13886515 Retail Sector Project Report

8/6/2019 13886515 Retail Sector Project Report

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B

A PROJECT REPORTON


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INDEX

Sr.No Particulars Page No.

1 MACRO- INTRODUCTION 3

2 OVERVIEW OF SECTOR 83 MARKET STRUCTURE AND MAJOR PLAYERS 10

4 CONTRIBUTION OF THE FDIs 13

5 LEGAL ISSUES 16

6 CURRENT ISSUES 18

7 MICRO- INTRODUCTION 21

8 HISTORY 21

9 4Ps 23

10 FINANACIAL INTERPRETATION 25

11 HR POLICY AND CODE OF CONDUCT 27

12 KEY PERSONNEL 31

13 CORPORATE SOCIAL RESPONSIBILITY 31

14 FUTURE PLANS 33

15 SIGNIFICANT EVENTS 34

16 SUGGESTIONS AND CONCLUSION 35


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INTRODUCTION

WHAT IS RETAIL?

The word retail is, in fact, derived from the French w ord retailer, which means to cut off a piece or to break bulk.A retailer may be defined as a dealer or trader who

repeatedly sells good in small quantities.

The sale of goods or commodities in small quantities directly to consumers. Of, relating

to, or engaged in the sale of goods or commodit ies at retail . I t also means to sell in

small quantities directly to consumers.

RETAIL -

The sale of goo ds individually or in small quantities to the public to sell or be

sold in small quantities to the public.

Retailing consists of the sale of goods or merchandise from a fixed location, such

as a department store or kiosk, or by post, in small or individual lots for direct

consumption by the purchaser. Retailing may include subordinated services,

such as delivery.

The sale of goods directly to the consumer; To sell at retail, or in small quantitiesdirectly to customers; To repeat or circulate (news or rumors) to others; Of, or

relating to the sale of goods directly to the customer; In retail quantities, or at

retail prices

To sell directly to the consumer, usually in small quantities in comparison with the

total level of sale.

Any product for sale in a store or directly to a consumer.

Trade in which a client buys or sells an over-the-counter stock through a broker-

dealer.

Merchants selling tangible goods in a face-to-face environment who normally use

conventional terminals and swipe transactions.


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TYPES OF RETAIL SECTOR

Retailing is one of the pillars of the economy in India and accounts for 35% of GDP. The

retail industry is divided into organized and unorganized sectors. Over 12 million outlets

operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size.

Organized Retail

Unorganized RetailORGANIZED RETAIL

Organized retailing refers to trading activities undertaken by licensed retailers, that is,

those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail

businesses.

Organized retail segment has been growing at a blistering pace, exceeding all previous

estimates. According to a study by Deloitte Haskins and Sells, organized retail has

increased its share from 5 per cent of total retail sales in 2006 to 8 per cent in 2007. The

fastest growing segments have been the wholesale cash and carry stores (150 per

cent) followed by supermarkets (100 per cent) and hypermarkets (75-80 per cent).

Further, it estimates the organized segment to account for 25 per cent of the total sales

by 2011.

UNORGANIZED RETAIL

Unorganized retailing, on the other hand, refers to the traditional formats of low-cost

retailing, for example, the local kirana shops, owner manned general stores, paan/beedi

shops, convenience stores, hand cart and pavement vendors, etc.

Unorganized retailing is defined as an outlet run locally by the owner or caretaker of a

shop that lacks technical and accounting standardization. The supply chain and


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Branded Stores appear in the form of exquisite showrooms. Here the total range of a

particular brand is available and the quality of the product is certified by the government.

There are also multi brand specialty stores that sell a series of brands so that the

consumer can choose from the wide array of brands.

Department stores have a large number of brands and products catering to all basic

needs to luxurious items as well.

Supermarkets are basically self service retail stores. Discount Stores offer commodities

at reduced prices. In Hyper Marts customers have wide variety of products to choose

from and they are also available at discounted rates. Convenient stores are located in

prominent places within the reach of majority of the customers and do not operate in

stringent work hours.

