Food Retail in India

Preliminary Market Report on Supermarkets & Hypermarkets in India

July 2005
Note: This material is based mainly on research from published sources. While all reasonable attempts have been made to cross-verify information, due to the fragmented nature of the market and information sources, as well as the fact that most companies in this market would be privately held, we cannot warranty the complete accuracy of the information contained in this report.

Contents
Overview ........................................................................................... 2 The Opportunities from Changing Demographics in India.................. 5 Enablers for Growth in Organised Food & Grocery Retail in India ..... 7 Organised Food Retail Formats in the Country .................................. 8 Key Success Factors for Organised Retail in Food & Grocery ......... 11 Key Impediments for Organised Food Retailing............................... 12 Growth of Organised Retail and Possibilities of FDI ........................ 14 Addressing the Risks and Challenges ............................................. 17 Highlights of Significant Players Present in India ............................. 19 Regulations Governing the Distribution Services Sector .................. 29

Preliminary Market Report on the Supermarket / Hypermarket Sector

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Overview India is one of the fastest growing economies in the world, and by PPP (Purchasing Power Parity) comparison, one of the largest.

India ranks first among the 30 emerging markets for new retailers to enter. The Indian retail market is estimated to have sales of around US $330 billion and is estimated to be growing at around 10% annually. (Source: A T Kearney Inc). A CII-McKinsey study estimates that if the growth rate is kept at around 8-9% annually, the market would reach around US$ 500 billion by 2010. However, if the existing supply chain constraints are removed, real estate markets made more organised and tax... [continues]

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