Five Forces Porter

India - Apparel Retail 0102 - 2005 - 2011

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MarketLine Industry Profile

Apparel Retail in India February 2012

Reference Code: 0102-2005

Publication Date: February 2012

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EXECUTIVE SUMMARY

Market value The Indian apparel retail industry grew by 10.4% in 2011 to reach a value of $9,133.5 million.

Market value forecast In 2016, the Indian apparel retail industry is forecast to have a value of $12,642.9 million, an increase of 38.4% since

2011.

Category segmentation Womenswear is the largest segment of the apparel retail industry in India, accounting for 39.4% of the industry's total

value.

Geography segmentation India accounts for 3% of the Asia-Pacific apparel retail industry value.

Market rivalry The Indian apparel market is fairly fragmented, although strong growth in recent years helps to lessen the level of rivalry.



TABLE OF CONTENTS

EXECUTIVE SUMMARY ............................................................................................................................................... 2

MARKET OVERVIEW .................................................................................................................................................... 6

Market definition ......................................................................................................................................................... 6

Market analysis .......................................................................................................................................................... 6

MARKET DATA .............................................................................................................................................................. 7

Market value ............................................................................................................................................................... 7

MARKET SEGMENTATION........................................................................................................................................... 8

Category segmentation .............................................................................................................................................. 8

Geography segmentation ........................................................................................................................................... 9

MARKET OUTLOOK .................................................................................................................................................... 10

Market value forecast ............................................................................................................................................... 10

FIVE FORCES ANALYSIS ........................................................................................................................................... 11

Summary .................................................................................................................................................................. 11

Buyer power ............................................................................................................................................................. 12

Supplier power ......................................................................................................................................................... 13

New entrants ............................................................................................................................................................ 14

Threat of substitutes ................................................................................................................................................. 15

Degree of rivalry ....................................................................................................................................................... 16

LEADING COMPANIES ............................................................................................................................................... 17

Aditya Birla Nuvo Limited ......................................................................................................................................... 17

Marks and Spencer Group plc .................................................................................................................................. 21

Pantaloon Retail (India) Ltd. ..................................................................................................................................... 24

Trent Limited ............................................................................................................................................................ 28

MACROECONOMIC INDICATORS ............................................................................................................................. 31

Country Data ............................................................................................................................................................ 31

APPENDIX ................................................................................................................................................................... 33

Methodology ............................................................................................................................................................. 33

Industry associations ................................................................................................................................................ 34

Related Datamonitor research ................................................................................................................................. 34



LIST OF TABLES Table 1: India apparel retail industry value: $ million, 2007–11(e) ................................................................................. 7

Table 2: India apparel retail industry category segmentation : $million, by value, 2011(e) ........................................... 8

Table 3: India apparel retail industry geography segmentation : $million, by value, 2011(e) ........................................ 9

Table 4: India apparel retail industry value forecast: $ million, 2011–16 ...................................................................... 10

Table 5: Aditya Birla Nuvo Limited: key facts ............................................................................................................... 17

Table 6: Aditya Birla Nuvo Limited: key financials ($) .................................................................................................. 18

Table 7: Aditya Birla Nuvo Limited: key financials (Rs.) ............................................................................................... 18

Table 8: Aditya Birla Nuvo Limited: key financial ratios ................................................................................................ 19

Table 9: Marks and Spencer Group plc: key facts ........................................................................................................ 21

Table 10: Marks and Spencer Group plc: key financials ($) ......................................................................................... 22

Table 11: Marks and Spencer Group plc: key financials (£) ......................................................................................... 22

Table 12: Marks and Spencer Group plc: key financial ratios ...................................................................................... 22

Table 13: Pantaloon Retail (India) Ltd.: key facts ......................................................................................................... 24

Table 14: Pantaloon Retail (India) Ltd.: key financials ($) ............................................................................................ 25

Table 15: Pantaloon Retail (India) Ltd.: key financials (Rs.) ......................................................................................... 26

Table 16: Pantaloon Retail (India) Ltd.: key financial ratios ......................................................................................... 26

Table 17: Trent Limited: key facts ................................................................................................................................ 28

Table 18: Trent Limited: key financials ($) ................................................................................................................... 29

Table 19: Trent Limited: key financials (Rs.) ................................................................................................................ 29

Table 20: Trent Limited: key financial ratios ................................................................................................................. 29

Table 21: India size of population (million), 2007–11 ................................................................................................... 31

Table 22: India gdp (constant 2000 prices, $ billion), 2007–11 .................................................................................... 31

Table 23: India gdp (current prices, $ billion), 2007–11 ............................................................................................... 31

Table 24: India inflation, 2007–11 ................................................................................................................................ 32

Table 25: India consumer price index (absolute), 2007–11 .......................................................................................... 32

Table 26: India exchange rate, 2007–11 ...................................................................................................................... 32



LIST OF FIGURES Figure 1: India apparel retail industry value: $ million, 2007–11(e) ................................................................................ 7

Figure 2: India apparel retail industry category segmentation : % share, by value, 2011(e) ......................................... 8

Figure 3: India apparel retail industry geography segmentation : % share, by value, 2011(e) ..................................... 9

