The Indian retail story may well beat all expectations. The size of organised retail market that was estimated to grow from Rs 35,000 crore in 2005 to about Rs 100,000 crore in 2010, is now pegged to nearly double to a whopping Rs 200,000 crore within the same period, according to the India Retail Report 2007.
"The sector is expected to generate 10-15 million jobs over the next five years and the value of organised retail in India will be around $45 billion by 2010," said Minister of Commerce and Industry Kamal Nath while releasing the report on Tuesday.
The sector that was earlier expected to grow at an average rate of 30 per cent, is now gearing up to do so at twice the pace thanks to the plethora of changes in the country and outside. Organised retailing is projected to grow at about 37 per cent in 2007 and 42 per cent in 2008. This is all due to the big time plans of Reliance, the Bharti-Wal-Mart combine, and many other Indian corporate houses evincing keenness on investing heavily in this sector.
"The organised retail sector is worth around Rs 55,000 crore at current prices. This is just 4.6 per cent of the total Indian retail value that stands at Rs 12,00,000 crore," said Amitabh Taneja who is the Chief Convenor of India Retail Forum.
Of the total market, food and grocery retail constitute by far the single largest block estimated to be worth Rs 7,43,900 crore, but the organised sector in this is miniscule. Clothing, textile and fashion accessories constitute the second largest block. The largest segment as far as organised retailing is concerned is the timewear sector with nearly 46 per cent share of the segment being organised.
This is the first time that the entire retail industry, Images F&R Research and some of the major global research and consulting firms like AT Kearney, Ernst & Young, PWC, Technopak, KPMG, ICICI, AC Nielsen-ORG Marg, Synovate, Cushman & Wakefield have come together to contribute to a detailed study of the Indian retail industry.
At the event Kamal Nath also launched retail information interface portal www.indiaretailing.com which is being designed to become one of the largest portals of the retail world.