Aditya Birla Retail Ltd – Introduction of de Study

CHAPTER 1 GENERAL INTRODUCTION INTRODUCTION OF THE STUDY retailing in India is receiving planetary recognition and attention and this emerging market is witnessing a significant change in its harvest-tide and investment design. It is non just the orbicular players like Wal-Mart, Tesco and thermionic vacuum tube group be eying to capture a pie of this market but to a fault the domestic corporate behemoths like creed, K K Modi , Aditya Birla group, and Bharti group too be at to a greater extent or less stage of sell development. opinion, announced that it will invest $3. 4 billion to become the countrys largest modern seller by establishing a orbit of 1,575 stores by March cc7.The last couple of years hire been rosy for real estate developers and the retailers are finding suitable retail space in prominent locations. The intentness is buoyant about growth and the early starters are in expansion mood. There is increased sophistication in the shopping pattern of consumer s, which has resulted in big retail chains orgasm up in most metros mini metros and towns being the next target. Consumer taste and preferences are changing lead story to radical alteration in lifestyles and expenditure patterns which in turn is giving stick up to new line of products opportunities.Companies need to be dynamic and proactive season responding to the ever-changing trends in consumer lifestyle and behavior. Retailing consists of the sale of goods or merchandise from a fixed location, much(prenominal) as a de neighborhoodment store, or by post, in sm wholly or individual lots for direct consumption by the purchaser. Retailing may embroil subordinated services, such as deli very. Purchasers may be individuals or businesses. In commerce, a retailer buys goods or growths in large quantities from compositionufacturers or importers, either directly or through a wholesaler, and then sells sm each(a) quantities to the end-user.Retail establishments are often calle d shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of sell as a necessary part of their everywhereall distribution strategy. The term retailer is also applied where a service allow forr services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to cling to customers from precipitation.Online sell, a type of electronic commerce used for business to consumer (B2C) transactions and mail order are conformitys of non shop sell. Shopping ordinaryly refers to the act of buying products. Sometimes this is d bingle(a) to obtain necessities such as regimen and clothing close totimes it is done as a recreational activity. The retail exertion in India is currently growing at a great pace and i s expect to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1. 3 trillion by the year 2018 at a CAGR of 10%.As the country has got a high growth grade, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail assiduity is expected to grow further in the future days. By the year 2013, the organised sphere of influence is also expected to grow at a CAGR of 40%. 1. 1 OBJECTIVE OF ORGANISATIONAL STUDY * To understand the role and relevance of retailing for business and economy. * To understand the diametrical departmental run lows associated with Aditya Birla Retail Ltd. belowstanding the importance of store location for a tiptopic * To Study the Consumer Behaviour of MORE outlet 1. 2 METHODOLOGY This institution consider is the mixture of theoretical as hearty as practical knowledge. Also it containsideas a nd discipline imparted by the guide. The secondary data required for the organization chew over was collected from miscellaneous websites and books of reputed authors. The organizational study started with sorting all the raw data and arranging them in perfect order. To add shelter to the organization study and to understand the practicality of etailing business, I have visited conglomerate MORE stores Kerala. 1. 3 LIMITATION * The study was conducted within different outlets of Cochin city, so the findings are restricted to some outlets only. * The method used in this Organization study for collecting the information is very time consuming and slow. * The major limitation was that some of the outlet managers, stave and customers were busy with their earn. CHAPTER 2 INDUSTRY PROFILE INDUSTRY PROFILE Retail is not only an of the essence(p) aspect of the economic structure but very much a part of our lives . Although trading of goods have been in existence since the olden days .It is only in the recent past that the buying and sell of goods have become much of format and a brand dominated activity . The traditional form of independently owned businesses co-exist along with the organized retail. form retail has emerged in a big way since 2000 onward and with that we are witnessing the emergence of new forms of retailing. Aditya Birla Retail Limited is the retail arm of Aditya Birla convocation, a USD 28 billion Corporation. The Company shipd into food and grocery retail orbit in 2007 with the acquisition of a south based supermarket chain.Subsequently Aditya Birla Retail Ltd. expanded its front end across the country under the brand more than. with 2 formats Supermarket Hypermarket. Supermarket Conveniently located in neighbourhoods, more. supermarkets cater to the daily, weekly and monthly shopping needs of consumers. The product offerings include a wide range of fresh fruits vegetables, groceries, personal care, home care, general merchandise a basic range of apparels. Currently, there are over 600 more. supermarkets across the country. Hypermarket more(prenominal). MEGASTORE is a one- bust shopping destination for the entire family.Besides a large range of products across fruits vegetables, groceries, FMCG products, more. MEGASTORE also has a strong emphasis on general merchandise, apparels CDIT. Currently, nine hypermarkets operate under the brand more. MEGASTORE in Mysore, Vadodara, Aurangabad, Indore, Bengaluru, Mumbai, New Delhi, Hyderabad and Vashi. Aditya Birla Retail Limited. currently has an employee strength of over 11,000. Key functions are headed by professionals with vast retail experience in India globally. Quality Value through own labelsAditya Birla Retail Ltd yields customers a wide choice of products under its own labels. The accusing is to provide musical note products at attractive price points to customers. Since quality of the products is of prime importance, stringent quality norms have been set and are followed. All manufacturing partners are the best in their enlighten. TYPES OF sell FORMAT * Convenience store * Chain of stores * Franchise * Speciality store * Departmental store * Supermarket * Hypermarket * Shopping mall * Shopping plaza * Factory outlet 2. 