Figure 4: India apparel retail industry value forecast: $ million, 2011–16 ..................................................................... 10

Figure 5: Forces driving competition in the apparel retail industry in India, 2011 ......................................................... 11

Figure 6: Drivers of buyer power in the apparel retail industry in India, 2011 ............................................................... 12

Figure 7: Drivers of supplier power in the apparel retail industry in India, 2011 ........................................................... 13

Figure 8: Factors influencing the likelihood of new entrants in the apparel retail industry in India, 2011 ..................... 14

Figure 9: Factors influencing the threat of substitutes in the apparel retail industry in India, 2011 .............................. 15

Figure 10: Drivers of degree of rivalry in the apparel retail industry in India, 2011 ....................................................... 16

Figure 11: Aditya Birla Nuvo Limited: revenues & profitability ...................................................................................... 19

Figure 12: Aditya Birla Nuvo Limited: assets & liabilities .............................................................................................. 20

Figure 13: Marks and Spencer Group plc: revenues & profitability .............................................................................. 23

Figure 14: Marks and Spencer Group plc: assets & liabilities ...................................................................................... 23

Figure 15: Pantaloon Retail (India) Ltd.: revenues & profitability.................................................................................. 26

Figure 16: Pantaloon Retail (India) Ltd.: assets & liabilities ......................................................................................... 27

Figure 17: Trent Limited: revenues & profitability ......................................................................................................... 30

Figure 18: Trent Limited: assets & liabilities ................................................................................................................. 30



MARKET OVERVIEW

Market definition The apparel retail industry consists of the sale of all menswear, womenswear and childrenswear. The menswear market

includes mens activewear, casual wear, essentials, formalwear, formalwear-occasion and outerwear. The womenswear

market includes women's activewear, casual wear, essentials, formalwear, formalwear-occasion and outerwear. The

childrenswear market includes baby clothing, boys activewear, boys casual wear, boys essentials, boys formalwear,

boys formalwear-occasion, boys outerwear, girls activewear, girls casual wear, girls essentials, girls formalwear-

occasion, girls outerwear and toddler clothing. The industry value is calculated at retail selling price (RSP), and includes

all taxes and levies. All currency conversions used in this report have been calculated at constant 2010 annual average

exchange rates.

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand,

Singapore, South Korea, Taiwan, and Thailand.

Market analysis The Indian apparel retail industry has enjoyed dynamic growth in recent years. Although the rate of change will slow

somewhat through to 2016, overall levels of growth will remain strong.

The Indian apparel retail industry had total revenue of $9,133.5 million in 2011, representing a compound annual growth

rate (CAGR) of 9.6% between 2007 and 2011. In comparison, the Chinese industry increased with a CAGR of 6.4%, and

the Japanese industry declined with a compound annual rate of change (CARC) of -1.3%, over the same period, to reach

respective values of $119,281.4 million and $105,483.7 million in 2011.

The Womenswear segment was the industry's most lucrative in 2011, with total revenue of $3,599.9 million, equivalent to

39.4% of the industry's overall value. The Menswear segment contributed revenue of $3,387.6 million in 2011, equating

to 37.1% of the industry's aggregate value.

The performance of the industry is forecast to decelerate, with an anticipated CAGR of 6.7% for the five-year period

2011 - 2016, which is expected to drive the industry to a value of $12,642.9 million by the end of 2016. Comparatively,

the Chinese industries will increase with a CAGR of 3.9%, and the Japanese industry will decline with a CARC of -5.8%,

over the same period, to reach respective values of $144,159 million and $78,184.8 million in 2016.



MARKET DATA

Market value The Indian apparel retail industry grew by 10.4% in 2011 to reach a value of $9,133.5 million.

The compound annual growth rate of the industry in the period 2007–11 was 9.6%.

Table 1: India apparel retail industry value: $ million, 2007–11(e)

Year $ million Rs. million € million % Growth

2007 6,340.3 291,249.5 4,776 9

2008 6,923.7 318,047.4 5,216.4 9.2

2009 7,523.5 345,601.5 5,668.3 8.7

2010 8,269.7 379,878.6 6,230.5 9.9

2011(e) 9,133.5 419,558.4 6,881.3 10.4

CAGR: 2007–11 9.6%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: India apparel retail industry value: $ million, 2007–11(e)




MARKET SEGMENTATION

Category segmentation Womenswear is the largest segment of the apparel retail industry in India, accounting for 39.4% of the industry's total

value.

The menswear segment accounts for a further 37.1% of the industry.

Table 2: India apparel retail industry category segmentation, by value, 2011(e)

Category %

Womenswear 39.4%

Menswear 37.1%

Childrenswear 23.5%

Total 100%


Figure 2: India apparel retail industry category segmentation : % share, by value, 2011(e)




Geography segmentation India accounts for 3% of the Asia-Pacific apparel retail industry value.

China accounts for a further 39.5% of the Asia-Pacific industry.

