Project Report

On

“An Analysis of consumer satisfaction towards services of VISHAL MEGA MART”

Submitted to- Submitted by -

Prof. Varuna Tayagi Yogesh Babu Rathore P.G . Head Roll no.-053/jkbs/aicte-10JK Business School , Gurgaon

DECLARATION

I hereby declare that the project work entitled “An Analysis of consumer

satisfaction towards services of Vishal Mega Mart” submitted to JK BUSINESS

SCHOOL, is a record of an original work done by me under the guidance of Dr.

Bhavana Syal , and this project work has not performed the basis for the award of

any Degree or diploma/ associate ship/fellowship and similar project if any.

YOGESH BABU RATHAORE

053/PGDM/AICTE-10

JK BUSINESS SCHOOOL

CERTIFICATE OF THE GUIDE

This is to certify that the Project Work titled “An Analysis of consumer

satisfaction towards services of VISHAL MEGA MART ” is a bonafide work of

YOGESH BABU RATHORE, carried out in partial fulfillment for the award of

degree of PGDM in JK Business School under my guidance. This project work is

original and not submitted earlier for the award of any degree / diploma or

associate ship of any other University / Institution.

Ms. Bhavana Lecturer JK BUSINESS SCHOOL GURGAON

PREFACE

The research report is necessary for the partial fulfillment of PGDM curriculum

and it provides an opportunity to the researcher in understanding the industry

with special emphasis on the development of skills in analyzing and interpreting

practical problems through the application of management theories and

techniques. It is a new platform of learning through practical experience, which

incorporates survey and comparative analysis. It gives the learner an

opportunity to relate the theory with the practice, to test the validity and

applicability of his classroom learning against real life business situations.

The researcher has conducted a research on “An Analysis of consumer

satisfaction towards services of VISHAL MEGA MART ”.

ACKNOWLEDGEMENT

The research work requires co-operation of many people and this work is no exception. It is difficult to thank individually all the persons who patronized this work. The researcher had asked for favors, borrowed ideas, expressions and facts from so many that it would require one volume to give credit to all. So, the researcher wants to thank all the patrons of this report.

First and foremost, I would like to express our sincere and profound gratitude to Dr. Bhavana Syal (Lecturer), whose guidance has given a proper shape to this project. Her attitude towards excellence, her helping nature and her enthusiasm has been source of constant inspiration. Her unhitching support during our work is very admirable. She is the true driving force behind this work throughout, constantly encouraging us to do our best and inspiring us to aim higher.

I will be failing in our duty, if I do not express our indebtedness to our Parents and family members for generating Confidence in us right from the commencement of this task to its accomplishment.

I are also very thankful to all the faculty members, the whole college staff for providing us with necessary facilities and support, essential for bringing out this work in a short time.

Last but not the least, I are thankful to all respondents, who gave us their precious time and support to fulfill this task, without their co-operation the study would not have seen the light of the day.

18 -11- 2011

YOGESH BABU RATHORE

053/JKBS/AICTE-10

CONTENT

1 Introduction & objective

2 About Retail Industry & Retail Sector In India

3 Company profile

4 Literature review

5 Research Methodology

6 Data analysis

7 Conclusion

8 Bibliography

9 Questionnaire

Introduction & objective Vishal Mega Mart started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today a conglomerate encompassing180 showrooms in100 cities /24 states. India is first hyper-market has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi this store boasts of the singe largest collection of goods and commodities sold under one roof in India. The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic leadership of Mr.Ram Chandra Agarwal . The group had a turnover of Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal 2007.

The group is prime focus is on retailing. TheVishal stores offer affordable family fashion at prices to suit every pocket the group is philosophy is integration and towards this end has initiated backward integration in the field of high fashion by setting up a state of the art manufacturing facility to support its retail endeavors.

Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price ranges. The showrooms have over 70,000 products range which fulfills all your household needs, and can be catered to under one roof. It is covering about 29, 90, 146 sq. ft. in24 states across India. Each store gives you international quality goods and prices hard to match. The cost benefit that is derived from the large central purchase of goods and services is passed on to the consumer. Vishal Mega Mart is one of India is a fastest growing retail chain.. The chain currently has183 company stores in 24 states / 110 cities in India. The Vishal brand is known for great modern style for men, women and children. Vishal offers high level fashion styling. Since 1986, our name has been synonymous with quality, value and fashion integrity. We offer an unparalleled collection of clothes for the entire family. Each garment is hand selected for quality and contemporary styling. Vishal manufactures majority of its own garments and out sources some under its direct quality supervision. This enables us to offer the lowest possible and most reasonable prices.

