management professionals from the clothing industry. These professionals have instituted a name for generating and building some of the most victorious fashion brands in South Asia and the Middle East.
Recently, apparel major Pantaloon Industries has picked up the entire stake of ICICI Venture Fund in the Bangalore-based apparel company Indus League Clothing Ltd for a consideration of Rs 24.09 crore. Indus League will continue to be a separate legal entity and no major changes are expected in the organizational and management structure, said company Managing Director, Sriram Srinivasan. With this move, the Rs 85 crore Indus League will have a strategic alliance with the Pantaloon Knowledge Group.

This alliance will give our brands access to dedicated large format retail spaces at all Pantaloon and Central concept stores. It will unlock synergies in retail space, production facilities, marketing, design, and fabric sourcing and supply chain - said Sriram Srinivasan.

Currently Indus League has a strong retail presence in the South and West while this tie-up will give access to the North and Eastern regions.

Kewal Kiran Clothing started in 1981 and today is branded apparel manufacturers in India. The company with sales in Asia, Middle East markets branded jeans and casual wear for men. It covers jeans, shirts, jackets and trousers marketed under the Killer, Lawman, Easies and Integriti brands.

The company started as a manufacturer of men's wear for reputed brands. This provided the company experience to global standards in quality, technology, marketing and branding. In 1989, the company started production of "Killer "the first international denim brand formed in India. Killer, today, is one of the most flourishing and extensively familiar brands in the history of the Indian apparel industry.

The company began as a manufacturer of men's wear for reputed brands. This gave the company exposure to global standards in quality, technology, marketing and branding. In 1989, the company introduced "Killer "the first international denim brand created in India. Killer, today, is one of the most successful and widely recognized brands in the history of the Indian apparel industry.

Mohan Clothing Co Pvt Ltd, well known by its Blackberry's brand of trousers, suits and jackets, retailing at over 250 premium outlets all over India also plans to add more exclusive stores to 50 by March 2006. Currently, the company has 11 exclusive stores in eight cities. Each of these exclusive stores would involve an investment of Rs 15-20 lakh. At the same time, the company is doubling the production capacity.

At present it produces 1,500 trousers and 200 suits and jackets per day. In addition exclusive stores, Blackberrys' products are retailed through 600 outlets across the country.

The company is eager to concentrate on exports in the months ahead. At present, Mohan Clothing Co exports its offerings for retail sales in Dubai. The company is targeting a turnover of Rs 105 crore in 2005-06, up from Rs 80 crore reached in 2004-05.

Besides, looking to the developments in the local market they are focusing on exporting their brands to the European & American markets.

Arvind Brands, a group company, runs a variety of brands owned by Arvind, cover Flying Machine, Newport and Ruf & Tuf in Jeans and Excalibur in Shirts. This company provides entire Domestic market in India apart from exports.

Besides these specific brands, the company has licenses from reputed International brands like Arrow, Lee, Wrangler and Tommy Hilfiger for the Indian market with their office at Bangalore, which manages the entire retailing.

Arvind is also focusing on branded apparel retailing and planning to take its brands to countries like Bangladesh, Sri Lanka, African and European countries apart from the US market.

According to Mr. Sanjay Lalbhai, Managing Director, Arvind Mills Ltd, the opportunity in world textile trade, domestic trade at USD 16 billion also presents a good opportunity due to growing consumerism. The optimism is due to

.Growing population with higher disposable income
.Favorable demographic profile - More than 70% of our population is below the age of 35
.Emergence of organized retail - 314 Malls coming in India with 3 M sq ft of retail space being added in next two years

Undoubtedly, it is retail boom in India. The domestic textile and apparel demand is likely to grow at a healthy CAGR of 8-9% between 2005 & 2010.

Siyaram Silk Mills Limited, the flagship company of the Rs. 1000 cr. Siyaram Poddar Group, came into existence in its current form of Siyaram Silk Mills Limited on the 16th of April, 1980. Oxemberg is the flagship brand of Siyaram Silk Mills Ltd., with it's washed out jeanswear collection it has entered into the branded jeanswear market. Oxemberg introduced the reinvented form of denim in its complete product line with numerable tints, aged looks, and generally offered in three fits, Comfort, Bootcut and Straight fit. They are have the Siyaram's , Mistair , J.Hampstead , Oxemberg , Miniature intheir flagships, and Siyaram Silk Mills is setting up target for the ready-made garment (RMG) sector and has recently begin a new brand `Featherz' produced from yarns made of micro fine fibres.

The Net Turnover and Other Income of Siyaram Silk Mills Ltd. (SSML) for the year ended 31st March, 2005 is at Rs.306.81 Cr as against Rs. 287.63 Cr last year. Likewise, the Gross Profit is Rs. 22.79 Cr as against Rs. 21.12 Cr in the previous year and the Profit after depreciation; current and deferred tax is placed at Rs. 8.44 Cr as against Rs. 7.72 Cr in the previous year.

With increasing strength in South India, Delhi-based Indus Clothing Ltd, licensee of the UK-based unisex casual wear brand Lee Cooper in India, existed with its distribution network with 14 distributors and 350 outlets.

Launched in January 2000, Krishna and Nilesh Mehta's Oobe provides women fashion wear clothing covering Capri pants, Cargoes, straight-cut shirts, cropped tops and jackets with the detailing that set the label's style, three-fourth sleeves and polo necks. Oobe merchandise retails through leading MBOs across the metros and mini metros in India, covering Piramyd, Tresorie, The Bombay Store and A to Z.

OOBE (Out of Body Experience) has proclaimed its entry into the men's wear segment with the opening its first exclusive store in New Delhi in 2004. They have decided to set up 25 new stores across the country by March 2006. Among them, by now they have opened eight stores, including four in Mumbai and one each in Kolkata, Delhi, Bangalore and Ahmedabad and the rest of 17 would be begin by March, 2006.

Levi Strauss (India) Pvt. Ltd is a wholly-owned subsidiary of Levi Strauss & Co., San Francisco and markets the Dockers brand in India. It was set up in India in 1994 with its icon brand 'Levi's. Levi's range of products is retailed through 35 sole outlets and covers a range spanning the classic legendary 501 jeans to contemporary products like Cargoes. Woven shirts, knitted tops, accessories as well as Dockers khaki range.

The Dockers brand was introduced in Mumbai in April 2000, followed by Bangalore, Pune, Kolkata, Hyderabad, Vijayawada, Panaji, Chennai and Delhi. Again in July 2005, Levi's re-launched Dockers brand with the presentation of `Never Iron 100% Cotton' pants. The Dockers Never-Iron trousers are manufactured with a proprietary fabric and finish that provides them a "straight from the dry-cleaner" look, covering a stable crease, right out of the dryer. Dockers possess exclusive rights to never-iron cotton technology in pants through 2006.