Table 3: India apparel retail industry geography segmentation, by value, 2011(e)

Geography %

China 39.5

Japan 34.9

South Korea 8.0

India 3.0

Rest of Asia-Pacific 14.5

Total 100%


Figure 3: India apparel retail industry geography segmentation : % share, by value, 2011(e)




MARKET OUTLOOK

Market value forecast In 2016, the Indian apparel retail industry is forecast to have a value of $12,642.9 million, an increase of 38.4% since

2011.

The compound annual growth rate of the industry in the period 2011–16 is predicted to be 6.7%.

Table 4: India apparel retail industry value forecast: $ million, 2011–16

Year $ million Rs. million € million % Growth

2011 9,133.5 419,558.4 6,881.3 10.4%

2012 9,907.1 455,095.4 7,464.2 8.5%

2013 10,644.2 488,955.4 8,019.5 7.4%

2014 11,340.9 520,955.1 8,544.3 6.5%

2015 12,009.2 551,655.4 9,047.9 5.9%

2016 12,642.9 580,766.4 9,525.3 5.3%

CAG : 2011–16 6.7%


Figure 4: India apparel retail industry value forecast: $ million, 2011–16




FIVE FORCES ANALYSIS

The apparel retail industry will be analyzed taking retailers as players. The key buyers will be taken as individual

consumers, and clothing manufacturers and wholesalers as the key suppliers.

Summary

Figure 5: Forces driving competition in the apparel retail industry in India, 2011


The Indian apparel market is fairly fragmented, although strong growth in recent years helps to lessen the level of rivalry.

Clothing is an essential item, with consumer choice being influenced by factors such as fashion and a desire to signal

social status. Demand patterns are susceptible to branding and advertising, which, despite the lack of significant

switching costs, tends to weaken buyer power. There is a fast pace of change in the demands of individual buyers. This

means that, in an attempt to maintain market share in a highly competitive market, players aim to attract customers by

creating strong brand consciousness and running intensive marketing campaigns. Low barriers to entry and relatively low

requirements for capital mean there is a high likelihood of new entrants in this market. Substitutes to apparel retail

include bespoke tailoring, factory shops, homemade clothing and second hand clothing, although these pose a minimal

threat to market players.



Buyer power

Figure 6: Drivers of buyer power in the apparel retail industry in India, 2011


Buyer power in the apparel retail industry is weakened by the small size of buyers: virtually all buyers are individual

consumers. What’s more, retailers tend to have large numbers of individual customers, which further weakens buyer

power. Despite the fact that brand consciousness in this market is substantial, the loyalty of consumers to specific

brands is not always the overriding factor in their decision making. Buyer power is enhanced by a high level of choice,

which is generated by the absence of switching costs. Brand loyalty is limited in India and very often loyalty is directed

towards a particular retailer instead. Branding may be irrelevant in poorer regions, with the basic necessity of functional

clothing being the main concern. There is a large market for non-designer apparel retail, especially among customers

with lower disposable incomes. Retailers can differentiate themselves fairly strongly through the styles of clothing offered

and the price range of this clothing, meaning buyer power is weakened. Apparel is an essential item for consumers, and

they are significantly exposed to the penetration of marking icons and images into most forms of media. However,

retailers must remain aware of the developments that shape public perception and subsequent demand. Despite

consumers lacking financial muscle, the position of retailers at the end of the value chain makes it impossible to integrate

forwards. This means that they are obliged to offer buyers what they demand, in a market often subject to unpredictable

and rapid changes in fashion. These factors strengthen buyer power. Overall, buyer power is assessed as moderate.



Supplier power

Figure 7: Drivers of supplier power in the apparel retail industry in India, 2011


The key suppliers in this market are clothing manufacturers and wholesalers. These are typically small to medium sized

enterprises, giving retailers the possibility to source from both. Supplier fragmentation is not as pronounced as in other

countries. Textile and apparel manufacturing are highly vertically integrated industries (more developed regions display a

lesser degree of integration.) With the liberalization of international trade, India is an important supplier in the global

market. Rising costs and workers’ wages in China has led to a boom in Indian production; exports of apparel increased

by 24% in February 2011 compared to February 2010. The lack of diversity between suppliers weakens their power. This

makes the apparel retail market highly important to their business. Apparel manufacturing is almost always labor

intensive, due to the difficulty of automating processes such as the sewing of garments. Overall, supplier power in this

market is assessed as moderate.



New entrants

Figure 8: Factors influencing the likelihood of new entrants in the apparel retail industry in India, 2011


The Indian apparel market has experienced strong growth in recent years, making the market attractive to new entrants.

Barriers to entry are not high, with capital requirements being low enough for individuals to enter. However, a small

amount of large corporations, such as Pantaloon Retail and Marks and Spender Group, account for a major share of

total market revenues. They benefit from scale economies that allow them to build brands in multiple retail outlets, and

greater buying power when negotiating with suppliers. The latter allows them to compete more intensely on price. There

is little regulation as such for retailers in the market, but there are some self-imposed conventions, to do with child labor,

working conditions and worker’s wages. New entrants who are known to have items manufactured in this way may lose

customers. Low switching costs for buyers and a low level of product differentiation make it easier for new entrants to

compete with existing players. Overall, there is a strong threat of new entrants to this market.



