2. Agenda
• Indian Retail Industry
• Pantaloon Retail Ltd.
• Spencer Retail Ltd.
• Assumptions for the study
• Summary of Results
• Cash to Cash cycle
• Length of the Supply chain in number of days
• Supply chain in efficiency ratio
• Supply chin working capital productivity
• Conclusion and Limitations
3. • 4th Most attractive among emerging markets
• Contributes to 12% to GDP of India
• Employees 25 Million people
• Organized retail 5% of total Market
• Lead players
• Pantaloon Retail India Ltd.
• Spencer’s Retail Ltd.
• Etc.
4. Pantaloon Retail India Ltd.
• Incorporated on 12th Oct, 1987
• Malls in 51 cities
• 78 Hyper markets, 113 Food bazaar etc.
• Leaders in Indian retail Industry
Spencer’s Retail Ltd.
• approx 200 stores
• Started with multi format food retail
• A growing player
5. Assumptions of study
• Days of operation are 365 days a year.
• Inventory carry cost is 20% of total inventory cost.
8. Fig 3: Supply Chain In efficiency Ratio
0.60
0.50
0.40
0.30
0.20
2006 2007 2008 2009 2010
Pantaloons Spencer Retail Industry
9. Supply Chain Inefficiency Ratio
0.3
Operations / Sales
0.2
Casfhlow from
0.1
0
-0.120% 40% 60% 80% 100%
-0.2
Supply Chain Inefficiency Ratio
Pantaloons Retail Ltd. Spencer Retail Ltd. Retailing Industry
Source: Annual Report and Capitaline
10. Fig 4: Working capital Productivity
500
400
300
200
100
0
2006 2007 2008 2009 2010
Pantaloons Spencer Retail Industry
11. Conclusions and Limitatations
• Conclusion
• Cach to cash cycle needs to be reduced
• Increasing length of supply chain due to intensive expansionary measures
• High in efficiency ratio of Spencer’s due to perturbation of 2009.
• Low productivity of working capital
• Limitations
• Lack of more data restricted for looking at the seasonal variation
• Results cannot be generalized to the complete industry due to 95% of it being un
organized.