Shopping Malls are a storehouse of a large variety of retail shops situated close to each

other.

RETAILING FORMATS IN INDIA

MALLS: The largest form of organized retailing today. Located mainly in metrocities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 sq

ft and above. They lend an ideal shopping experience with an amalgamation of

product, service and entertainment; all under a common roof. Examples include

Shoppers Stop, Piramyd, and Pantaloon.

SPECIALTY STORES: Chains such as the Bangalore based Kids Kemp, the

Mumbai books retailer Crossword, RPG's Music World and the Times Group's

music chain Planet M, are focusing on specific market segments and have

established themselves strongly in their sectors.

DISCOUNT STORES: As the name suggests, discount stores or factory outlets,

offer discounts on the MRP through selling in bulk reaching economies of scale


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or excess stock left over at the season. The product category can range from a

variety of perishable/ non perishable goods

DEPARTMENT STORES: Large stores ranging from 20000-50000 sq. ft,

catering to a variety of consumer needs. Further it is classified into localized

departments such as clothing, toys, home, groceries, etc.

DEPARTMENT STORES: Departmental Stores are expected to take over the

apparel business from exclusive brand showrooms. Among these, the biggest

success is K Raheja's Shoppers Stop, which started in Mumbai and now has

more than seven large stores (over 30,000 sq. ft) across India and even has its

own in store brand for clothes called Stop!.

HYPER MARTS/SUPERMARKETS: Large self service outlets, catering to varied

shopper needs are termed as Supermarkets. These are located in or near

residential high streets. These stores today contribute to 30% of all food &

grocery organized retail sales. Super Markets can further be classified in to mini

supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets

ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food &

grocery and personal sales.

CONVENIENCE STORES: These are relatively small stores 400-2,000 sq. feet

located near residential areas. They stock a limited range of high-turnover

convenience products and are usually open for extended periods during the

day, seven days a week. Prices are slightly higher due to the convenience

premium.

MBOs: Multi Brand outlets, also known as Category Killers, offer several brands

across a single product category. These usually do well in busy market places

and Metros.


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OVERVIEW OF INDIAN RETA IL SECTOR

Retail Sector is the most booming sector in the Indian economy. Some of the biggest

players of the world are going to enter into the industry soon. It is on the threshold of a

big revolution after the IT sector. Although organized retail market is not so strong as of

now, but it is expected to grow manifolds by the year 2010. The sector contributes 10%

of the GDP, and is estimated to show 20% annual growth rate by the end of the decade.

The current growth rate is estimated to be 8.5%, but CRISIL report says that the retail

market is most fragmented in the world and only 2% of the entire retailing business is in

the organized sector. There are about 300 new malls, 1500 supermarkets and 325

departmental stores being built in the cities very soon.

The retail boom will face a strong competition from the 12 million mom-and-pop stores,

which are easily accessible and approachable and provide services like free home

delivery and goods at credit. But buying from Malls, Supermarkets and Department

stores like Subhiksha, Marks & Spencers, etc gives a different feeling and the

environment of pick and choose from a variety of products. A number of retail giants are

also going to explore the market such as Reliance Retail Ltd and Wal-mart. The

revolution is driven by large expectations where both domestic and international players

will be channel through which other large stores in India are spreading themselves

across the country.

Some of the players present in the industry:

Archies, Bata India Ltd, Big Bazaar, Crossword, Ebony Retail Holdings Ltd., Fabmall,

Food Bazaar, Globus Stores Pvt. Ltd., Health and Glow, Liberty Shoes Ltd., MTR Foods

Ltd., Music World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers Stop, StyleSPA Furniture Ltd, Subhiksha, Titan Industries, Lifestyle, etc.New entrants entering the

market soon will be Reliance Retail Ltd, Wal-Mart Stores, Carrefour, Tesco, Boots

Group, etc.