Threat of substitutes

Figure 9: Factors influencing the threat of substitutes in the apparel retail industry in India, 2011


While there are no substitutes for apparel as such, there are alternatives to retail. One option is purchasing clothing

directly from the manufacturer as opposed to the conventional distribution chain. This is facilitated by the growth of online

sales. All major apparel retailers now have their own online stores as there is an increased consumer acceptance of the

internet as an alternative shopping channel. A growing number of ‘pureplay’ online fashion stores have emerged in the

market, as they look to take advantage of lower running costs from not having to pay for the overheads incurred by

running a high street store. The online sale avenue opens the door for manufacturers who may be tempted by the

opportunity of selling directly to end users without the need for the retailer. Home-made and custom-made (couture)

clothing are also niche alternatives to retail of ready-made clothes. Counterfeit clothing can be a significant threat to

revenues of manufacturers in some countries. Another option is purchasing second-hand clothing from charity shops and

internet sites such as eBay. However, the threat of substitutes to apparel retail is assessed as weak overall.



Degree of rivalry

Figure 10: Drivers of degree of rivalry in the apparel retail industry in India, 2011


The Indian apparel market is fairly fragmented and is typically composed of large numbers of similar retailers, many of

which are independents. However, there is still room for large numbers of smaller players in this market. Major increases

in capacity may be fairly costly to smaller players, if they require the outlay of opening additional outlets, less so if they

can be accomplished by taking on more staff on a flexible basis. While some retailers selling apparel have diversified

into, for example, jewelry, menswear and childrenswear, many retain a strong emphasis on apparel specifically, which

intensifies rivalry. A fast pace of change in fashions in the apparel’s market combined with strong market performance

over the past five years helps to ameliorate rivalry, which is assessed as moderate overall.



LEADING COMPANIES

Aditya Birla Nuvo Limited

Table 5: Aditya Birla Nuvo Limited: key facts

Head office: Indian Rayon Compound, Veraval 362 266, Gujarat, IND

Telephone: 91 2876 245711

Fax: 91 2876 243220

Website: www.adityabirlanuvo.co.in

Financial year-end: March

Ticker: 500303

Stock exchange: Bombay

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Aditya Birla Nuvo (ABN or "the company") is a conglomerate with its subsidiaries offering diversified services within the

Aditya Birla Group. The company primarily operates in India across manufacturing and services sector.

The company's operations span across 10 business segments: life insurance, telecom, IT and ITeS, fashion and lifestyle,

carbon black, Agri-business, textiles, rayon yarn, insulators and other financial services.

The life insurance segment comprises the operations of Birla Sun Life Insurance (BSLI), which is a joint venture between

the Aditya Birla Group and Sun Life Financial. Through this segment ABN offers a range of solutions that include

protection, health, wealth with protection and, children and retirement needs. BSLI has over 650 branches across India.

The telecom segment encompasses the operations of Idea Cellular, which is a publicly listed company. Idea Cellular

operates in 22 circles across India and has a subscriber base of 63.82 million in March 2010.

IT and ITES operations include ABN's IT arm and BPO services. These operations are delivered through Aditya Birla

Minacs IT Services (formerly PSI Data Systems) that provides business solutions to banking, financial services and

insurance; telecom, infrastructure, media, and entertainment; and manufacturing industries. Aditya Birla Minacs IT

Services are offered across 3 continents and 27 centers spanning Canada, Germany, Hungary, India, Philippines, the

US and the UK.

The fashion and lifestyle segment encompasses the operations of Madura Fashion & Lifestyle. The business primarily

offers garments including lifestyle apparel. The apparel is offered through several brands including Louis Philippe, Van

Heusen, Allen Solly, Peter England and The Collective. Through these brands the company offers premium and

international lifestyle categories of garments. The segment also includes Planet Fashion, the apparel retailing arm of

Madura Fashion & Lifestyle. The retail operations have 82 stores across 50 cities in India and five stores internationally.

Carbon black comprises the fillers business that is operated by Hi-Tech Carbon. ABN has manufacturing plants at

Renukoot in UP, Gummidipoondi in Tamilnadu and has a Greenfield capacity at Patalganga. The combined capacity is

over three lakh metric tons per annum. The company produces 780,000 tons per annum of carbon black.

The agri-business comprises the operations of Indo Gulf which manufactures and markets urea, agricultural seeds and

agrochemicals.

The textile division encompasses the operations of Jaya Shree Textiles. ABN primarily operates in domestic linen and

worsted yarn segment. The company offers a wide range of products such as linen fabric, linen yarn, worsted yarn and

wool tops. Jaya Shree Textiles has an international presence spanning six continents.



Rayon yarn segment operates Indian Rayon which is a major player in viscose filament yarn business. The products are

sold under Ray One brand. The company's factory is located in Veraval in Gujarat and has a capacity of 16,400 tons per

annum. The segment also includes 91,250 tons per annum caustic soda plant with membrane cell technology which was

started as a part of ABN's backward integration process.

The insulators segment includes the operations of Aditya Birla Insulators which offers hollow, solid core, disc, pin and

post insulators which are used in the entire spectrum of sub-station and transmission systems. The company's insulators

product range is exported to 58 countries around the world with focus on markets in Europe and America. The plants

have a combined installed capacity of 48,760 metric tons.

