RETAIL SECTOR-INDIA OVERVIEW

The BMI India Retail Report for the third-quarter of 2010, forecasts that the total retail sales will grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014. With the expanding middle and upper class consumer base, there will also be opportunities in India's tier II and III cities. The greater availability of personal credit and a growing vehicle population to improve mobility also contribute to a trend towards annual retail sales growth of 11.4 per cent. Mass grocery retail (MGR) sales in India are forecast to undergo enormous growth over the forecast period. BMI further predicts that sales through MGR outlets will increase by 154 per cent to reach US$ 15.29 billion by 2014. This is a consequence of India's dramatic, rapid shift from small independent retailers to large, modern outlets. BMI forecasts consumer electronic sales at US$ 29.86 billion in 2010, with over the counter (OTC) pharmaceutical sales at US$ 3.28 billion. The latter is predicted to be the fastest growing retail sub-sector and BMI forecasts that sales will reach US$ 6.18 billion by 2014, an increase of 88.5 per cent. China and India are predicted to account for almost 91 per cent of regional retail sales in 2010 and by 2014 their share of the regional market is expected to be more than 92 per cent. Growth in regional retail sales for 2010-2014 is estimated by BMI at 72.2 per cent, an annual average of 14 per cent. India should experience the most rapid rate of growth in the region, followed by China. For India, its forecast market share of 13.9 per cent in 2010 is expected to increase to 14.3 per cent by 2014. Moreover, for the 4th time in five years, India has been ranked as the most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney in its 8th annual Global Retail Development Index (GRDI) 2009. India remains among the leaders in the 2010 GRDI and presents major retail opportunities. India's retail market is expected to be worth about US$ 410 billion, with 5 per cent of sales through organised retail, meaning that the opportunity in India remains immense. Retail should continue to grow rapidly—up to US$ 535 billion in 2013, with 10 per cent coming from organised retail, reflecting a fast-growing middle class, demanding higher quality shopping environments and stronger brands, the report added. Bharti Retail strengthened its position in northern India by opening 59 stores, Bharti Wal-Mart is expected to open 10 to 15 wholesale locations in the next three years, and Marks & Spencer is considering plans to open additional outlets in the next few years. Established retailers are tapping into the growing retail market by introducing innovative store formats. Spencer's Retail, More (owned by Aditya Birla Group) and Shoppers Stop (owned by K Raheja Group) already plan to expand. According to a McKinsey & Company report titled 'The Great Indian Bazaar: Organised Retail Comes of Age in India', organised retail in India is expected to increase from 5 per cent of the total market in 2008 to 14 - 18 per cent of the total retail market and reach US$ 450 billion by 2015. Furthermore, according to a report titled 'India Organised Retail Market 2010', published by Knight Frank India in May 2010 during 2010-12, around 55 million square feet (sq ft) of retail space will be ready in Mumbai, national capital region (NCR), Bengaluru, Kolkata, Chennai, Hyderabad and Pune. Besides, between 2010 and 2012, the organised retail real estate stock will grow from the existing 41 million sq ft to 95 million sq ft. India continues to be among the most attractive countries for global retailers. Foreign direct investment (FDI) inflows between April 2000 and April 2010, in single-brand retail trading, stood at US$ 194.69 million, according to the Department of Industrial Policy and Promotion (DIPP). Leading watchmaker Titan Industries Limited plans to invest about US$ 21.83 million for opening 50 premium watch outlets Helios in next five years to attain a sales target of US$ 87.31 million. "We are looking to open Helios outlets in Mumbai, Delhi, Hyderabad, Kolkata, Chennai, Pune, Ahmedabad etc in next 12 months," said Ajoy Chawla, Vice President (Retail), Titan. British high street retailer, Marks and Spencer (M&S) plans to significantly increase its retail presence in India, targetting 50 stores in the next three years. M&S currently operates 17 stores in India through a joint venture (JV) with Reliance Retail. Chinese retail major, Yishion has entered the Indian market and plans to have at least 125 points of sales, including exclusive stores and multi-brand outlets, across India by 2012. It will open its first exclusive store in New Delhi by September 2010. Spain's Inditex, Europe's largest clothing retailer opened the first store of its flagship Zara brand in India in June 2010. It further plans to open a total of five Zara outlets in India. Bharti Retail, owner of Easy Day store—supermarkets and hypermarts—plans to invest about US$ 2.5 billion over the next five years to add about 10 million sq ft of retail space in the country by then, according to a company spokesperson. Raymond Weil plans to invest US$ 883,665 in India during 2010, according to Olivier Bernheim, President and CEO, Raymond Weil. Policy Initiatives FDI up to 51 per cent under the Government route is allowed in retail trade of Single Brand products, according to the Consolidated FDI Policy document. Road Ahead According to industry experts, the next phase of growth is expected to come from rural markets. According to a market research report published in June 2008 by RNCOS titled, 'Booming Retail Sector in India', organised retail market in India is expected to reach US$ 50 billion by 2011. The key findings of the report are: Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent from 2007 to 2015 Rural market is projected to dominate the retail industry landscape in India by 2012 with total market share of above 50 per cent Driven by the expanding retail market, the third party logistics market is forecasted to reach US$ 20 billion by 2011 Apparel, along with food and grocery, will lead organised retailing in India

