final ppt rural retail
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DEFINING RURAL INDIARURAL RETAIL SCENARIO IN INDIAREGULATIONS AND POLICIES IN RURAL RETAILSIGNIFICANT PLAYERS –1.goderj adhar 2.itc -chaupal3.hariyali kisan bazaarBUSINESS MODEL OF ITCIMPEDIMENTS & RECOMMENDATIONS
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Census of India defines Rural Settlements as......
Population lower than 5,000 persons
Population density lower than 400 persons/sq. km
At least 75% of male population engaged in Agri. activities.
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RETAIL TOWARDS RURAL AREASGREAT OPPORTUNITIES FOR MARKETERTHE INDIAN RURAL MARKET
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• Rural India consists of 720 Million consumers across 6,38,000 villages
• ---17% of these villages account for 50% of the rural population and 60% of the rural wealth
• ----Extensive reach is required as to cover 50% market 1,00,000 villages must be catered Immense opportunity amounting to US$ 125 billion
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• Rural Retail is growing @ 7% p.a.
• Rural consumption is also shifting from basic food grains to fruits, vegetables, dairy and poultry products, as well as beverages
• Demand for better quality food leading to huge demand for basic foods
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The Rs 140,000 crore rural retail market is expected to cross Rs 180,000 crore mark by 2010, And up to Rs 240, 000 crore by 2015 (CII).
The rural revolution is driven by Rising purchasing power, Changing consumption patterns,
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increased access to information and communication technology,
improving infrastructure
increased government initiatives to boost the rural economy,
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OCCUPATIONS URBAN RURAL
Cultivator 5 40
PettyShopkeeper
15 5
Wageearner
20 35
Salaryearner
40 20
Others 18 8
US China India
Total Retail 2325 323 180
Value $ bn
% Salience to aboveTraditional 15 80
98
Modern 85 20 2
Source: Census 2001, IRS 2006, AC NielsenSource: AC Nielsen
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Is a value seekerSeeks comforts and amenities Does not wish to be seen as the deprived cousin. Does not experiment easily but this does not mean that “he would not change”.Values local relationships because of unfavourable past experiences
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1. Essential commodity act: The fertilizer industry is centrally regulated by the government through an administered pricing mechanism & sales allocation under Essential Commodities Act (ECA). In the year 2002-03, the government announced a long term Pricing policy for urea.
2. Indian Land Acquisition Act 1894
3. Agricultural Produce (Grading & Marking) ACT, 1937
(ACT No. 1 of 1937)(as amended up to 1986)
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54 Non Agricultural Use Clearance--
5. Under PN4/2006 --100% FDI is allowed through the automatic route in -Floriculture, Horticulture, Development of Seeds, Animal Husbandry Pisciculture, aqua-culture, cultivation of vegetables, mushrooms, under controlled conditions and services related to agro and allied Sectors.
6. Intra state agricultural land taxes -- vary, prompting the current finance-minister to moot for a common GST (Goods and services tax) which would help in bringing all the various state taxes under a common fold including the agricultural income taxes levied individually state to state.
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GODREJ ADHAR
ITC-CHAUPAL
HARIYALI BAZAAR
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FORMAT OF GODREJ ADHAR FMCG products, fertilizers, animal feed, etc. Services like banking, insurance, pharmacy, postal services and petrol pumps
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services offered crop advisory services, soil & water testing services; buy back of output, crop finance, supply of agri inputs and animal feeds, transfer of information (weather, price, and demand supply), door delivery of products etc.
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A COMPLETE SOLUTION PROVIDER FOR THE INDIAN FARMERS
provides professionalguidance with an objective to improve productivity, higher returns and improved cost benefit ratio.
24 outlets in eight rural locations across the country and each outlet services 20 villages in its vicinity
Godrej Aadhar has already forged JVs with Apollo Pharmacy, Tata Agrico, Bajaj Allianz Life Insurance and HPCL for value added services at the outlets.
The company plans to set up more than 1,000 stores by 2010.
