DECLARATION
I hereby declare that this project report is the result of 2 month summer training done by
Jitesh in VISHAL RETAIL PRIVATE LIMITED.
This is to further declare that this project report is authentic and a group effort and not
submitted by any other student previously to receive a degree.
DATE:
Jitesh
BUSINESS DEVELOPMENT PROJECT
UNIVERSITY SCHOOL OF MANAGEMENT STUDIES
G.G.S. INDRAPRASTHA UNIVERSITY
SUMMER TRAINING REPORT
JUNE-JULY 2007
Submitted By:
JITESH
MBA 3rd sem.
Roll no. 105
ACKNOWLEDEGMENT
I herby offer my sincere and profound thanks to Mr. AMBIK- president Vishal retails, who
gave us such a challenging project and guided us through out our project including
analysis and presentation of the same. Without him we would not been able to complete
our project successfully.
I would also like to thank HR department and in particular Mr. SHALENDRA GUPTA for
his valuable support.
I would also like to thank my mentor Prof. S. SANJAY KUMAR for all the guidance and
support required from time to time.
In addition I would like to give my sincere thanks to my team members with whom I
worked. It was a great experience working with these people.
REKHA M. DHAWAN
ANKUR CHAUHAN
AKHILESH GUPTA
SANDEEP KUMAR
SANJOY BARUA
ANKIT SONEJA
ANKIT GUPTA
DECLARATION
I hereby declare that this project report is the result of 2 month summer training done by
JITESH in VISHAL RETAIL PRIVATE LIMITED.
This is to further declare that this project report is authentic and not being submitted by
any other student previously.
DATE:
(Prof. S. SANJAY KUMAR)
EXECUTIVE SUMMARY
The project is about business development strategy of Vishal retail in near future as a part
of expansion plan being adopted by the company. The company is targeting at three figures
in term of its number of stores which are presently 55. This project report suggests
prospective locations and site where Vishal retail can open up its new stores. Area covered
is Delhi and NCR where presently it has 7 stores. It also includes details about the
consumer who come at Vishal mega mart for shopping. A survey was conducted to know
behavior of consumers while they go for shopping in a particular retail store. A
questionnaire has been drafted for the same, to understand the psyche of the VISHAL
MEGA MART customers to know their needs and expectations which can be further
utilized by the company to gain a competitive edge over the competitors. On the basis of
analysis done and key finding, Delhi and NCR region was scanned and SWOT analysis of
each and every corner was done to find the prospective location where Vishal retail can
open its future stores. Property rates of the selected locations were found out and the most
critical location was selected. Similar kind of research were done in various parts of the
country by different teams to support Vishal retail expansion plan.
1. INTRODUCTION
Indias vast middle class and its almost untapped retail industry are key attractions for
global retail giants wanting to enter newer markets. Driven by changing lifestyles, strong
income growth and favorable demographic patterns, Indian retail is expected to grow 25
per cent annually.
Modern retail in India could be worth US$ 175-200 billion by 2016. With the economy
booming, competition in the marketplace is fierce. According to Retail in India Getting
Organized to Drive Growth, a report by AT Kearney and the Confederation of Indian
Industry, retail is one of Indias fastest growing industries with a 5 per cent compounded
annual growth rate and expected revenues of US$ 320 billion in 2007. Rising incomes,
increasing consumerism in urban areas and an upswing in rural consumption will fuel this
growth to around 7-8 per cent.
INDIAS ORGANISED RETAIL INDUSTRY
Indian Retail sector consists of small family-owned stores, located in residential areas,
with a shop floor of less than 500 square feet. At present the organized sector accounts for
only 2 to 4% of the total market although this is expected to rise by 20 to 25% YOY basis.
Retail growth in the coming five years is expected to be stronger than GDP growth, driven
by changing lifestyles and by strong income growth, which in turn will be supported by
favorable demographic patterns. The structure of retailing will also develop rapidly.
Shopping malls are becoming increasingly common in large cities, and announced
development plans project at least 150 new shopping malls by 2008. The next cycle of
change in Indian consumer markets will be the arrival of foreign players in consumer
retailing.
RETAIL SALES IN INDIA
INDIA: #1 EMERGING RETAIL GROWTH MARKET
As we can see form the above table that India is witnessing an emerging retail boom.
According to A.T. Kearney GLOBAL RETAIL DEVELOPMENT INDEX, India was
placed at 5th position in the year 2003. Within a span of 2 years, India has topped the
charts placed at 1st position.
WHY INDIA IS #1 RETAIL GROWTH MARKET?
MARKET GROWTH
8-10 % annual growth with 30% + growth for modern format retail.
