Chapter-3- Profile of the study area

3.1. Introduction

This research study has been conducted among the consumers and retailers belonging to -Chinchward area of District, one of the important industrial centers of state. A detailed review of the economic and demographic features of Maharashtra state is necessary to understand the economic behaviour of the sample population.

3.2. Overview of Maharashtra State- Maharashtra occupies the western and central part of the country and has a long coastline stretching nearly 720^ kilometers along the Arabian Sea. The Sahyadri mountain ranges provide a physical backbone to the state on the west, while the Satpuda hills along the north and Bhamragad- Chiroli-Gaikhuri ranges on the east serve as its natural borders. The State is surrounded by Gujarat to the north west, Madhya Pradesh to the north, Chattisgarh to the east. And lira Pradesh to the south east, Kamataka to the south and Goa to the south west. The State enjoys a tropical monsoon climate, the hot scorching summer from March onwards yields to the rainy monsoon in early June. The rich green cover persists with mild winter during monsoon season that follows through an unpleasant October transition. The seasonal rains from the western sea-clouds are very heavy and the rainfall is over 400 cm. on the Sahyadrian crests. The Konkan on the windward side is also endowed with heavy rainfall, declining northwards. East of the Sahyadri, the rainfall diminishes to a meager 70 cm. in the western plateau districts, with Solapur-Ahmednagar lying in the heart of the dry zone. The rains increase slightly, later in the season, eastwards in the Marathwada and Vidarbha regions. Maharashtra is the second largest state in India, both in terms of population and geographical area (3.08 lakh sq. km.).

' Economic Survey of Maharashtra-2012-13. 23 The State has a population of 11.24 crores (Census 2011) which is 9.3 per cent of the total population of India. The State is highly urbanized with 45.2 per cent people residing in urban areas. The State has 35 districts which are divided into six revenue divisions viz, Konkan, Pune, Nashik, Aurangabad, Amravati and Nagpur for administrative purposes. The State has a long tradition of having statutory bodies for planning at the district level. For local self-govemnnce in rural areas, there are 33 Zilla Parishads, 351 Panchayat Samitis and 27,906 Gram Panchayats. The urban areas are governed through a total of 26 Municipal Corporations, 219 Municipal Councils, 7 Nagar Panchayats and 7 Cantonment Boards. Mumbai, the capital of Maharashtra and the financial capital of India, houses the headquarters of most of the major corporate & financial institutions. India's main stock exchanges & capital market and commodity exchanges are located in Mumbai. The gross state domestic product (GSDP) at current prices for 2011-12 is estimated at Rs.l 1,99,548 crore and contributes about 14.4 per cent of the GDP. The GSDP has been growing at a rapid pace over the last few years. Presently industrial and services sector both together contribute about 87.1 per cent of the State's income. The agriculture & allied activities sector contributes 12.9 per cent to the State's income. The State has 226.1 lakh hectares of land under cultivation and area under forest is 52.1 lakh hectares. Numbers of irrigation projects are being implemented to improve irrigation. A watershed mission has been launched to ensure that soil and water conservation measures are implemented speedily in the no irrigated area. Animal husbandry is an important agriculture related activity. The State's share in livestock and poultry population in India is about 7 per cent and 10 per cent respectively. Agricultural activities concentrated mainly in rural districts of the state.

Maharashtra is the most industrialized State and has maintained leading position in the industrial sector in India. The State is pioneer in Small Scale industries. The State continues to attract industrial investments from both, domestic as well as foreign institutions. It has become a leading automobile production hub and a major IT growth centre. It boasts of the largest number of special export promotion zones. The State has given importance to primary education, which has resulted in consistent improvement in literacy rate. The literacy rate of the State is 82.9 per cent as against 74 per cent at national level as per Census 2011. The State is providing free education to girls studying up to XII standard. The State has

24 excellent higher educational institutions in the fields of engineering, medical and management. Progress on Human Development Index is often depicted as a benchmark of a state's progress of key development indicators. As per India Human Development Report, 2011 Human Development Index of India is 0.467 and State ranks 5th in the country with Human Development Index of 0.572.