Topic –“An Analysis of consumer satisfaction towards services of VISHAL

MEGA MART ”.

OBJECTIVES

To know the consumer awareness about VISHAL MEGA MART .

To know the various important factors in purchasing.

To know the preference of consumer about VISAL MEGA MART in

comparison to others .

To increase customer satisfaction of services.

About Retail Industry

&

Retail Sector In India

Introduction to Retailing sector

Retailing sector of India can be split into two segments. They are the informal and the formal retailing sector. The informal retailing sector is comprised of small retailers. For this sector, it is very difficult to implement the tax laws. There is widespread tax evasion. It is also cumbersome to regulate the labor laws in this sector. As far as the formal retailing sector is concerned, it is comprised of large retailers. Stringent tax and labor laws are implemented in this sector. If the retail industry is divided on the basis of retail formats then it can be split into the modern format retailers and the traditional format retailers. The modern format retailers comprise of the supermarkets, Hypermarkets, Departmental Stores, Specialty Chains and company owned and operated retail stores . The traditional format retailers comprise of  Kiranas, Kiosks, Street Markets and the multiple brand outlets. The retail industry can also be subdivided into the organized and the unorganized sector. The organized retail sector occupies about 3% of the aggregate retail industry in India.

Size and contribution of the retail industry in India

In terms of value, the Indian Retail industry is worth $300 billion. India retail industry is the largest industry in India, with an employment of around 8%. Its contribution to the Gross Domestic Product is about 10%, the highest compared to all other Indian Industries. The retail sector has also contributed to 8% of the employment of the country. The organized retail sector is expected to triple its size by 2010. The food and grocery retail sector is expected to multiply five times in the same time frame. The major reason behind the low participation in the Indian retail sector is the need for lumpy investments that cannot matchup their break even points. The government policies are being revised from time to time to attract investments  in this sector.

The Indian Retail Industry ---- Sky is the limit

In terms of the retail development index India ranks fifth. In Asia it occupies the second position, next to China. Among all the global markets, the Indian retail market is the most expanding. This is owing to absence in restriction at the entry level. So the large foreign companies can reap the benefits of economies scale by entering the green retail fields of India. There are many reasons why the retail industry in India can reach the zenith. Firstly the organized retail sector in India has a very low contribution to the entire retail sector in the country. Hence there is ample scope for the new players to achieve success in the backdrop of soaring disposable income of the upcoming generation. Secondly, not only have the incomes increased but there has been a sea change in the preferences of the consumers. These factors have acted as a stimulus for the ushering of foreign players retailing in apparels, accessories, electronic appliances etc. Large shopping malls have already mushroomed in the metropolitan cities. There still lies untapped potential in the Indian Retail Market. The size of retail industry in an economy depends on many factors and the level of consumer spending is the most important among these factors. The retail sector in India has grown by leaps and bounds in the last five years. The reason behind this growth has been the synergy of many propellants. However the growth is not always genuine as there are exaggerations as well .

But these exaggerations also have benefits since they given a feel of  growing competition all around. Secondly the present situation is just a depiction of nascent stage. The future of the trajectory may not be as steep as it is now or may be even

slope downward. 'What will be the future size of the retail industry' is the mind boggling question. Another  moot point that will gain importance in due time concerns the future of the unorganized retail market which constitute a significant proportion of the whole industry. The retail stores have proved to be a vantage point for the customers. This implies that the small farmers who used to sell their product in the sabji-mandis and on roadsides are going to lose a significant market share as they can't employ the two profit maximizers economies of scale and economies of scope.

Retailing in India: the present scenario

The present value of the Indian retail market is estimated by the India Retail Report to be around Rs. 12,00,000 crore($270 billion) and the annual growth rate is 5.7 percent. Retail market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the different types of retail industries present in India. Furthermore around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world. The contribution of retail sector to GDP has been manifested below:

Country  Retail  Sector's  sharein GDP (in %)

India  10.3

USA  10

China  8

Brazil  6

As can be clearly seen, retailing in India is superior to those of its contenders. Retail sector is a sunrise industry in India and the prospect for growth is simply huge. There are many factors that have stimulated the rise of the shopping centers and multiplex-malls in a jiffy. Some of them can be listed as follows:----

Rise in the purchasing power of Indians- the rise in the per capita income in the last few years has been magnificent. This has led to the generation of insatiable wants of the upper and middle class. The demand of new as well

as second hand durables has risen throughout the country thus providing the incentive for taking up retailing.

Favorable to farmers- retailing has helped in removing the middlemen and has thus enhanced the remuneration to farmers. This is a new revolution in the agricultural sector in India and will go a long way in amending the condition of agriculture, a major concern among policy makers.