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0Rs. 2,00,000

Magnification of the Indian Retail Industry

Yardstick Situation in 04-05 Situation in 07-0

Value of retail sales Rs. 10,20,000 Rs 12,00,000

Annual growth rate

Value of organized market Rs 35,000 Rs 55,000

Share of organized market in the sector

Forecasts (after 5 years) about size of

organized retail market

Over Rs. 1,00,00

Forecasts about growth rate of organized

market

Aroun Aroun

The above table clearly shows that the retail market as well as the mindset required for

it has experienced a thorough revisal in the last three years. This is just the beginning

and Indians are sanguine that the sector will see rosy days in the future. This

confidence has helped India acquire the No.1 position among 30 most attractive

retailing destinations in the world according to the Global Retail Development Index of

2005 (by AT Kearney, India). Among emerging markets, India holds the second position

a f t e r C h i n a i n t h e l i s t o f m o s t f a v o r e d r e t a i l d e s t i n a t i o n s .

The retail industry employs a huge share of the total workforce in India. It is the second

largest employer after India. Presently 7 percent of the total labor force is employed in

the retail sector. According to available data it is also the largest employer in the

services sector and maximum growth in the non-agricultural sector has been witnessed

by retail trade. According to market analysts 300 new malls, 1,500 supermarkets and

325 departmental stores are going to come up in India in the next few days. The

shopping revolution that has led to this retail boom is going to continue and this is a

good news for the government as well as those who wish to work in the organized

sector.


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10%9.0%

9.2%

8.90%

% 6.8%

3% 2% 1% 0%

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 3 4

2 0 0 5

2 0 0 6

2 0 0 7

Projections o

8% sustainable

real GDP growth

rate till 2020

p ro mise h ig h

growth

potential fo r

Indian Retail...

CONTRIBUTION OF FDIINRETAILING -

Permitting

Foreign Direc

Inve stm ent in

the retailing

sector can have

immense

benefits.I t can

generate huge

employment for

the sem i-skilled

as well as

illiterate

population

which

otherwise can't

be employed in


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the already

conf ined rura

and organized

sector. The

retai l sector is

highly

d ep en de nt o n

the rura

sector. Thus i t

c an fa cil ita te

the

improvement

of the standard

of living of

farmers by

purchasing

commodit ies at

a reasonable

cost. It also

s te ms ou t an

indirect

employment

generation

channel by

training and

employing

p eo ple in th e

transportation

and distribution

sectors such as

drivers,

mechanics etc

It is also

evident that

real estate is a

genuine


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huge tax

revenue

generated from

these retai

biggies and

collected in

government

coffers wil

gradually wipe

out the ugly

looking fisc a

and revenue

deficits.

Besides the

t ransaction in

foreign

c ur re nc ie s by

these MNCs

will create a

balance in

exchange rate

a nd w ill b ring

in stable funds

in the economy

a s o p po se d to

FII's hot

m oney. This

wil l in turn act

a s a b oo st to

the developing

(or

'transforming',

a s su gg ested

by the USAID

economy of

India. The


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phobias

relating to


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Greater PerCapita IncomeGreater Consumer Spending due to economic boom

IncreasingTax PayingPopulation

GDP Growth

Employment

Benefitsto Govt.

Greater Exports

GreaterSourcingFrom India

Increased TaxRevenues

Reduced TaxEvasion

FDI in the retail sector are unfounded as neither the retailing sector in India is an infant

industry, nor it can outweigh the paramount local tastes and preferences.

Let's pray that the retail sector like the IT and manufacturing sector brings happiness in

the eyes of the people and help remove the regional and class-based disparities.

BENEFITS TO THE GOVERNMENT

It will help in increasing employment levels as FDI would

result in market growth and expansion which in turn will result in employment generated at

various levels

Increased consumer demand implies employment generation across the value chain as

certain areas in retail does not need very high skill sets as basic needs are high school graduates

and other similar skill levels which is currently a majorly unemployed demographic group.