The State has well spread road network of 2.43 lakh km. (maintained by public works Department and Zilla Parishads). All weather roads and fair weather roads connect more than 99 per cent villages. It has best surface transport facilities and connectivity with sea ports and airports has resulted into good transport system. It has highest installed capacity and generation of electricity in the country. All this has made this state the most favoured destination for investment. The State is well known for its administrative acumen and innovative ideas. The State is first to implement Women policy and engendering the budget by establishing separate Woman & Child Development Department. It is pioneer in implementing its 'Employment Guarantee Scheme' which is replicated by the Government of India. Maharashtra is not just a geographical expression but an entity built on collective efforts of its people. Natural as well as cultural diversities have helped in the development of a unique Marathi culture. It has its own spiritual dimensions and known as Land of Saints. Saints of that time helped the cultural awakening of the region along with their spiritual contribution. Maharashtra has played a significant role in the social and political life of India. Maharashtra's contribution to the freedom struggle against the British is notable and after that it was engaged in the task of nation building. Monuments such as Ajanta, Ellora and Elephanta caves. Gateway of India and architectural structures like Viharas and Chaityas have attracted people from all over the world. Besides the wonderful monuments, segment mix of population and its cultural aspects makes it intra-national. It has produced many important personalities covering almost every aspect of human development. The State has sizable contribution in sports, arts, literature and social services. The world famous film industry, popularly called "Bollywood" is located in Mumbai, a capital city of the State.

25 3.3. State of Economy State Income Gross State Domestic Product (GSDP) at constant (2004-05) prices, as per advance estimates, is expected to grow at 7.1 per cent during 2012-13. The Agriculture sector is expected to grow at (-) 1.4 per cent, restraining the growth of 'Agriculture & allied activities' sector at (-) 2.1 per cent. The Industry sector is expected to grow at 7.0 per cent while, the Services sector is expected to grow by 8.5 per cent. GSDP at constant (2004-05) prices was Rs. 7,87,426 crore during 2011-12, as against Rs.7,35,212 crore in 2010-11, showing an increase of 7.1 per cent as per the first revised estimates. GSDP during 2011-12 at current prices was Rs. 11,99,548 crore, showing an increase of 15.9 per cent over the previous year. Net State Domestic Product (State Income), as per the first revised estimates, was Rs.10,82,751 crore and Per Capita State Income is Rs.95,339 during 2011-12.

Prices Avernge Consumer Price Index (CPI) in the State for the period April to December, 2012 for rural and urban areas increased by 9.7 per cent and 9.6 per cent respectively over the corresponding period of the previous year. The year-on-year rate of inflation based on WPI declined from 7.5 per cent in April, 2012 to 6.6 per cent in January, 2013, the lowest in last three years. For 'Food' sub-group, it declined sharply from 10.9 per cent in April to 6.7 per cent in Octolier. Subsequently, it increased to 11.9 per cent in January, 2013.

Public Finance The expected Revenue receipts of the State Government was Rs. 1,36,712 crore during 2012-13 (BF), as against Rs.1,25,313 crore during 2011-12 (RE). Tax and non-tax revenue were expected to be Rs. 1,09,023 crore and Rs.27,689 crore respectively. Actual revenue receipts during April to December, 2012 was Rs.96,405 crore (70.5 per cent of budget estimates). Thirteenth Finance Commission has recommended grants-in-aid for specific purposes. This amount received during 2012-13 is Rs. 3,554 crore includes basic grants of

26 Rs. 1,095 crore and performance grants of Rs.751 crore for local self governments. Revenue expenditure of the State Government was expected to be Rs. 1,36,559 crore during 2012-13 (BE) as against Rs.1,27,372 crore during 2011-12(RE). Revenue surplus of Rs. 153 crore and fiscal deficit of Rs. 23,066 crore was projected during 2012-13. Debt stock at the end of 2012- 13 was expected to reach at Rs.2,53,085 crore. The percentage of fiscal deficit to GSDP was 1.7 per cent and debt stock to GSDP was 18.4 per cent during 2012-13, well within the Consolidated Fiscal Reform Path stipulated by the Thirteenth Finance Commission.