Use of credit- a typical Indian is most conversant with using credit cards than carrying money. These have led to a shift of the consumer base towards supermarkets and make the payments in the form of credit.

Comfortable Atmosphere- a visit to a retail store appears to be more soothing for the generation-Y. People and kids prefer to shop in an air conditioned a tech savvy manner.

The retail industry is the second largest employer in India. It currently employs about 7 percent of the total labor force in India. Finance Minister P. Chidambaram's recent statement “salaries ought not to be legislated” is a welcome move as most of the organized retail is in private hands. However only about 4.6% of the  total retail tradeis in organized sector. It generates about Rs.55, 000 crore ($12.4 billion). The major and minor players desperately need to work hard in this direction so that next time the figures look more decent.

The government must also make an attempt to ameliorate the situation as political instability and infrastructure namely power and roads are the major roadblocks in the path of smooth functioning of the market.

Retail sectors in neighboring countries:

China- The total sales from retail market in China reached US$755 billion in 2005. However organized retailing in China accounts for only 20% of it. Also the fragmentation of China's retail market is so high that top 100 retailers make up for only 10.5% of the total market. The registered sales of department stores grew by 25.7% and that of convenience stores grew by36.5% in 2005. The Chinese retail market is expected to reach new highs as the population of strong

middle class is expected to double by 2020 and mergers and acquisitions among retailers are3 going in great guns. The WTO restrictions are also expected to have a favorable impact on its retail sector.

Japan- total annual sales for the Japanese retail industry for 2003 amounted to JPY 133,273billion. Japan had 1.2 million retail establishments in June 2004 and there were 42,738specialty superstores. Between 2002 and 2004 annual sales per store increased by 3.8%. Growth was  mainly  dr iven by  the  grocery  superstores  but   the  number  of  superstore specializing in clothes gradually came down. The organized retail sector in Japan couldn't perform at its full efficiency because of collapse of the 'bubble economy' in the early 90s.

Retail Distribution in India

The distribution sector bridges the gap between the producer and consumer and thus forms a crucial link. Distribution of retail in India has multiple dimensions. Its uniformity is difficult to decide and easy to  argue. Distribution in any sector is usually measured by the reach of its products to people. But in case of the retail sector in India it also implies the dispersion among the organized and unorganized spheres. The question of distribution hovers mainly around the intentions of private players to reach out to the less rich people. But the point that has caught the publ ic eye recent ly is the ambiguous mood of the benefic iar ies and the chauvinist government that produces civil service. Propagation of the retail sector:The expansion of the retailing in India has been magnificent especially after the advent of liberalization and the abolition of licensing. A comparative study with other developed countries indicates that the retail sector has achieved a fantastic breakthrough in the Indian economy. India topped the A.T. Kearney's Global Retail Index in both 2005 and 2006as can be seen below:

The GRDI,Score  as  calculated  by  A.T.  Kearney  is  a  weighted  average  of market attractiveness , market saturation, country risk and time pressure. India had a GRDI score of 100 in both 2005 and 2006.implying market potential and attractiveness. As the graph clearly depicts, India's contenders like Russia and China are nowhere in competition. This result has been obtained

mainly because of a higher APC (Average Propensity to consume) of the Indian people. According to IMF, India has a APC of more than 60% while the corresponding figure for  Japan is 57% and China is 39%. Also Indians tend to exhaust 40% of their consumer  spending on groceries (foodstuffs). These figures are intensified by the  fact that Indians have special preference for lifestyle products and they feel comfortable in buying against credit as the credit card and mortgage market has been growing by more than 30%.We present the results from another survey below in order to strengthen our findings.

Availability of Retail Stores

Country  Number of stores per 1,000 people

India 22 Japan 10 USA 3.8

The above table re inforces our view that India has done a great job in re ta i l ing. One noteworthy point here is that Japan in spite of being one of the most densely populated countries has fared poorly than India. But this euphoria loses its charm if we compare the percentage of organized retail in the total value generated by the retailing sector

According to international standards, a retail  store is  nominated  as organized only  when  it  features  more  than  10 employees.  The  above  chart clearly portrays the miserable condition of India's organized retail A forecast of 40% annual growth  in  the  organized  retail sector seems sound.  The number  of  shopping malls in India has grown from 1 in 2001t o 1 0 0 i n 2 0 0 5 b u t s t i l l m o r e e f f o r t i s needed to turn the predictions into reality.