1 ORIGIN AND DEVELOPMENT OF THE INDUSTRY Retail is Indias largest pains.It accounts for over 10 per cent of the Indias gross domestic product and around eight per cent of the employment. Retail welkin is one of Indias fastest growing sectors with a 5 per cent compounded annual growth rate. Indias huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175-200 billion by 2016. The organized retail industry in India had not evolved til l the early 1990s.Until then, the industry was dominated by the un-organized sector. It was a sellers market, with a limited number of brands, and dinky choice available to customers. lose of trained manpower, tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Lack of consumer awareness and restrictions over entre of foreign players into the sector also contributed to the delay in the growth of organized retailing. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL).Following Pantaloons successful menace a host of Indian business giants such as Reliance, Bharti, Birla and separates are now entering into retail sector. Retailing is the most active and attractive sector of last decade. While the retailing industry itself has been present since ages in our country, it is only the recent past that it has witnessed so much dynamism. The emergence of retailing in India has more to do with the increased purchasing power of buyers, especially post-liberalization, increase in product variety, and increase in economies of scale, with the aid of modern supply and distributions solution.Indian retailing today is at an interesting crossroads. The retail gross sales are at the highest point in history and new technologies are improving retail productivity. though there are many opportunities to start a new retail business, retailers are facing numerous challenges. A number of factors are driving Indias retail market. These include increase in the young working population, hefty pay-packets, nuclear families in urban areas, increasing working-women population, increase in disposable income and customer aspiration, increase in expenditure for luxury items, and low share of organized retailing.Indias retail boom is manifested in sprawling shopping centers, multiplex- malls and huge complexes that offer shopping, entertainment and food all under one r oof. But there is a flip side to the boom in the retail sector. It is feared that the entry of global business giants into organized retail would make redundant the neighbourhood kiryana stores resulting in dislocation in traditional economic structure. Also, the growth path for organized retail in India is not hurdle free. The taxation system still favours small retail business.With the intrinsic complexities of retailing such as rapid price changes, constant threat of product obsolescence and low margins there is always a threat that the venture may turn out to be a loss make one. MANAGEMENT squad OF ADITYA BIRLA RETAIL LTD * Thomas Varghese, CEO Aditya Birla Retail Ltd. * Russell Berman, CEO Hypermarket * Satendra Aggarwal, CEO Supermarket * Atul Daga, Head pay * Ramesh Mitragotri, CPO * Manoj Krishnan, CIO * Shiv Murti, Chief Merchandising Officer * T V. Venkataraman, Head Internal audit * V. Gopalakrishnan, Head Quality 2. GROWTH & PRESENT STATUS OF THE INDUSTRY Retail ing is emerging as a sunrise industry in India and is presently the largest employer after(prenominal) agriculture. In the year 2004, the sizing of Indian organized retail industry was Rs 28,000 Crore, which was only 3% of the total retailing market. Retailing in its present form started in the latter half of 20th speed of light in USA and Europe and today constitutes 20% of US GDP. It is the 3rd largest employer incision in USA. create retailing in India is projected to grow at the rate of 25%-30% p. a. and is estimated to reach an amaze Rs 1,00,000 Crore by 2010.The contribution of organized retail is expected to rise from 3% to 9% by the end of the decade. The projection for the current year ie 2005 is Rs 35,000 Crore. In India it has been found out that the top 6 cities contribute for 66% of total organized retailing. With the metros already been exploited, the focus has now been shifted towards the tier-II cities. The retail boom, 85% of which has so far been concentrated in the metros is beginning to percolate down to these little cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%.In the year 2004, Rs 28,000 Crore organized retail industry had Clothing, Textiles & fashion accessories as the highest contributor (39%), where as health & beauty had a contribution of 2%. intellectual nourishment & Grocery contributed to 18% whereas Pharma had a contribution of 2%. Globally, the retail industry has grown at a brisk pace with a Compounded Annual Growth Rate (CAGR) of 7. 77% during the period 2001-2006. The growing expanse of the top global retailers has ensured globalization of the industry however the opportunity for growth of organized retail is immense in countries such as India, S.Korea, and Vietnam etc. where organized retailing is still at an ascent stage. The Indian retail industry has witnessed a massive transition during the last few decades. The Indian retail has grown a t a CAGR of 11. 