Institutional Finance Aggregate bank deposits were Rs. 15.94 lakh crore, gross credit was Rs. 13.88 lakh crore and credit deposit (CD) ratio was 87.1 per cent as at the end of March, 2012. As on 31st March, 2012, deposits from 8.27 lakh Self Help Groups (SHG) were of Rs.724 crore, whereas the loans outstanding with 2.15 lakh SHGs were of Rs. 1,164 crore. During 2011-12, loans of Rs. 602 crore were disbursed to SHGs. Under financial inclusion, 6,069 unbanked villages were covered by the end of January, 2013. Total 22.53 lakh 'no frill' accounts were opened up to the end of March, 2012.

Agriculture and allied activities Total rainfall in the State during 2012 was 90.3 per cent of the normal rainfall. Out of 355 talukas in the State, 30 talukas received excess, 189 talukas received normal and 136 talukas received deficient rainfall. Due to low intensity and deficit monsoon in some parts of Western Maharashtra, Aurangabad and Nashik Division, the sowing of major Kharif crops was delayed. Low moisture conditions and erratic rainfall in September and October has resulted in reduction of area under Rabi crops. Thus, the overall production of food grains reduced drastically during the year. Industry Since August, 1991 to March, 2012 in all 4,246 Foreign Direct Investment (FDI) projects amounting to Rs.97,799 crore were approved, of which 45 per cent were

27 commissioned and 10 per cent are under execution, with a share of investment of 51 per cent and eight per cent respectively.

Co-operation There were about 2.28 lakh co-operative societies, with about 525 lakh members as on 31st March, 2012. Of these, nine per cent were in agriculture credit, 10 per cent were in non- agriculture credit and 81 per cent were engaged in marketing, production, lift irrigation, electric supply, water supply, transport, social sectors, etc. Energy Installed capacity of electricity was 22,798 MW as on 31st December, 2012. Generation of electricity was 67,663 Million Units (MUs) up to December, 2012, which was slightly higher than that of the previous year. Thermal electricity generated was increased by 12.7 per cent and renewable energy generation was increased by 15.8 per cent while generation of electricity using natural gas was decreased by 8.1 per cent. Social sector As per Population Census 2011, the total population of the State is 11.24 crore, of which, female population is 48.0 per cent. The percentage of urban population is 45.2. The decadal growth of the population is about 16 per cent. Birth rate, infant mortality rate and death rate were 16.7, 25 and 6.3 respectively in 2011. The corresponding figures were 17.1, 28 and 6.5 respectively in 2010. Maternal mortality ratio during 2007 - 2009 was 104. Under Mid-day meal scheme, about 1.20 crore students are benefited during 2011-12. Under Indira Aawas Yojana 1,53,185 houses constructed in 2011-12. Under Basic Services to Urban Poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP), about 54,479 and 18,758 dwelling units were constructed respectively up to December, 2012. Number of beneficiaries covered under Supplementary Nutrition Programme (SNP) was 61.82 lakh in rural (including tribal) and 12.78 lakh in urban area during 2011-12. According to 'India Human Development Report (IHDR) 2011' the State ranks fifth in India preceded by Kerala, Delhi, Goa and Punjab.

