CONCEPTUAL FRAMEWORK

Retailing is an activity can be thought to be old as formation of human societies. It can be traced to the times when man stooped producing all its requirements and trading came into being. Retailing has always been an integral part of economic development. Nation with strong retail activity has enjoyed greater economic and social progress. It contributes to the development by matching the individual requirement of the population with the producers and the suppliers of merchandise
India's vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting 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
Modern retail in India could be worth US$ 175-200 billion by 2016. With the economy booming, competition in the marketplace is fierce. According to 'Retail in India Getting Organized to Drive Growth', a report by AT Kearney and the Confederation of Indian Industry, retail is one of India's fastest growing industries with a 5 per cent compounded annual growth rate and expected revenues of US$ 320 billion in 2007. Rising incomes, increasing consumerism in urban areas and an upswing in rural consumption will fuel this growth to around 7-8 per cent.
KSA-Technopak, a retail consulting and research agency, predicts that by 2010, organized retailing in India will cross the US$ 21.5-billion mark from the current size of US$ 7.5 billion.
1. Retail space
Retailers in India are the most aggressive in Asia in expanding their businesses, thus creating a huge demand for real estate. Their preferred means of expansion is to increase the number of their outlets in a city, and also expand to other regions, revealed the Jones Lang LaSalle third annual Retailer Sentiment Survey-Asia. Deutsche Bank's research report on 'Building up India' says India's burgeoning middle class will drive up nominal retail sales through 2010 by 10 per cent per annum. The country may have 600 new shopping centers by 2010.
2. Food retail
Food dominates the shopping basket in India. The US$ 6.1 billion Indian foods industry, which forms 44 per cent of the entire FMCG sales, is growing at 9 per cent and has set the growth agenda for modern trade formats. Since nearly 60 per cent of the average Indian grocery basket comprises non-branded items, the branded food industry is homing in on converting Indian consumers to branded food.
3. The mobile revolution
The retail market for mobile phones -- handset, airtime and accessories -- is already a US$ 16.7 billion business, growing at over 20 per cent per year. In comparison, the consumer electronics and appliance market is worth US$ 5.6 billion, with a growth rate that is half of the mobile
4. Kid’s retail
When it comes to Indian children, retailers are busy bonding--and branding:
Monalisa, the Versace of kids is coming to India. Global lifestyle brand Nautica is bringing Nautica Kids. International brand Zapp tied up with Raymond to foray into kids' apparel. Disney launched exclusive chains which stock character-based stationery. Pantaloon's joint venture with Gini & Jony will set up a retail chain to market kids' apparel. Swiss kidswear brand Milou is collaborating with Tirupur-based Sreeja Hosieries. Turner International India Pvt Ltd. will launch Cartoon Network Townsville and Planet POGO--two theme parks designed around its channels--in the National Capital Region. Sahara One Television has also signed a Memorandum of Understanding to source content from Spacetoon Media Group, Middle East's largest kids' entertainment brand for animation and live action content. Leading the kids' retail revolution is the apparel business, which accounts for almost 80 per cent of the revenue, with kids' clothing in India following international fashion trends. According to research firm KSA Technopak, the branded segment comprises US$ 701.7 million of the total kids' apparel market-size of over US$ 3 billion.
Industry experts say kids' retailing will touch annual growth of 30-35 per cent. Toys, stationary, sportswear, outerwear, tailored clothing, eyewear, watches, fragrance, footwear, theme parks, TV channels… the segment is growing rapidly at 10 per cent per annum. Margins are in the range of 20-25 per cent (for dealers and distributors), while companies enjoy an average gross margin of about 10 per cent.
5. Agricultural retail
Agriculture across India is heralding the country's second Green Revolution. 14 states, including Maharashtra, Punjab, Andhra Pradesh and Rajasthan amended the Agricultural Produce Marketing Committee (APMC) act this year, along the lines of the Model APMC Act, '02, which allows farmers to sell their produce directly to buyers offering them the best price. Agricultural sectors such as horticulture, floriculture, development of seeds, animal husbandry, pisciculture, aqua culture, cultivation of vegetables, mushroom under cultivated conditions and services related to agro and allied sectors are open to 100 per cent FDI through the automatic route.
For its e-Choupal scheme, ITC built internet kiosks in rural villages so farmers can access latest information on weather, current market prices, foods-in-demand, etc. With a US$ 5.6 billion, multi-year investment in agriculture and retail, Reliance Retail will establish links with farms on several thousand acres in Punjab, West Bengal and Maharashtra. Field Fresh, planning to become India's first large-scale exporter of produce, will annually pay farmers over US$ 30,000 to lease land for vegetables, to hire tractors and to pay their workers. Besides a five-year program with the Punjab government to provide several hundred farmers with four million sweet-orange trees for its Tropicana juices by 2008, PepsiCo--with agriculture exports worth US$ 40 million--also introduced farmers to high-yielding basmati rice, mangoes, potatoes, chilies, peanuts, and barley for its Frito-Lay snacks. Export potential and a rapidly growing domestic demand for reliable produce from new supermarket chains is driving change. With 77 per cent of India's population relying on agriculture for a living, improved efficiency and new markets can benefit a large number of people.
6. International retailers
The Australian government's National Food Industry Strategy and Austrade initiated a test marketing food retail in India wherein 12 major Australian food producers have tied up with India-based distributor AB Mauri to sell their products directly at retail outlets.
The largest-ever 150-member British business delegation in India committed investments in the areas of food processing, agri retail and manufacturing. It is also likely to press for the liberalisation of sectors like financial & legal services and retail.
US-based home delivery and logistics company, Specialised Transportation Inc, will enter the Indian market through a strategic alliance with Patel Retail, a subsidiary of Patel Integrated Logistics.
Among other big international players, Wal-Mart has announced its plans for India in partnership with Bharti, Tesco is sure to try again, and Carrefour too might finally find the right partner
7. Retail reform
The Government regulations allow 100 per cent FDI in cash and carry through automatic route and 51 per cent in single brand. Besides, the franchise route is available for big operators. Now, the Government also proposes further liberalisation in the retail sector allowing 51 per cent FDI in consumer electronics and sports goods.