2% during the period FY04-FY07, with food and grocery accounting for the major share. Despite the industry being dominated by the unorganized retailers, the organised retailing revenues have soared at a CAGR of 19. 5% during the period FY04-FY07. The apparel & footwear segment occupies the major share in the organised retail pie.The Indian retail industry has strong linkages with the economic growth and Development of the economy. It is primarily characterized by its hierarchical growth structure, high working capital requirements etc. The factors such as rising urbanization, growing consumer class, growing per capita expenditure, greater interest evinced by the Venture capitalists / Private virtue firms in the industry etc. have been driving the growth of organised retail. The growth of modern retailing has led to the emergence of varied formats such as Departmental stores, Supermarkets etc.In addition, few other formats such as rural retailing, E-retailing, luxury retailing etc. too have found favours with the Indian retailers. Each format being distinct from the other, the viability of their operations depends upon various factors such as average footfalls, sales per sq. ft etc. However the numerous licensing requirements as compared to other countries have proved to be a block in the growth of Indian retailing. We have identified further requirements, advantages and disadvantages associated with the organized as well as unorganized retailing in India.On the base of operations of a detailed analysis incorporating the experience of other retailing locations across the globe, We feel that the co-existence of the organized and unorganized retailing in the Indian context cannot be denied. To estimate the size of the Indian retail industry and the penetration takes of organized retail in the urban and rural Indian markets for the period FY08-FY11, we have evolved an industry model incorporating three different scenarios i. e. Optimistic , Mos t Likely & Pessimistic. We expect that with the growing reach of modern retailers in the rural and urban reas, the penetration level of organized retailing would continue to grow, thereby resulting in the organized retail growth, surpassing the growth of total Indian retail during the period FY08-FY11. The Indian retail though largely dominated by the unorganized retailers has witnessed a massive transition in the last decade. Of the total retail sales, the food & grocery segment constitutes the major chunk. However in case of organized retail, the apparel & footwear segment stands as the major contributor. With varied segments of retailing i. e.Food & Grocery, Clothing & Footwear, piece of furniture & Furnishing, Jewellery, Beverages . The Indian population is whooping 1 billion with 75% of the people living in villages and small towns. It is only natural that the agricultural sector is the biggest employer with its contribution to GDP pegged at 26. 7%. Retail is Indias larges ind ustry after Agriculture with around 20% of the economically active population engaged in it and multiplication 10% of our countrys GDP. The growth of the efficient small store culture can be attributed to the 6 million villages distributed across the length and pretentiousness of the country.The 12 million retail outlets in India are the highest in the world, and cater to the purchase need of its pole. It is interesting to note, that the Urban Population although just 25% of the total, is an astounding 250 million in size and is growing at a healthy rate of 7% per annum. The chief driver of growth in the retail sector has been the consumer, with the spending increasing at an average of 11% per annum. The Core and the Lower middle have increased their share in the Growth 2. 3 FACTORS poignant THE INDUSTRY * Demographic * mental Environmental * bearingStyle DEMOGRAPHIC FACTORS Demographic factors are unique to a particular person. They are objective, quantifiable and easily clas sifiable population data such as sex, income, age, marital status etc. It also involves identification of who is responsible for the decision-making or buying and who is the ultimate consumer PSYCHOLOGICAL FACTORS Psychological factors refer to the intrinsic or inner aspects of the individual. An understanding of consumers psychology guides the marketers segmentation strategy. ENVIRONMENTAL FACTORSEnvironmental factors cover all the physical and neighborly characteristics of a consumers external world, including physical objects, spatial relationships, the social factors , customers, reference groups, social class . The environmental factors influence consumers wants, learning, motives, which in turn influence effective and cognitive responses and among other things the shopping behaviour of the individual. LIFESTYLE lifestyle refers to an individuals mode of living as identified by his or her activities, interests and opinions.Lifestyle variables have been thrifty by identifying a consumers day-to-day activities and interests. Lifestyle is considered to be highly correlated with consumers values and personality. An individuals lifestyle is influenced by, among other things, the social group he belongs to and his occupation. For example, double-income-no-kids (DINKS) families in metros shop very regularly at the super malls because of the limited time at their disposal and they also look for entertainment while shopping on weekends. At the same time, they are higher spenders than, for e. . , single-income families. A study by imagesfashion. com highlights that Indian working women have to balance their insistence collection based on requirements of different occasions related to professional workplace or family gathering. CHAPTER 3 phoner PROFILE COMPANY PROFILE Aditya Birla Retail Limited is a part of the Aditya Birla host. The Group has named it More. It offers