Food Services and Clothing and Textiles Segment

The Composition of the Sector:

The food services market can be divided into fast food, café’s and restaurants and all other locations which offers caterings services. Fast food can be further segregated into quick service restaurants, street vendors, locations which offer only take away facilities and places which offer dine-in facilities. Café’s and restaurants would include pubs and restaurants and hotels and retail locations which offer catering facilities. Others would include sales occurring at educational institutions, clubs, hospitals, etc.

The size of the sector:

The market for food services is estimated to stand at worth Rs 57,000 crores, of which only Rs 3,940 crore or 6.9% is accounted for by the organized sector.

Key Players in the segment:

One of the key players in the field of food services is McDonald’s. McDonald’s started operations in India in the second half of 1996. McDonald’s in India, is a 50:50 joint venture between McDonald’s Corporation, USA and two Indian businessmen Hard castle Restaurants Private Limited owns and manages McDonald’s restaurants in the West, while in the north, McDonald’s Restaurants are owned and managed by Connaught Plaza Restaurants Private Limited. It is estimated that McDonald’s India operates 100 restaurants, in 22 cities across the country. The other players include Domino’s Pizza a recognized world leader in pizza delivery, operating across 55 countries. In India the company has a countrywide network of over 140 outlets in 32 cities.

Yum! Brands Inc is the owner of the Pizza Hut, Kentucky Fried Chicken, Taco Bell, A&W and Long John Silver’s restaurants worldwide.

Kentucky Fired Chicken or KFC as it is popularly called, started operations in India in 1995, and was the first western Quick Service Restaurant to enter the country. In the initial years of its entry it faced political issues; however, it was re-launched in the year 2003. KFC now has a presence in six Indian cities of Bangalore, Hyderabad, Calcutta, Pune, Chandigarh and Ludhiana and plans to open soon in Mumbai. Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then, it has captured a dominant and significant share of the pizza market and has maintained an impressive growth rate of over 40 per cent per annum. Most Pizza Hut restaurants are located in the metros and smaller metros, and the company operates 163 outlets across 25 cities in India.

Jumbo King began its Journey to brand the Vada Pav, a popular snack in Maharashtra, in August 2001. The company currently has 50 outlets spread over 3 cities in the country. Over the next twelve months, the company is looking at 100 stores in Mumbai and 25 stores in Gujarat.

Other key players include Barista Coffee Company Ltd which started in the year 1999, and café Coffee day which is a part of India’s largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd (ABCTCL) a Rs 200 crore ISO 9002 certified company. The company owns and operates 500 cafes across 80 cities in the country.

The composition of the sector:

The terms clothing and textiles would include the fabric manufacturers and clothing would be understood as readymade garments. The term readymade garment (RMG) refers to ready to wear apparel. This includes shirts, trousers, T-shirts, jeans, ladies’ dresses (Indian apparel such as churidars, kurtas, and salwaar-karmeez), and hosiery items sc hassocks and inner wear and kids wear.

The textiles sector on the other hand, would include manufacturers of various types of textiles, which may be classified as synthetic, cottons and blends. This then can be further classified on the basis of the type of fabric like silk, linen, etc.

The Size of the Sector:

The domestic clothing textiles and fashion accessories market is estimated to be at Rs 113,500 crore and about 18% of this market is believed to be organized. The organized retail is estimated to stand at Rs 21,400 crores. Apparel retail is the largest segment of the organized Indian retail sector, accounting for almost 38% of the total.

Keys players in the Clothing & Textiles:

Apparel retailing for men’s wear has been significant development in India. Retailers are now looking for opportunities in the women’s apparel (particularly traditional wear for which women visit boutiques or sari stores) and children’s wear segments.

Raymond Apparel is a part of the Raymond conglomerate one of the biggest textile players in India. Raymond Apparel has three major brands under its belt – Park Avenue, Parx and Manzoni. All the brands of Raymond Apparel are marketed through the 300 Raymond outlets.

Other key players in the apparel segment include Provogue India Limited which started as Acme clothing in 1997. Provogue manufactures a wide range of men’s apparel and clothing accessories. The company sells its products through its retail outlets, which are known as Provogue Studios. ITC Wills Lifestyle is a division of ITC and has established a nationwide retailing presence through its wills Lifestyle chain of executive specialty stores.