28 3.4. About the Study area- To study the impact of organized retail shops on the unorganized retail shops, the researcher selected those organized and unorganized retailers who deals with consumer durable goods, operates in Pimpri- area. Pimpri-Chinchwad Municipal Corporation or PCMC is a Municipal corporation in the city of Pimpri-Chinchwad which is a suburb of Pune. This corporation is situated on Mumbai - Pune National Highway (Part of NH 4). It was establislied in 1982 covering an area of *about 87 square km. Sometimes back, this was one of the Richest Municipal Corporations of Asia. The reason behind it is that, it has an industrial belt of small as well as big National & Multinational Companies. The industrial area of PCMC was started with the establishment of Hindustan Antibiotic, the first pharmaceutical company in the year 1954. On 4 March 1970 late Annasaheb Magar put the founding stone of PCMC. In the beginning four villages - Pimpri, Chinchwad, Akurdi and were merged into this corporation area. The Pimpri-Chinchwad Municipal Transport (PCMT) was started in 1974. This is now a part of PMPML (the local transport of Pune Metropolitan Area). In 1975 the status of this corporation was changed from C to A class. There is a significant Sindhi population present in Pimpri. The township is situated at a height of 530 m. above the sea level. It is blessed with pleasant climate all the year round. Three rivers Pavana, Mula and Indrayani flow through this area. The main localities are Chinchwad, Pimpri, , Akurdi, Kalewadi, and Bhosari. Pimpri is well connected by road, rail and air. The nearest airport is Pune airport. Maharashtra government is planning to set up a new airport near Chakan. Pune- suburban local trains run through this area. The railway station for this area is Pimpri railway station. Old Pune-Mumbai highway has been widened to four lanes, which has improved connectivity to Pune and reduced travel time to less than 30 minutes. It has a State Transport Bus stand stop at Vallabhnagar. Pune Mahanagar Parivahan Mahamandal limited (formed by merger of PCMT and PMT) operates the public transport system in this area. The Maharashtra government has proposed metro connectivity to Pimpri under the Pune-Metro project. A BRTS system is also under construction in this area. The main language spoken in the town is Marathi and Sindhi. It is one of the busiest business hubs in the country famous for its clothing and eateries. Well versed with religious spots for all religions, Pimpri is an

Source- Wikipedia, the free encyclopedia 29 example of Unity in Diversity of the country and depicts a true Indian spirit. People are known for their helping hand and charity for various religious and other occasions.

Geography

The township is situated at a height of 530 m above the sea level. It is blessed with pleasant climate all the year round. Three rivers Pavana, Mula and Indrayani flow through this area. Pimpri-Chinchwad sources its water from the but release of domestic and industrial effluentsdumping of debris and domestic pollution has severely affected the quality of the Pavana water, though recently efforts have been taken to improve the quality of water, which have been successful in some places along the riverside.

History

Today's Pimpri-Chinchwad is formed by joining the formerly independent localities of Chinchwad, Pimpri, Akurdi, Kalewadi, and Bhosari. The name Chinchwad is derived from the trees Chinch (tamarind) and Wad (banyan). Chinchwad is famous for Saint Morya Gosavi's Shrine, which is one of the lord Ganesha's shaktipeeth in Maharashtra state. Due to the flooding of the river Pavana every year, the temple gets submerged in the river water. Local people consider it as bathing of lord Ganesha. Chinchwad is also the birthplace of the Chapekar brothers. Pimpri-Chinchwad is home to the historic town of Bhosari, originally known as Bhojapuri. Two thousand years ago, it was the capital of legendary Hindu king Bhoj. During the period of Mahabharata this town was known as Bhojakata, the capital of the Bhoja-Yadava king Rukmi. It is mentioned in Mahabharata that to the west of Kundinapuri, the Bhojakata lay capital of Vidarbha Kingdom. Starting in the mid 1950s the green fields of the villages on the sides of the highway and railways linking Pune to Mumbai became locations for large industrial development. In the 1960s, the newly founded Maharashtra Industrial Development Corporation (MIDC) purchased vast tracts of land and built roads and water supply infrastructure. It turned the area into a successful cluster of pharmaceutical, mechanical, automotive, and, more recently, information technology, of national and international importance. Hundreds of thousands of people migrated to the new hub to find the 30 jobs and benefit from rapid economic development. In 1970, the scattered village jurisdictions merged into one single municipal authority, the Pimpri-Chinchwad Muncipal corporation.