ESTIMATES AND PREDICTIONS FOR RETAIL SECTOR:

At present, the industry is estimated to be at more than US$ 400 billion by a study of

McKinsey. The Economist Intelligence Unit (EIU) estimates the retail market in India will

increase to US$608.9 billion in 2009 from US$394 billion in 2005.

KPMG Report says that the organized retail would grow at a higher rate than the GDP

in the next five years. The retail sector would generate employment for more than 2.5

million people by the year 2010, predicts an analysis by MaFoi Management

Consultants Ltd.

Traditional vis a vis Modern Format Retailers

The retail boom will face a strong competition from the 12 million mom-and-pop stores.

These are easily accessible and provide services like free home delivery and goods at

credit, which is not possible with hypermarkets and supermarkets. Buying from Malls,

Supermarkets and Department stores like Subhiksha, Marks & Spencers, etc. provide a


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different environment where one can pick and choose from a variety of products. Owing

to the entry of such big players, the small shopkeepers fear losing their business.

Rel iance Retail Ltd. has been invit ing such people to join in i ts Dairy business as

franchisees.


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LEGAL ISSUES IN RETAIL SECTOR

Many cou ntries specially in south east A sia like Malaysia, Indonesia and Thailand have

put in place tough regulations with a view to balance the conflicts of interests between

modern retail and the traditional retailers and suppliers to the modern retail. These

countries have imposed a number of restrictions on the growth of large retail companies

particularly the transnational companies as against fairly liberal approach to the retail

sector practiced un til the late 1990s.

In India in a bid to cushion small reta i lers f rom corporate giants, the Centre is in

consultation with states for setting up a retail regulator. As per the consolations among

states, state level legislative authorities would wield powers to g rant licenses to retailers

for operating business.

The regulators in coordination with the state governments would also demarcate zones

in the cities for setting hypermarkets. Moreover, the regulators would work in tow with

competition commission to oversee pricing of products so that small retailers do not fall

prey to predatory pricing. States would submit the final guidelines on the regulatory

mechanism in 2 months to Com merce & Industry ministry.

In fact, the proposal is part of the Icrier report on Big Versus small retail recently

submitted to the government. We have had several rounds of consultations with the

state governments and other ministries. We are now awaiting their comments on the

report, a senior commerce ministry official said. The policy framed by the government

based on the report would also set the ground for FDI in retail, which has been facing

problems due to lack of consensus among political parties.

The regulator would also look into real estate cornering by large retail chains to restrict

c o m p e t i t o r a c c e s s a n d c o m p l a i n t s o f m u s c l i n g o u t s m a l l e r r e t a i l e r s b y p r i c e

undercutting.

All the following statutory provisions related to following ac ts are applicable to retail

industry

1)Shops & Establ ishment

2)PF & Misc .Prov is ions Act


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3)ESI Act

4)Bonus Act

5)Minimum Wages Act

6)Industrial Disputes Act

7)Gratuity Act

8)Maternity Act

9)Welfare Act

As part of a big move to liberalize the foreign direct investment (FDI) regime, the

Cabinet today approved new FDI norms for several sectors including retailing. Retail

presents the next big opportunity (worth $250 billion) for the foreign investor. However,

foreign direct investment in the India retail sector is currently restricted. There are

several methods pursuant to which a foreign investor may gain exposure to the Indian

retail sector:

i)Pursuant to Press Note No. 3 (2006 series), foreign direct investment up to 51% is

now permitted in single brand retail trade with the prior approval of the government;

0)Pursuant to Press Note No. 4 (2006 series), foreign direct investment up to 100% is

now permitted under automatic route for cash and carry wholesale trade; or

i)The foreign investor could enter into franchise arrangements.

LVMH is among the international brands that have indicated interest in a 51% stake.

However, multi-brand retail stores such as Wal Mart are not yet permitted.