products such as fruits, vegetables, grocery, frozen food, bakery, homecare, personal care a nd pharmacy. It also provides FMCG products and house brands.Aditya Birla Retail Limited has acquired Trinethra to facilitate it in creating a retail stronghold in south India. Trinethra, with its own chain of stores, will enable the company to expand its operations all over the country. The roots of the Aditya Birla Group date back to the 19th century in the picturesque town of Pilani, set amidst the Rajasthan desert. It was here that Seth Shiv Narayan Birla started trading in cotton, pose the foundation for the House of Birlas. Through Indias arduous times of the 1850s, the Birla business expanded rapidly.In the early part of the 20th century, our Groups founding father, Ghanshyamdas Birla, set up industries in critical sectors such as fabrics and fibre, aluminium, cement and chemicals. As a close confidante of Mahatma Gandhi, he played an active role in the Indian freedom struggle. He represented India at the first and second round-table conference in London, along with Gandhi ji. It was at Birla House in Delhi that the luminaries of the Indian freedom struggle often met to while the downfall of the British Raj.Ghanshyamdas Birla found no contradiction in pursuing business goals with the dedication of a saint, emerging as one of the foremost industrialists of pre-independence India. The principles by which he lived were soaked up by his grandson, Aditya Vikram Birla, our Groups legendary leader. A formidable force in Indian industry, Mr. Aditya Birla dared to dream of setting up a global business empire at the age of 24. He was the first to put Indian business on the world map, as far back as 1969, long before globalisation became a buzzword in India.In the then vibrant and free market South East Asian countries, he ventured to set up world-class production bases. He had foreseen the winds of change and staked the future of his business on a competitive, free market driven economy order. He put Indian business on the globe, 22 years before economic libe ralisation was formally introduced by the former Prime Minister, Mr. Narasimha Rao and the former core Finance Minister, Dr. Manmohan Singh. He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the Philippines and Egypt. Interestingly, for Mr. Aditya Birla, globalisation meant more than just geographic reach.He believed that a business could be global even whilst being based in India. Therefore, back in his home-territory, he drove single-mindedly to put together the building blocks to make our Indian business a global force. Under his stewardship, his companies rose to be the worlds largest producer of viscose staple fibre, the largest refiner of palm oil, the third largest producer of insulators and the sixth largest producer of degree centigrade black. In India, they attained the status of the largest single producer of viscose filament yarn, apart from being a producer of cement, grey cement and rayon grade physical body.The Group is also the largest produc er of aluminium in the tete-a-tete sector, the lowest first cost producers in the world and the only producer of linen in the textile industry in India. At the time of his untimely demise, the Groups revenues crossed Rs. 8,000 crore globally, with assets of over Rs. 9,000 crore, comprising of 55 benchmark quality plants, an employee strength of 75,000 and a shareholder community of 600,000. Under the leadership of our head, Mr. Kumar Mangalam Birla, the Group has sustained and established a leadership position in its key businesses through continuous value-creation.Spearheaded by Grasim, Hindalco, Aditya Birla Nuvo, Indo Gulf Fertilisers and companies in Thailand, Malaysia, Indonesia, the Philippines and Egypt, the Aditya Birla Group is a leader in a swathe of products viscose staple fibre, aluminium, cement, copper, carbon black, palm oil, insulators, garments. And with successful forays into financial services, telecom, software and BPO, the Group is today one of Asias most div ersified business groups. MR. KUMAR MANGALAM BIRLA CHAIRMAN, THE ADITYA BIRLA GROUP Mr. Kumar Mangalam Birla is Chairman of the US$ 28 billion Aditya Birla Group and Indias first truly multinational corporation.An iconic figure, Mr. Birla holds several(prenominal)(prenominal) key positions on various regulatory and professional boards. MANAGEMENT The Aditya Birla Management Corporation Private Limited, is the Groups apex decision making body and provides strategic boot to Group companies. Its Board of Directors comprises * Mr. Kumar Mangalam Birla, Chairman * Mr. S. Aga * Mr. D. Bhattacharya * Mr. S. K. Jain * Dr. S. Misra * Mr. S. Misra * Dr. B. K. Singh * Mr. K. K. Maheshwari * Mr. Vikram Rao * Mr. Ajay Srinivasan 3. 1 FUTURE PLANS OF THE ORGANISATIONAfter acquiring south based Trinethra and plans to buy Pyramid Retail, the Aditya Birla group doesnt want itself to be left behind in the race for getting their pie in the pecializ retail market. Instead of tying with Tesco, Carrefo ur, Woolworth, they have decided to go all alone. They plan to open 172 hypermarkets and supermarkets starting from Pune. While Subhiksha is mainly into neighbourhood stores, Future Group has a strategy of having single brand outlets to multi-brand seamless malls, similarly Reliance Retail has started with Fresh stores and Reliance Digital to be followed by opening up of hypermarkets and pecialized stores.Birlas business style is perceived to be a little conservative, and they are investing Rs. 9,000 crores in this venture which will enable it to establish a pan-India footprint. The retail venture would be aided by the groups companies like Madura Garments (a key component of retail sales), IDEA cellular (for technical and communication requirements of stores), financial services (for providing consumer loans on its goods). Organised retail sectors growth is expected to be rapid, thus making it a valid and natural choice for AVB group to diversify in this sector.But, competition and late entry may somewhat derail the companys retail growth rate to the overall industry rate. The sector may also face overleap as owing to non-clarity of FDI in retail, foreign chains have postponed their plans of entry into India. Our Mission is to Change the Way hoi polloi Shop. We Will Give Them More. 3. 