Right business model for online food and grocery in India

Abstract

The retail market in India is worth $525 billion, of which food and groceries account for 60% share, which accounts for $350 billion. Out of which nearly 20% of the Revenue is from the organized Retail that accounts for $70 billion. Online Food and Grocery accounts for ~2% of the organized Retail market which comes to around $1.44 billion as of 2014 . However, the Industry is estimated to grow with CAGR of 60-65%. Online Food and Grocery Industry can be further defined by the following classifications3 . * Fresh fruits and vegetables. * Milk and milk products. * FMCG like biscuits. * FMCG (Non-Food products) include toiletries and personal care products like soaps, shampoos, toothpaste, detergents etc. * Grains like rice, whole wheat, cereal etc. * Frozen food (meat etc).