Studies have further showed that non-urban areas account for only about 15% of organized retailing So it is high time that the retail industries pay importance to diversification and reach out to non-urban markets. If they remain confined to the metropolis then they will soon hit a ceiling and will be able to grow no more. But at the same time they must realize that the rustic people are sceptic about the urbane lifestyle habits. The mega retail players will have to drop their policy of full extraction of consumer surplus and will have to employ the local people to overcome the myth that entry of a branded retail will displace the millions of  traders, shopkeepers and hawkers. Protests must be welcomed and meetings encouraged making  life  saner.

Retail markets in Germany, South Africa and many other countries allow 100% foreign investment in retail. This has helped in setting up of cash and in creating wholesale markets . However, in India, only 51% FDI is allowed in single-brand retail and that too with prior approval. In case of multi-brand retail, FDI is completely prohibited. This is a perfect beginning but foreign investment should be gradually liberalized to modernize farming and help farmers scale up. Moreover, restricting FDI for protecting mom-and-pop stores seem sun justifiable since Tata, Reliance and Bharti have already made a foray in the sector

Components of Retail Sector

 The major components of the retail sector are:

Food and Grocery, Fast Moving Consumer Goods (FMCGs)Consumer Durables, Apparel, Footwear and leather, Watches, Jewellery , and Health and Beauty The anatomy of the retail market has shown that the clothing and textiles constitutes 39 per cent of the organized retail pie, followed by food and grocery, which accounts for 11 percent of the total retail market.

However, according to the survey conducted by KPMG for Federation of Indian Chamber of Commerce and Industry (FICCI), among these, the food and grocery is expected to witness the fastest growth followed by clothing as the second-fastest growing segment.

LOCATION OF THE MALL IN GURGAON

GURGAONSCO-9,10,11,12 Sector 14

Gurgaon -122001 Near Payal Cinema. HARYANA

9312004709Days Open

Monday to Sunday Store Timimgs

9:30 AM-9:30 PM

TOTAL STORES OF VISHAL MEGA MART IN INDIA

    ANDHRA PRADESH ( 3 Stores)   KARNATAKA (1 Store)    ASSAM (6 Stores)   MADHYA PRADESH (9

Stores) 

  BIHAR (7 Stores)   MAHARASHTRA (4 Stores)    CHHATTISGARH (1 Store)   MEGHALAYA ( 1 Store)    DELHI (8 Stores)   NAGALAND ( 1 Store)    GOA (1 Store)   ORISSA (7 Stores)    GUJARAT (2 Stores)   PUNJAB (11 Stores)    HARYANA (8 Stores)   RAJASTHAN (14 Stores)    HIMACHAL PRADESH (5

Stores)  TAMIL NADU (1 Store)  

  JAMMU & KASHMIR (4 Stores)   UTTAR PRADESH (31 Stores)    JHARKHAND (5 Stores)   UTTARAKHAND (7 Stores)    KERALA ( 1 store)   WEST BENGAL (5 Stores)

C O M P A N Y P R O F I L E

Type Hypermarket

Founded 1986(Kolkata)

Headquarters Delhi

Industry Manufacturing & Retail Annual

Turnover Rs6026.58cr (2007)

Project Apparels, Departments,

Grocery store

Vishal Retail Ltd, a leading player in the Indian retail industry, is a pioneer in discount retailing and is focused on tier II and III cities in the country. It has a strong presence in manufacturing and retailing of readymade garments (apparels); retailing of non-apparels and a large variety of FMCG products. The company has pan-India presence with108 mid-sized hypermarket format stores as on April 28, 2008covering about 2.3mn sq ft retail space area. Vishal is supported by strong manufacturing set-up in Gurgaon, Dehradun and Manesar with a capacity of 5,000 garment pieces per day in each unit. It also has 29warehouses located in 8 key cities in India covering over 1.1mn sq ft area.

Vishal started as a humble one store enterprise in 1986 in Kolkata(erstwhile, Calcutta) is today a conglomerate encompassing 117showrooms in 75 cities / 20 states. India is first hyper-market has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi this store boasts of the single largest collection of goods and commodities sold under one roof in India The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic leadership of Mr. Ram Chandra Agarwal. The group had of turnover Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal 2007.The group is prime focus is on retailing. The Vishal stores offer affordable family fashion at prices to suit every pocket. The group is philosophy is integration and towards this end has initiated backward integration in the field of high fashion by setting up a state of the art manufacturing facility to support its retail endeavors.

BRIEF HISTORY OF VISHAL MEGA MART

We are a retail house in India. As of April 30, 2007, we operate 50 retail stores, including two stores which are operated by our franchisees. These 50 stores are spread over about 1,282,000square feet and are located in 18states across India. In our efforts to strengthen our supply chain, we have set up seven regional distribution centres and an apparel manufacturing plant.