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instances they had demanded deduction of tax on the final amount of Rs 112. The

confusion had arisen after the government brought commercial rental service under tax

net in the Budget for 2007-08.

Wal-Mart Store Inc. will open its first cash-and-carry centre in India in 2009, the head of

its India operations said on Wednesday. Wal-Mart, which has a venture with India's

Bharti Enterprises for cash-and-carry wholesale operations, had earlier said it aimed to

open the first of its centres by year-end and open 10-15 centres over seven years.


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MICROANALYSIS


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INTRODUCTION

Established in

1998 as part of

the Tata Group,

Trent Ltd.

operates

Westside, one of

India's largest

and fastest

growing chainsof retail stores.

The Westside

stores have

numerous

departments to

meet the varied

shopping needs

of customers.

These include

Menswear,

Womens wear,

Kids wear,

Footwear,

Cosmetics,

Perfumes and

Handbags,

Household

Accessories,

lingerie, and

Gifts. The

company has


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already

established 31

Westside

departmental

stores (measuring

15,000 - 30,000

square feet

each) in

Mumbai,

Bangalore,

Hyderabad,

Jaipur, Chennai,

Pune, Delhi,

Noida, Gurgaon,

Ghaziabad,

Kolkata,

Nagpur, Indore,

Ahmedabad,

Lucknow,

Ludhiana, Surat,

Mysore &

Rajkot. The

company hopes

to expand rapidly

with similar

format stores that

offer a fine

balance between

style and price

retailing.

HISTORY

This story began


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circa 1998 when

The Tatas

acquired

Littlewoods a

London based

retail chain. This

acquisition was

followed by the

establishment of

Trent Ltd (a

Tata enterprise

that presently

operates

Westside).

Littlewoods was

subsequently

renamed

Westside.In a

rapidly evolving

retail scenario,

Westside has

carved a niche

for its brand of

merchandise

creating a loyal

following.

Currently, the

company has 31

Westside stores

measuring

15,000-30,000

square feet each

across 17 cities.

With a variety of

designs and

styles, everything

at Westside is


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THEIRMISSION

At

West

side

the

missi

on is

to be

regar

ded

by

their

custo

mers

as the

most

relev

ant

retail

er in

the

count

ry.

In

order

to

achieve

this

goal,

they

shall

develop


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a

compre

hensive

underst

anding

of their

needs,

strive

to win

their

confide

nce,

and

offer

them

best-in-

class

produc

ts and

services

at

afforda

ble

prices.

They

shall

always

be in the

forefron

t of

fashion

and

services

by

anticipa

ting and

exceedi


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ng the

expectat

ions of

their

custome

rs.

Their

leadersh

ip will

be the

product

of their

styling,

quality

and

service

consciou

sness.he

y will

continue

to scale

new

heights

of

excellen

ce

through

teamwo

rk, in an

atmosph

ere that

encoura

ges

creativit

y and

innovati

veness.


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return

unused

mercha

ndise

along

with its

receipt

within

30

days;

they

would

exchan

ge the

returne

d items

or give

the

custom

ers a

comple

te

refund.

In

the

eve

nt

that

the

cust

ome

rs

do

not

hav

e

the


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rece

ipt

the

y

wou

ld

offe

r

the

m

an

exc

han

ge

or

pro

vide

the

m a

gift

vou

che

r to

the

cur

rent

or

last

kno

wn

selli

ng

pric

e.

They

have

complet


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e

confide

nce in

the

quality

of our

mercha

ndise

howeve

r

should

if

custom

ers

have

any

grievan

ces,

they

would

be

happy

to

address

them

once

they

are

brough

t to our

attentio

n.


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4 Ps

PRODUCT

The Westsidestores have

numerous

departments to

meet the varied

shopping needs

of customers.

