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1、MERA GAON MERA DESH (rural retail)Presented By Uday MishraGSBA Gr. Noidaukmishra85989168351801 September 20221CONTENTSDEFINING RURAL INDIARURAL RETAIL SCENARIO IN INDIAREGULATIONS AND POLICIES IN RURAL RETAILSIGNIFICANT PLAYERS goderj adhar itc -chaupalhariyali kisan bazaarBUSINESS MODEL OF ITCIMPED

2、IMENTS & RECOMMENDATIONS01 September 20222DEFING RURAL INDIA!Census of India defines Rural Settlements as.Population lower than 5,000 personsPopulation density lower than 400 persons/sq. kmAt least 75% of male population engaged in Agri. activities.01 September 20223RURAL SCENARIORETAIL TOWARDS RURA

3、L AREASGREAT OPPORTUNITIES FOR MARKETERTHE INDIAN RURAL MARKET01 September 20224RETAIL TOWARDS RURAL AREASRural India consists of 720 Million consumers across 6,38,000 villages-17% of these villages account for 50% of the rural population and 60% of the rural wealth-Extensive reach is required as to

4、 cover 50% market 1,00,000 villages must be catered Immense opportunity amounting to US$ 125 billion01 September 20225ContRural Retail is growing 7% p.a.Rural consumption is also shifting from basic food grains to fruits, vegetables, dairy and poultry products, as well as beveragesDemand for better

5、quality food leading to huge demand for basic foods01 September 20226GREAT OPPORTUNITIES FOR MARKETER01 September 20227The Indian Rural MarketThe Rs 140,000 crore rural retail market is expected to cross Rs 180,000 crore mark by 2010, And up to Rs 240, 000 crore by 2015 (CII).The rural revolution is

6、 driven by Rising purchasing power, Changing consumption patterns, 01 September 20228Contdincreased access to information and communication technology, improving infrastructure increased government initiatives to boost the rural economy,01 September 20229RURAL OCCUPATION01 September 202210OCCUPATION

7、SURBANRURALCultivator540PettyShopkeeper155Wageearner2035Salaryearner4020Others188 US China IndiaTotal Retail 2325 323 180 Value $ bn % Salience to aboveTraditional 15 80 98Modern 85 20 2Source: Census 2001, IRS 2006, AC NielsenSource: AC Nielsen01 September 202211 THE RURAL CONSUMERIs a value seeker

8、Seeks comforts and amenities Does not wish to be seen as the deprived cousin. Does not experiment easily but this does not mean that “he would not change”.Values local relationships because of unfavourable past experiences01 September 202212 REGULATIONS AND POLICIES IN RURAL RETAIL 1. Essential comm

9、odity act: The fertilizer industry is centrally regulated by the government through an administered pricing mechanism & sales allocation under Essential Commodities Act (ECA). In the year 2002-03, the government announced a long term Pricing policy for urea.2. Indian Land Acquisition Act 18943. Agri

10、cultural Produce (Grading & Marking) ACT, 1937 (ACT No. 1 of 1937)(as amended up to 1986)01 September 202213CONTD54 Non Agricultural Use Clearance-5. Under PN4/2006 -100% FDI is allowed through the automatic route in -Floriculture, Horticulture, Development of Seeds, Animal Husbandry Pisciculture, a

11、qua-culture, cultivation of vegetables, mushrooms, under controlled conditions and services related to agro and allied Sectors.6. Intra state agricultural land taxes - vary, prompting the current finance-minister to moot for a common GST (Goods and services tax) which would help in bringing all the

12、various state taxes under a common fold including the agricultural income taxes levied individually state to state.01 September 202214SIGNIFICANT PLAYERSGODREJ ADHARITC-CHAUPALHARIYALI BAZAAR01 September 202215Godrej Aadhar:FORMAT OF GODREJ ADHAR FMCG products, fertilizers, animal feed, etc. Service

13、s like banking, insurance, pharmacy, postal services and petrol pumps01 September 202216services offered crop advisory services, soil & water testing services; buy back of output, crop finance, supply of agri inputs and animal feeds, transfer of information (weather, price, and demand supply), door

14、delivery of products etc.01 September 202217A COMPLETE SOLUTION PROVIDER FOR THE INDIAN FARMERSprovides professionalguidance with an objective to improve productivity, higher returns and improved cost benefit ratio.OPERATIONS24 outlets in eight rural locations across the country and each outlet serv

