Spar is german. In german it means to save- thus the prices in Spar are usually low.

spar is dutch

spencers is sri lankan?


madras based i believe

Spencers belongs to the RPG group of India. I think their HQ is in Kolkata.

ah ok.theres a big retailers in sri lanka with an english name too

http://img147.imageshack.us/img147/968/84839972ec0.jpg

[Live Mint]

Biyani to invest Rs 4k cr in industrial warehouses

IN ORDER to cash in on India’s industrial growth, Kishore Biyani plans to invest $1 billion (approximately Rs 4,000 crore) to buy land and set up industrial warehouses across the country in the next three years. To begin with, his recently listed firm Future Capital Holding (FCH) has formed an equal joint venture with Realterm Global, a part of North America’s leading air cargo distributor Aeroterm, which has 110 facilities managed and under development over seven million square feet across 30 markets globally. The JV has raised $350 million through a private equity fund, and is in the process of mobilising another $500 million by way of debt. Future plans also include listing of the fund after three years.
The JV — Realterm FCH — has set up a four-member board with the foreign partner’s representative, Brian Oravec, as its CEO. Irfan Kazi, formerly associated with ICICI Venture Real Estate Fund, has been appointed as head of investment. In addition to its dedicated team, the JV can leverage the expertise of FCH which manages three real estate funds — Kshitij, Indus and Horizon — with combined assets under management of $650 million. It has already set up offices in New Delhi and Mumbai.
FCH CEO & managing director Sameer Sain told ET that the opportunities in the country’s industrial real estate sector would be huge in the next few years. “The industrial real estate has so far been an overlooked, underdeveloped asset class. A significant focus has been given to high-profile residential, commercial and IT parks in the last five years. We need 200 million square feet of industrial real estate space in the next five years which requires a combined investment of $8 billion. At the moment, we do not have a single modern industrial real estate in the country. FCH has the expertise in the real estate sector. Now we intend to extend it in the industrial real estate space.”
The target is to create an industrial warehousing facilities with over 22 million square feet of space in three years. In addition to buying land and setting up its own industrial warehouses, Realterm FCH will also build and operate warehouses for the group’s flagship Pantaloon Retail. Although it’s going to be a small portion of its business, Realterm FCH may minimise the risk inherent in largescale developments by signing Pantaloon as an anchor tenant.
Industry sources said the enhanced focus on infrastructure, increase in number of customers and growth of organised retail will fuel the growth in industrial real estate. The plan outlay for transportation infrastructure is pegged at $71 billion while 120 million customers are estimated to be added by 2010. Also, the organised retail sector is expected to grow to 10% of total retail from existing 3% in 2010.

economictimes epaper

328 new malls by 2010: retail report (http://www.livemint.com/2008/03/24002940/328-new-malls-by-2010-retail.html)

While New Delhi is expected to get 15 malls, its suburbs, Faridabad and Ghaziabad, will get seven new malls each

While New Delhi is expected to get 15 malls, its suburbs, Faridabad and Ghaziabad, will get seven new malls each. Mumbai leads the pack among individual cities with 30 malls planned in the next two years. Real estate firms, such as DLF Ltd, Akruti City Ltd, Nirmal Lifestyle Ltd and Oberoi Constructions all have retail plans in the western and central suburbs of the country’s financial centre.
Kolkata, probably one of the last metros to be hit by the retail boom, has 18 malls lined up. The landmark Statesman House in central Kolkata, which would be turned into a 2 million sq. ft shopping destination by Emaar MGF Land Ltd, is one of the biggest malls coming up in India

Retail consultants note only 22 new malls became operational in 2007 nationally. For example, just three of the slated 15 malls opened in Mumbai last year, because the others are still in various stages of completion

For instance, with 15 new shopping malls being set up by film director Prakash Jha, who has ventured into mall development, several areas in Bihar and Jharkhand, such as Patliputra, Sitamarhi, Hazipur and Bettiah, would soon feature for the first time on the Indian organized retail map.
In southern India, Kochi in Kerala is expected to have 13 malls by 2010, just one less than a shopping hub such as Bangalore

We are finalizing a deal in Kottayam which would be the smallest town to get a shopping mall, and scouting for land in Alleppey in Kerala,” said Avnish Hasija, a director. The firm is developing malls in Belgaum (Karnataka), Bilaspur (Chhattisgarh) Kolhapur and Nanded (both in Maharashtra

http://www.fibre2fashion.com/news/company-news/pantaloon-retail-india/newsdetails.aspx?news_id=52887

Pantaloons - a new shopping hub at Guwahati

Pantaloons, India’s leading fashion retailer, inaugurated its first store in Guwahati, located at DT Towers, GS Road, Near Downtown Hospital. The new store is the thirty eighth Pantaloons store in India and is spread across 33,500 sq.ft. area, over three levels.

The store provides great shopping options to customers in apparel (men, women, kids & infants); footwear; sports apparel; lingerie; accessories; watches and sunglasses; fashion accessories; cosmetics; perfumes and fine jewellery.

The new store also features other sections such as mobile, home furnishings, books, music, stationary & toys, etc. The store also has ‘Food Bazaar’ to cater to groceries and daily home needs. A café will be opening soon to enable customers to chill after shopping.

The entire range of Pantaloons’ popular apparel brands such as, John Miller, Lombard, Indigo Nation, Urbana, Scullers, RIG, UMM, BARE Denim, BARE Leisure, JM Sport, Ajile, Jealous, Annabelle, Honey, Akkriti, Chalk, BARE 7214, etc, will also be available here.

Commenting on the new store opening, Sanjeev Agrawal, CEO, Pantaloons said, “Pantaloons has been known as the most preferred shopping destination in Kolkata.

After the success of our stores in Bhubaneshwar and Siliguri, we now offer the customers in the north east, ‘Pantaloons’ - a new shopping hub at Guwahati.

We have positioned the store as a destination that offers fashion & more. We will cater to the complete fashion needs of the family, including apparel, footwear, watches, sunglasses, etc. The store will offer widest choice, than what customers would have seen so far.”

Hi all

I am looking for some understanding regarding the budget hotels in india. Some useful info about "Ginger", Hometel as how are they doing- Indication of their performance parameters; ADR, REVPAR, OCCUPANCY RATE, Expenses, Turnover ..etc

Would be a great help if some one can send me the aforementioned info.

Thanks

Kumar Gaurav

Non-metros catch up with big cities’ big spending ways
Bushra Bhushan / CNN-IBN

New Delhi: Move over from Delhi, Mumbai – Punjab, Gujarat and the Northeast are emerging as big spenders for luxury goods helping the Indian luxury market multiply 10 times by 2015.
Now our Banarsis and Jamawars will share a chunk of the Indian luxury pie with Gucci and Pradas of the world.
Landlords of Punjab and tea garden owners of Assam - Luxury brands in India, need to look beyond south Delhi and south Mumbai.
There are about 16 lakh homes in India that annually spend at least Rs 4 lakh on premium and luxury products and services.
Alongside, there is another emerging India, of 400 million upper middle class, with rising disposable incomes and big aspirations. But are luxury brands missing the opportunity?
Tehcnopak Advisors MD Harminder Sahni says, “Rich professionals, small businessmen are the market but brands are missing the point.”
With a whole new lot there, waiting to be tapped, experts believe that dynamics of Indian luxury market are set to change. Where it may be early for the luxury brands to set up retail space in small rich towns, direct mailers and relationship building might be the need of the hour.
Brandhouse Retails MD Tarun Joshi says, “We get customers from Gujarat, North East everywhere.”
Brand house retail that represents brands like Dunhill and Escada in India may look at setting up stores for the Indian high end products like Pashmina, Banarsis and Jamawars.
This because, industry players say, where apparel for men, tops the luxury brands in India, Indian women still prefer a rich Kanjivaram or a Banarsi.
Seems like the time has come for luxury owners here to include premium desi products on their shop shelves.

Video link: http://www.ibnlive.com/videos/62100/nonmetros-catch-up-with-big-cities-big-spending-ways.html

That mall count?
Is that the total of malls in use or?Maan thats alot of malls


Dude, the Country of India is huge. If you take 30 states for an average of say 10 malls per state that is 300 right there. Large metro areas have at least that number of malls and tier-II, tier-III cities all aspire for a few malls. The tier-II, III cities are in the hundreds. Some where there was a projection that by 2010/2012 India would have 600+ malls.