These include

Menswear,

Womens wear,

Kids wear,

Footwear,Cosmetics,

Perfumes and

Handbags,

Household

Accessories,

lingerie, and

Gifts. Some of

them are as

follows;

PRICE

Menswear: For

men at work and

at play,

Westsides

menswear range

extends from

formal to casual

to sporty. There isalso a wide price

range starting

from value and

extending into

premium.

Womens wear:

For women there

are western


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casual, western

formals & very

classy ethnic

wear with a look

unique to

Westside. The

range does not

end with clothes

but extends right

into accessories

with a greatrange of jewelry,

scarves & other

accessories. Also

available are

comfortable

lingerie at

affordable

prices.

Kidswear: With

a dash of

attitude and a

sprinkle of

playfulness,

Westsides

Kidswear has a

huge range to

select from.

Catering to a

wide age band

starting from

infants to early

teens thegarments sport a

look that is hip,

trendy and very

international.

Footwear: The

range

encapsulates

footwear for the

entire family

with a wide

variety of choice,

great styles and

colours to charm

everyone.

Cosmetic,

Perfumes and

Handbags: The

Westside store

has a separate


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section for

cosmetics and

perfumes in

some stores. The

handbags are

tastefully crafted

and range from

casual to formal

wear.

HouseholdAccessories: The

Westside motto is

-Your Dreams

Our Vision-

which translates

into a Household

section that

caters to every

taste. This

section is one of

the most

contemporary

with every item

being exclusive

& unique. The

merchandise is

well coordinated

& allows

customers to

mix & match

and to create

their own look.

The rangeextends from

bed linen,

towels, table

linens to

coordinated

crockery, a cook

shop, glassware

and much more

to set up an

entire home. The

range also

includes highquality home

accessories and

dcor product.

Gifts : A

wonderful gift

section with the

trendiest of

collections that


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will leave one

spoilt for choice.

This section

matches every

requirement and

suits every

occasion.


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Westsides gift

section is vast

and includes gifts

ranging from

photo frames,

candle stands,

candles, vases,

ceramic mugs,

lanterns, lamps

and more.

PLACE

The company has

31 Westside

departmental

stores up till now

(measuring

15,000 - 30,000

square feet each)

in Mumbai,

Bangalore,

Hyderabad,

Jaipur, Chennai,

Pune, Delhi,

Noida,

Gurgaon,Ghaziabad,

Kolkata,

Nagpur, Indore,

Ahmedabad,

Lucknow,

Ludhiana,

Surat, Mysore &

Rajkot. The

company hopes

to expand

rapidly with

similar format

stores that offer a

fine balance

between style and

price retailing.

PROMOTION


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Westside does its

regular brand

building through

advertisement in

the mediawith

brand

ambassador

yuvraj Singh and

other young

models. More

importants its in-house

promotions

which peak

during main

festive seasons,

summer, diwali

and Christmas.

The promotion

are mostly them

based, with

decorations to

match, live bandsand other

attractions.


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FINANCIAL

INTERPRETATION

DIVIDEND:

On 30th June

2008, the Board

of Directors

recommended a

final dividend of

Rs. 7/- per share


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on 1,95,32,896

equity shares

(70%) (Previous

year interim

dividend - 70%

on 1,57,60,737

equity shares)

involving a

distribution of

Rs. 13.67 crores

(previous yearRs. 11.03

crores). The

total outflow will

be Rs. 15.24

crores including

the tax on

dividend of

Rs.1.57 crores.


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ISSUE OF EQUITY SHARES ON RIGHTS BASIS:

During the year under review, the Company allotted 31,48,264 equity shares of Rs

10/- each at a premium of Rs. 490/- each for an amount aggregating to Rs. 157.41

crores on Rights basis to the existing equity shareholders of the Company in the

ratio of one fully paid equity share for every five equity shares held on the record

date i.e. on 15th May 2007. The shares have been listed on Bombay StockExchange Limited and National Stock Exchange of India Limited.

