Objective is to reach the market share by 2 % in Indian retail industry through B2C channels and break even Initiatives taken by Carrefour in India: Before FDI: Expand B2B stores in other parts of India, mainly Pune & Bangalore (May 2012) Talks with Pantaloons group for Joint Venture Assumptions: Accomplishment of Joint Venture with Pantaloon group Plans to open B2C stores in metro cities

1. CARREFOUR
PRESENTATION :
GROUP 2
MANVI CHOPRA
ANUJ BUDHIRAJA
SHAILENDRA TEWARI
VEDA PRADA

2. CARREFOUR:THE MULTINATIONAL
• French, multinational retailer headquartered
Boulogne, Billancourt, France in Greater Paris
• Second largest retail group in the world in terms of
Revenue : €81.271 billion (2011)
• One of the first to open a hypermarket –
supermarket and departmental store under same
roof

3. EVALUATION OF STRATEGY
WHAT WHY HOW

4. OBJECTIVE: DEFINING THE
OPPORTUNITY
Objective is to reach the market share by 2 % in Indian
retail industry through B2C channels and break even
Initiatives taken by Carrefour in India:
Before FDI:
• Expand B2B stores in other parts of India, mainly Pune
& Bangalore (May 2012)
• Talks with Pantaloons group for Joint Venture
Assumptions:
• Accomplishment of Joint Venture with Pantaloon group
• Plans to open B2C stores in metro cities

5. GLOBAL STRATEGY OF CARREFOUR
LOCALIZATION
• Biggest strength of Carrefour in the countries it operates -from local tie-ups
to hiring local executives to run stores, local sourcing to merchandising
• Designed stores and launched private labels to suit Chinese consumers and
each store ran independently
SUPPLY CHAIN STRATEGIES
• Mostly uses 'direct procurement strategy' in the markets it operates.
• Currently works with about 90 suppliers/ farmers in Uttar Pradesh, Andhra
Pradesh, Delhi, Punjab and Haryana; directly dealing with the farmers for
quality production and effective supply chain management
• Keeps its supply chain very economical and flexible - trucks to bikes
depending on the need & cost
• Integrated Composite Application Network (ICAN) software to integrate its
stores, distribution centres and supply chain partners in various countries
STORE OPENINGS
• Decentralisation is another key strategy of Carrefour
• Set up regional offices in each of the Chinese provinces and that office took
care of shops in that particular region
• Adapting stores to local needs

6. INDIAN RETAIL INDUSTRY
Grown at a CAGR
of 14.6% for the
period FY07-12
Accounts 14 -15%
of Indian GDP
Indian Retail
sector is the 5th
largest global
retail destination
Expected to grow
from US $ 353
billion in 2010 to
US $ 543.2 billion
by 2014
Ranked as the
most attractive
emerging market
for investment in
the retail sector
(Source: AT Kearney's
eighth annual Global
Retail Development
Index (GRDI), in 2009)
Organised retail:
Clothing &
Footwear – 37%
Food & Grocery –
24.2%
Government
permitted 51%
FDI in multi
brand retail and
100% FDI in
single brand
retail

7. Clothing & Footwear:
• Pantaloon Retail
• K Raheja Group
• Tata group – Trent
• Landmark group
• AV Birla group
Food & Grocery:
• Pantaloons
• Reliance
• Subhiksha
• Bharti –Walmart (Easyday)
• RPG group - Foodworld
INDIAN RETAIL INDUSTRY- CONT

8. INDIAN RETAIL INDUSTRY
International competitors in India:
• Walmart - 17 stores largely in the West and North –
Bharti group
• Tesco – Helps manage wholesale operations of Star
bazaar – Trent Ltd – Tata Group

9. INDIAN RETAIL INDUSTRY
Disadvantages Advantages

10. APPROACHES
• Joint venture – With Future group (Pantaloons) with
51% ownership
• Franchises
• Establish individual stores with Carrefour brand
name – Not possible

11. ENTRY MODE OPTIONS IN INDIA
JOINT VENTURE
ADVANTAGES
• Establish distribution and marketing channels
• Increased financial resources
• Diversify risk by sharing liabilities
• Increases synergies ( low labor, rent )
DI SADVANTAGES
• Delays decision making
• increase risk of conflicts
• Limited life

12. Strategy
• Open stores in Tier 1 & 2 cities
• Compete with local players like Reliance, Big
bazaar etc
• Localisation- Local tie ups to hiring local
executives to run stores, local sourcing to
merchandising
• Build awareness and Brand Loyalty

13. Current,Present and future strategy
• They currently operates two wholly owned
subsidiaries in India, Carrefour Wholesale cash
and carry India Ltd and Carrefour India Master
Franchise Co. Pvt Ltd.

14. Differentiator
• Insurance Plans
• Travel Plans
• Multiplex
• Kids Zone
• Food Court
• Gaming Zone
• Gas Station
• Free home delivery

15. Financials and future estimates
Annual Income
Statement Data
Actuals in M € Estimates in M €
Fiscal
Period Dece
mber
2009 2010 2011 2012 2013 2014
Sales 85 963 90 099 81 271 80 627 81 136 83 566
Operating
income (EBIT
DA)
4 656 4 894 3 883 3 841 3 895 4 115
Operating
profit (EBIT)
2 777 2 972 2 182 2 137 2 236 2 372
Pre-Tax
Profit (EBT)
1 095 1 179 -1 238 1 469 1 605 1 913
Net income 327 382 371 830 1 015 1 161
EPS ( €) 0,48 0,56 0,55 1,13 1,41 1,59
Dividend per
Share ( €)
1,08 1,08 0,52 0,56 0,59 0,67
Yield 5,59% 5,59% 2,69% 2,88% 3,05% 3,45%

16. Stock Price
• Stock listed on Euronext
• CMP -€ 19.61
• In one year it changed from € 17.83 to € 19.61
• Stock appreciated for 9.98% in one year’s
time
• We want the stock to appreciate to € 30 in 3-
4 years time (over 53% increase)

17. Local players in FY09-10 and 10-11
Combined losses increased by 8 % to Rs 987 cr ore during 2010-11

18. Marketing
• Providing promotional offers to customers-giving coupons
and gifts
• Free home deliveries up to 5000 Rs of buying
• Provide extra services-
 Giving movie tickets for shopping of 2000 Rs
 Customer will be experiencing the gaming zone
 Parking free on a purchase of 1000 and above
 Creating strong online presence ( offer Customized deals)

19. CARREFOUR : COMPETITIVE STRATEGY
Local competition
• Wider range of products under one roof
• Better infrastructure , ambiance
• Localization
Foreign competition
• Increased marketing
• higher use of social networking
• Decentralization
• Localization

20. THANK YOU