If it were not for the McClaulyte educated Indians who were stuck in the British Mindset of serving the Queen, India would have rapidly advanced much faster. Of course the ungodly thugs called the communist are still around who daily pray to their gods in Beijing. Remember India was world leader in GDP throughout the centuries, thousands of years. Prosperity and progress are bound to happen, only a matter of time when we rule the world again. Of course India is very comfortable dealing with large numbers expressed in the decimal system and zero :)

After spinning off Reliance Fresh as an independent company, Reliance Industries is planning to make its foods vertical an end-to-end business with a fresh impetus on all its categories ranging from fresh fruits and vegetables to having its own FMCG brands for general trade.

Speaking to Business Line, a senior official from Reliance Fresh said, “We will continue to have fruits and vegetables as one of our categories in spite of the protests in several States and our business will be extended beyond retail to having our own FMCG brands for general trade.”

In the recent past, Reliance Fresh has introduced its own brand, in categories such as milk and ghee. “There is tremendous size and opportunity in the foods business as most of the players are still small in size except, perhaps, Amul. We have been in the FMCG business with Dairy Pure for the past four-five months and see huge opportunity for growth in this area.” In the foods business, the retailer has consciously segregated its vegetarian and non-vegetarian items by having a separate brand of stores under Delight for the latter. “We understand the sensitivities of our customers and have kept the non-vegetarian and vegetarian businesses separate. There is a separate distribution centre and staff to cater to the non-vegetarian stores and now we are poised to open our first Delight store in Thane in Maharashtra,” said the Reliance official. There are 15 Delight stores already operational in Chennai and Delhi.


M&S speculation


On the recent report of a proposed joint venture with M&S (Marks & Spencer), the Reliance official said, “There are all kinds of speculation which we would not like to comment on.” However, market sources indicated that Reliance Industries is in talks with M&S and an announcement may be on the anvil.

According to sources close to the company, “M&S has not exactly done well in the foods business and it is but natural for it to tie with a giant like Reliance to enter the food retailing business. However, it cannot form a joint venture as the retail laws do not allow it. It has to be a franchise agreement and not necessarily a joint venture.”


http://www.blonnet.com/2008/02/28/stories/2008022851020500.htm

India preferred emerging market for retailers: CBRE
Press Trust of India
Saturday, April 12, 2008 (New Delhi)

India is the most sought-after market by retailers with 40 per cent of them expecting emerging markets to be their source of growth in the next five years, a recent study by CB Richard Ellis says.

As per the Global Emerging Markets Survey (GEMS) 27 per cent of international retailers surveyed have opened their first store in India in the last year or are planning to do so soon.

The country is considered particularly attractive because of the size of its market compared to its low presence of international retailers, the report added.

Of the total number of people surveyed only 25 per cent expect to see growth concentrated in their home market.

With foreign ownership rules being gradually relaxed, foreign investment is also now possible, allowing single-brand retailers to own up to 49 per cent of their India operations, the report said.

"India is the preferred destination when it comes to retail today among the emerging markets. With a booming economy and increase in spending capacity, more and more Indians are now looking for wider options in retail.

"In the event that the government opens up Foreign Direct Investment in retail, number of international retailers will immediately start trickling in. This will lead to preference converting into retailers making investments in India," CBRE South Asia Chairman and Managing Director Anshuman Magazine said in a statement.

India was followed by Ukraine and Russia in the survey at second and third positions.

Link: http://www.ndtvprofit.com/2008/04/12111758/India-preferred-emerging-marke.html

Even with all the malls that have come up, I would still say India needs a lot more retail that what it has right now.

Hypercity in Malad, Mumbai
Copyright fenonrodriguez
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Even with all the malls that have come up, I would still say India needs a lot more retail that what it has right now.

a lot more organized retail is what you probably mean.

and you're right too, because even if its 600+ malls, its only a minute percentage of the total retail spend in the country.

Bharti launched their first 3 convenience stores in Ludhiana yesterday. The cash & carry stores that they'll setup under the JV with Walmart will be launched (http://sify.com/finance/fullstory.php?id=14651065) at the end of the year.

Bharti launches Easy Day stores in Ludhiana (http://www.financialexpress.com/news/Bharti-launches-Easy-Day-stores-in-Ludhiana/297827/)

New Delhi, Apr 16 Bharti Retail, which has tied up with the world’s largest retailer, the US-based Wal-Mart on Wednesday, launched its convenience stores in Ludhiana, marking the company’s foray into organised retailing. The launch was done in an extremely low profile manner, apparently to avoid any mass protests, sources told FE.

The format has been branded `Easy Day’ as first reported by FE. The stores range between 2,500 to 4,500 square feet. With the Easy Day stores, Bharti now joins the ranks of other Indian conglomerates like Reliance Retail and Aditya Birla Group, which have launched chains of their retail stores across the country.

from sify (http://sify.com/finance/fullstory.php?id=14651065) -

So for now, the partnership between Bharti and Wal-Mart appears to be restricted to wholesale cash & carry format, which means selling to other retailers and providing back end support to Bharti's front-end stores.

Wal-Mart's cash & carry stores are slated for launch only by the end of the year but the retailer has provided most of the retail expertise - such as information technology back-up, retail practices and training guidelines - for Easy Day stores. Then, Bharti's low-key retail entry prompted some experts to ask whether this was a deliberate strategy to deflect any protests.

What exactly do they mean by "cash and carry"? Aren't all stores cash and carry? :lol:

Cash and carry (wholesale)

From wikipedia:
http://en.wikipedia.org/wiki/Cash_and_carry_%28wholesale%29

There are significant differences between "classical" sales at the wholesale stage and the cash and carry wholesaler: These differences are based in particular on the fact that customers of the cash and carry wholesaler arrange the transport of the goods themselves and pay for the goods in cash and not on credit. (EU Commission Decision (Kesko/Tuko) of November 20, 1996 (97/277/EC)).

In a retail context, the term has a similar meaning: customers pay cash for the goods they purchase (the retailer does not offer credit accounts) and carry them away themselves (the retailer does not offer delivery service).

Retrieved from "http://en.wikipedia.org/wiki/Cash_and_carry_%28wholesale%29"

It's official, Reliance to partner M&S (http://economictimes.indiatimes.com/News/News_By_Industry/Its_official_Reliance_to_partner_MS/articleshow/2962607.cms)
Marks & Spencer (M&S) on Friday announced a 51:49 joint venture with Reliance Retail, part of the Reliance Industries Group, to set up a chain of Marks & Spencer stores in India. The JV company, M&S Reliance India, aims to open at least 50 new stores in India over the next five years. The announcement is part of M&S plans to grow its international business to 15-20% of group revenues within the next five years.

Apparently, M&S’ JV talks with its existing Indian franchisee, Planet Retail, failed as the latter was unwilling to take minority position in the India business. However, Planet Retail, which has been an M&S franchisee for the last seven years, will continue to hold franchisee rights for the 14 existing M&S stores.

Reliance Industries unit forms Indian JV with Office Depot

The retail unit of Reliance Industries Ltd, India's largest listed firm, said on Tuesday it had formed a joint venture with Office Depot to provide office products and services in India.

The firms have also acquired eOfficePlanet, an Indian office products and services dealer, to accelerate the rollout of the joint venture, they said in a statement. No financial details were disclosed in the statement. "The joint venture with Reliance and the strategic acquisition of eOfficePlanet will put Office Depot in a leadership position in India," said Charles Brown, President of Office Depot's International Division.

The firms said the Indian office products market was among the top 15 in the world. Reliance Retail, which runs 590 stores across 57 Indian cities, has already formed joint ventures with optical retailer Pearle Europe and Britain's Marks and Spencer

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Reliance_Industries_unit_forms_Indian_JV_with_Office_Depot/articleshow/2972835.cms)

Trident unveils India plans, launches first lifestyle store

Trident Group unveiled its designs for the Indian retail market, with the launch of its first lifestyle store in Chandigarh. The $375-million Trident Group announced plans to open 30 retail stores within one year and set up a chain of 300 lifestyle stores within three years.