The other financial services segment operates Aditya Birla Capital Advisors which provides private equity advisory and

investment management services for Indian and offshore investors; Aditya Birla Finance (formerly known as Birla Global

Finance), is a non-banking financial company which offers specialized solutions in areas of capital market and corporate

finance; Aditya Birla Insurance Brokers which is an intermediary in the general insurance market; Aditya Birla Money

Mart (formerly Birla Sun Life Distribution) which offers a range of products like mutual funds, insurance, private equity

funds, alternate investments, select fixed deposits and IPOs and structured products; and Aditya Birla Money (formerly

known as Apollo Sindhoori Capital Investments) which is a broking player, offering equity and derivative trading through

NSE and BSE and currency derivative on MCX-SX.

Key Metrics The company recorded revenues of $3,375 million in the fiscal year ending March 2010, an increase of 8.3% compared

to fiscal 2009. Its net income was $34 million in fiscal 2010, compared to a net loss of $95 million in the preceding year.

Table 6: Aditya Birla Nuvo Limited: key financials ($)

$ million 2006 2007 2008 2009 2010

Revenues 1,015.6 1,750.3 2,476.0 3,116.4 3,375.4

Net income (loss) 44.4 61.2 32.8 (94.8) 33.7

Total assets 1,749.0 3,205.0 4,359.7 5,868.5 7,049.3

Total liabilities 1,282.7 2,413.3 3,443.8 4,546.3 5,817.1

Employees 8,335 8,197 10,326 10,121 14,000

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 7: Aditya Birla Nuvo Limited: key financials (Rs.)

Rs. million 2006 2007 2008 2009 2010

Revenues 46,654.1 80,401.0 113,738.0 143,155.0 155,052.0

Net income (loss) 2,040.0 2,809.0 1,508.0 (4,357.0) 1,546.0

Total assets 80,340.8 147,226.6 200,268.8 269,577.8 323,819.9





Table 8: Aditya Birla Nuvo Limited: key financial ratios

Ratio 2006 2007 2008 2009 2010

Profit margin 4.4% 3.5% 1.3% (3.0%) 1.0%

Revenue growth 46.3% 72.3% 41.5% 25.9% 8.3%

Asset growth 116.7% 83.3% 36.0% 34.6% 20.1%

Liabilities growth 129.7% 88.1% 42.7% 32.0% 28.0%

Debt/asset ratio 73.3% 75.3% 79.0% 77.5% 82.5%

Return on assets 3.5% 2.5% 0.9% (1.9%) 0.5%

Revenue per employee $121,851 $213,527 $239,783 $307,913 $241,099

Profit per employee $5,328 $7,460 $3,179 ($9,372) $2,404


Figure 11: Aditya Birla Nuvo Limited: revenues & profitability




Figure 12: Aditya Birla Nuvo Limited: assets & liabilities




Marks and Spencer Group plc

Table 9: Marks and Spencer Group plc: key facts

Head office: Waterside House, 35 North Wharf Road, London, W2 1NW, GBR

Telephone: 44 20 7935 4422

Local office: 10th Floor, Bldg No.8, Tower-C, Cyber City, Gurgaon, Haryana, 122001, IND

Website: www.marksandspencer.com

Financial year-end: April

Ticker: MKS

Stock exchange: London


Marks and Spencer Group plc (M&S or "the company") is the holding company of the Marks & Spencer Group of

companies. The company is a UK retailer of clothing, foods and home ware. It operates through both wholly owned

stores and franchise stores. As of FY2010, the company operated 690 stores in the UK. M&S operates over 320 owned

and franchised stores in over 41 territories.

Though the company primarily reports in terms of geographic segments (UK and international), its operations can be

categorized under two divisions: food and general merchandise.

The food division concentrates on four main areas: fresh, natural, healthy food; special celebration products; authentic

ready meal ranges and exceptional everyday food such as "Oakham" chicken. It operates a chain of 156 Simply Food

owned stores and 194 Simply Food franchise stores in high streets, motorway service stations, railway stations and

airports.

The clothing section offers women's wear, men's wear, lingerie, children's wear, and accessories and footwear. Some of

the prominent brands offered by this division include: Autograph, Limited Collection, Collezione, Blue Harbour, Girls

Boutique, Per Una, Ceriso, Adored, Truly you and Body.

The home division offers home ware and home accessories; kitchen and tableware; lighting; and furniture products. In

addition to regular stores, the division offers catalogue services.

M&S offers its products and services online and through M&S Catalogue, its flagship stores, high street stores, retail

park stores, M&S outlets, Simply Food stores and Simply Food franchised stores.

Key Metrics The company recorded revenues of $14,727 million in the fiscal year ending April 2010, an increase of 5.2% compared

to fiscal 2009. Its net income was $813 million in fiscal 2010, compared to a net income of $1,011 million in the

preceding year.