We started as a retailer of ready-made apparels in Kolkata in 2001. In 2003, we acquired the manufacturing facilities from Vishal Fashions Private Limited and M/s Vishal Apparels. Subsequently, with evolution of retail industry in India and change in consumer aspirations, we diversified our portfolio of offerings to include other retail goods. Currently, we sell ready-made apparels and a wide range of household merchandise and other consumer goods such as footwear, toys, watches, toiletries, grocery items, sports items, crockery, gift and novelties.

We follow the concept of value retail in India. In other words, our business approach is to sell quality goods at reasonable prices by either manufacturing ourselves or directly procuring from manufacturers (primarily from small and medium size vendors and manufacturers). We endeavour to facilitate one-stop-shop convenience for our customers and to cater to the needs of the entire family. We believe this concept has helped us grow to our current size within a short time frame of four years. Mr. Ram Chandra Agarwal has been ranked as the 28th most powerful person in the Indian retail industry (source: Collectors’ Issue-Retailer, India Edition, February 15,2007 to April 14, 2007, volume 2, no. 1).

In order to reduce costs and take advantage of economies of scale we have embarked on backward integration of our products. Our apparel manufacturing plant is located at Gurgaon, Haryana. For ensuring efficiency in supply chain, we have set up seven regional distribution centres located around Kolkata (West Bengal), Thane(Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi. Further, we have focussed on developing a cost and time efficient distribution and logistics network,which currently comprises seven distribution centers and a fleet of trucks for transportation.

We achieved total sales of Rs. 6,026.53 million for fiscal 2007, as opposed to a turnover of Rs. 2,884.43 million for fiscal 2006 and Rs. 1,463.12 million for fiscal 2005. During the same period our profit after tax was Rs.249.83 million, Rs. 124.74 million and Rs. 30.20 million, respectively. As a result, our sales increased between fiscal 2004 and fiscal 2007 at a CAGR of 89.83% and our profit after tax increased between fiscal 2004 and fiscal 2007 at a CAGR of 302.89%.

Vishal Retail was incorporated on July 23, 2001 as Vishal Retail Private Limited as a retailer of ready-made apparels in Kolkata in2001. The company has acquired the business of 'M/s The Vishal Garments' and 'M/s Vishal Garments' in 2001. In 2003, the company has acquired the manufacturing facilities from Vishal Fashions Private Limited and M/s Vishal Apparels.

Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price ranges. The showrooms have over 70,000products range which fulfills all your household needs, and can be catered to under one roof. It is covering about 2059292 lac sq. ft. in18 states across India. Each store gives you international quality goods and prices hard to match. The cost benefits that are derived from the large central purchase of goods and services are passed on to the consumer.

Our Competitive Strengths

We believe that the following are our principal competitive strengths which have contributed to our current position in the retail sector in India:

Understanding of the ‘value retail’ segmentOur business plan involves implementation of the concept of the ‘value retailing’, targeting the middle and lower middle income groups, which constitute majority of the population in India. We intend to provide quality products at competitive prices. We sell a vast range of merchandise across apparels and accessories, FMCG products, food products and consumer durables with over 74,000 SKUs. Our emphasis has been to maximise the value that the customers derive in spending on goods bought in our stores. We endeavour to continuously reduce 24 our costs through a variety of measures, such as, in-house production of apparels, procurement of goods directly from the small and medium size vendors and manufacturers, efficient logistics and distribution systems along with customized

product mix at our stores depending on the regional customer behavior and preferences. Central to our value retail strategy is to pass on the benefits of cost reduction measures to our customers.

Supply chain managementOur supply chain management involves planning, merchandizing sourcing, standardization, vendor management, production, logistics, quality control, ‘pilferage’ control replacement and replenishment. Our supply chain management provides us flexibility to adapt to changing patterns in consumer behavior and our ability to add value at various steps/levels. In particular, our supply chain management gains strength from our ability to undertake in-house manufacture, design and development of apparels.

Logistics and distribution networkOur distribution and logistics network comprises seven distribution centres. Besides, we have our own fleet of 41 trucks, which helps us to transport and deliver our products in a cost and time efficient manner. We believe that our distribution and logistics set up is well networked and allows us to fulfill the store requisition within short time period of generation and receipt of order, which has helped us to optimize in-store availability of merchandise and minimize transportation costs. Our strong distribution and logistics network has enabled us to dispense with the requirement of a dedicated storage space at every store, which is an industry practice, and instead undertake periodical replenishment of depleted stock. Due to adoption of an efficient racking system, we are able to benefit from optimum utilization of the space allocated for display in our stores. This provides us assistance in maintaining a low working capital requirement and less carrying cost.