Trident Homescapes will sell the company’s towel brands and later will offer other home products from bedsheets to imported designer glasses. “We want to create a niche market in the Indian retail sector for towels. The trend for buying towels like other clothes of various brands is not there,” Trident Group retail head Sugato Bose said.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Fashion__CosmeticsJewellery/Trident_unveils_India_plans_launches_first_lifestyle_store/articleshow/2966498.cms)

Shopper’s Stop plans Rs 1,500 cr expansion (http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=9be658d8-bdbc-4119-aff0-c7ad489fb382&&Headline=Shopper%e2%80%99s+Stop+plans+Rs+1%2c500+cr+expansion)

Struggling Retailer Shoppers Stop is planning to spend Rs 1500 crore to expand from existing 24 stores to around 50 stores over the next three to five years. It has also opted for an identity change that includes a new younger-look logo and a tagline that says 'Start something new'. Speaking to Hindustan Times, B S Nagesh, customer care associate and managing director of Shoppers Stop said, "We will expand from 1.6 million square feet to 6 million square feet by 2011. Rs 500 crore should come through the rights issue, Rs 500 crore from internal accruals and Rs 500 crore from debt."

"We will spend Rs 20 crore this year towards our marketing exercises", he added. Since the company needs 150 employees per store on an average, this also the company will hire 3900 employees will be added in the next three to five years.

Shoppers Stop has been in existence for the last seventeen years and hence thought of changing its identity to appeal to a younger audience.

ad in HT:
http://img187.imageshack.us/img187/301/24042008001016rr3.jpg

What exactly do they mean by "cash and carry"? Aren't all stores cash and carry? :lol:

Kind of eurospeak for Costco type stores without membership I think.

Barista Coffee to invest Rs32 cr to open 80 outlets in India

In tune with its plan to increase the total number of outlets to 300 in the current fiscal, Barista Coffee will open 80 new stores in the country with an investment of around Rs32 crore.
“We are planning to open 80 new stores in the country, by the end of current fiscal, out of which around 20 would be opened in towns in which we are not already present,” Barista Coffee’s chief executive officer Partha Dattagupta said.
Barista has around 206 outlets, including 17 in the overseas market. The company, which is focusing on opening stores in the domestic market, is following three models for this purpose viz. to open outlets areas near offices, the high-street area of high footfalls such as malls and shopping complexes and company-owned exclusive stores.
“These exclusive stores are the ones which are very important to us and we would open 10 more exclusive stores to add on to the 11 existing stores in the country” the CEO said.
The company would open two new stores in Bangladesh in the current fiscal. “Opening of each store will cost around Rs 40 lakh and the entire amount will be invested by the promoters,” Dattagupta said.
The company is also expected to break even by the end of current fiscal. Also, it may break even Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margins in the next couple of months.

source livemint.com (http://www.livemint.com/2008/04/25151708/Barista-Coffee-to-invest-Rs32.html)

M&S finds Indian markets more significant market than China

British retailer Marks and Spencer aims to step up the pace in India with its new joint venture with Reliance Retail and says it expects the fast-growing market to be more significant than China.
M&S, which expects its international business to make up 15-20% of total revenues in the next five years, said it would take 51%, the maximum permissible by Indian law in a venture with Reliance Retail, a subsidiary of Reliance Industries Ltd.
Marks & Spencer Reliance India Pvt Ltd will open at least 50 new stores in India over five years to sell apparel and homeware, with an initial investment of up to $58 million.
The UK retailer’s previous franchise partner Planet Retail, will continue to operate the 14 existing franchise M&S stores.
“When we looked at the market and the scale of opportunity here, we realized a joint venture was the way to do it, as it gave us a lot more involvement in the business,” Mark Ashman, chief executive of M&S Reliance India, said at the weekend.
Expansion plans in Middle East, China
M&S last month announced a franchise arrangement to expand into the Middle East and is setting up a wholly-owned store in Shanghai. But India, despite its controls, will be significant.
“India, I think, is more important than China because of the scale of the market and because the M&S brand is already well known here,” Ashman told Reuters by telephone.
Trendy to be in India
M&S’s increased presence comes at a time of heightened interest in India’s fragmented retail industry, which is forecast to nearly double in size by 2015 from about $350 billion.
Bharti Retail last week opened its first food and grocery stores, ahead of the launch of wholesale cash-and-carry centres it plans with Wal-Mart Stores Inc later this year.
France’s Carrefour has said it is in final talks for an India partner, while Tesco also intends to enter.
Foreign multiple-brand retailers are only permitted wholesale and franchise operations in India, where the expansion of modern retail has sparked political concerns and protests from small traders over potential job losses.
Reliance is spending more than $5.5 billion on retail. It has been forced to close some of its convenience stores in some states due to local opposition.
It has more than 500 stores, including hypermarkets and non-food specialty stores, but has said it would be difficult to meet its target of 100 million sq ft (9.3 million sq metres) of retail space by 2010/11.
The new M&S stores, the first of which Ashman hopes will be open by October in time for the festival season -- will be four-five times the size of the current stores, which average 5,000-6,000 sq ft, he said.
Prices in India, which have been 15-25% higher than in the UK stores, will be driven lower by more local sourcing. M&S now sources goods worth 70 million pounds from India, he said.

source livemint.com (http://www.livemint.com/2008/04/21133824/MampS-finds-Indian-markets-m.html)

Armani, Kenzo opening standalone stores for men (http://economictimes.indiatimes.com/Armani_Kenzo_opening_standalone_stores_for_men/articleshow/2986612.cms)


NEW DELHI: Women, it appears, are not the only ones who splurge on clothes. In fact, the new darlings of global luxury fashion brands in India are men. Interestingly, industry findings reveal that of the total luxury apparel market, men’s luxury apparel accounts for the larger share of the total pie as compared to women’s!

And no wonder then that over half a dozen top-of-the-line brands, including Giorgio Armani, Canali, Corneliani, Kenzo, Brioni, Pal Zileri and Zegna, are opening standalone stores for men in the country. And some have aggressive expansion plans on the masculine front

Financial Express (http://www.financialexpress.com/news/Cash-carry-biz-firms-on-hiring-spree/301364/)
Mumbai, Apr 24 The wholesale cash-and-carry business in India is set to witness huge levels of recruitment, in the range of 30,000-40,000 people in the next five years. Bangalore-based Metro Cash & Carry India is planning to recruit 10,000 local people to operate at Metro’s wholesale cash-and-carry stores at various levels, in the next three to five years, A John Idicula, director, human resources, Metro Cash & Carry India told FE. Meanwhile, the cash-and-carry division of the Videocon Group is also set to recruit 9,000 people for 60 upcoming ‘Bolld Cash & Carry’ stores, in the next five years, said Sunil Mehta, CEO, cash-and-carry division, Videocon.

Reliance Retail, for its cash-and- carry business, is planning to recruit over 15,000 people, according to Bijou Kurien, president, CEO, lifestyle, Reliance Retail.

After launching two stores in Bangalore and one store in Hyderabad, Metro Cash & Carry is planning to set up a fourth branded store at Bhandup in Mumbai across 1 lakh sqft in a month, apart from Kolkata and Punjab in the near future.

According to Idicula, “With plans of having a pan-India presence for our stores, preferably one store in each city, we want to now recruit local youth who would have passed out from schools. For running the Bhandup store, we have recruited about 350 people. We are tapping local kiranawallas as our main clients based in that locality, apart from other clients such as restaurants, hotels and institutions.”

A person is trained for nine months before operating as a floor manager at a Metro store. While a department manager is provided 6 months’ training, a supervisor is trained for 4 months, explained Idicula. “Most of our employees are hired locally in accrodance with our stores across the globe, where 87% of our senior managers are non-Germans.”

Parsvnath to build 8-10 hypermarkets

Real estate firm Parsvnath Developers said on Tuesday it will announce a joint venture with a foreign partner in June to develop hypermarkets in India, as rising incomes boost spending power in the country.

"Our focus in the first year for the joint venture will be to have 8 to 10 hypermarkets in operation, starting from North India," Parsvnath Chairman Pradeep Jain said in an interview in Singapore.

The developer, which has built 31 projects in India including malls and apartments, is also targeting second and third-tier cities like Mysore and Jaipur for new townships as populations spill out of overcrowded cities such as Bangalore and Chennai, Jain said.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Parsvnath_to_build_8-10_hypermarkets/articleshow/2994332.cms)

Interesting documentry Rural/Urban Retail in India( Watch out 20 minutes long)
From ration to Mega maal

Mall Road (http://www.ndtv.com/convergence/ndtv/videopod/default.aspx?id=28075)

RIL in JV with Canadian Nova Chemicals (http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=36719)

Mukesh Ambani-led Reliance Industries has joined hands with Canadian plastics major Nova Chemicals for jointly designing and constructing energy-efficient buildings in India, starting with those to be used for the Indian conglomerate's retail venture.

The New York Stock Exchange-listed Nova said in a statement that it has signed a letter of intent with RIL for the joint venture, which is expected to be operational by the third quarter of 2008 after finalising the formal agreements.


