1. Retail Revolution in India & its impact in the Middle East Presented by: Mr. B. S. Nagesh Customer Care Associate & MD

2. India Retail Report 2005 – Highlights Images Retail Study 2006 (collation from various data sources) Share of Organized Retail 2% USD 198 Bn Consumption Expenditure USD 310 Bn The Entire Retail Sector Organized Retail Sector USD 3.96 Bn 3.4% USD 226 Bn The Entire Retail Sector Organized Retail Sector USD 7.68 Bn Share of Organized Retail 20012005 14% Consumption Expenditure USD 410 Bn 32% 93%

3. Organized Retail - 2010 20052010 USD 7.68 BnUSD 31 Bn Organized Retail 304% Organized Retail Share of Organized Retail 3.4% 10% Share of Organized Retail

4. Rising Consumer Income Key Driver The very rich The consuming class The Climbers The aspirants The destitute 1995 -962001 - 02 2006 - 07 1.2 (7) 32.5 (186) 44.0 (253.9) 54.1 (312.2) 33.0 (190.4) 2.6 (15) 46.4 (265) 74.4 (429) 33.1 (192) 24.1 (140) 5.2 (30) 75.5 (432) 81.7 (472) 20.2 (117) 16.5 (95) 4.0 (23) 40.8 (230) 13.7 (77) 0.7 (4) 0.9 (5) 1.9 (11) 26.5 (150) 17.4 (98) 3.9 (22) 2.6 (16) 7.1 (40) 5.3 (30) 0.8 (5) 16.6 (93) 16.8 (94) URBAN Figures in Mn: Households (Population) Source: BW Marketing Whitebook 2003-04

5. Future Outlook of the Organized Retail Market (Images Retail Study 2006) The next 3 years will see –US $560m investment for retail expansion nationwide. –Result in 50 Hyper Markets. –305 large Department Stores. –1500 Super Markets. –10,000 exclusive retail showrooms –One third through conversion from multi-brand to exclusive outlets. Largest growth in the field of entertainment with or without shopping. Volumes in Food & Grocery, Office & Home Utilities. Organized and traditional formats will co-exist.

6. Gold & Jewellery market in India (Source: India Retail Report, 2005) Jewellery market, the largest market in the world is estimated at US$ 9.7 bn. Gold contributes 98% of the above (approx. US$ 9.5 bn). 65% of jewellery bought during weddings with 5 – 6 mn weddings happening in the country every year. Organized jewellery retailing is at 2% of the total market.

7. Branded Jewellery market in India (Source: India Retail Report, 2005) Branding of Jewellery commenced in 1996 with Tanishq. Branded jewellery retailing stands at US$ 0.26 bn and is growing at 40% p.a. Other major players are Nakshatra, Orra, Oyzterbay, Gili, Asmi, Carbon, D’Damas. Brands sold at stand alone specialty stores and department stores. Huge potential as 98% of market is still unorganized.

8. Branded Jewellery market in India (Source: India Retail Report, 2005) Key to the success of branded jewellery –Huge footfalls in modern formats due department stores being destination stores. –Comfortable & attractive shopping experience. –Reliability & quality from the perspective of the customer. –Brand exclusivity & wide range of designs. –Malls are the preferred choice –Recent phenomenon is the launch of Specialty Jewellery, Gold Souk, near Delhi.

9. Jewellery Sales by Shoppers’ Stop

10. Indian Retail & Impact in the Middle East India is still the largest gold consuming country in the world. Consumers are gradually shifting towards branded jewellery but Gold continues to remain high on the consumers’ fascination. A shift in preference to Department Stores and specialty stores for purchases. With organized retail in India growing at 30% per annum, the trend towards purchase of Gold & Jewellery by Indians is shifting to Malls & Specialty stores in India.

11. Impact on the Middle East Outbound tourism impact –Will continue to attract tourists from India as Middle East Gold (retailer) more trusted than Indian Gold (retailer). –With Modern retail evolving at a fast pace in Middle East, will attract more Indian tourists for shopping. Indian retail would be fully evolved in the next 5 yrs, products likely to be cheaper in India by way of local sourcing & tax reforms. Many Middle East retailers being of Indian origin, a lot of Middle East business houses would enter India. A reverse drain of people from Middle East to India expected, Middle East will feel the heat of manpower shortage & cost escalation.

12. Conclusion Emerging India to boost Middle East retail for the next 5 years. The same emerging India to take away a share from Middle East in the next 5 to 10 years.

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