Table 10: Marks and Spencer Group plc: key financials ($)

$ million 2006 2007 2008 2009 2010

Revenues 12,042.0 13,262.7 13,932.7 13,994.7 14,727.4

Net income (loss) 807.8 1,019.1 1,269.0 1,010.6 812.8

Total assets 8,046.6 8,309.9 11,058.8 11,208.7 11,046.7


Employees 70,310 75,871 75,389 75,000 76,500


Table 11: Marks and Spencer Group plc: key financials (£)

£ million 2006 2007 2008 2009 2010

Revenues 7,797.7 8,588.1 9,022.0 9,062.1 9,536.6

Net income (loss) 523.1 659.9 821.7 654.4 526.3

Total assets 5,210.5 5,381.0 7,161.0 7,258.1 7,153.2



Table 12: Marks and Spencer Group plc: key financial ratios

Ratio 2006 2007 2008 2009 2010

Profit margin 6.7% 7.7% 9.1% 7.2% 5.5%

Revenue growth 4.1% 10.1% 5.1% 0.4% 5.2%

Asset growth 7.1% 3.3% 33.1% 1.4% (1.4%)

Liabilities growth 2.5% (8.0%) 39.2% (0.8%) (3.7%)

Debt/asset ratio 77.8% 69.4% 72.6% 71.1% 69.4%

Return on assets 10.4% 12.5% 13.1% 9.1% 7.3%


Profit per employee $11,489 $13,432 $16,832 $13,475 $10,624




Figure 13: Marks and Spencer Group plc: revenues & profitability


Figure 14: Marks and Spencer Group plc: assets & liabilities




Pantaloon Retail (India) Ltd.

Table 13: Pantaloon Retail (India) Ltd.: key facts

Head office: Knowledge House, Shyam Nagar, Off Jogeshwari Vikhroli Link Road, Jogeshwari East, Mumbai 400 060, IND

Telephone: 91 22 3084 1300

Fax: 91 22 6644 2222

Website: www.pantaloonretail.in

Financial year-end: June

Ticker: 523574



Pantaloon Retail (Pantaloon or "the company") operates multiple retail formats in both the value and lifestyle segments in

India. It operates more than 1000 stores across 73 cities in India, and occupies retail space of more than 16 million

square-feet. The company offers its products in various lines of businesses such as food, fashion, home and electronics,

telecom and information technology (IT), general merchandise, leisure and entertainment, wellness and beauty, books

and music. The company also offers products through its Internet retailing store futurebazaar.com.

Pantaloon offers food products through retail formats such as Brew Bar, Cafe Bollywood, Food Bazaar, and Sports Bar.

Brew Bar offers over 15 brands of domestic and imported beer besides snacks and set meals. Cafe Bollywood

(Bollywood refers to the Indian film industry) is a fast food retail chain offering eateries in a Bollywood ambience. It offers

Indian street food, burgers, pizzas and juices. Food Bazaar is a chain of supermarkets which offers pre-packed

commodities. Sports Bar is a concept bar that focuses on the world of sports. Sports Bar offers domestic and imported

spirits, beers and wins.

The company offers fashion related products under banners such as aLL, Big Bazaar, Blue Sky, Brand Factory, Celio,

Central, Ethnicity, Fashion@Big Bazaar, Lee Cooper, Navaras, Pantaloon and Planet Sports. aLL is a fashion store for

plus size men and women. It offers ready-to-wear fashionable clothes and accessories in western wear, Indo-western or

ethnic wear in both formal and casual categories. Big Bazaar is a fashion and general merchandise hypermarket. It

offers fashion products, home furnishings, utensils, crockery, cutlery, and sports goods. Blue Sky stores offer branded

and private label sunglasses and watches. Some of the private label watch brands which Blue Sky offers are Cube,

Koenig, RIG, Lombard and UMM. Brand Factory operates a chain of discount stores that offer branded apparel for men,

women, and infants along with accessories, cosmetics, footwear, sportswear, luggage, and home linen at discounted

prices. These discount stores stock fashion brands such as Levis, Pepe Jeans, Dockers, Wrangler, ProVogue, Arrow,

Nike, Adidas, Reebok, Louis Phillip, Allen Solly, Reid and Taylor, Gini and Jony, amongst others. Celio, a market leader

in men's ready to wear clothing in France, is retailed through selected stores of Pantaloon and Central in India.

Central, the mall concept of Pantaloon, offers more than 300 brands across categories such as apparel, footwear and

accessories for women, men, children and infants, and the product ranges such as, music, books, coffee shops, food

courts, super markets (food bazaar), fine dining restaurants, pubs and discotheques. Central also offers services such as

travel, finance, investment, insurance, concert/cinema ticket booking and bill payments. Ethnicity is a concept store in

India that sells merchandise for kids, fashion, costume and semi-precious jewelry, Indian ethnic home wares, and ethnic

accessories. Fahion@Big Bazaar offers fashion apparel and accessories for men, ladies, kids and infants at reasonable

prices. Lee Cooper is a reputed international brand which is distributed through exclusive brand stores and large format

stores such as Central and Pantaloon. Navaras is a jewelry store that offers branded jewelry in a hypermarket set-up.

Pantaloon stores offers fashion products such as casual, ethnic, formal, party and sportswear for men, women and kids.