15、ices 20 villages in its vicinityGodrej Aadhar has already forged JVs with Apollo Pharmacy, Tata Agrico, Bajaj Allianz Life Insurance and HPCL for value added services at the outlets. The company plans to set up more than 1,000 stores by 2010.01 September 202218HARIYALI KISAN BAZAAR(DSCL Corporation)

16、 The Trusted Rural Business HubHelp the customer increase his income, educate the customer, before you sell to the customer01 September 202219Hariyali Kisaan BazaarMr. Ajay Shriram, Chairman Mr. Vikram Shriram, Vice Chairman & MDThe concept aims to simplify the Private label seeds Contract farming v

17、egetables Procurement01 September 202220DSCL plans to expand to 250-300 outlets by the end of FY 2008-09.Each store covers an area of 3-4 acres and is managed by a team of 7-8 people whom the Company trains continuously.It offers the rural household all farming and consumerproducts and related servi

18、ces along with financial services under one roof.The company also launched credit services during its second quarter 2007-08, in association with HDFC bank, providing loans for various purposes.01 September 202221Hariyali Kisaan BazaarTriggering Rural economyCreates Purchasing Power by focusing on i

19、ncreasing Income Levels01 September 202222Enabling implementation of New Technology in Agriculture01 September 202223Giving the Customers the right to chooseThe number of Hariyali outlets now stands at 177, which the company plans to scale up aggressively to around 300 outlets by March 2009. Launche

20、d in 2002-03Hariyali is now present in 8 states across India01 September 202224Deploying IT for real empowerment01 September 202225NOW E CHAUPAL ITC Limited01 September 202226E-CHAUPALThis concept aims toProvide the power of expert knowledgeto even the smallest farmer2. Information helps farmers sec

21、uresbetter price, quality and productivity01 September 202227E ChoupalBenefits to farmers include Better purchase price of agri-inputs Avail information on best farming practices Command prevailing market prices4 million farmers benefited through 6,500 installations covering around 40,000 villages01

22、 September 202228By 2012, ITC Vision is to cover 100 thousand villages,which represent 1/6th of rural India, and create morethan 10 million e-farmers01 September 202229BUSINESS MODEL(CHAUPAL SAGAR)IDEA BEHIND CHAUPAL SAGAR- MAKE THE POTENTIAL CUSTOMERS-PROVIDE DIFFERENT CUSTOMER SERVICES-REAP THE BE

23、NEFIT FROM POTENTIAL CUSTOMER01 September 202230FACILITIES AT CHAUPAL SAGARA WIDE RANGE OF PRODUCTS FOR ALL SEGMENTSTRAINING FACILITIES FOR FARMING COMMUNITY ON SCIENTIFIC FARMING PRACTICESGODOWNS FOR STORAGE OF FARM PRODUCEINFORMATION CENTER FOR ONLINE WEATHER INFORMATION CONTINOUS SERVICES FROM 6A

24、M- 9PM01 September 202231FUTURE PLANNINGESTABLISHMENT OF ATMs AT MALLSAVAILIBILITY OF INSURANCE PRODUCTSFOR FARMERSTIE WITH PRIVATE HEALTH CARE SERVICE PROVIDER FOR PRIMARY HEALTH CARE FACILITYTIE WITH BPCL FOR FUEL PUMPSESTABLISHMENT OF SOIL TESTING LABORATRIESPUBLIC ENTERTAINMENT01 September 20223

25、201 September 202233ITCFARMERSINSURANCE COMPANYAGRI-INPUT COMPANYAGRICULTURE UNIVERSITIES/STATE AGRICULTURE DEPTINPUT SUPPLYTECHNCAL GUIDANCEMARKETING ASSISTENCETRAININGRural Business Challenges Increasing costs of land Pace of expansion High operating costs Low margin of agri-inputs Low purchasing

26、power of consumers01 September 202234CONT Lack of literacy and awareness Low per capita income Wide geographic spread. Gaps in road and Telecommunications connectivity. Lack of reliable electricity and water supply Limited Distribution network for example cold storage. Competition from local players01 September 202235Impact of Entrepreneurial Initiativeson Rural IndiaFarmers get agri-inputs at competitive rates and have range of products to choose from Increasing rural bank aid (loans) helps improve the purchasing capability of farmers Farmers avail of the services of ag

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