2 crossway SERVICE PROFILE At more. for you are committed to deliver quality value to our customers and have a range of private label brands as well as commercially branded products, offering 100% satisfaction on the quality of the products services offered. ore. for you hosts a range of private label brands across various categories that follow stringent quality norms, and are available in attractive prices and packaging. Our premium products give you the opportunity to enjoy the difference and quality that is equal to or better than the markets leading brands, but at competitive prices. Recently our private label brands received the coveted The Most Admired Private Lab el aureate Spoon award at the Food Forum India. We offer a wide range of assortment of over 4000 products, ranging from fresh food to beverages, grocery to mob care products.Our range covers everything, from day-to-day essentials to traditional favorites, from delicious treats, to healthy alternatives. To ensure the freshest supply of fruits and vegetables for you, we have built direct linkage with the farmers. MORE provide some private labels also, More. label Food Brands Feasters Kitchens Promise Best of India HYPERMARKET HYPERMARKET Apparels Men/ Women Bakery Beverages Books and Audio Video Computer Accessories Do it yourself Auto Accessories Electronics FMCG Products Footwear Frozen dairy Products Fruits VegetablesFurniture superior general Merchandise Apparels Men/ Women Bakery Beverages Books and Audio Video Computer Accessories Do it yourself Auto Accessories Electronics FMCG Products Footwear Frozen Dairy Products Fruits Vegetables Furniture General Merchandise Bakery Beauty Concepts Beverages Basic Apparels Cutlery cooking utensil Fruits Vegetables Frozen Dairy Products FMCG Products Grocery Home Care Products Home Needs Home living Home Decor Products Personal Care Cosmetics Processed Food Ready to Cook/Prepared Food Bakery Beauty ConceptsBeverages Basic Apparels Cutlery Cookware Fruits Vegetables Frozen Dairy Products FMCG Products Grocery Home Care Products Home Needs Home Upkeep Home Decor Products Personal Care Cosmetics Processed Food Ready to Cook/Prepared Food Following is the range of products offered by MORE stores to its customers. There are various products and services offered by MORE supermarket and hypermarket. SUPERMARKET SUPERMARKET operate For customers additional benefit, Consumer Finance on electronics products such as Friendly Return Exchange Policy. Hassle free Return Exchange policy at more MEGASTORE. 3. 3 MARKET PROFILE OF THE ORGANIZATION Birla group instead of setting up its own retail outlets apa rt from their own Madhura garment outlets, are move to enter into the retail business by acquiring already established retail chains. The company is mainly concentrating to establish its foot in Southern India than competing with others in most affluent metro and northern regions. To start with Birla group acquired Trinethra Super Retail chain that mainly operated in Andhra Pradesh with some presence in Kerala and Karnataka.Trinethra started retail business much before anyone could imagine the growth of the sector as it is today. Trinethra started in way back 1986 in the twin cities of Hyderabad-Secunderabad had revenues of Rs 250 crores from its 172 stores which are mostly the size of Reliance Fresh groceries stores 2,500 sft 3,000 sft. Apart from its grocery retail chain, Trinethra has also brought online shopping portal Fabmall to the fold of AV Birla group. Birlas acquiring march does not stop here. The company is planning to acquire Piramid Retail and Niligiris.The latter wil l give Birla Retail, pan south-India presence. They are also planning to open 172 hypermarkets and supermarkets starting from Pune. Apart from operational two hypermarket stores under the umbrella brand name of More.. for you at Mysore and Vadodara, the retail arm of the group operates around 670 supermaket format, neighbourhood food, grocery, and general merchandise, stores across the country. These stores include the in one case stores of Trinethra retail chain, which after the acquisition were also rechristened as More stores.More, under the stewardship of its new CEO Thomas Varghese, an old Birla hand, who was roped in after the Sumant Sinha, has taken several initiatives to revamp the operations of the loss making chain. Some of the initiatives include Close some of the non performing stores. Take a re-look at the design, positioning and merchandise offered by the retail chain. Focus more on large sized stores. The retailer will set up hypermarts of 30,000 to 40,000 sq. ft. s pce each. Aggressively expanding the retail networkadd 200 Supermarket stores and 12 Hyper Ymart stores in 2009- 10.Renegotiation of property rentals for almost all leased properties with their landlords. The rents in some cases have come down by 30 to 40 percent. conception of private labels, mostly in fast moving consumer products category, to increase share of private labels to 40 per cent in the next 4 to 5 years. number for earning rent from shop-in-shop opportunities. Recently, Dial for Health wellness retail chain owned by Zydus group has inked an agreement to set up such outlets in Gujarat and Maharashtra. locution for a financial partner. We are not looking at a strategic partner. We will be happy to have a financial partner.We have received lots of preliminary interest from investors. We would be open to this idea, said Kumar Mangalam Birla. Some private equity firms like Warburg Pincus are believed to have shown interest equity stake in the company. Aditya Birla group, incidentally, also operates 340 apparel stores across the country of brands like Louis Phillippe, Van Heusen, Allen Solly and Esprit in the lifestyle and value fashion segments. These stores are operated by Madura Garments Lifestyle Retail and Peter England Fashions Retail, which are part the groups flagship company Aditya Birla Nuvo.The garments business, which clocked Q4 turnover of 273. 