Planet Sports is a sports and lifestyle specialty retail chain with extensive offerings for sportswear and equipment across

all categories including running, tennis, training, golf, fitness, basketball, motor sports as well as other lifestyle products.



In the general merchandise category, Pantaloons operates retail formats such as Big Bazaar, Big Bazaar Wholesale

Club, Blue Sky, Brand Factory, Central, Navaras, Pantaloons, KB Fairprice and Shoe Factory. Big Bazaar is a retail store

chain in a hypermarket format that offer fashion products, home furnishings, utensils, crockery, cutlery, and sports

goods. KB's FairPrice are modern, self-service ration shops that retail only 300 essential products, at the lowest prices.

Shoe Factory, a footwear retail store chain offers branded footwear and accessories to men, women and kids.

Pantaloon has presence in the leisure and entertainment space through an affiliated company, Galaxy Entertainment.

Pantaloon's F 123, a gaming and entertainment zone, offers a range of gaming options ranging from bowling, pool,

interactive video games, bumper cars along with fun foods and services for junior and adult banqueting. The company

also operates Bowling Co., a family entertainment centre, in Mumbai. In a joint venture with Blue Foods, Pantaloon

operates food courts, fine dine specialty restaurants, thali restaurants, banquets and multiple kiosks with brands such as

Copper Chimney, Bombay Blue, Noodle Bar, Spaghetti Kitchen and The Spoon.

The company operates specialty stores in the wellness and health retailing. It operates Star and Sitara and Fit and

Healthy. Star and Sitara provides skin and hair related beauty services for men and women. Fit and Healthy section

housed within Big Bazaars and Food Bazaars provides health products and health related tips, information and advice.

Pantaloon has presence in the books and music category through 'Depot' which offers books, music compact disks

(CDs) and cassettes, home videos, multimedia (CD-ROMs) products and gift items. In the home and electronics retailing,

the company offers furniture, furnishings, home accents and electronic products through Collection I, Furniture Bazaar,

Electronics Bazaar, eZone, Home Bazaar and HomeTown retail formats.

In the telecom and IT category the company offers products such as gadgets, mobile phones, accessories, download

kiosks, airtime recharges, landline instruments, blue tooth accessories, and mobile trinkets through its retail store brands

such as Gen M, One Mobile, and M Port.

Key Metrics The company recorded revenues of $2,131 million in the fiscal year ending June 2010, an increase of 54.2% compared

to fiscal 2009. Its net income was $15 million in fiscal 2010, compared to a net income of $31 million in the preceding

year.

Table 14: Pantaloon Retail (India) Ltd.: key financials ($)

$ million 2006 2007 2008 2009 2010

Revenues 406.9 704.6 1,099.9 1,381.9 2,130.5

Net income (loss) 14.0 26.1 27.4 30.6 14.7

Total assets 251.7 532.8 893.9 1,140.5 2,113.3

Total liabilities 137.0 295.1 491.9 645.8 611.0

Employees 13,000 18,000 28,000 33,500 33,500




Table 15: Pantaloon Retail (India) Ltd.: key financials (Rs.)

Rs. million 2006 2007 2008 2009 2010

Revenues 18,689.7 32,367.4 50,526.7 63,477.6 97,869.0

Net income (loss) 641.6 1,199.9 1,259.7 1,405.8 674.9

Total assets 11,562.0 24,476.0 41,062.4 52,389.0 97,076.0



Table 16: Pantaloon Retail (India) Ltd.: key financial ratios

Ratio 2006 2007 2008 2009 2010

Profit margin 3.4% 3.7% 2.5% 2.2% 0.7%

Revenue growth 77.5% 73.2% 56.1% 25.6% 54.2%

Asset growth 122.0% 111.7% 67.8% 27.6% 85.3%

Liabilities growth 110.3% 115.4% 66.7% 31.3% (5.4%)

Debt/asset ratio 54.4% 55.4% 55.0% 56.6% 28.9%

Return on assets 7.7% 6.7% 3.8% 3.0% 0.9%


Profit per employee $1,074 $1,451 $979 $914 $439


Figure 15: Pantaloon Retail (India) Ltd.: revenues & profitability




Figure 16: Pantaloon Retail (India) Ltd.: assets & liabilities




Trent Limited

Table 17: Trent Limited: key facts

Head office: Trent House, G Block, Plot No C-60, Beside Citibank, Bandra Kurla Complex, Bandra (East), Mumbai 400051, Maharashtra, IND

Telephone: 91 22 6700 9000

Fax: 91 22 2610 6193

Website: www.mywestside.com

Financial year-end: March

Ticker: 500251



Trent, a part of the Tata Group, is engaged in operating a chain of retail stores that meets the shopping needs of the

customers. The company has operations primarily in India.

The company operates retail stores under the names Westside, Star Bazaar, and Landmark.

Westside operates around 49 Westside departmental stores (measuring 15,000 to 30,000 square feet each) across India

covering over 27 cities. The company, through its Westside stores, offers men's wear, women's wear, kid's wear,

footwear, cosmetics, perfumes and handbags, household accessories, lingerie, and gifts. Westside locations in India

includes Mumbai, Bangalore, Hyderabad, Chennai, Pune, Delhi, Noida, Ghaziabad, Gurgaon, Kolkata, Nagpur, Indore,

Jaipur, Lucknow, Ahmedabad, Baroda, Mysore, Surat, and Ludhiana, among others.