DISTRIBUTION OF REVENUE:


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HR

Policy &

Code of

Conduct

Since

Wests ide i s

a Tata

Enterpr i se

they adopt

the same

Code of

Conduct

pol ic ies as

Tata

Code ofConduct

1.National

Interest

A Tata company

shall be

committed in all

its actions to

benefit the

economic

development of

the countries in

which it operates.

It shall not

engage in any

activity that

adversely

affects such an

objective. It

shall strive to

make a positive

contribution tothe achievement

of such goals at

the international,

national and

regional level, as

appropriate.

2.Financial

Reporting And


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administered in

a manner that

ensures that in

all matters equal

opportunity is

provided to those

eligible and that

decisions are

based on merit.

5.Gifts anddonations

A Tata company

and its

employees shall

neither receive

nor offer or

make, directly or

indirectly, any

illegal payments,

remuneration,

gifts, donationsor comparable

benefits which

are intended to

or perceived to

obtain business

or uncompetitive

favours for the

conduct of its

business.

6.Government

Agencies

A Tata company

and its

employees shall

not offer or give

any company

funds or

property as

donation to any

governmentagencies or their

representatives,

directly or

through

intermediaries,

in order to

obtain any

favourable

performance of

official duties


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7.Political

Non-

Alignment

The company

shall not offer or

give anycompany funds

or property as

donations,

directly or

indirectly, to any

specific political

party, candidate

or campaign.

8.Health,

Safety andEnvironment

A Tata company

shall be

committed to

prevent the

wasteful use of

natural resources

and minimise

any hazardous

impact of the

development,production, use

and disposal of

any of its

products and

services on the

ecological

environment.

9.Quality of

Products andServices

The quality

standards of the

company's goods

and services

should meet the

required national

standards, and

the company


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the company or

the group.

3.Third-Party

Representatio

n

Parties which

have business

dealings with the

Tata Group butare not members

of the group,

such as

consultants,

agents, sales

representatives,

distributors,

contractors,

suppliers, etc.

shall not be

authorised to

represent a Tata

company if their

business conduct

and ethics are

known to be

inconsistent with

this code.

4.Use Of The

Tata Brand

The use of the

Tata name and

trademark

owned by Tata

Sons shall be

governed by

manuals, codes

and agreements

issued by Tata

Sons. The use of

the Tata brand

is


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defined in and

regulated by

the Tata Brand

Equity &

Business

Promotion

Agreement.

15.EthicalConduct

Every employee

of a Tata

company,

including

whole-time

directors and

the managingdirector, shall

deal on behalf of

the company

with

professionalism,

honesty and

integrity, as well

as high moral

and ethical

standards.

16.Group

Policies

A Tata company

shall recommend

to its board of

directors the

adoption of

policies and

guidelines

periodically

formulated byTata Sons.

17.Shareholders

A Tata company

shall be

committed to

enhance


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shareholder

value and

comply with all

regulations and

laws that govern

shareholders'

rights.

18.Regulatory

Compliance

Every employee

of a Tata

company shall,

in his or her

business

conduct, comply

with all

applicable laws

and regulations,

both in letter

and in spirit, in

all the territories

in which he or

she operates.

19.Concurren

t E mployment

An employee of

a Tata company

shall not,

without the

prior approvalof the managing

director of the

company,

accept

employment or

a position of

responsibility

(such as a

consultant or a

director) with

any othercompany, nor

provide

'freelance'

services to

anyone.

20.Conflict ofInterest


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An employee of a

Tata company

shall not engage

in any business,

relationship or

activity, which

might

detrimentally

conflict with the

interest of his

company or theGroup. A

conflict of

interest, actual

or potential,

may arise where,

directly or

indirectly:

21.Securitiestransactions

andconfidentialinformation

An employee of a

Tata company

and his or her

immediate

family shall not

derive any

benefit or assist

others to derive

any benefit from

access to andpossession of

information

about the

company or the

Group, which is

not in the public

domain and thus

constitutes

insider

information.