Security Equipments and Services Market in India 2010

The Security Equipment and Services Market which includes CCTV and other equipment has been pegged at INR 28.5 bn, electronics access control estimated to be INR 7.99 bn and private security services valued at INR 100 bn in 2009. Increasing security awareness among corporate and individuals will drive the market.

The security equipment and service market indicates three basic divisions, CCTV and other Equipment, Electronics Access Control and Private Security Services. It further elaborates on all the three division in brief providing an overview, market size, growth and market segmentation for each of these segments in the security equipment and services market.

Information regarding the type of products in CCTV and other equipments, as well as electronic access control are growing at a rapid speed.

An analysis of the drivers for CCTV and other equipment explains growth factors such as government demand, corporate demand, and retail and residential sector demand. The key challenges to be identified are high duty and taxation structure and competition from unorganized players. Analysis of the driver for electronics access control explains growth factor such as increasing security breaches, demand from upcoming government projects and proposals, economic growth and rise in employable population and increasing demand for better security from increasing R&D centres.

The key challenges include lack of awareness towards security and availability of cheaper alternatives, and lack of end to end solution providers. Analysis of the driver for private security services explain growth factor such insufficient police protection and cost of electronics.

The future outlook for this sector including the existing duty structure and the PE investments and their impact on the market. The major products expected to be demanded have been highlighted including the sectors which will drive the market.

Competition section provides brief profiles of major domestic and foreign players in the market(GROUP 4 SECURICOR-G4S). The section contains a snapshot of their corporation, products they offer, financial performance and business highlights, providing an insight into the existing competitive scenario.

In India , manpower security =watchman.who helps in doing the chores at the site.This should change for a secure society.

SABOL-GROWING BRAND

Coimbatore based packaged drinking water manufacturer Sabol Associatess is fast becoming a strong brand competing with big players like Aquafina,Bisleri,Kinley.Mr K.M. Senthil, Chairman and Managing Director, Sabol Associatess, Coimbatore, said the company, which entered the mineral water segment by launching `Sabols' packaged drinking water in 1999, had a 25 per cent market share.

While in the 20-litre jar mineral water segment, it is the dominant player in Tamil Nadu, in the bottled water segment (such as 500 ml-2 litres), it occupies the third slot in the State. The company has launched 500 ml Sabols Club Soda in Tamil Nadu, Karnataka, Kerala and Puducherry at a price of Rs 12 per bottle and will be entering the carbonated drinks and fruit juices market by the end of this month.

Some of the domestic brands have been squeezed out because they did not expand their product profile and market reach and some companies even chose to move into unrelated areas, losing focus. In the FMCG business, manufacturers should keep expanding and launch newer products to safeguard their market share.

Some of the weaker players sold out their businesses to the MNCs or simply allowed their business to wither.

STRATEGY

MNC's units suffered from high overheads and marketing expenses having one production unit for the whole state.

But smaller players could have smaller plants at different locations that would bring down the distribution cost and give them pricing advantage, which Sabol has been able to use for its advantage in its mineral water business.Sabol is expanding its product range by entering the carbonated drinks and juices business to begin this month and will be launching food products such as biscuits, noodles and even parathas subsequently.The water business seems to be only a platform for Sabol on which it would build its FMCG business' growth.