"Initial steps necessary to manufacture components in India are underway. The first activity of the venture will be construction of buildings for Reliance Retail in India," Nova said

Delhi to get India’s first Cartier boutique (http://www.livemint.com/2008/05/04130852/Delhi-to-get-India8217s-fir.html)

The company with Indian partner Navratna Bharat Retail Pvt Ltd have identified locations and are in the process of finalizing details for Mumbai, Kolkatta and Chennai too

Dubai: Cartier, the French luxury watch and jewellery brand, will soon set up shop in India to cash in on the country’s growing affluence and preference for big brands.
“We are in the process of setting up our boutique in the Delhi region as we have got necessary approval from the government,” Richemont FZE managing director Patrick Normand told PTI here.
The company along with Indian partner Navratna Bharat Retail Pvt Ltd have identified certain locations and are in the process of finalizing the details, he said.
Last month, the government cleared FDI proposal of Richemont Services BV for setting up a joint venture with 51% foreign equity to undertake single brand retail trading business under the brand name ‘Cartier´. The proposal would attract foreign direct investment of Rs20 lakh.
The Richemont’s interests globally encompass some of the most prestigious names in the luxury industry including Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Panerai and Montblanc

cross posting from the healthcare thread


Small firms all set to pep up pharma retail

Organised pharma retail, dominated by the likes of Apollo and Subiksha, is set for more action at the regional level. Players such as Hyderabad-based API firm Hetero Drugs and Chennai-based Regenix Drugs are ramping up numbers, after the pilot phase, in a market that is ruled by mom-n-pop chemist stores.
India has 5.5 million chemists and druggists who constitute the lion’s share of the retail industry. Organised retail market accounts for just 2% of the industry but is registering year-on-year growth at 30%-40%. Interestingly, both Hetero and Regenix have a pharma industry background. While Hetero Drugs is an API manufacturer, Regenix is owned by former Grandix Pharma promoter Dr A Ramamoorthy. Grandix had sold its manufacturing facility to global generics player Actavis while its marketing rights were bought by Strides Arcolab.
It is believed that Bangalore-based healthcare major Manipal Group is also firming up plans for pharma retail. It already has a wellness retail format under the Manipal Cure & Care umbrella. Regional player MedPlus, based in Hyderabad, is ramping up and has also raised private equity from iLabs.
South India will be the focal point for their growth plans. Hetero Drugs, whose pharmacy goes under the same banner, has over 40 stores in Hyderabad and around 20 in tier-II pockets of the state. Hetero, which has set up a subsidiary to drive the new venture, is looking at leveraging on its manufacturing strengths of generics in the long-term.
The Regenix chain, under the Supermed brand, will stock pharma products and hospital consumable such as gloves, BP readers and stethoscopes. This, promoter Dr A Ramamoorthy says, will help the company shore up margins in a sector where they are wafer-thin. Typically, surgical consumable enjoy gross margins of up to 50% while the same for pure pharma products hover around 20%. “We will be located in areas where there is a catchment of neighbourhood household population as well as nursing homes and clinics,” he says. Supermed, which kicked off early this year, looks at setting up 50 stores at the end of first year and 150 stores in two years. The company is looking at an investment of Rs 25 crore in the first phase.
Commenting on the trend of new entrants, Ernst & Young healthcare practise head Utkarsh Palnitkar says, “Due to limited investment capabilities and a regulatory environment, big corporations avoided this market. Now, the high interest levels in this sector is due to rising consumer spending and demographics, lifestyle ailments, recognition of patents and expanding private healthcare services and medical insurance.”

source economictimes epaper

Calcutta Telegraph (http://www.telegraphindia.com/1080508/jsp/business/story_9239995.jsp)

Wholesale retailer Metro Cash and Carry is planning to open its outlet in Calcutta in the third quarter of this fiscal. It will be the company’s fifth store in the country.

The Calcutta store of Metro Cash and Carry is coming up on the southern stretch of the Eastern Metropolitan Bypass.

“The store should open by the July-September quarter this year,” Martin Dlouhy, managing director of Metro Cash and Carry India, said on the sidelines of the inauguration of the company’s outlet in Mumbai today.

Metro Cash and Carry has two stores in Bangalore and one in Hyderabad.

After opening the Calcutta store, the German wholesaler will go to Punjab.
.....
.....

Centre plans 30 mega food-parks pan-India (http://www.ibef.org/artdisplay.aspx?tdy=1&cat_id=60&art_id=18718)

Mumbai: The government plans to establish 30 mega food-parks in different parts of the country through the public-private partnership (PPP)-route and special purpose vehicle modes, a Central Government Minister said.

"We have plans to set up 30 mega food-parks and an official announcement in this regard will be made in the next 10-15 days," Minister of State for Food Processing, Subodh Kant Sahai, told reporters here.

The food-parks will create an integrated value chain from the farm gate to the consumer and will envisage complete backward and forward linkages along with common processing facilities, he said

Spencers to open 100 small stores, 20 hyper markets in FY 2009

Mumbai: Spencer's Retails is planning to open 100 small stores and 20 hypermarkets across the country this fiscal, a senior company official said.

"We are going to add 20 new hypermarkets and 100 small stores across various parts of the country this fiscal," Company's Vice-President (West Zone), Nimish Shah, told reporters on the sidelines of a conference here.

Spencer's, presently, has 400 small stores and 15 hypermarkets in different parts of the country while the number is expected to go up to 500 small stores and 35 hypermarkets by the end of this fiscal, Shah said.

The new hypermarkets will be opened cities including Nashik, Kanpur, Indore, Surat and Bangalore, he said.

Shah said the company would invest around Rs 10 crore to open a hyper-market while the investment on a small store is estimated as Rs 3-4-crore, he said, adding, "the company would internally raise the funds for its expansion of hypermarkets and supermarkets."

The hypermarket would be spread in an area of 20,000 sq ft (trading area), he added

Reliance Retail to set up 60 iStores in 2008

Reliance Retail (RRL) is planning to set up 60 i Store — an Apple premium reseller store — across the country by 2011.

After inaugurating iStore in Jaipur — the first in North India and fourth in India after Bangalore, Hyderabad and Mumbai — Reliance Industries (CDIT Business) CEO Ajay Baijal said that iStore would house entire range of Apple products for professional and consumer segments, such as iMac consumer desktop computers, MacBook consumer notebooks, Mac pro and iPods along with over 500 accessories and peripherals complementing Apple products.

The company also plans to set up 150 outlets of 'Reliance Digital', its consumer electronic concept mega store, across the country in two years. It already has 5 stores in this format.


source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Reliance_Retail_to_set_up_60_iStores_in_2008/articleshow/3026154.cms)

Upmarket Spencer's eyes 250 new stores

RPG Group company Spencer’s Retail, a multi-format retailer, plans to reposition itself as an upmarket brand with increased focus on fashion, food and home decor. Besides, the company would invest close to Rs 1,500 crore to open 250 new retail outlets this year. Presently, Spencer’s operates 400 stores under different formats, such as supermarkets, hypermarkets and express.

“Fashion is a significant segment of the country’s retail industry as it has influenced lifestyle in a big way. With consumers’ new look-good and feel-good attitude, fashion offers huge potential to tap the untouched markets,” said RPG Enterprises vice-chairman Sanjiv Goenka at the launch of the two new hyper stores at Ghaziabad and Gurgaon on Friday.

The company is also in talks with various international retail players to set up joint ventures across different categories in the country and is targeting a turnover of Rs 1,800 crore by end of the current fiscal.

Spencer’s new stores will retail a wide range of formal wear, casual wear, evening wear and sport wear for men, women and children.

The company would also offer a separate apparel range under its private labels such as Mark Nicolas, Notting Hill, Island Monks and Asankhya introduced recently. Besides, variety of merchandise would be made available across food and non-food categories apart from latest electronic gadgets, gizmos, homecare and home-decor items.

On the investment plans, Mr Goenka said, “We would invest Rs 1,500 crore across different formats within a year to open additional 250 stores. The company’s total retail space would go up to 22.5 lakh sq ft by March 2009.”


source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Upmarket_Spencers_eyes_250_new_stores/articleshow/3026166.cms)

Reebok to evolve as sports lifestyle brand


Reebok India has decided to evolve the Reebok brand on the 'sports lifestyle' platform in India. The company wants to do this by rolling out merchandise which will have a lifestyle flavour and expand its present network of lifestyle stores from seven to 50-60 by March 2009. The company feels such a focus is integral to grow its business in India.