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K

P

n

ChairmanEmiretus:S.N.Tata

Board OfDirectors:F

.

K

.

K

a

v

a

r

a

n

a

(

C

ha

i

r

m

a

n

)

N

.

A

.

S

o

o

n

a

w

a

l

a


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B.S.BhesaniaA.D.Cooper

K.N.Suntook

N.N.Tata

(Managing

Director)

C

o

r

p

o

r

a

t

e

S

o

c

ia

l

R

e

s

p

on

s

i

b

i

l


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the reta i l

bus iness to

further the

c a u s e o f s u c h

communities.

Were i t not

f o r t h e a c t i v e

part ic ipat ion

of our

customers ,

our soc ia lp oli cy m ig ht

never have

been

activated. We

are truly

gra teful for

their

g en er os it y i n

supporting

o ur so cia lly

conscious

endeavours.


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i ts t ec hn ica l

a ss is ta nc e t o

new NGOs

T he company

strictly

adheres to a

number of

human r ights

principles

against

discrimination& child

labour.


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FUTURE PLANS OF WESTSIDE

Westside, one of largest and fastest growing chains of retail stores in India, is on

an expansion path these days. The retail chain has just launched KIDSWEST, a

kids program that incorporates learning with playing, in its stores operating in

Delhi, Bangalore and Pune.

Westside, Tatas leading chain of stores, is planning to adopt the franchisee route

to expand its presence in tier-II and tier-III cities. Through this model, 25-30

franchisee-operated stores of across 8,000-12,000 sqft and with an initial

investment of Rs 1.2 crore, per store would be set up in the next five years. With

this move, it plans to reach out to consumers across 37 cities.

Trent-controlled retail chain Westside is planning to open 18 flagship stores in

calendar year 2008. Market sources said that Westside, one of Indias fastest

growing retail store chains, will target mostly tier II and III cities as part of its

expansion plans for 2008, with flagship stores in the 40,000-50,000 square feet

range. At least 80 per cent of the property acquisitions required for Westsides

next phase of expansion have been wrapped up.

Trent is also set to launch its second Star One Global hypermarket (under the Star

India Bazaar initiative) after Ahmedabad, at Vashi in sub-urban Mumbai.


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SIGNIFICANT EVENTS

In 1998 Tata sold of their 50% stake in the cosmetic products company Lakme to

HLL for Rs 200 Crore (approx. 45 million US$), and created Trent from the

money it made through the sale. All shareholders of Lakm were given different

shares in Trent. SIMON TATA, the chairperson of Lakm, went on to head Trent.

Trent Ltd. operates Westside, one of Indias largest and fastest growing chains of

retail stores that currently operate 29 stores in the major metros and mini metros

in India.

Westside has garnered numerous accolades -

Balanced Scorecard Hall of Fame

I n d i a B r a n d S u m m i t B r a n d L e a d e r s h i p R e t a i l

I F A V i s i o n a r y o f t h e Y e a r A w a r d , 2 0 0 2 M r s . S i m o n e N . Ta t a

Most Admired Large Format Retail Chain of the Year - Lycra Images Fashion

A w a r d s 2 0 0 5

NDTV Profit Business Leadership Awards 2006 - Retail Category

Westside, Tatas leading chain of retail stores has launched its Designer

Development Programme (DDP) to encourage Emerging Talent of the fashion

industry and provide them a mass retailing platform. A concept pioneered by

Westside; this is a significant step to bridge the gap between exclusive designer

wear and the fashion conscious Indian consumers.

It is significant that Trent had in April this year entered into an agreement with

The Xander Group Inc, a global private equity firm, to develop and manage an

institutional retail real estate portfolio in India in partnership with Indian

developers.

The flagship stores planned next year will substantially improve possibilities for

cross-promotion between Westside and Landmark, the south-based books and

music retail chain in which Trent had acquired 76 per cent stake in 2005.


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Documents

13886515 Retail Sector Project Report