Key facts on India's retail sector
The government had hoped the major reform would boost investment in Asia's third biggest economy, but it quickly backtracked when it came up against fierce opposition from across the political spectrum and from traders' unions.
Following are some facts on India's retail sector:
* The retail sector in the nation of 1.2 billion people is estimated to have annual sales of $450 billion, with nearly 90 percent of the market controlled by tiny family-run shops.
* Organised retail, or large chains, makes up about 10 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 nearly 2 percent a year.
* India also allows 100 percent FDI in cash-and-carry, or wholesale, ventures. Restrictions on foreign investment in front-end retail exist because of opposition from millions of small shopkeepers who are valuable vote banks during elections.
* India has recently allowed 100 percent FDI in single-brand retail subject to certain sourcing restrictions but no ownership in multi-brand retail.
LOCAL COMPANIES
* Pantaloon Retail, India's largest listed retailer and part of the Future Group, runs apparel and electronics stores under its lifestyle brands Central, E-Zone, Hometown. Future also operates the Big Bazaar hypermarket chain and supermarket brand Food Bazaar.
The group has over 1,300 stores across formats, and occupies a total retail space of 16.5 million square feet in India.
Future has for long been linked to France's Carrefour(CARR.PA) for a partnership in hypermarkets. It is recently sold controlling stake in its flagship clothing brand Pantaloon to bring down its high debt.
* Second-ranked Reliance Retail is part of Reliance Industries(RELI.NS), India's largest listed group headed by Mukesh Ambani, India's richest man. Reliance Retail operates 1,300 stores across neighbourhood stores, supermarkets, hypermarkets and lifestyle stores.
It has said it doesn't plan to partner with any global retailer.
* Shoppers Stop (SHOP.NS), part of the K Raheja Group which operates in real estate, has about 265 stores across brands and formats including 12 Hypercity hypermarkets.
It operates 4.58 million square feet of retail space and its loss-making Hypercity is open to partnerships with foreign groups.
* Trent, part of the sprawling Tata Group, operates 106 stores across formats and runs the Westside range of apparel stores, and hypermarkets under Star Bazaar. It signed a franchisee agreement with Tesco Plc under which Star Bazaar shops use the British firm's supply chains and infrastructure.
* Aditya Birla Retail is the unlisted retail arm of India's telecoms-to-cement conglomerate Aditya Birla Group, headed by Kumar Mangalam Birla, ra nked the seventh-richest Indian by Forbes in March 2012.
The company operates around 500 supermarket and hypermarket stores under the More brand. It has said it will evaluate partnerships with global firms.
MAJOR FOREIGN COMPANIES
* Wal-Mart Stores Inc (WMT.N) has a cash-and-carry operation with Indian partner Bharti Enterprises, the parent of leading mobile provider Bharti Airtel, and will add 12-15 new cash-and-carry stores this year to its 17 existing stores.
* Tesco, Britain's largest retailer, has a tie-up with Trent's Star Bazaar hypermarket chain. Tesco is also looking to enter the wholesale market through the tie-up.
* Germany's Metro AG operates 11 wholesale stores in India. The company plans to open 5 cash-and-carry stores every year.
* Carrefour has 2 cash-and-carry stores in India. The world's No. 2 retailer has been seeking a local partner to enter the hyper or supermarket sectors.
(Reporting by Nandita Bose in MUMBAI; Editing by John Mair)
Source : http://in.reuters.com/article/2012/06/11/india-retail-factbox-idINDEE85A02K20120611
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