In line with this, Reebok India has built up a lifestyle product portfolio for apparel, shoes and accessories. This includes designer products such as a collection named on Hollywood actress Scarlett Johansson, jeans styled by cricketer MS Dhoni, Bipasha Basu collection, Manish Arora collection and several other inspired by global sports like skating.

Tata-Total Produce JV starts operations in Punjab

MUMBAI: Khet-Se Agriproduce India Pvt Ltd, a joint venture of Tata Chemicals and Ireland's Total Produce for procurement and distribution of fruits and vegetables began operations in Punjab, the company said.

The company set up its first distribution centre at Malerkotla and will cater to requirements of Ludhiana and Patiala in the northern state, it said in a statement on Monday.

Sourcing and distribution of fruits and vegetables in India is largely unorganised and run by individual traders, creating a hurdle for retail chains planning operations in the country.

Khet-se plans to offer services to small retailers as well as hotels and restaurants, the company said. The company will start its second distribution centre in Mumbai in the next six months, G. R. Goves, Chief Executive, Khet Agriproduce India Pvt Ltd, said.

M&S to open upto 50 stores in India

British retailer Marks and Spencer, which has joined hands with Mukesh Ambani-led Reliance Retail in India on Tuesday said it plans to open upto 50 new stores in the country over the next five years.

The new stores would be in addition to the existing 14 franchise stores operated by M&S in the country, the company said while announcing its annual results here.

M&S announced last month an an agreement with Reliance Retail, part of Reliance Industries Group in India, to take a 51 per cent interest in Marks and Spencer Reliance India Pvt Ltd.

"In addition to the existing 14 franchise stores we already operate in India, we plan to open 30-50 new stores within the next five years," M&S said. The company said the store opening plan is "an important step towards achieving our goal of establishing M&S as a major retail brand in India."


source economictimes.com (http://economictimes.indiatimes.com/News_by_Industry/MS_to_open_upto_50_stores_in_India/articleshow/3056852.cms)

DLF in JV with Italian luxury brand Ferragamo

Real estate developer DLF is learnt to have set up a 51:49 joint venture with Italian luxury apparel and footwear brand Salvatore Ferragamo.

This is the latest in the real estate firm’s strategy to partner leading global premium brands to spearhead its retail business in India.

The JV agreement between the two players will hold for 10 years, a source said. The JV company, called Ferragamo Retail India, will take over the only existing store of Ferragamo in the country in Mumbai, he said.

The brand earlier had a franchise agreement with Sports Station India. The JV company plans to set up at least three stores in Delhi, Mumbai and Bangalore in 2008 and add another 10 across the country in the next five years.

The 80-year-old group, founded by Salvatore Ferragamo, has been well known for its association with Hollywood stars and celebrities, including Audrey Hepburn, Sophia Loren, Andy Warhol, Princess Diana and Margaret Thatcher.

Ferragamo’s brush with India dates back to 1938, when he created the gloved arch shoe for the Maharani of Cooch Behar.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Garments__Textiles/DLF_in_5149_JV_with_Italian_luxury_apparel__footwear_brand_Ferragamo/articleshow/3047418.cms)

Reliance Retail in talks with four overseas food suppliers

IN A bid to capture the potential market for premium food, Reliance Retail is in advanced talks for alliances with at least four foreign food companies: US-based fresh fruit and vegetable suppliers Dole and Chiquita and meat retailers Sadia of Brazil and Doux of France.
“We won’t comment on speculations,” said the Reliance Retail spokesperson when asked to confirm the development. The flurry of likely deals indicate that Reliance Retail is still focused on its fruits and vegetables business, despite political controversies stalling its spread in certain states. There seems to be, however, a concerted attempt at capturing the premium end of the market. Reliance Fresh and Reliance Super, the company’s small and large format supermarkets, have been sourcing vegetables and fruits mostly through the traditional route of mandis and middlemen. And there is very little product differentiation for different segments of the market. Reliance Retail operates across several formats and an attempt at offering differentiated products through tie-ups with premium food companies may serve them well to get new segments of customers.
It’s not clear yet if the partnerships will get into production in India. If they do, it will mean a new venture for Reliance Retail, which has so far limited itself to retailing. These likely alliances echo the sentiments expressed by chairman Mukesh Ambani at the latest Reliance Industries AGM. Mr Ambani had cited ‘strategic alliances’ as a key to the growth of the group’s retail business.
Lately, the retailer has also started offering non-vegetarian food under the brand name ‘Delight’. This is one of the first attempts by a major retailer in the country at organised meat retailing. Besides getting access to the premium quality of fruits, vegetables, juices and flowers, Reliance Retail’s tie-up with these foreign companies will also give the company access to processes and technology, a critical requirement for the company aiming for a larger share of the growing market.
India’s rapid economic growth and multiplying income of its middle class has attracted a number of premium brands ranging from apparel to watches to set up shop in the country. Now it’s the turn of premium food companies to cash in on the potential which India’s elite and fast growing upper-middle class offers. Lately, this segment of the population has been more than willing to pay a premium for high quality fresh or processed food. This can partly be attributed to the growing consciousness towards health and nutrition among the middle class.
US-based $6.9 billion Dole Food is one of the biggest producers and marketers of high-quality fresh fruit, vegetables, flowers and juice. NYSE-listed, $4.7 billion Chiquita, known mostly across the world for its bananas and salad, too is likely to join hands with Reliance, which will give it access to a rapidly growing Indian market, where branded vegetables are still to catch the fancy of consumers.
Reliance Retail will strengthen its non-veg menu by adding offerings from Brazil-based Sadia and French food firm Doux. Sadia, which reported a $1.2 billion revenue in 2006, is one of the biggest meat exporters internationally and currently services Indian market through its Japan office. Similarly, Doux too sells its products in more than 130 countries. The company boasts of 50 years of expertise in offering fresh and frozen food in all segments of the poultry market. It controls the entire production and distribution chain.

source economictimes epaper

China's Li & Fung considering India's retail sector

Chinese conglomerate Li & Fung Group today said it is studying India's logistics and retail sectors to expand its presence in the country.

The company, engaged in distribution, retail, logistics, private equity and properties businesses, currently sources consumer products worth 550 million dollars from India every year for its global operations.

"We will look at India for innovative designs and creativity. In the next three years we expect to more than double our sourcing from this country," Li & Fung Group Chairman Victor K Fung said today on the sidelines of a FICCI event.

He said this will also lead to an increase in the number of people being employed by the company. "We directly employ 500 people in India, besides a large number of people indirectly. Increase in sourcing operations will also create more jobs here," he added.

Asked about the group's plan to start its retail and logistics operations in India, Fung said, "Retail is an option which has been on our minds for long and another area is logistics. Currently, we are studying the market here and evaluating options."

The group's retailing business, including the publicly listed Convenience Retail Asia and privately held Toys"R"Us, Branded Lifestyle and LiFung Trinity, with store network, is extending from the Greater China markets to Singapore, Malaysia, Thailand, Indonesia, South Korea and the Philippines.

source economictimes.com (http://economictimes.indiatimes.com/News_by_Industry/Li__Fung_eyes_Indias_retail_sector/articleshow/3074069.cms)

AV BIRLA Group’s More in talks with Accor for budget hotels

AV BIRLA Group’s retail venture More is holding talks with French hospitality giant Accor for setting up neighbourhood hotels alongside stores for tapping better yields on its high-cost real estate base.
Sources said AV Birla Retail and Accor are discussing a hospitality partnership under the latter’s Formule-1 brand, which operates in the economy segment.
It is believed that Accor and More have identified about 180 locations across the country where a budget hotel could tag along with the retail store over a period of time. The discussions have veered around the possibility of developing hotels with 50-100 keys. AV Birla Retail, which has entered the second year of operations, is setting up supermarkets and hypermarkets with store size up to 10,000 sq ft and 75,000 sq ft respectively.
Incidentally, AV Birla is not the first domestic conglomerate that is seeking out an hospitality angle to its still evolving retail story. Reliance, which recently floated a separate JV with the US-based Vornado Realty Trust, appears to be looking at the possibility of tieups with hotel chains to take advantage of the excess floor space index (FSI) available in its proposed store rollout.
The expensive real estate along with the ramping down of the store size at several locations may have acted as a trigger for many retail chains to explore partnerships with the hotel industry, sectoral experts opined. In fact, Reliance is expected to park its retail real estate assets in the new JV with Vornado, in the process stripping a high cost base off the retail arm.
Meanwhile, there is no clarity on the deal structure that may emerge between AV Birla Retail and Accor, with one source suggesting that Accor may go beyond management contract route if the arrangement falls into place.
When contacted, an Accor official said: “We have had initial talks to understand each others needs, with no significant progress after that.” AV Birla spokesperson declined to comment.
It may be mentioned that there is no exclusivity to the current discussions between AV Birla Retail and Accor. In fact, Accor already has an agreement in place with Emaar-MGF to build Formula-1 hotels in India while AV Birla could be talking to other potential suitors for a hospitality partnership.

