India Retail Forum 2008 discusses challenges in retail sector

Retail industry in India has come a long way through several highs and lows but now it is time for a common man to witness the boom in food retail sector in India. Unlike in the past, the debate today is not about how longer the food and grocery retail in India would grow, but rather how fast can it grow and what are the challenges faced by the food retail industry. Thus, India Retail Forum 2008 was recently held in Mumbai to discuss the opportunities underlying the growth and challenges in the retail segment.

Supply chain and real estate were the major issues discussed at the conference that involved several big players from the retail industry. The session started with a discussion on three main factors that dominate the food retail industry comprising the income growth, population growth and the purchasing power of an individual.

Samir Kuckreja, CEO and managing director, Nirula’s, initiated the discussion with the opening statement, “If we look at the primary challenge in food retail, no doubt supply chain is the major issue that makes it difficult for retailers and food processors to procure quality produce at competitive costs directly from farmers.”

The Indian supply chain for food products is characterised by extensive wastage and poor handling. There is a compelling requirement for appropriate infrastructure for storage and transportation such as temperature controlled warehouses and vans.