Being entrepreneurs by nature, the people of Punjab are capable of much hard work, sweat and toil, for showing the way to abundance and prosperity with the ‘green’ and ‘white’ revolution. The plentiful harvests mean plenty of money resulting in making farmers of Punjab relatively more well off than their counterparts elsewhere in India. With more disposable money to burn, the people of Punjab have been seeking avenues to do so, thereby fuelling the retail boom in the state. By 2010, around Rs.600 billion are expected to be spent in the real estate and more investments are likely to follow soon. As many as 60 more malls are expected to come up in various cities. More than 30 are expected be operational by 2008. Some of the cities and towns where developments are planned include Ludhiana, Mohali, Jalandhar, and Amritsar, Patiala, Hoshiarpur, Khanna, Gurdaspur, Kapurthala, Nawanshahr, Ferozepore, Roper, Faridkot, Muktsar, Moga, Bathinda, Rajpura, Mansa and Sangrur.
Why is Punjab the favourite?: Statistics show the disposal income per person in this state is much higher than the national average. Punjab has been consuming more than other states. And Images-CII study on retailing in Punjab indicates that its consumption average is significantly higher than the all-India average in almost every retailing category. These categories include food and communication. As per estimates, the average per person monthly consumption expenditure during 2004-05 in urban Punjab was Rs.1,182.90, which is higher than the national average of Rs.1,149.52.
The average monthly consumption expenditure for rural consumers in Punjab is Rs.1,022.05 only marginally lower in comparison to the state’s urban average, but much higher than the national average of Rs.635.72 per person per month. No wonder, investors are quite keen to tap this huge consumption potential in the state. By the end of 2008, there will another four-fold increase, taking the mall space to 152 lakh sq. ft. By 2010, Punjabis believed to have over 40 malls. The epicenter of this revolution would be Ludhiana. A Study conducted by Hudema consulting group suggests that total retail potential of Ludhiana would be Rs.5,940 crore by 2010 and, by 2015, the figure is expected to touch Rs.9152 crore. The revolution will be fuelled by the legendary spending spree that Punjabi families by the data in the National Sample Survey Organisation and KSA Technopak. The average monthly consumption expenditure per individual in punjab’s cities is Rs.1,182.90, which is higher than all-India average of Rs.1,149.52.
Its appears that the rural Punjabis want to beat the urbanites in their shopping splurges. The average monthly consumption expenditure for rural Punjab is Rs.1022.05. The national average is only Rs.635.72. Retailing in Punjab: With converging aspirations, higher incomes and better infrastructures, one can predict entry of lifestyle brands in key cities of Punjab. Already, Chandigarh, Mohali, Amritsar, Patiala, Jalandhar and Ludhiana are witnessing the construction of retail arenas with much prior retail frontages than ever before. With just three operational malls in Punjab in 2005, the state is now on the threshold of a major retail boom in 2007 nine new projects have been completed, taking the total mall space to 31.8 lakh sq. ft. a nearly 12-fold increase in just one year. Ludhiana, Chandigarh-Mohali, Amritsar and Jalandhar are the urban centers Punjab that are likely to experience significant mall activity over the next three to four years. As per plan, by end-2008, Ludhiana will have 11 malls while Amritsar and Jalandhar will have each six malls. Mohali, Chandigarh will have four and three malls respectively whereas Ambala, Manimajra, Panchkula, Patiala, and Zirakpur will have one mall each. Reliance is planning for a mega foray into the farm and dairy sector to strengthen its food retailing arm and Mukesh Ambani’s interest in Punjab hints at substantial investments for creating organised base of agriculture and milk produces. The benefits, of course, are not limited to farmers alone. Once the systems are in place and the global players build confidence, they would be inclined to source from India for the international markets as well. The concept of dhaba is so strong that Reliance Industries started its retail venture by conceptualising a contemporary format of dhabase called ‘A1 Plazas’ alongside its petrol pump on expressways.
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