8. The retail road ahead
The Indian retail market is estimated at US$ 350 billion. But organised retail is estimated at only US$ 8 billion. However, the opportunity is huge--by 2010, organised retail is expected to grow to US$ 22 billion. With the growth of organised retailing estimated at 40 per cent (CAGR) over the next few years, Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. And it is names of small towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon.
According to (Saby Ganguly )
· Even though India has well over 5 million retail outlets of all sizes and styles (or non-styles), the country sorely lacks anything that can resemble a retailing industry in the modern sense of the term. This presents international retailing specialists with a great opportunity.
· It was only in the year 2000 that the global management consultancy AT Kearney put a figure to it: Rs. 400,000 crore (1 crore = 10 million) which will increase to Rs. 800,000 crore by the year 2005 – an annual increase of 20 per cent.
· Retailing in India is thoroughly unorganized. There is no supply chain management perspective. According to a survey b y AT Kearney, an overwhelming proportion of the Rs. 400,000 crore retail market is UNORGANISED. In fact, only a Rs. 20,000 crore segment of the market is organized.
· As much as 96 per cent of the 5 million-plus outlets are smaller than 500 square feet in area. This means that India per capita retailing space is about 2 square feet (compared to 16 square feet in the United States). India's per capita retailing space is thus the lowest in the world (source: KSA Technopak (I) Pvt Ltd, the India operation of the US-based Kurt Salmon Associates).
· Just over 8 per cent of India's population is engaged in retailing (compared to 20 per cent in the United States). There is no data on this sector's contribution to the GDP.
· From a size of only Rs.20,000 crore, the ORGANISED retail industry will grow to Rs. 160,000 crore by 2005. The TOTAL retail market, however, as indicated above will grow 20 per cent annually from Rs. 400,000 crore in 2000 to Rs. 800,000 crore by 2005 (source: survey by AT Kearney)
· Given the size, and the geographical, cultural and socio-economic diversity of India, there is no role model for Indian suppliers and retailers to adapt or expand in the Indian context.
· The first challenge facing the organized retail industry in India is: competition from the unorganized sector. Traditional retailing has established in India for some centuries. It is a low cost structure, mostly owner-operated, has negligible real estate and labour costs and little or no taxes to pay. Consumer familiarity that runs from generation to generation is one big advantage for the traditional retailing sector.
· In contrast, players in the organized sector have big expenses to meet, and yet have to keep prices low enough to be able to compete with the traditional sector. High costs for the organized sector arises from: higher labour costs, social security to employees, high quality real estate, much bigger premises, comfort facilities such as air-conditioning, back-up power supply, taxes etc. Organized retailing also has to cope with the middle class psychology that the bigger and brighter a sales outlet is, the more expensive it will be.
· The above should not be seen as a gloomy foreboding from global retail operators. International retail majors such as Benetton, Dairy Farm and Levis have already entered the market. Lifestyles in India are changing and the concept of "value for money" is picking up.
· India's first true shopping mall – complete with food courts, recreation facilities and large car parking space – was inaugurated as lately as in 1999 in Mumbai. (this mall is called "Crossroads").
· Local companies and local-foreign joint ventures are expected to more advantageously positioned than the purely foreign ones in the fledgling organized India's retailing industry.
· These drawbacks present opportunity to international and/or professionally managed Indian corporations to pioneer a modern retailing industry in India and benefit from it.
· The prospects are very encouraging. The first steps towards sophisticated retailing are being taken, and "Crossroads" is the best example of this awakening. More such malls have been planned in the other big cities of India.
An FDI Confidence Index survey done by AT Kearney, retail industry is one of the most attractive sectors for FDI (foreign direct investment) in India and foreign retail chains would make an impact circa 2003.




