Geographical spreadOur stores and distribution centers are spread in various parts and regions of the country. This has not only enabled us to build our brand value but also facilitated us to explore cost-effective sourcing from different locations, identify potential markets and efficiently establish new stores in different locations. An aggregate of 43 of 50 of our existing stores are located in Tier II and Tier III cities, which, we believe, enables us to capture market share in locations where a majority of our target customers are located.

Identifying new locationsWe believe that we possess the ability to identify locations with potential for growth, in particular in Tier II and Tier III cities. We have an exclusive site identification and assessment team, which undertakes systematic analysis of the business prospects, taking into account factors such as population, literacy levels, and nature of occupation, income levels, accessibility, basic infrastructure and establishment and running costs. Further, we have a dedicated warehouse for the purposes of storing the materials essential for setting up of new stores.

Private labelsWe have a number of private labels for apparels (i.e. apparels manufactured by us) such as Zepplin, Paranoia, Chlorine, Kitaan Studio, Famenne, Fleurier Women and Roseau. In fiscal 2007, our income from our private labels was Rs. 583.60 million, which accounts for 9.68% of our total sales for fiscal 2007. We believe that our focus on our private labels and their recognition in our customer segment enables us to differentiate ourselves from our competitors.

Information technology systemsWe believe that efficient information technology systems, processes and business applications are essential to handle retail chain of our magnitude. Our office processes are computerized which support procurement, supply chain logistics, distribution centers management and store operations including inventory management and billing. We are in the process of implementing SAP. All our stores and distribution centers are connected 25 through a company-wide virtual network connection which helps to efficiently manage our network of outlets throughout the country.

Experienced and skilled management teamWe have an experienced management team which is complemented by a committed workforce. Our management team comprises of talented professionals who are skilled in the retail sector. This has assisted us in management of our stores. We believe we have created the right balance of performance bonuses and other incentives for our employees.

Our Strategy

We intend to pursue the following strategies in order to consolidate our position as an operator in the ‘value retail’ segment in India. Our growth strategy is based on:

Increasing our penetration in the country by leveraging our supply chain, distribution and logistics networkWe intend to increase our penetration in the country by setting up new stores in cities where we already have presence, as also entering into new areas in the country. In particular, we intend to focus on expansion in Tier II and Tier III cities. We believe that our existing infrastructure have been designed for a higher scale of operations than our current size, and can help us grow with out the need to significantly increase costs. Moreover, ourContinuous effort to improve systems and processes leads us to believe that we can deal with higher scale of operations without any hindrance. Higher business volumes will also improve our negotiating powers and help us get further economies of scale in our buying.

Emphasis on Backward IntegrationWe believe that through backward integration we will continue to substantially control the cost of production, resulting in such cost benefits being passed on to our customers. We intend to increase the in-house manufacture, design and development of our products and realise economies of scale. We intend to manufacture at least 25% of our requirement for apparels and may require expansion of our existing manufacturing facilities.

This will also enable us to reduce our reliance on external agencies for supply of our products and will result in lower turn-around time. In addition, our focus would be to undertake in-house such functions of the manufacturing processes, which, in our view, would add maximum value and would enable us to reduce our procurement costs.

Expansion of FMCGHistorically, we have derived significant portion of our revenue from sale of apparels. In pursuance of our business plan to diversify our portfolio of offerings, FMCG products play a key role. FMCG products are usually meant to fulfill the daily needs of consumers and therefore, we believe retailing of FMCG products will bring customers to our stores on a frequent basis and this may in-turn lead to

consumption of our apparels. We believe retailing of FMCG products would help us to eliminate the impact of seasonality of the apparels market in India, which depends on factors such as change in weather conditions and festival celebrations. In furtherance of our endeavors to reduce costs, we intend to procure FMCG products directly from the manufacturers. For this purpose, we have entered into and will continue to explore the possibilities of entering into certain arrangements with domestic FMCG majors on such terms and conditions, which are suitable to our business model.

Procurement from low-cost production centres outside IndiaIn addition to our strategy to continue procurement of goods from small and medium size vendors and manufacturers which leads to cost efficiencies, we intend to procure FMCG and apparels from low-cost production centres located outside India. Towards this objective, we propose to increase our procurement of 26 finished and semi-finished goods from China and thereby realise economies of scale and pass on the benefits so accrued to our customers.