STRONG ECONOMY
Fourth largest economy on Purchasing Parity Basis.
MARKET OPPORTUNITIES
Growing consumer aspirations together with very low penetration of modern format
retailing.
INFRASTRUCTURE
Large amount of quality retail space being added.
INDIA RETAIL GROWTH OPPORTUNITY
From the above figure, it can be easily drawn out that there is tremendous head room for
growth in INDIA in retail as penetration is even less than 3 %.
INDIA: A NATION OF SHOPKEEPERS
SHARE OF MODERN RETAIL FORMAT
2. VRPLs HISTORY AND CERTAIN CORPORATE MATTERS
VRPL was incorporated on July 23, 2001 under the Companies Act, 1956 as Vishal Retail
Private Limited. VRPL was converted to a public limited company on February 20, 2006.
At the time of incorporation, the registered office of VRPL was situated at 4, R. N.
Mukherjee Road, Kolkata 700 001. Subsequently VRPLs registered office was shifted to
54/4C, Strand Road, Kolkata 700 006 on August 1, 2001 and on February 14 2004, VRPLs
registered office was shifted to Mouza Kuch Pukur, P.S. Bhangore, 24 Paragnas (South),
West Bengal. On December 29, 2005, VRPLs registered office was shifted to RZ-A-95 &
96, Road No. 4, Street No. 9, Mahipalpur Extension, New Delhi 110 037, which is the
present registered office of our Company.
Acquisition of Business from M/s Vishal Garments and M/s The Vishal Garments
Vide a business purchase agreement dated November 23, 2001 executed between VRPL
and Mr. Ram Chandra Agarwal (carrying on proprietorship business in the name of M/s
The Vishal Garments) and Mrs. Uma Agarwal (carrying on proprietorship business in the
name of M/s Vishal Garments), VRPL acquired the business of M/s The Vishal Garments
and M/s Vishal Garments, and the said businesses were transferred to VRPL as a going
concern with effect from December 15, 2001.
Acquisition of manufacturing unit from M/s Vishal Fashions Private Limited
Vide a business purchase agreement executed between VRPL and M/s Vishal Fashions
Private Limited, we acquired the business of manufacturing of readymade garments as a
going concern with effect from March 31, 2003. VRPL went into backward integration by
acquiring a manufacturing unit for readymade garments.
Acquisition of manufacturing unit from M/s Vishal Apparels
Vide a business purchase agreement dated March 31, 2003 executed between VRPL and
Mr. Ram Chandra Agarwal (HUF) (carrying on its business in proprietorship in the name
of M/s Vishal Apparels), VRPL acquired the manufacturing unit of M/s Vishal Apparels
and they said manufacturing unit was transferred to our Company as a going concern with
effect from March 31, 2003.
Major Events:
A chronology of some key events in the history of the Company is set forth below:
Year Milestone
2001
* Incorporated as Vishal Retail Private Limited
* Acquired the proprietorship firm Vishal Garments & The Vishal Garments
* Opened first store outside Kolkata
2002 * Opened first Store in Delhi
2003 * Acquired Vishal Apparels, a manufacturing unit.
* Set up a manufacturing unit in Gurgaon
2004 * Started our largest store of at Mathura Road, New Delhi having an area of
80,000 square feet
* Nominated for the Images Retail Awards 2004
2006 * Our Company was converted into a public limited company
* Implementation of production and retail module of SAP
* Broadband connectivity with each and every location
* Increased our presence to an aggregate of 17 States
Details of Directors
Mr. Ram Chandra Agarwal, 41 years, is VRPLs Chairman and Managing Director. He
holds a bachelors degree in commerce from St. Xaviers College, Kolkata. Mr. Agarwal has
more than 18 years of experience in the retail industry and has been with us since our
inception in 1997. He started the business under the name of Vishal Garment with a small
store at 9, Lal Bazaar Street, Kolkata. Mr. Agarwal has made efforts for the development
of the value retailing industry in India and is well known for his business acumen.
Mrs. Uma Agarwal, 31 years, is an executive Director of VRPL. She holds a bachelors
degree in arts. Mrs. Agarwal has more than five years of experience in the retail industry.
She has been associated with accounts department of our Company.
Mr. Surendra Kumar Agarwal, 44 years, is an executive Director of VRPL. He holds a
bachelors degree in commerce. Mr. Agarwal has more than 15 years of experience in the
retail industry. He has been associated with store development and management at various
locations of our Company.
Mr. Bharat Jain, 43 years, is an independent Director of VRPL. He holds bachelors degree
in commerce. Mr. Jain is engaged in the business of leather garments and accessories and
