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Highlights from the panel discussion with Kishore Biyani, Founder of
Future Group; Thomas Varghese, CEO of Aditya Birla Retail; V G Sid‐
dharth, Chairman of Coffee Day ‐
On Indian consumption
* The large Indian middle classes should drive consumption for many years
to come. The Indian consumption story, which has just begun to unfold, is
at an inflection point.
* The Indian consumer wants to move up the consumption curve and mod‐
ern retail should facilitate this uptrade. Modern trade should also be a
facilitator in the creation of new categories.
* The rural consumer is as aspirational as the urban consumer. To capture
this demand a lot of the FMCG companies have brought in low price point
SKUs for their top end products
* The Government schemes like NREGA and higher minimum support
prices have given significant money into the hands of the rural consumer.
* The next 10 yrs should be very different from the past 10 yrs. The parents
of today's children are more liberal, and feel no guilt about consumption.
On FDI in retail
* The panelists were of the opinion that FDI is very important for bringing
inefficiencies into the sector and for controlling inflation and hence the gov‐
ernment would consider FDI in retail after the political pressure due to state
elections is over.
* The cash and carry model anyway gives international retailers a back door
entry into the sector.
* If the government were to allow FDI in retail, it could result in higher com‐
petitive intensity bringing operational efficiency to the benefit of the con‐
sumer in the long run.
On investment in gold and real estate
* Indians traditionally believe in investing in gold and real estate. Indians
have about 18000 tons of gold, which offers some protection during infla‐
tionary times.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Highlights from the panel discussion with Kishore Biyani, Founder of
Future Group; Thomas Varghese, CEO of Aditya Birla Retail; V G Sid‐
dharth, Chairman of Coffee Day ‐
On Indian consumption
* The large Indian middle classes should drive consumption for many years
to come. The Indian consumption story, which has just begun to unfold, is
at an inflection point.
* The Indian consumer wants to move up the consumption curve and mod‐
ern retail should facilitate this uptrade. Modern trade should also be a
facilitator in the creation of new categories.
* The rural consumer is as aspirational as the urban consumer. To capture
this demand a lot of the FMCG companies have brought in low price point
SKUs for their top end products
* The Government schemes like NREGA and higher minimum support
prices have given significant money into the hands of the rural consumer.
* The next 10 yrs should be very different from the past 10 yrs. The parents
of today's children are more liberal, and feel no guilt about consumption.
On FDI in retail
* The panelists were of the opinion that FDI is very important for bringing
inefficiencies into the sector and for controlling inflation and hence the gov‐
ernment would consider FDI in retail after the political pressure due to state
elections is over.
* The cash and carry model anyway gives international retailers a back door
entry into the sector.
* If the government were to allow FDI in retail, it could result in higher com‐
petitive intensity bringing operational efficiency to the benefit of the con‐
sumer in the long run.
On investment in gold and real estate
* Indians traditionally believe in investing in gold and real estate. Indians
have about 18000 tons of gold, which offers some protection during infla‐
tionary times.
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