source economictimes epaper

ITC slows down agri retail plans

ITC has pushed the pause button on expansion of its rural and urban food and grocery retail formats — Choupal Sagar and Choupal Fresh. Slower pace of agriculture reforms have impacted the momentum of ITC’s agri retail rollout, as the company’s frontend retail plans are deeply integrated to the backend, going up to the farm level.
ITC international business division head S Sivakumar, who also drives the e-choupal initiative, says: “We are going slow on our Choupal Sagar (rural) and Choupal Fresh (urban) formats. There is no expansion planned in any new location for Choupal Fresh.”
At present, there are 24 Choupal Sagars or large-format rural bazaars that complement the echoupal initiative and stock everything that a farmer may require. It has 27 Choupal Fresh stores, targeting wholesale and retail buyers of fresh produce, only in Hyderabad, Pune and Chandigarh, with no current plans of spreading out.
Unlike other food and grocery retailers, ITC’s revenue from fresh products are planned to account for a lion’s share and that necessitates its investments and engagement in the backend. For instance, its investments in e-choupal, the rural digital infrastructure, include fruit and vegetable demo plots and nurseries, apart from capacity building. It has links at the plot and farmer level and its frontend retail plans are an extension of the company’s pre-existing trade division, which procures and exports commodities.
Although nearly 16 states have amended the Agriculture Produce Marketing Act, some controls still remain. Most retailers in India source from the mandi level while many have expressed serious intent in deep diving at the farm level.
ITC is looking at driving down spends on cold chain infrastructure through better “calendaring of crops” or managing information in such a way that each farm is mapped to a store. Its farm-to-store link concept has been positioned in its brand — Today’s Harvest. Some of these backward integration plans are dependent on reforms in the primary sector.
The current inflationary concerns and export restrictions too have had an impact on the performance of its trade division. Mr Sivakumar says much of the business loss from ban of exports of non-basmati rice has been offset by gains in soybean operations. However, this fiscal, the growth has not been on similar lines compared to the previous years. “We are now looking at domestic market opportunities, particularly in the areas of agri services and input business,” he added.

source economictimes epaper

Timex to bring luxury watches to India


With the luxury market witnessing high growth in India, watch maker Timex plans to introduce premium brands like Ferragamo, Versace and Valentino in the country soon, besides expanding its retail presence.
“We are thinking of bringing global luxury brands Ferragamo, Versace and Valentino to India. Atleast one or two would be available here in the next twelve months,” Timex Group Asia Pacific Senior Vice-President Kapil Kapoor told PTI.
He, however, did not specify the brands which were likely to be introduced first.
The company which makes watches in segments like fashion, sports, outdoor and youth lines under its flagship brand ‘Timex´, also manufactures, markets and distributes internationally several other brands like Guess, Opex Paris, Nautica and Marcecko.
Timex is yet another corporate that feels that India is an emerging market with huge potential especially when infrastructure is coming up to meet the demands of luxury brands.

source livemint.com (http://www.livemint.com/2008/05/25112123/Timex-to-bring-luxury-watches.html)

Indiabulls Retail to foray into cash-n-carry (http://www.business-standard.com/common/storypage_c_online.php?bKeyFlag=IN&autono=38722)

Indiabulls Retail, which operates lifestyle and supermart stores will soon enter the cash-n-carry segment under the Indiabulls wholesale banner where the first cash-n-carry store will be launched at Ahmedabad in the last quarter of 2008.

The company is looking at setting up 4-5 cash-n-carry outlets for the financial year 2008-09.

"The initial reason why we got into retail was to tap the wholesale retail market through cash-n-carry stores. We plan to start with Ahmedabad and go on to other cities," said Satish Veerappa, GM-Sales for Indiabulls Retail. After they are launched, cash-n-carry stores are expected to form about 25 per cent of the company's total revenues.

Veerappa said that nearly 20 per cent of its total business from retail comes from Gujarat and close to 20 per cent of its investment for this financial year would also be earmarked for the state. The company had recently announced its plans to invest around Rs 1,000 cr in its retail business.

The company will expand its presence to Surat and Vadodara for its lifestyle stories. "Retail has been expanding at a brisk pace in Gujarat and we would want to be at the forefront of this wave, " said Ikroop Singh Kehal, CEO, Indiabulls Retail.

The company has launched its second megastore in Ahmedabad at Devarc mall. The store would offer different ranges in apparels, accessories, fragrances, cosmetics, footwear, home furnishing and decor products. In the next one year, the company plans to increase its megastore format to 35 from the current 9 stores nationally. It will take its supermart format to 100 stores and wholesale stores to 25 across the country.

Spencer's ties with UK's Woolworth's Plc (http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=39486)

UK-based $6 billion Woolworth's Plc, which owns "Chad Valley" range of toys has tied-up with Spencer's, the retailing arm of the Rs 13,500 crore RPG Enterprises, to mark its entry into India.

The tie-up also marks Woolworth's entry into India and Asia at large.Under the agreement, Spencer's is the exclusive retail partner for
Woolworth's Plc in India and will retail Woolworth products across its 400 stores.

Woolworth-owned Chad Valley's first outlet was inaugurated in Kolkata on Saturday at Spencer's hypermart in south Kolkata's South City mall.

Spencer's hypermart in South City mall is spread over 72,000 sq ft, and the Chad Valley store is located inside Spencer's covering 1600 sq ft.

Speaking at a press conference in Kolkata, Simon Brown, international head of Woolworth's Plc, UK, "This 1600 sq ft store inside Spencer's in Kolkata is our first branded outlet in Asia. We recognized the growing potential for toys in India and decided to sign on Spencer's for an exclusive retail partnership. We will sell 500 toys in this store. One reason why Chad Valley toys will sell in India is because they are very economically priced and perfect for the price-sensitive Indians."

Chad Valley toys are priced between $4 and $50

Adidas on expansion spree, to add 160 new stores in 2008

German sportswear and apparel major Adidas is going for a major expansion across India in 2008, which will involve setting up of around 160 new stores and setting footprints in 140 cities.

"We are identifying properties in various cities and will set up 150-160 stores this year which is much more than 2007 figures. By 2008 end, we will reach the figure of 450 franchise stores by the end of 2008," Adidas India Managing Director Andreas Glenner said.

When the planned expansion completes, Adidas would have presence in 140 cities as against 119 cities currently, he added.

The company is expanding not only in the metros and Tier I cities but going to Tier II towns also.

"It is important for us to expand to smaller cities as the revenue contribution from metros and Tier I cities are equal to that coming from lower Tier II towns," Glenner said.

The company, which has also launched its 'Adidas Originals', the premium range of products, is also planning to add more such stores in select cities.

"Currently, there are two 'Originals' stores, one in Delhi and the other in Chandigarh. By mid-2009 we plan to have eight such stores," he added.

Commenting on the rising rentals, Glenner said while it would not stop the company expanding but "had the rents been more reasonable we would have had more stores".

"Retail rentals are unrealistically high and a big challenge. However, it will not slow down our growth," he said.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Durables/Adidas_on_expansion_spree_to_add_160_new_stores_in_2008/articleshow/3111127.cms)

Westside plans to enter 37 more cities (http://www.business-standard.com/common/news_article.php?tab=r&autono=325757&subLeft=1&leftnm=1)

Tata's retail venture Westside plans to expand to 37 more cities through franchises as a part of its next phase to spread its reach across the country. As the current economic boom in India spreads to tier-II and tier-III cities and towns, reaching out to prospective consumers in these cities is high on the agenda of most retail companies. Hence, the market presence in these cities and towns is key to Westside's growth and profitability.

Westside started with the franchise model in 2007 in Mysore on an experimental basis. Buoyed by the success of the model in Mysore, Westside decided to go all out with the franchise plan and spread across the country.

Westside has identified cities on the basis of investment potential of the business community, consumption trends and spending potential of the consumers.