The company's hypermarket business, Star Bazaar, offers customers an array of products that include fresh foods, fruits,

vegetables and non-vegetarian products, dairy, home care, health and beauty products, apparel, home decor, gifts, and

household items. Star Bazaar also offers a range of fashionable in-house garments for men, women, and children. The

company has seven Star Bazaar operational stores in five cities located in Ahmedabad, Chennai, Mumbai, Pune, and

Bengaluru.

Trent, through its subsidiary, Landmark Limited, operates Landmark stores. These stores retail books plus music, toys,

and furnishing format. Landmark operates 14 big stores, seven hotel bookstores, and six airport stores, varying in size

from 12,000 square foot to 45,000 square foot in Chennai, Bengaluru, Gurgaon, Mumbai, Vadodara, Gurgaon, Pune,

Lucknow, Ahmedabad, and Hyderabad.

The company's other subsidiaries include: Trent Brands, Fiora Services Satnam Developers and Finance, Nahar

Theatres, and Fiora Link Road Properties.

Key Metrics The company recorded revenues of $244 million in the fiscal year ending March 2010, an increase of 31.7% compared

to fiscal 2009. Its net income was $0 million in fiscal 2010, compared to a net income of $0 million in the preceding year.



Table 18: Trent Limited: key financials ($)

$ million 2006 2007 2008 2009 2010

Revenues 91.2 137.6 156.3 185.2 243.9

Net income (loss) 5.3 7.1 7.3 0.2 0.3

Total assets 79.0 133.8 229.3 227.2 256.3

Total liabilities 29.3 71.9 93.0 96.6 122.9

Employees 0 0 447 0 0


Table 19: Trent Limited: key financials (Rs.)

Rs. million 2006 2007 2008 2009 2010

Revenues 4,191.1 6,318.7 7,180.1 8,508.9 11,204.6

Net income (loss) 243.8 324.1 336.4 10.4 15.6

Total assets 3,628.4 6,146.0 10,533.6 10,436.3 11,772.3



Table 20: Trent Limited: key financial ratios

Ratio 2006 2007 2008 2009 2010

Profit margin 5.8% 5.1% 4.7% 0.1% 0.1%

Revenue growth 83.9% 50.8% 13.6% 18.5% 31.7%

Asset growth 28.6% 69.4% 71.4% (0.9%) 12.8%

Liabilities growth 127.6% 145.6% 29.3% 3.9% 27.2%

Debt/asset ratio 37.1% 53.7% 40.6% 42.5% 47.9%

Return on assets 7.6% 6.6% 4.0% 0.1% 0.1%




Figure 17: Trent Limited: revenues & profitability


Figure 18: Trent Limited: assets & liabilities




MACROECONOMIC INDICATORS

Country Data

Table 21: India size of population (million), 2007–11

Year Population (million) % Growth

2007 1,136.6 1.5%

2008 1,153.1 1.5%

2009 1,160.8 0.7%

2010 1,176.7 1.4%

2011(e) 1,192.5 1.3%


Table 22: India gdp (constant 2000 prices, $ billion), 2007–11

Year Constant 2000 Prices, $ billion % Growth

2007 727.5 10.0%

2008 772.5 6.2%

2009 824.9 6.8%

2010 908.6 10.2%

2011(e) 980.3 7.9%


Table 23: India gdp (current prices, $ billion), 2007–11

Year Current Prices, $ billion % Growth

2007 1,083.8 28.1%

2008 1,184.7 9.3%

2009 1,260.5 6.4%

2010 1,554.5 23.3%

2011(e) 1,854.1 19.3%




Table 24: India inflation, 2007–11

Year Inflation Rate (%)

2007 6.4%

2008 8.3%

2009 10.9%

2010 12.0%

2011(e) 10.6%


Table 25: India consumer price index (absolute), 2007–11

Year Consumer Price Index (2000 = 100)

2007 137.1

2008 148.5

2009 164.7

2010 184.4

2011(e) 203.9


Table 26: India exchange rate, 2007–11

Year Exchange rate ($/Rs.) Exchange rate (€/Rs.)

2007 41.3570 56.5898

2008 43.8145 64.1115

2009 48.8500 67.9264

2010 45.9361 60.9708

2011 46.8466 65.1733




APPENDIX

Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-

checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by

analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases

provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview.

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each

definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients.

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends.

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors.

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date.



Industry associations

International Textile and Apparel Association

PO Box 1360, Monument, CO 80132-1360, USA

Fax: 1 719 488 3716

www.itaaonline.org

International Apparel Federation

5 Portland Place, London, W1B 1PW, UK

Tel.: 44 20 7636 7788

Fax: 44 20 7436 8261

www.iafnet.org

Related Datamonitor research

Industry Profile

Global Apparel Retail

Apparel Retail in Europe

Apparel Retail in Asia-Pacific

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