Increasing customer satisfaction and our base of loyal customersWe believe that understanding the needs of our customers is of prime importance for the continuous growth of our business. In order to continuously provide customer satisfaction, our customer management team assimilates customer feedback and we endeavour to take necessary steps to address the requirements of our customers. In addition, we have introduced, in association with SBI Cards & Payment Services Private Limited, a co-brandedcredit card. We propose to continuously undertake such initiatives to increase the satisfaction of our customers.

Continue to upgrade information technology systems and processesWe believe that any retail business requires efficient information technology systems for control over the functioning of various stores including stock management, pricing and promotion, replenishment, sales, quality control and financial accounting. We are currently in the process of upgrading our information technology set up and have entered into arrangements with leading vendors of information technology services for implementation of more advanced ERP applications such as SAP. We intend to periodically upgrade our information technology systems and processes.

Continue to train employees and seek entrepreneurship from employeesWe believe a key to our success will be our ability to continue to maintain and grow a pool of strong and experienced professionals. We have been successful in building a team of talented professionals and intend to continue placing special emphasis on managing attrition and attracting and retaining our employees. We intend to continue to encourage our employees to be enterprising and expect them to ‘learn on the job’ and contribute constructively to our business, either through ideas, personal networks or effective knowledge management. We also intend to continuously re-engineer our management and organizational structure to allow us to respond effectively to changes in the business environment and enhance our overall profitability.

T h e F o u n d e r s  

Mr. Ramchandra Agarwal      Mrs. Uma Agarwal  

Mr. Surendra Agarwal

Marketing Strategies of Vishal   Mega Mart

Product

Vishal Mega Mart offers a wide range of products which starts from apparels to food items ,footwear to home furnishing, crockery to sport items, child care products to toys, watches, drinks etc. There are many in house brands promoted by Vishal Mega Mart. In pursuance of their business plan to diversify their portfolio of offerings, FMCG products play a key role.

Price

Vishal  Mega Mart  promises   i ts  consumers   the   lowest  avai lable  pr ice .  The concept  of  psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Vishal MegaMart also caters on Special Event Pricing (Close to Diwali, Christmas, New Year etc.).Selling combo-packs and offering discount to customers. The combo-packs add value to customer . Through Bundling, they also reduced the price of the products. In addition to VRPL’s strategy to continue procurement of goods from small and medium size vendors and manufacturers which leads to cost efficiencies, VRPL intend to procure FMCG and apparels from low-cost production centers located outside India. Towards this objective, VRPL’s propose to increase their procurement of finished and semi-finished goods from China and thereby realize economies of scale and pass on the benefits so accrued to their customers.

Place

Vishal Mega Mart stores are located in 110 cities with more than 180 outlets.VishalMegaMart  has  presence   in  a lmost  a l l   the  major   Indian ci t ies .  They are  aggressive  on  their  expansion plans. VRPL intend to increase their penetration in the country by setting up new stores in cities where they already have presence, as also entering into new areas in the country. In particular, they intend to focus on expansion in Tier II and Tier III cities. VRPL target locations with good infrastructural facilities such

as easy accessibility, provision for water, electricity, parking, security and other basic amenities.

Promotion

Advertising  has  played  a  crucial  role  in  building  of  the  brand.  Vishal  Mega Mart advertisements are mainly seen in print media i.e. newspapers, Television with Tina Parekhas there in advertisement, and sometime road-side bill-boards. VRPL’s category management system is used to plan promotional schemes. They launch promotional schemes weekly. Apart from general sales promotion, the category manager formulates promotional plans for ‘s low movers’ . In  addi t ion,   to  promote  sales , they  focus  on  layout  of   the  s tores  and positioning, presentation and display of merchandise, in order to appeal to the customer. In addition, VRPL have introduced, in association with SBI Cards & Payment Services Private Limited, a co-branded credit card. VRPL’s propose to continuously undertake such initiatives to increase the satisfaction of their customers. Some of the features of the co-branded card include Rs 250 discount voucher on signing up for the card and a process by which the cardholder earns five reward points on every Rs 100 spent. A cardholder accumulates point son the basis of purchases made and the points accumulated can be redeemed for gifts or  purchases. In September 2005, VRPL entered into a long term advertising agreement with Bennett, Coleman & Company Limited (“BCCL”). Under the agreement, they are entitled to fixed discounts for their advertisement in print publications of BCCL for a period of five years from the date of the agreement. As a part consideration, VRPL had issued 1,670,605Equity Shares of Rs. 10 each and 384,190 Preference Shares of Rs. 146 each amounting to an aggregate of Rs. 300 million.