Among the short-listed cities are Allahabad, Patna, Guwahati, Dehradun, Madurai, Kolhapur, Jammu, Bareilly, Aligarh, Kochi, Puducherry, Thiruvananthapuram and Salem. The stores would be spread across 8,000-12,000 sq ft and will be set up with an initial investment of Rs 1.5-2 crore. Westside is in the process of inviting franchise proposals from the prospective franchisees in the short-listed cities.

Dolphin Mart to set up 19 stores in India (http://in.biz.yahoo.com/080612/50/6uhyx.html)

Premium home decorative firm Dolphin Mart is undertaking a major expansion of its d'mart Exclusif brand with plans of launching 19 new outlets by the end of current financial year.

"We want to fill up the vacuum in luxury decorative items segment. Our target section is the growing middle class population with disposable income in India who has a taste for foreign sourced items," Dolphin Mart Chairman K V Rao said.

As part of the company's expansion plans, it would set up 10 franchisee showrooms, besides launching six exclusive boutique and three megastores, to come up by the end of the 2008-09 fiscal year, he added.

Rao, however, refused to share the investment details of the company in its expansion programme.

Along with these stores, d'mart Exclusif would also introduce five new categories of home decoratives in classical decorations and transitional space category, Rao said.

"We have 14 franchisee stores in major cities, including the four metros. The 10 new franchisee showrooms will cover the cities Coimbatore, Tiruchirappalli, Lucknow and Hyderabad where we do not have any presence now," he said.

Riding on the back of this expansion spree, the company is expecting its turnover from the d'mart Exclusif brand to grow by 125 per cent to touch Rs 50 crore mark in the current fiscal, he added.

The d'mart Exclusif brand has an extensive collection of ethnic silverware, handmade crystalware, fine porcelain figurines and marble art pieces among others. Its products are sourced from Italy, Germany and France.

McDonald's to invest Rs 400 cr in India (http://www.financialexpress.com/news/McDonalds-to-invest-Rs-400-cr-in-India/321481/)

Kolkata: With an aim to clock 30-35 per growth per annum, the US fast food chain McDonald's plans to open around 60 more restaurants across the country annually and pump in Rs 400 crore in the next three years.

"India has a huge market potential for McDonald's," Connaught Plaza Restaurants Managing Director Vikram Bakshi said while inaugurating an outlet in Kolkata.

To tap this potential the fast food major plans to open 40-60 outlets each year nationally and also intends to invest Rs 400 crore over the next three years.

McDonald's has 160 restaurants in India.

McDonald's restaurants in India were being operated by two 50:50 joint ventures, one between McDonald's and Connaught Plaza and the other between McDonald's and Hard Castle Restaurants Private.

Out of Rs 400 crore earmarked for national expansion, Rs 100 crore would be spent for the eastern region.

This was the second outlet in the metropolis. The first one which opened at Park Street was being renovated after the blast which took place there 10 months ago.

"The Park Street outlet will be opened before the Pujas," Bakshi said.

Asked whether the company would go for private placement for raising funds, Bakshi said the entire financing would be made from internal accruals and debt.

To a query, he said rise in real estate prices was a cause for concern, but added this was not affecting McDonald's much since the company was able to get better terms and conditions by virtue of the brand name.

However, he added that efforts were on to get 'right size' outlets in terms of space available and seating capacity.

On the issue of market share, Bakshi said in the quick service category, McDonald's was enjoying a leadership position with 18 per cent in north India.

Reliance's retail biz to create over half million jobs

Terming organised retail as the major growth platform for Reliance Industries, Chairman of the country's most valued firm Mukesh Ambani on Thursday said its retail business will generate more than half a million jobs in the next five years.

"We estimate that our retail business will generate in excess of half a million jobs directly over the next five years and many times that number indirectly," Ambani said during its annual general meeting here.

During last fiscal Reliance has organised its retail initiatives to focus on product market format.

"We have now grown to nearly 700 stores, comprising fourteen distinct formats, across 60 towns and cities," Ambani said adding that "the Reliance Fresh format, which was the first format launched by the retail venture has grown to nearly 600 stores."

With a view to retain talent, Reliance would nurture home-grown talent, besides hiring top talent from premier technology and management institutions, Ambani said.

Further, the company would retain talent by way of a performance oriented employee stock option plan and is also working with educational institutions to help build more robust and industry oriented programmes.

Over the years, Reliance has initiated partnerships with international players for increasing its growth perspectives.

The company has tie-ups with UK's Marks and Spencer, European firm Pearle, US-based Apple Inc to operate iStores, with Office Depot for office products and services and with Vornado for retail real estate developments.

"Reliance Retail is well on track to create significant value creating platform, generate employment opportunities and trigger a socio economic transformation particularly in rural India," Ambani added.

source economictimes.com (http://economictimes.indiatimes.com/News_by_Industry/RILs_retail_biz_to_create_05_m_jobs/articleshow/3123569.cms)

India to continue as top retail sourcing hub: PwC (http://www.financialexpress.com/news/India-to-continue-as-top-retail-sourcing-hub-PwC/323460/)

China and India are expected to continue as the top sourcing hubs in retail and consumer sector globally in the coming years, even as concerns over rising cost, quality and environmental issues may impact their advantage, a latest PwC report says.

According to report ‘Global Sourcing: Shifting Strategies’ released by PricewaterhouseCoopers (PwC), cost, quality and the environment would play an increasingly important role as Companies seek to achieve new heights of performance and competitive advantage from the global sourcing programmes.

Seiko plans major expansion in India

Aiming to strengthen its presence in the Indian market, Japanese premium watch maker Seiko plans to spread its reach to around 40 cities with 200 models by end of this fiscal.

"The past one year has seen us emerge among the top three brands in the premium luxury watch segment in India. We have presence in 33 cities with 81 stores and are aiming to cover the remaining major centres in the country," Seiko Watch India Sales and Marketing Head Niladri Mazumder told PTI.

He said Seiko, which launched its brand in India with a dozen models last year, is looking to have 200 models in the country by end of 2008-09 with presence in around 40 cities.

Mazumder said the first year has seen the company position itself as a high-end brand. As a follow up, the company is now launching its Arctura collection which will hit the market in August-September.

"While our existing Sportura and Permier collections are available in the Rs 6,700-55,000 range, the Acrtura would have a starting range of Rs 25,000, besides limited editions of above Rs 1.5 lakh," Mazumder said.

Springdrive, another international collection, would also hit India this year with a starting range of Rs 1.76 lakh.

Currently Seiko outlets are multi-brand ones, the company plans to open its first Seiko Corner in Mumbai by August.

"We have plans to set up eight flagship mono-brand outlets in the four metros, besides Bangalore and Hyderabad in three years," he added.

This year a few more cities would have Seiko outlets, including Gangtok, Guwahati, Nagpur, Bhopal and Dehradun.

"The Indian luxury watch market has an estimated market turnover of Rs 350-400 crore a year and within five years we hope to emerge as the top brand with the maximum market share," he said.

http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=40285

Bata to open 250 new stores in 3 years (http://www.financialexpress.com/news/Bata-to-open-250-new-stores-in-3-years/324943/)

Footwear maker Bata India Ltd. plans to expand presence by opening 250 new stores over 3 years, a top official said on Thursday.

It also plans to modernise about 100 existing stores in 2008, chairman P.M. Sinha said, on the sidelines of its shareholders meet.

He did not disclose the size of the company's investment for the stores, but said typical cost for interiors and merchandise for each store would be around 1.5-20 million rupees.

Bata currently runs 1200 outlets in different parts of the country both on owned and franchised model.

"Investments will also depend on rentals of the area where the store is located," he said, adding the stores may also be franchised out.

"We will focus on new areas like sales of specialised footwear for defence personnel and factory workers."

The company also expects its township project in 262 acres of surplus land at its plant site in the eastern state of West Bengal to be ready by 2012-13.

"We are in advanced stage of discussions with an international hotel chain for a hotel in the township," he said.

In 2007, the firm's revenues rose 12.6 percent to 8.67 billion rupees following redesigning of shoes and retail chains.

