INDIAN ECONOMY GROWS BY 7.4%

The Ministry of Statistics and Program Implementation has estimated that the Indian Economy has registered a 7.4 % growth in the financial year 2009 -10. Driven by a healthy manufacturing sector performance and strong consumer spending, GDP growth of 7.4 % has exceeded the forecast of 7.2% for the year.

PACKAGED WATER SEGMENT IN INDIA

Bottled water in India is growing at a furious space. Industry players estimate the domestic bottled water market in India at around Rs 2,000 crore ( $ 445 Million). This is growing at at an annual rate of 40 per cent. The major players in this segment are Coke's Kinley, Pepsico's Aquafina and Parle Agro's Bailley amongst others.  The lemon drinks market too is showing a healthy annual  growth of around 35% and today stands at Rs 100 crores ( $ 90 Million).
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CONSOLIDATION OF HARIYALI KISAAN BAZARS

DCM Shiram Consolidated Ltd (DSCL) has decided to consolidate its rural retail chain business, Hariyali Kissan Bazar (HKB), by offering more economical fast moving consumer goods products to the rural consumers apart from a range of agricultural inputs rather than focusing on expansion. DSCL has around 300 rural HKB stores across eight states in the country. DSCL is planning to consolidate HKB following losses since its launch four years back. HKB incurred a loss of Rs81 crore in 2009-2010 attributed to deficient monsoon rains in 2009. However, revenue of HKB grew by 50 percent to Rs630 crore from Rs419 crore in 2008-2009.
Financial Express: May 07, 2010

Rural Households earn More

There is an increase in earnings per household in Rural India. From Rs 2795 in 2006-07 to Rs 3150 in 2007-08 to Rs 4060 in Rs 2009-10. This is an increase of 45% in 2 years.
 The Rural Development Ministry claims that this is primarily due to the job guarantee schemes that have been launched by them.
 This would certainly have an impact of the purchasing power and quality of life of the rural poor.


Seems good news for retailers in rural India.



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