REVIEW OF THE LITERATURE


















ABOUT RK MARBLE


R. K. Marble Private Limited was established in 1989 by Patni group to help serve increasing National and international demands for Indian marble. Since then they have enjoyed exponential growth and export to many markets worldwide including European Union countries, the Middle East, Japan, China, Malaysia, other parts of Asia, North America and various African Countries.
R.K. marble was established with a vision to become one of the largest marble producers and today it is the world largest marble mining company.
Works requiring large quantities of competitively priced materials in standard sizes
The Corporate & Sales Office (also the Processing Center/Factory) is located about 26 KM from the holy city of Ajmer and about 107 KM from Jaipur, the state capital of Rajasthan, along the famous Makarana road.. The Managing Director Mr. Suresh Patni looks after the factory and is known for his motto, "Customer Satisfaction".
The R. K. Marble Group's Processing Center/Factory is powered by 14 Gang-saw machines with a capacity to produce more than a million cubic feet of marble slabs per annum. It has the most modern layout with completely automatic water treatment plant to recycle water for marble cutting.
Mr. Ashok Patni established the first processing unit at Rajasthan with an installed capacity of one lakh cu. ft. marble slabs Per Annum and never looked back. Thereafter again November 1993 was the time, when state government took a step forward to allot a virgin marble mine on lease to R. K. Marble at Morwad, Distt. Rajsamand in Rajasthan. By the touch of sheer hard work, guts, burning inner desire to reach unprecedented heights and fulfilling their dreams "the trio" converted these marble mines to gold mines. Morwad from which the stone takes its name is a remote village in the eastern part of Rajasthan, India.
Today the name Morwad marble from R. K. has become almost generic for a whole range of white and semi-white types of marble, which are extracted from these locations.
PRODUCT INFORMATION:-

COMPANY PRODUCES MANY TYPES OF PRODUCT LIKE MARBLE , LIME STONE , LAND STONE etc.
From these product, Company’s main business is relates to marble.
Co. produce mainly six types of quality marble (white marble) as under
Network in India is as follows

































RK marble have very powerful liquidity position and company has built its vast network in the country trough marble industry, which help company to chanalizing and communicating the retail business.
Retailing business for construction material would be a substitute business for the RK Marble (to keep in mind this type of strategy, this study has conducted)
The construction equipment sector in India has been growing at a scorching pace of over 30 per cent annually
Off late the Commerce & Industry Minister has been indicating in the media that Government would probably consider opening up the retail trading for select sectors such as electronic goods, stationery, sports goods, and building equipment
"To understand the reasoning and implications of such moves it was vital to size up the entire retail market in various segments and consumption levels across product categories with share of the organized segment and it was just the right time for India Retail Forum to take the initiative of researching the scope of retail businesses in India". The Indian retail is poised for a transformation owing to a plethora of changes within and outside its marketplace. According to the India Retail Report 2005 the size of the organized retailing market (Rs. 35,000 crore in 2005) was expected to reach the figure of Rs. 100,000 crore by 2010 at an average growth rate of about 30 per cent. However, going by the current growth trend and considering the fact that existing prominent players in organised retail have stepped up their expansion drive with Reliance announcing big plans and other Indian corporate houses too evincing keenness on investing heavily in this sector as also the inking of the joint-venture between the world's largest retailer Wal-Mart and Bharti - the expectation from organised retail will almost be double now of what was estimated two years ago.
Further more the construction material have a lots of variety we can categorized it into three category
1st phase
· Iron Saria
· Concrete
· Bricks (bricks can build by marble slurry also)
· Lime and land stone
· Other
2nd phase
· Marble
· Granites and other stone
· Tiles
· Toilet construction material
· Other
Rest of construction is based on finishing material






























