This case study helps to create an in-depth understanding of the distinct models of the retail giants in India - ITC, Future Group and Reliance. Analyzing the unique model of Reliance's retail venture and its growth prospects, the case facilitates a comparison and evaluation of the three retailing business models based on the sustainability and effectiveness of the models in the context of Indian retailing sector's untested growth trajectories. Organized retail is still in its nascent stages in India as Indian corporate houses were late in realizing the potential of organised retail. The sector, which was on a boom, was hit hard by the global financial crisis during 2008. Many of the retailers have resorted to reducing costs by consolidating formats and models. However, at a time when the existing retailers are tackling their blues, Reliance Industries Limited (RIL) has made a grand entry to the retail sector through Reliance Retail Limited (RRL), its retail arm. RRL has opened stores in each of the verticals and by mid-2009 has been operating around 12 formats, above 920 stores - spread across the country - in about 4.2 million sq. ft. Though it is the biggest conglomerate in the country, RRL is facing tough competition from two powerful and ambitious retailers - Future Group and ITC. Future Group's retailing arm Pantaloon Retail India Ltd. has managed to find growth even during the recession and its pan-Indian retail model has gained loads of acclamations. ITC has its presence in rural and urban areas alike with its well-positioned national brands in FMCG and Lifestyle Retailing Business Division (LRBD). The three famous corporate houses, emerging from three different backgrounds have different operational models. While wading through the crisis, the three retailers are trying to script a right combination to succeed in the Indian organized retailing sector.

Of late, the Indian organized retail industry has become very lucrative, attracting both Indian and international business corporations to try their hand at the retail business. Though the recession that set in following the global financial crisis of 2008 slowed down the progress of Indian organized retail, increasing number of players are entering the segment because of the large potential it offers. Indian corporate majors like Tata, Birla, Bharti, RPG and Raheja groups have made their foray into the retail sector with varying formats. Kishore Biyani's (Biyani) Future Group has long been in the organized retail with its retail arm Pantaloon and is doing well in spite of the recession. ITC, well-known for cigarettes, has diversified itself into agribusiness and retail, already a major player in the fashion apparel retailing, with Wills Lifestyle and has even entered into the urban markets with ITC Choupal Fresh - a neighborhood store selling vegetables and other farm-related products. Bucking the trend, Reliance has also made its way into the organized retail sector with a unique `retail conglomerate model'. While most of the major players were trying to establish one-stop shops, Reliance has come up with a diagonally opposing model of operating as a speciality retailer in various verticals - 14 in all - ranging from groceries to auto accessories. Despite the best of funding and experienced `think-tank' it has, it would be too early to predict the future of Reliance retail, as it has to compete with the best of the incumbents in each of the verticals.

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