India is the fifth largest retail market globally, with a size of around INR 16
trillion, and has been growing at 15% per annum. Organized retail accounts for just
5% of total retail sales and has been growing at 35% CAGR. Though the journey has
so far been rather mixed, organized retail is being tipped as one of the biggest
gainers from growing consumerism and rising income. India’s robust macro and micro
economic fundamentals, such as robust GDP growth, higher incomes, increasing personal
consumption, favorable demographics and supportive government policies, will accelerate
the growth of the retail sector.
From a hyper growth phase till year 2007 to a consolidation between 2007 to 2009
largely driven by global slowdown, the sector is now re-vitalized and is heading
towards benefitting from India’ Next Trillion Dollar opportunity. Some of the key
learnings from this evolution which we as investment and business advisors keep
in our assessment while evaluating opportunities include – (a) focus on profitable
growth, (b) rental checks are very important, (c) rigorous methodologies and processes
to control overheads, (d) focus on building the back-end and support infrastructure
first, and (e) exit the unsuccessful and unprofitable ones before it takes the whole
system down.
Our Group with our long standing focus and in fact our core foundation being build
on the back of retail boom is very well placed to meet any requirement for Indian
retail industry including raising capital, mergers & acquisition, organizational
set up & restructuring, operational & business consulting.