FACTBOX-Indian retail attracts more foreign players

MUMBAI, May 21 (BestGrowthStock) – Wal-Mart Stores Inc (WMT.N: ), the
world’s top retailer, is accelerating its rollout of wholesale
stores in India, a crucial growth market that has long
frustrated global firms with restrictive rules. See

French retailer Carrefour (CARR.PA: ) will enter India in
July with its first cash-and-carry outlet, and set up three or
four more such outlets by year-end, sources say. See

Below are some facts and issues in the Indian retail
sector. For main story see [ID:SGE63K0AI]


* The retail sector in the nation of 1.1 billion people is
estimated to have annual sales of $450 billion, according to
consultant firm A.T. Kearney. Nearly 80 percent of the market
is in the hands of tiny family-run shops.

* Organised retail, or large chains, make up only 6 percent
of the market but is expanding at 20 percent a year. This is
driven by the emergence of shopping centres and malls, and a
middle class of close to 300 million people that is growing at
just under 2 percent a year, according to data from National
Council of Applied Economic Research (NCAER) and World Bank.

* People living in villages and small towns account for 59
percent of consumer durables such as refrigerators and washing
machines sales and 53 percent of consumer goods like soaps,
detergents and shampoos, according to the NCAER.

* Incomes in rural areas, where nearly two-thirds of the
population lives, have risen driven by growth in agriculture
for four consecutive years to 2008/09, according to a study by
Rural Marketing Association of India.


* India only allows foreign direct investment in
cash-and-carry, or wholesale, ventures; there are restrictions
on foreigners in retail because of opposition from millions of
small shopkeepers that are valuable vote banks during

* Foreign retailers can enter retail through franchise
arrangements with local players, and are allowed to own up to
51 percent in single-brand retail, while 100 percent ownership
is permitted in cash-and-carry ventures.


* Pantaloon Retail (PART.BO: ), is the country’s
largest-listed retailer, with hypermarkets, supermarkets, and
department stores.

* Other prominent players are Tata Group’s Trent (TREN.BO: )
and Shoppers Stop (SHOP.BO: ), Reliance Retail, a unit of
Reliance Industries (RELI.BO: ), Aditya Birla Retail and RPG
Group which runs the Spencer hypermarkets.


* Wal-Mart has a joint venture with Bharti Enterprises, the
parent of leading mobile services provider Bharti Airtel
(BRTI.BO: ). It has launched two wholesale stores and plans to
open another 10-12 over two-three years.

* Tesco (TSCO.L: ), UK’s largest retailer, has a tie-up with
Trent for a franchise agreement for its hypermarket chain.

* Germany’s Metro AG (MEOG.DE: ) has its own cash-and-carry
business, which operates under its own brand name.

* UK’s Marks & Spencer (MKS.L: ) operates an apparel retail
chain and has a joint venture with Reliance Retail.

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(Compiled by Janaki Krishnan and Rina Chandran; Editing by
Dhara Ranasinghe)

FACTBOX-Indian retail attracts more foreign players