3 crore (2008-09) and a nett loss of Rs. 82. 2 crore during the quarter, has also embarked on several measures to stem the rot, including closure of 30 stores that will save around Rs 100 crore a year COMPANYS VISION To consistently provide the Indian consumer complete and differentiated shopping experiences and be amongst Indias Top retailers, while delivering superior returns to all stakeholders COMPANYS MISSION To deliver superior value to our customers, shareholders, employees and society at large.COMPANYS VALUES 0 Integrity 1 Commitment 2 Passion 3 Seamlessness 4 Speed COMPANYS MILESTONES The Aditya Birla Group, Indias first multinational corporation, traces its origins back to the tiny village of Pilani in the Rajasthan desert, where Seth Shiv Narayan Birla started cotton trading operations in 1857. Today, the Groups footprint extends to 25 countries and its revenues are US$ 28 billion. We retrace the highlights of this remarkable journey, starting from the present 2011- Retail Icon Award 2010- Most Admired Retail Face of the Year 009- Reid & Taylor Awards 2008 The chairman of India, Mrs. Pratibha Patil conferred the much coveted Rotary International Polio Eradication Champion Award on Mrs. Rajashree Birla in an elegant function at the Rashtrapati Bhavan (Delhi), attended by the Chairman, select Rotarians and WHO officials 2007- The Aditya Birla Group was honoured with the India Today Groups Readers Digest Gold award in recognition of the work that truly exemplifies the highest values of society as well as those of Readers Digest. 2006- Hindalco in a conjunction venture with Almex USA Inc.Hindalco awarded the Greentech Safety Silver Award for its outstanding safety surgical operation during 2005-06. 2005 -Indian Rayon re-christened as Aditya Birla Nuvo. 2004 -Board reconstituted with Mr. Kumar Mangalam Birla taking over as Chairman. .2003 -Mr. Kumar Mangalam Birla, Chairman of the Group, is selected as Business Indias Businessman of the Year 2003. 2002 -The Grasim board approves an open offer for purchase of up to 20 per cent of the equity of LT, in accordance with the provisions and guidelines issued by the Securities Exchange Board of India Regulations, 1997. 001 -Grasim acquires 2. 50 crore shares representing just over 10 per cent of the equity in L&T from Reliance Industries Ltd. 2000 -Indian Rayon acquires Madura Garments and selected overseas brand rights, taking the Group to the top of the league in the branded apparels sector. 1999 -A joint venture with financial services major Sun Life of Canada is inked, as part of the overa ll restructuring of the Groups financial services business. 1998 -The Group forms a 5050 joint venture company with Tembec Inc. of Canada, called A. V. Cell Inc. , to supply pulp for the Groups VSF operations. 996 -To honour the memory of the late Aditya Birla, a new corporate logo Aditya, the rising sun is launched. 1995 -The Group enters the telecommunications sector through a joint venture with AT&T (USA). 1994 -The Birla Growth memory is renamed Birla Global Finance Limited, as its span of operations expands.. 1992 -Thai Epoxy and Allied Products commences production of Epoxy Resins in Thailand. 1991 -Pan Century Oleochemicals commences production of fatty acids and glycerine in Malaysia. 1990 -Mr Kumar Mangalam Birla gets actively involved in the Groups operations. 989 -Thai Peroxide commences manufacturing of hygrogen peroxide solutions in Thailand. 1988 -The government liberalises the petroleum industry. The Aditya Birla Group enters into a joint venture with Hindustan Pet roleum Corporation Ltd to set up a three-million-tonne refinery, Mangalore Refineries and Petrochemicals Ltd (MRPL), at Mangalore, Karnataka. 1987 -Indian Rayon is renamed as Indian Rayon and Industries Limited (IRIL), to reflect its wide horizon of activities. 1986 -The Birla Growth Fund is set up to finance industrial equipment, plant and machinery and consumer durables, as well as for stock market operations. 985 -Indias first gas-based fertiliser plant in the private sector Indo Gulf goes on stream at Jagdishpur, UP. 1984 -Thai Polyphosphates and Chemicals commences production of sodium phosphates in Thailand. 1982 Indo Bharat Rayon is established. It is the first producer of Viscose Staple Fibre in Indonesia. CHAPTER 4 DEPARTMENTAL PROFILE FUNCTIONAL DEPARTMENT OF THE ORGANISATION * HR AND TRAINING * PROJECT AND BUSINESS DEVELOPMENT * technical AND ACCOUNTS * ADMINISTRATION * IT * LOSS PREVENTION AND endangerment MANAGEMENT * MARKETING * SUPPLY CHAIN 4. 1 FUNCTIONAL AREAS IN BUSINESSIn a large boldness, it is usually easier to identify separate utilitarian areas because people work together in departments. Each department carries out the tasks that relate to its particular area. The purposes of functional areas- The main purpose of functional areas is to ensure that all important business activities are carried out efficiently. This is essential if the business is to achieve its aims and objectives. In addition, specific areas will be responsibility for supporting specific types of aims and objectives, 4. 1. 