Investment Rational

Vishal Retail sells ready-made apparels (including its own Brands) and wide range of household merchandise and other Consumer goods such as footwear, toys, watches, toiletries, grocery items, sports items, crockery, gift and novelties. Vishal is value Retail Company catering to middle and lower middle income groups. As Apparel segment contributes 63 percent; it has plans to focus more on FMCG.To

reduce cost, Vishal does in-house production of apparels, Procurement of goods directly procurement of goods from the small and medium size vendors and manufacturers. Efficient Logistics and distribution system along with Customized product mix at stores depending on the regional customer behavior and preferences.

Plans of penetrating deeper into Tier 1 and Tier 2 cities to bank upon early mover advantage, where organized retail is yet to make significant mark, which will help establish and build customer loyalty prior to other players. Higher margins of around 5-6 percent in private labels which account for 10 percent of sales in FY07.

Future Prospective

Vishal Retail Ltd has declared that the company has opened four new Showrooms at different localities.

The company has opened a store at Shree Ram Palace, Main Delhi Road, Meerut. This is the company is second store in Meerut spreading across an area of 3,600 Sq. ft. (Approx).

The company opened a store at Nauchandi Garh Road, Meerut commonly called Dreams, Opp. Samrat Heavens, Meerut. This is the company is third store in Meerut covering up an area of 12,000 Sq. ft.

The company has opened a showroom at Enclave, Near BSNL Office,Ranipur More, Haridwar. This is the company is first store in Haridwar spreading across an area of 9,545 Sq. ft. (Approx).

The company opened its store at Arcade, Plot No. 56-58, Dumas Road, Pip lad, Surat. This is company is second store in Surat spreading across an area of 38,000 Sq. Ft (Approx).

Vishal Retail Limited is an India-based retail company. It was established in 1986. It was formerly called Vishal Retail Private Limited and changed its name to Vishal Retail Limited in 2006.

The company is based in New Delhi, India.

As of August 8, 2007, the company operated 53 retail stores, including two stores that are operated by its franchisees. It sells readymade clothes, and a variety of household merchandise and other consumer goods, including toys, footwear, toiletries, sports items, watches, grocery items, crockery, novelties and gifts.

Today, the stock is hovering around Rs 724 on the Bombay Stock Exchange. Vishal Retail has seen a 52-week high of 812 and low of Rs423.

VISHAL Group – Infrastructure

Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more than 700 imported machines that have a capacity to manufacturer 150000 pieces a month. The factory occupies 80000 sq ft of covered space. The Vishal group indirectly gives employment to more than a 1000 people. These people work in ancillaries that supply finished goods to the company. Our 10 warehouses cater to180 showrooms in24 states/100 cities across India. It is covering about 29, 90, 146 sq. ft

Our Popular Brands are

Zeppelin: Mens Shirts & Trousers Fizzy Babe: Ladies & Kids GirlsKitaan Studio : Mens Shirts & Trousers

Jasmine: Ladies & Kids Girls Blues & Khakis : Mens Trousers Zero Degree : Kids Boys

Paranoia: Mens Shirts & T-Shirts Soil: Mens ShirtsChlorine: Mens Shirts Massa Bay: Mens Trousers & BermudasFume: Mens Shirts, T-Shirts, Undergarments.

Products Categories      

HOME FURNISHING

Drawing Room Bedroom

Door Mat Bed Sheet

Carpet Pillows

Curtains Pillow Cover

Kitchen Bathroom

Apron Bath Mats

Kitchen Napkin Towel Gift Sets

more...

FOOD MART

FOOD & BEVERAGES

Snacks Drinks

SPORTS & FITNESS

 INDOOR GAMES OUTDOOR GAMES

 Basket Ball   Cricket Bat T.T. Bat   Football Boxing Kit  Lawn Tennis

Swimming Costumes   Tennis Racket Water Ball   Tennis BallFitness Equip.Personal Gymmore.

FOOTWEAR

BOYS GIRLS

Shoes Slippers

Sandals Sandals

MENS LADIES

TELEMART

Communication Mobile Accessories

Mobile Mobile

Batteries

Mobile Charger

Mobile Dori

more...

Apparel-

MENS

Upper Lower

Shirt Casual Jeans(MP)

Shirt Formal Cotton Trouser(MPC)

Ethnic & Sports Winter Wear

Night Suits Suit(WMC)

T-Shirts Blazer(WMB)

Dupatta Windcheater(WMW)

Sherwani Jacket

more...

LADIES ACCESSORIES

Upper Lower

Kurta Pants

Jeans Skirt

Top Capri

Ethnic Winter Wear

Nighty Jackets

Lancha Stawl

Sharara Blazer

Salwar Suit Track Suit

more..

And many more categories-WOMEN , KIDS BOYS, KIDS GIRLS , TRAVEL ACCESSORIES , Household