RESEARCH METHODOLOGY




















Objectives of the Study
· what is the potential for the RK Marble to enter in the retail business of construction material.
· Know about the problems facing by the respondent during the construction material collection.
· Know the response of the respondent of the construction material retailing for RK Marble.
· Sample size 50 respondents which did their construction with in three years (have experienced) before and which are planning of construction in near future are the part of my study.
Data Collected(Primary Data) primary data are those which are not already exist they are collected trough Research by
· Questionnaires
My study is only based on Questionnaires because Questionnaires have some importance and it gives the pure market response
Its importance is
· Direct personal investigation
· Indirect oral interview
· Information received
· Right investigation
For the collection of data various sources used like historical data, what may be the future growth in this market, what is the current position of the market?
To keep in mind this types of sources. The sample has been divided into three groups based on
Those who have experience of construction and also have plan of construction in near future (46%)
Who have experience and do not have any plan of construction in near future (28%)
Who have never experienced and have plan in near future (26%)This type of data are used for know that, what types of problems has faced before and may be faced in near future and also know that, what may be response for the construction type of retailing in the market.















































DATA ANALYSIS


&


INTERPRETATION













Ø Category of the respondent







have exp.and want to construct
Have exp. And do not want to construct
don’t have exp.and want to construct
no of respondent
23
14
13
%
46
28
26








Ø Problems were found by the respondent during the construction

Problems
Percentage
a
scattered location
70.26
b
tranportation
43.24
c
time worthiness
48.65
d
reliability
10.81

Ø Steps taken by respondent


Percentage
A
Gave the contract
59.46
B
purchased material near by shop
24.32
C
bear it
16.21
D
other
0


Ø Construction material is not easy available from respondent point of view
A
yes
83.78%
B
no
16.22%




Ø Respondent may take following steps
A
Go near by there home
5(13.89%)
B
Give contract
31(86.11%)
C
Other
0

Ø Awareness of RK Marble


Percentage
yes
100
no
0

Ø Want to material at a single place

%
yes
100
no
0
Ø Respondent response for the retailing concept of the RK Marble






Ø Benefits may come from respondent point of view
























Finding, Conclusion & Limitation












The finding and conclusions, despite my best endeavor to maintain uniformity and maximum coverage

The respondent is categorized between three category
Those who have experience of construction and also have plan of construction in near future (46%)
Who have experience and do not have any plan of construction in near future (28%)
Who have never experienced and have plan in near future (26%)
Those who have faced the problems before are
Ø 70.27% of scattered location
Ø 43.24% of transportation
Ø 48.65% of time worthiness
Ø 10.81% of reliability of suppliers
From them 59.46% gave the contract to contractor & 24.32% went near by their home and 16.21% bear it
From them 83.78% felt that construction material is not easily available in the market and 16.22% are felt that it is easily available.
Those who have plan in near future are
Ø 13.88% wants to go near by their home
Ø 86.12 wants to give the contract
This is the opportunity for the company to hold them. Because person wants to give contract to avoid the scattered and time worthiness type of problems.

6. 100% respondent knows the name of RK Marble and from them 92% knows about Wonder Marble, 52% knows about its Granites and other variety of the Marble 18% only knows about its other products.
7. From the all the respondent 100% fell that the construction material must be available in under only one roof.
8. If RK Marble provides this type of facilities the response of respondent are
Ø 70.80% strongly recommended
Ø 26.55% recommended
Ø 0 % less recommended
Ø 2.65%
Ø 0
These responses suggest that what is the market requirement and what is the market opportunity.
9. From the above questioning when we ask that from which type of benefits may come the results are
as follows
Ø save time 29.79%
Ø save money 21.82%
Ø increase your choices and quality 20.98%
Ø reduce your supply time and delay 16.78%
Ø increase your work efficiencies 10.63%




Limitation of the study

Every project work has its limitations further, a work in social science and commerce can not be like that of any natural sciences where results are universally true. In the absence of universally accepted norms, interpretation of results often becomes a matter of judgment uniformity and the present study is not a exception to it. Despite my best endeavor to maintain uniformity and maximum coverage, the present work suffers from the following limitations
· The study is limited due to time, costs and physical reasons.
· All data were not available
· Statistics and other limitation.






















SUGGESTIONS


Ø Company should start its retail business in that area where the company has its network already and where the new development is taking place.
Ø Company should establish its R & D department and try to capture the new opportunities from the fast changing business environment.
Ø From the respondent side it was seen that they are also suffering the labour and contractor monopoly types of problems so company should try to think about that also as a service industry.


























Bibliography
Ø Berman, Barry and Evans R Joel, 2002 Retail Management and Stretagic approvals, vol. 8 PP2-26

Ø www.ibef.org/ind

Ø www.imagesretail.comustry/retail

Ø www.igd.com/retailinginindia

Ø India Retail Sector Analysis (2006-2007) - Market research Reports

Ø Indian retailing industry. www.rncos.com/Report/IM058
www.marketresearch.com/product/display