1 HR AND TRAINING DEPARTMENTThe human resources (HR) and training function- HR is responsible for recruiting new employees and ensuring that each vacancy is filled by the best person for the job. This is important because the recruitment process is expensive and time-consuming. Hiring the wrong person can be costly and cause problems both for the individual and the firm.. HR aims to ensure that the business retains good, go through provide. A nalysing staff-turnover figures will show the rate at which people draw a blank the organisation The department includes-Human resources functions such us Advertising job vacancies * Notifying staff of promotion opportunities * Receiving and preserve all job applications, arranging interviews and notifying candidates of the result * Sending a contract of employment and other essential information to new staff * Arranging staff training and encouraging continuous professional development * Monitoring the working conditions of staff * Checking health and safety and keeping accident records * Recording sick leave and reasons for absence * Carrying out company welfare policies, e. g. long-service awards and company loans Advising managers on the legal rights and responsibilities of the company and its employees * Keeping records of grievances and disciplinary actions and their outcome * Monitoring the terms and conditions of employment, including wage rates * Maintaining staff records * Liaising with staff associations or trade unions which represent the workforce 4. 1. 2 PROJECT AND BUSINESS DEVELOPMENT DEPARTMENT The field of commerce, business development comprises a number of techniques and responsibilities which aim at attracting new customers and at penetrating existing markets.Techniques used include Intelligence gathering on customers and competitors Generating leads for possible sales Advising on, draught and enforcing sales policies and processes Follow-up sales activity Formal proposal and presentation way and writing Business model design Account planning and cognitive process monitoring Proposition development and campaign development The department includes- 1). Business research gathering, studying, analyzing information This is one of the main functions of business development department.Team of analysts, statisticians and experts work at regular studying and monitoring of external environment clients, industry, market, companys image, macr o economy etc. in order to find potential opportunities and determine their feasibility, usefulness and prospect, to analyze different scenarios and support elaboration of business development strategies. 2) Short-term and long-term business planning When certain business opportunity is defined and heavy it should be discussed with specialists of concerning departments and company concern.Information obtained by business development department is a background for elaborating of short-term and long-term business plans. When opportunity and objectives are considered and agree with all participants of the process the plan of opportunity realization can be developed and development project initiated. As a result of cooperation of a cross-department team the plan is elaborated into specific tasks that can be assigned to executers and controlled by specialists of business development department, so they can be aware about betterment of development plan realization. ). Collaboration wi th other departments One of the functions of business development department is to give recommendations and consultations regarding questions of development of other departments and general company organization. For effective performance of this function good internal communications should be established. Analysts from business development department should be able to share and discuss documents, tasks and projects with specialists from other departments. 4. 1. 3 COMMERCIAL AND ACCOUNTS DEPARTMENT MANAGEMENT ACCOUNTANTSManagement accountants perform three functions. Scorekeeping-accumulate data and report reliable results to all levels of management Attention-directing-make visible opportunities and problems on which managers need to focus Problem-solving-conduct relative analysis to identify the best alternatives in relation to the organizations goals FINANCIAL ACCOUNTANTS They are concerned with the preparation of the statutory accounts. All outlets must provide a Balance Sheet a nd Profit and Loss Account each year, and most produce a cash flow statement as well.The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. Financial statements puddled for this purpose meet the common needs of most users. Financial statements do not provide all the information that users may need to make economic decisions since they largely portray the financial effects of past events and do not necessarily provide non-financial information.A credit controller- Finance staff support the accountants by keeping financial records, chasing up late payments and paying for items purchased. Use computer accounting packages to record financial transactions and prepare their accounts as well as spreadsheets to analyse financial data. Finance departments prepare the payroll and pay staff salaries 4. 1. 4 ADMINISTRATION DEPAR TMENT Senior administrators take for out a wide range of tasks, from monitoring budgets to interviewing new staff for their departments. Routine administrative tasks include opening the mail, preparing and filing documents, sending emails and faxes.Others require more creativity and flexibility, such as arranging travel or important events, from staff meetings to visits by foreign customers. Administrators also deal with external customers who judge the business on the way their enquiry is handled. Administrative function includes- * Collecting, distributing and dispatching the mail * Storing and retrieving paper and electronic records * Organising meetings and preparing meetings documents * Responding promptly to enquiries * Preparing documents using word processing, spreadsheet and presentation packages, such as PowerPoint * Researching information Sending and receiving messages by telephone, fax and email * Making arrangements for visitors. * Making travel arrangements * Purchas ing supplies of office stationery and equipment * Making arrangements for events, such as interviews or sales conferences 4. 