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The Trusted Rural Business HubHelp the customer increase his income, educate the customer, before you sell to the customer
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Hariyali Kisaan Bazaar
Mr. Ajay Shriram, Chairman Mr. Vikram Shriram, Vice Chairman & MD
The concept aims to simplify the
Private label seeds
Contract farming – vegetables
ProcurementApril 8, 2023 20
DSCL plans to expand to 250-300 outlets by the end of FY 2008-09.
Each store covers an area of 3-4 acres and is managed by a team of 7-8 people whom the Company trains continuously.
It offers the rural household all farming and consumerproducts and related services along with financial services under one roof.
The company also launched credit services during its second quarter 2007-08, in association with HDFC bank, providing loans for various purposes.
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Hariyali Kisaan Bazaar
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The number of Hariyali outlets now stands at 177, which the company plans to scale up aggressively to around 300 outlets by March 2009. Launched in 2002-03
‘Hariyali’ is now present in 8 states across India
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This concept aims to
Provide the power of expert knowledgeto even the smallest farmer
2. Information helps farmers securesbetter price, quality and productivity
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Benefits to farmers include
Better purchase price of agri-inputs
Avail information on best farming practices
Command prevailing market prices
4 million farmers benefited through 6,500 installations covering around 40,000 villages
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By 2012, ITC Vision is to cover 100 thousand villages,
which represent 1/6th of rural India, and create more
than 10 million e-farmersApril 8, 2023 29
IDEA BEHIND CHAUPAL SAGAR
-- MAKE THE POTENTIAL CUSTOMERS
--PROVIDE DIFFERENT CUSTOMER SERVICES
--REAP THE BENEFIT FROM POTENTIAL CUSTOMER
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A WIDE RANGE OF PRODUCTS FOR ALL SEGMENTS
TRAINING FACILITIES FOR FARMING COMMUNITY ON SCIENTIFIC FARMING PRACTICES
GODOWNS FOR STORAGE OF FARM PRODUCE
INFORMATION CENTER FOR ONLINE WEATHER INFORMATION
CONTINOUS SERVICES FROM 6AM- 9PM
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ESTABLISHMENT OF ATMs AT MALLS
AVAILIBILITY OF INSURANCE PRODUCTSFOR FARMERS
TIE WITH PRIVATE HEALTH CARE SERVICE PROVIDER FOR PRIMARY HEALTH CARE FACILITY
TIE WITH BPCL FOR FUEL PUMPS
ESTABLISHMENT OF SOIL TESTING LABORATRIES
PUBLIC ENTERTAINMENTApril 8, 2023 32
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ITC
FARMERSINSURAN
CE COMPANY
AGRI-INPUT COMPANY
AGRICULTURE UNIVERSITIES/STATE AGRICULTURE DEPT
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o– Increasing costs of lando– Pace of expansiono– High operating costso– Low margin of agri-inputso– Low purchasing power of consumers
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• Lack of literacy and awareness• Low per capita income• Wide geographic spread.• Gaps in road and Telecommunications connectivity.• Lack of reliable electricity and water supply• Limited Distribution network for example cold storage.• Competition from local players
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Farmers get agri-inputs at competitive rates and have range of products to choose from
Increasing rural bank aid (loans) helps improve the purchasing capability of farmers
Farmers avail of the services of agronomists to improve their farming practices, thereby impacting on their final produce
Farmers get a better price for their products and avoid middlemen
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• Integration of rural initiatives into business model like ITC
• Corporate should supplement government efforts & resources (infrastructure development, education system, storage)
• Creating retail stores which should be rural in nature so that the rural masses identify themselves with these stores.
• Innovative & Exciting Initiatives such as Village BPO should be given impetus to tap the talent in the rural India.
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During the first millennium AD, merchants referredto India as the Bird of Gold, due to the glitteringdynamism of its market. Over the next few years, theBird of Gold is poised to take flight once again.
THANKS
THANKSApril 8, 2023 39
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