Mumbai, May 6: The Indian retail market was worth around USD 332.8 billion (Rs 1,330,000 cr) at current prices in 2007, according to a report.
The report ''Food for Thought: Indian Food Report'' to be released later this year, based its estimate on private final consumption expenditure data from the Central Statistical Organisation (CSO) National Accounts statistics and year round feed back from the Industry. Organising retail had increased its share from three per cent in 2004 to 5.9 per cent and was valued at around Rs 78,300 crore (USD 19.6 billion).
According to G D Singh, Director-Research, Images, who had carried out the study, given rapid pace of retail growth it was expected that Indian retail market will be in excess of Rs 18,100 billion (USD 452.8 billion) by year 2010. Organised retail would exceed Rs 2,300 billion (USD 57.5 billion), accounting for nearly 13 percent of the total market in 2010.
This growth will call for a greater availability of quality retail space in the country, the report said.
In the overall Retail pie, Food and Grocery was the dominant category with 59.5 per cent share, valued at Rs 792,000 crore (USD 198.2 billion), followed by Clothing and Accessories with a 9.9 percent share at Rs 131,300 crore (USD 32.9 billion).
Interestingly, out-of-home food (catering) services (Rs.71,300 crore / USD 17.8 billion) has overtaken Jewellery (Rs.69,400 crore) to become the third largest retail category, with a 5.4 percent market share.
This largely reflects the massive employment opportunities to youngsters in the services sector, larger number of nuclear families, where normally both male and female partners are employed and accompanying changes in consumer lifestyles, the report added.
In the Organised retail segment, the picture is different altogether. Clothing and Fashion Accessories was the largest category with 38.1 percent of the market share, valued at Rs 29,800 crore (USD 7.5 billion), followed by Food and Grocery accounting for 11.5 percent of the organised retail market at Rs 9,000 crore (USD 2.3 billion), Footwear with 9.9 percent of the organised retail market share at Rs 7,750 crore (USD 1.9 billion), Consumer Durables with 9.1 percent market share at the fourth place (Rs 7,100 crore), and Out-of-home food (catering) services and Furniture, Furnishings and Kitchenware retail were at the fifth palce in the order.
The mobile and accessories retail market has shown fastest growth in 2007 (25.6 per cent) over the previous year, the other two prominent categories being out-of-home food (catering) services, where growth was 25.1 percent and books, music and gifts leisure category, which achieved 23.3 percent growth, it said.
In the organised retail segment, however, the fastest growth was recorded in the tiny heath and beauty care services category (Rs 660 crore), which grew at the rate of 65 per cent in 2007 over the previous year, reflecting the rise in services sector employment that demands proper grooming.
The second fastest growing organised retail category was that of Entertainment (53.8 per cent), followed by the mobile phones and accessories and the food and grocery retail categories, both of which achieved 55.2 per cent growth in 2007.
Much of the stupendous growth opportunity in Catering services (25.1 per cent) category was utilised by the unorganised retailers because organised players could not keep up to the desired growth momentum. A closer study of the retail growth story, at constant prices, shows that in this category growth of organised retail was higher in 2006 (41.7 per cent) as compared to 2007 (37 per cent).