1. 5 IT DEPARTMENT The Functions are * IT department carry out strategically important projects which are intended for improving of companys IT infrastructure. Such projects are performed by IT specialists of different professions and are controlled not only by IT department managers, but supervised by company management as well. IT department supervisors fulfill the technological management according to their duties and business supervisors control the financial, time and strategic part of the project and need to be in touch with project performance. * System administrators perform a number of periodical tasks which are required for stable and effective work of IT systems and for informational security. * Ensuring that the network infrastructure is up and running, applying operating system updates, patches, and configuration changes, performing backups and re stores, computer hardware monitoring and troubleshooting, etc. . 1. 6 LOSS PREVENTION AND RISK MANAGEMENT DEPARTMENT Functions performed in this department are * Frequent checking of stock * Provides security against man made loss theft (Alarm system) * Look after the arrangements in the warehouse * They are concerned with the returning of the expired products 4. 1. 7 MARKETING DEPARTMENT trade is all about identifying and meeting customer needs. Many businesses consider this so important that they are said to be marketing led. In this case, everyone in the organisation is trained to put the ustomer first from the production worker, who has to produce high quality goods, to the accounts clerk, who must respond to a customer enquiry promptly and accurately. Marketing function includes- * Carrying out market research to obtain feedback on potential and existing products and/or services * Analysing market research responses and advising senior managers of the results and implications * Promoting products and services through a variety of advertising and promotional methods * Obtaining and update a profile of existing customers to target advertising and promotions appropriately Producing and distributing publicity materials, such as catalogues or Brochures * Designing, updating and promoting the company website 4. 1. 8 SUPPLY CHAIN DEPARTMENT Supply chain department function include Supply preparedness and Sales Operations Planning (SOP) Distribution Requirement Planning (DRP) Supply Chain Operations Warehousing Transportation Materials Requirement Planning (MRP) Purchasing Imports Exports 4. 2 ORGANISATIONAL STRUCTURE OF ADITYA BIRLA RETAIL LTD Chairman Chairman CEO CEO SUPERMARKET SUPERMARKETHYPERMARKET HYPERMARKET REGIONAL HEAD REGIONAL HEAD ZONAL HEAD ZONAL HEAD TERRITORY charabanc TERRITORY MANAGER CLUSTER MANAGER CLUSTER MANAGER STORE MANAGER STORE MANAGER SUPERVISOR SUPERVISOR CSA CSA CHAPTER 5 SWOT ANALYSIS 5. 1 intensity level * Pattern of c onsumption changing along with shopping trends. * A Growing population will translate to move consumers. * Consumer spending increasing at 11% annually. * Paradigm shift in shopping experience for consumers pulling in more people. 5. 2 WEAKNESSES * Shortage of quality retail spaces at affordable rates. presidential term regulations on development of real estate(Urban Land Ceiling Act) * Need to provide Value for Money-squeezing margins * Lack of industry status.. * Footfalls not a clear indicator of sales as actual consumers lower in number. * Lack of huge investments for expansion. 5. 3 OPPORTUNITIES * Increasing urban population * Increase in consuming middle class population. * Social factors like dual household income has enhanced spending power. * Spends moving towards lifestyle products and esteem enhancing products. * Average grocery spends at 42% of monthly spends-presents a huge opportunity. Increase in use of credit cards. 5. 4 THREATS * Personalized service offered by ot her stores. * Unavailability of qualified personnel to support exponential growth in stores * Differentiate taxation laws hindering expansion. * Competed stores * Lake of development infrastructural needs * Dissimilarity in consumer groups * Shortage of trained manpower * Low retail management skill CHAPTER 6 FINDINGS, SUGGESTIONS AND CONCLUSION 6. 1 FINDINGS * The current contribution sector of retail sector 14% and its expected to climb up in the coming years. The different depts. of Aditya Birla ltd are functioning smoothly * Understood the factors regarding the location of business outlet. * Consumers generaly not satisfied with product range. They need more variety of products. 6. 2 SUGGESTIONS * People generally search for the product on offer so the high margin product should be up fronted that means those item should be in such a way that it easily catches customers attention and generate impulse purchase. * Some of the measures taken by Loss and Prevention department are n ot applicable. The IT Department should provide solutions for basic problems to the store managers in outlets. * New outlets should be open at convenient locations. * The outlet should introduce new and attractive promotional offers. * The retail outlet should new products range. * The outlet should have enough parking spaces for vehicles. 6. 3 CONCLUSION Through my ORGANISATION STUDY and job responsibilities I handled in the organization, I came to a conclusion that the company should provide information to stores to concentrate more on the fruits and vegetables section as it is perishable in nature and has a short shelf life.The company should be flexible to adapt to the changes which occurs in the retailing industry. Store should take more care on promotional activities because all other retail stores are giving more promotional activities than More. Most people are not aware about the seasonal offers in More stores. BIBLIOGRAPHY SOURCES OF DATA 1. RETAIL MANAGEMENT BY S. G SHARM A 2. INTERNET SITES www. info. com www. morestore. com