Final Rural Ppt

8/2/2019 Final Rural Ppt

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Amity Business School

During the first millennium AD, merchants referredto India as the Bird of Gold, due to the glitteringdynamism of its market. Over the next few years, theBird of Gold is poised to take flight once again.


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Presented by:Abhijnan Basu

Pushpraj LaleetReena Dohare

Richa Grover

Aadhaar Retailing Limited ( ARL )


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The Company Profile

Aadhar Retailing Limited operates as a rural retail chain. Aadhar Retailing Limited formerly operated as a subsidiary

of Godrej Industries Ltd.

As of March 31, 2008, Aadhar Retailing Limited operates

as a subsidiary of Pantaloon Retail (India) Ltd.


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Founded in 2003 by Godrej Agrovet Ltd.

Merger with Future Group in 2008.

Total employee Strength: 1000

Mission: Aadhaar shall operate Cash n Carry stores and create franchisee

stores that offer the consumers quality products, choice, value and transparent

pricing.

Aadhaar shall create entrepreneurship opportunities in rural and semi urban

India.

Products: farm outputs like wheat and paddy, provides farmers with solutions

to problems regarding their agricultural output, techno-commercial suggestions

to help them give a better output, agriculture related product, non agriculture

product like F.M.C.G., consumer durables, grocery.

Snapshot of Aadhaar


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Current position: Total Number of Store: 51

Presence in States: Maharashtra, Gujarat , Punjab and Haryana

The Future Plan: Future Group is now planning to open 50

wholesale stores in the next four year.

These wholesale stores will be based in district

headquarters and operate through 300 franchises each.

The process of enrolling village franchises has already started through Adhar . It is planned to enlist 20,000 franchisee outlets in villages that would be serviced by the

wholesale stores.

The group had planned capital expenditure of Rs 800-900 crore over the next three yearsand will add eight to nine million sq.ft of retail space.

The Demography


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Mergers: The Growth Strategy

Opened as a subsidiary of Godrej Agrovet Ltd. In 2003.

Merger with Future Groups rural Retail venture on 31st March 2008.

The Merger was done with a vision of retaining 30% direct stakes by Godrej and 70% by Future

Ventures Ltd.

The main aim was to exploit the reach of Godrej Agrovet in Rural India with a well organizedretailing distribution and supply chain of Future Group.

Current Equity Sharing :

Future Ventures India Ltd will have 50% stake in Aadhar Retailing.

The remaining stake will be held by Godrej and private equity players.

Godrej Industries Limited may hold slightly less than 30% direct stake in the wholesale venture of

Future Group.

Rabo Equity(an FDI stake) is planning for acquiring stakes in Aadhar Retailing Limited.



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Amity Business SchoolThe Retail Model


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Amity Business SchoolInnovation in Marketing Strategy

I think there is a big need for farm services and

increasingly corporate will have to address this area,

Godrej Industries managing director Nadir B Godrej told FE.

The company has test launched the concept in Maharashtra.

They are selling farm inputs like animal feed and fertilisers from group company

Godrej Agrovet.

The company is now wholesale format in Aadhar that will stock agro produce and

daily needs.

Each will have 300-400 franchisee stores, and Aadhar retail will buy from it.

The model will be replicated across India, mostly in the agriculture belts, he said.

Each of the wholesale stores will have around 1600 stock keeping units (SKUs)

against typically 100,000 SKUs in a Big Bazaar .


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Amity Business SchoolThe Sales Initiative

Extended Service timing during morning and Evening.(Rational: Footfall of Farmers inflate considerably during morning andEvening)

FMCG products displayed at basement.

(Rational: To increase visibility of the products sold and habituate the

customer with organized retail purchase environment)

Works as One stop solution for rural consumers and farmers.

Associating with the Rural Indian consumers by organizingspecial events (Viz. Screening Hanuman the animation movie tocelebrate Kisan Divas on December 23.)


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Amity Business SchoolThe 4Ps

Place

The place of the stores are selected strategically in the nodal centers/ district centres with proximityof a number of village by considering the Business Index value for the prospected villages.

Price The pricing is done in an extremely cost conscious manner, targeting the purchase capability of the

rural population. Direct contact is established with the supplying companies to increase margin byshortening the value chain.

Product The products include-

Agricultural Inputs( Seeds, Fertilizers, Machineries, Pesticides)

Animal Feeds

FMCG Products.

Consumer Durables.

Extension Services( Technology Demonstration, Controlled Cultivation, Farm Visit By trainedExtension Workers, Spot Demonstration, Help I acquiring Financial Aids and Insurenses)

Promotion The Promotion techniques Include-

Live Demonstration of Best Agricultural Practices.

Association with the emotion of the rural Population by innovative and Interactive Events.


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Amity Business SchoolComparative Analysis


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Triggering Rural economy

Final Rural Ppt

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