Pantaloons Retail (India) Limited - The Indian Retailing Giant

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Case Details:

Case Code : MKTG094
Case Length : 17 Pages
Period : 1998-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Pantaloons Retail (India) Ltd.
Retail ing
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Our strive towards looking at the Indian market differently and strategizing with the evolving customer helped us perform better."¹

- Kishore Biyani, CEO & MD, Pantaloons Retail (India) Ltd., in November 2003.

"We would like to believe that the commitment of the promoters, their phenomenal learning in retail business, the sound system they have indigenously developed and their reliance on category management and consolidators will make PRIL a winner in retail industry. In sum, our take is that if retail industry is indeed the industry of future in India, PRIL will walk away with the cake."²

- Kaushik Poddar, Director, KB Capital Markets Pvt Ltd.

Charging Ahead

In June 2004, Pantaloons Retail India Limited, (PRIL), a leading retailing group in India, opened its first Central Mall, "Bangalore Central," in the garden city of Bangalore, the capital of Karnataka.

"Bangalore Central" followed the Selfridges Model³ that aimed at redefining and revolutionizing the paradigm of lifestyle retailing in India. The mall was a result of PRIL's desire to set up a shopping centre with world class ambience, which represents the spirit of modern affluent society.

With 'shop, eat and celebrate' as its theme and tagline, "Bangalore Central" was aimed at making shopping a leisure activity, where customers can eat, relax and enjoy themselves as well.

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This five-floor mall holds 300 brands of products for men, women, youngsters and children, along with playing host to beauty parlours, food joints and recreation facilities. It sells almost everything from basics to the extravagant, from apparel to white goods⁴, from home furnishing to groceries.

It houses a Central Square, dedicated for product launches, impromptu events, daring displays, shows and exhibitions. The mall also has a separate section providing a variety of services such as travel, financial, investment, insurance and entertainment (like ticket booking for concerts and cinemas).

Besides it also has some innovative features like centralized billing and Radio Central, India's first in-house radio station. Analysts were quick to point that "Bangalore Central" might mark the beginning of another successful hypermarket⁵ chain under the aegis of Kishore Biyani (Biyani), the founder, CEO and managing director of PRIL.

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1] "Right Team Key to Success - Kim," The Hindu, April 22, 2002.

2] Vinay Kamath, "Hyundai in a Hurry," Business Line, July 11, 2002.

3] Seoul (South Korea) based, HMC is the largest carmaker in South Korea and is the eighth largest automaker worldwide. It produces about a dozen models of cars and minivans, as well as trucks, buses, and other commercial vehicles. HMC's exports include the Accent and the Sonata, while its Korean models include the Atos subcompact. The company also manufactures machine tools for factory automation and material-handling equipment.

4] Maruti Udyog is India's leading maker of automobiles. Through a partnership with Suzuki, the company makes models such as the popular Maruti 800, Alto, Gypsy, and Zen. In addition to domestic sales, Maruti also exports its Alto model to many European markets including Austria, Belgium, France, Germany, Greece, Italy, the Netherlands, Switzerland, and the UK.

5] Nandani Sen Gupta & Lijee Philip, "Santro to become cheaper while Getz gets a foothold," The Economic Times, August 18, 2004.