Industries

Pimpri-Chinchwad today is one of the major industrial hubs in Asia. Industrialization started in 1954 with the arrival of Hindustan Antibiotics Ltd. PCMC is now home to the Indian operations of major automobile companies like Premier Ltd., Mahindra and Mahindra Engineering services, Bajaj Auto, BEL Optronic Devices Limited, TATA Motors, Kinetic Engineering, Force Motors, Thermax and Autoline industries. In addition to this, several heavy industries such as Forbs-Marshall, ThyssenKrupp and GEA Ecoflex, Alpha Laval & Sandvik Asia have their manufacturing units in the town and also the German company KSB Pumps, Swedish bearing company SKF. Rajiv Gandhi InfoTech Park hosts several software and information Technology major like Tata Consultancy services. Cognizant, IBM India, KPIT Cummins, Tata Technologies, Infosi, Wipro, Geometric Limited, Finolex cables limited etc.

The current commissioner of Pimpri-Chinchwad is Dr. Shrikar Pardeshi. The additional commissioner is Mr. Tanaji Shinde. Mrs. Mohini Lande is the current mayor and Raju Misal is Deputy-Mayor of Pimpri-Chinchwad. The JNNURM award for Best Performing City under Sub-Mission for Urban Infrastructure and Governance was given to Pimpri- Chinchwad.

The impact of organized retail shops on unorganized shops is studied based on the consumer behavior. So the main sample population of this study is the consumers residing in the study area. On this context, it is worth to analyze the demographic features of the study area.

3.5. Recent demographic features of the study area

As per the Census reports of India, population of Pimpri and Chinchwad in 2011 is 1,729,359; of which male and female are 945,953 and 783,406 respectively. (Table-3.1)

31 Although Pimpri and Chinchwad city has population of 1,729,359; its urban / metropolitan population is 5,049,968 of which 2,659,484 are males and 2,390,484 are females.

Literacy Rate In education section, total literates in Pimpri and Chinchwad city are 1,374,986 of which 784,984 are males while 590,002 are females. Average literacy rate of Pimpri and Chinchwad city is 90.90 percent of which male and female literacy was 94.63 and 86.37 percent respectively. (Table-3.1)

Sex Ratio The sex ratio of Pimpri and Chinchwad city is 828 per 1000 males. Child sex ratio of girls is 861 per 1000 boys. (Table-3.1)

Cliild Population Total children (0-6) in Pimpri and Chinchwad city are 216,695 as per figure from Census India report on 2011. There were 116,421 boys while 100,274 are girls. The total child population forms 12.53 % of total population of Pimpri and Chinchwad City. (Table-3.1)

TableS.l Demograpliic Statistics of the study area.

Pimpri Chinchwad City Total Male Female Population 1,729,359 945,953 783,406 Literates 1,374,986 784,984 590,002 Children (0-6) 216,695 116,421 100,274 Average Literacy (%) 90.90 94.63 86.37 Sex ratio 828 Child Sex ratio 861 Source- Economic survey of VIaharashtra-2011-12

32 3.6. Retail sector in the study area- This study is confined to the retailers' deals with consumer durables. There are around 30 unorganized retailers and 5 organized retailers selling durable goods operating in the area. Various flex boards and advertisement devices indicate the increasing importance of malls in the city. Traditional retail formats like hawkers, grocers and paan shops co-exists with modem formats like super markets and non-store retailing channels such as multilevel marketing and tele- shopping. There are two main shopping areas in Pimpri-Chinchward. One is situated in Pimpri and the other one is on both sides of Mumbai-Pune highway. The organized shops are situated on the highway area. Most of the unorganized shops are concentrated their operation in Pimpri area.

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