**Wrong thread**

Retail sector may be in for a churn

THE retail sector is set to witness a spate of sellouts amid falling valuations. Small grocery retail chains, typically with less than 100 stores, are sending feelers to bigger chains and potential new entrants for possible buyouts. Lack of funds has cast doubts on their ability to scale up in the low-margin world of retail business with cut-throat competition. However, major retail chains — the likely buyers — are richer by their experience and want to buy them out only on their own terms.
A few months ago, a North-based
supermarket chain scrapped its plan to sell out to a larger business house because it wanted a much higher valuation. The chain is now back looking for a buyer, but this time, the asking price is 30% less. Similarly, a South-based chain is sounding out prospective buyers for a sellout. Representatives of another small retail chain are approaching real estate players planning retail forays, sending out proposals under fictitious names so that its identity is not leaked in the market.
“We are not averse to selling out, but only after we have set up 500 stores. If the promoters of Ranbaxy can sell out, why not us?” wonders a retailer, who owns over 60 stores in the National Capital Region. He says he hasn’t yet been approached for a buyout. Cash-strapped retail cos are sitting ducks for acquisition
ACCORDING to Ernst & Young partner (retail) Pinakiranjan Mishra, the bargaining power has shifted from small retailers to potential buyers in the past six months. “It will still make sense for big Indian retailers to buy the smaller ones in markets where they are not present. Also, they will get a good deal today since small retailers are desperate for cash. Due to FDI restrictions, foreign players — neither big retailers or private equity — can’t invest in Indian retailers,” he said.
Also, regional players were under the impression that accumulating square feet area (number of stores) and creating a brand with some visibility were enough to claim higher valuation. What they didn’t anticipate was the real estate crash. “In this backdrop, valuations are bound to come down because they lack a clear business model, sustainable profits and a robust supply chain,” said retail consultancy Techopak’s Arvind Singhal.
Tables have clearly turned since the retail revolution began two years ago. When big business houses entered the scene and started wooing regional chains with takeover offers to quickly build scale, the owners acted pricey. While some deals were sealed, the majority of negotiations didn’t consummate on account of high asking prices.
Since then, large conglomerates — whether Reliance Retail or Spencer’s — have moved ahead and built a fairly big retail presence across formats. They have locked in real estate and built management bandwidth. So, they see little value in the regional players barring one or two.
On the other hand, small players, some of whom had built their businesses only to sell at a targeted period, find themselves driven to a corner. They don’t have money to pump into the business on a sustained basis. More importantly, real estate prices have started correcting; so, the edge of having signed property deals at a cheaper price early enough is no longer there. “The rentals have corrected by as much as 15-20% since January,” says owner of grocery chain LM@365, Prem Garg.
“I have signed up locations for supermarkets which will be launched 6-8 months from now at prices that are 15-20% cheaper than what one retailer negotiated two years ago. So where is the advantage?” asked a large retailer, who has been approached by two small retailers for an alliance.
These small retailers have been mainly present in convenience store formats in residential areas. Significantly, since the government has put on the backburner its drive to shut commercial establishments in Delhi’s residential areas, there is an increased supply of space for convenience stores.

source economictimes epaper

Parsvnath to open 10 retail stores in this fiscal

Realty firm Parsvnath Developers on Friday said it planned to open up to 10 retail stores in different formats this fiscal, for which the company is in talks with foreign players for partnership.

Parsvnath had announced its foray into retail sector in November 2007 and has already incorporated a subsidiary 'Parsvnath Retail Ltd'.

"By the end of this financial year, you will see 5-10 retail stores operational," Parsvnath Developers Chairman Pradeep Jain told reporters here.

Asked about the investments and potential partners, Jain declined to divulge details, but said first stores would come up in Delhi and Mumbai.

The company would roll out these stores in various formats, including hypermarket, convenience stores, food joints (coffee and eateries) and large formats.

"We are in discussion with major retail chains to explore possibilities of a foreign and domestic collaboration for setting up various retail formats in India," Jain added.

The company may enter into tie ups with different players for different formats, he said, adding an announcement would be made shortly.

Parsvnath has been linked with global players, including Carrefour and Groupe Casino, for possible tie-up.

Jain, however, ruled out entering into cash and carry business.

"We have 5.5 million sq ft of retail space across country and this is our strength as a real estate developer," he said.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Parsvnath_to_open_10_retail_stores_in_this_fiscal_/articleshow/3149402.cms)

Estee Lauder to make foray into Indian market

With rising demand for the latest beauty products in India, especially from the prosperous middle class, international chain Estee Lauder is making a foray into the lucrative South Asian market.

The company, which is establishing the first of its four freestanding stores in Mumbai, plans to tap Bangalore and Delhi markets over next six months. It will open 20 outlets over the next three years as it expands into Hyderabad, Kolkata and Pune.

"The timing is right to bring Este Lauder to India," John Demsey, Group President, The Este Lauder Companies, told reporters.

"Many Indian women are already aware of Este Lauder, and we are thrilled to bring them their brand of choice, and introduce the brand to a whole new generation of women. I am confident that Este Lauder will be a huge success in India," he said.

All locations in the country, he said, will feature the brand's best selling global products as well as products chosen specifically for Indian consumers.

Key global products, he said, include Este Lauder's Re-Nutriv luxury skin care line as well as iconic products such as Advanced Night Repair, Double Wear long-lasting liquid and powder foundations, Signature Hydra Lustre lipstick and fragrances, including Este Lauder 'pleasures' and Pure White Linen.

The company is also introducing skin care range called Cyber White in India as the Asian consumers, he said, are interested in a brightening regimen that addresses skin discoloration in the form of age spots and help restore evenness of skin tone, brightness and luminosity.

source economictimes.com (http://economictimes.indiatimes.com/News_by_Industry/Estee_Lauder_to_enter_Indian_market/articleshow/3159860.cms)

Reliance Brands in 50:50 JV with Paul & Shark

ITALY’s luxury sportswear brand Paul & Shark has struck an equal joint venture with Reliance Brands to open doors in India. The $600-million family run fashion business will apply to FIPB for FDI under single brand retailing.
“We hope to have 15-20 stores in about five years, beginning with doors in luxury malls and subsequently in luxury neighbourhoods as they evolve,” Paul & Shark owner & CEO Andrea Dini told ET. Globally, Paul & Shark is benchmarked with Hugo Boss and Zegna in the lifestyle sportswear segment, he added.
The 50:50 JV, Reliance Paul & Shark Fashions Pvt Ltd, is expected to open the first store by March 2009. “In terms of customer evolution for luxury goods, markets like Mumbai, Bangalore, Delhi, Chandigarh and Hyderabad have all arrived. While we may begin with the Mumbai-Delhi circuit as usual, there is a possibility of changing that order and looking for the first store in the three other cities if real estate comes along,” said Reliance Brands chief executive Darshan Mehta.
Paul & Shark operates a retail network of around 400 outlets, including about 200 standalone stores, which are mostly in the European markets. Paul & Shark pricing in India will be comparable to Dubai market where it operates four stores currently.
A woven Paul & Shark shirt may be priced between Rs 9000 and Rs 12,000 while knits will be between Rs 5000 and Rs 12,000, outerwear between Rs 24,000 and Rs 35,000 and accessories, including shoeline, hats and scarves, priced in the Rs 4,000-10,000 bracket. At the projected pricing, Paul & Shark will be one of the few international luxury brands to take its domestic retailing beyond boutiques in five-star hotels.

source economictimes epaper

**WRONG THREAD**

Rado expects India to be its 3rd biggest global mkt in 3 yrs

Expecting India to be the third biggest global market for its luxury watch brand 'Rado' by 2011, Swatch Group is embarking on an expansion drive to almost double its exclusive stores.

"We are looking for growth by increasing sales in our existing exclusive franchisee outlets, shop-in-shops and multi-brand outlets. Rado intends to be the biggest brand in the premium watch segment in India, where last years we were among the top two," Rado Vice President for Sales Peter Kaiser told PTI.

He said India is currently its eighth biggest global market and expects the country to occupy the third slot in next three years.

Kaiser said exclusive Rado brand stores would be almost doubled to 15 from the current eight, besides launching 6-10 new models by end of current fiscal to meet the target.

Among the new cities to be covered by exclusive outlets are Ahmedabad, Chandigarh and Bangalore.

"We are also launching three more shop-in-shops, up from the existing five, to cover new Tier II cities like Jalandhar and Ludhiana," he added.

source economictimes.com (http://economictimes.indiatimes.com/News_by_Industry/Rado_expects_India_to_be_big_mkt/articleshow/3164638.cms)

Archies enters apparel space, offers tee shirts

In an attempt to widen its portfolio, gifts and greeting company Archies Limited has entered the apparel business and is offering tee shirts under the brand name 'Ginger Lemon'.

"The inspiration was to replicate the humour from our greeting cards into tee shirts and offer a product to suit individual buying and not as a gift proposition only," Anil Moolchandani, chairman and managing director, Archies Limited said.

Targeted at the youth, the tee shirts will be priced between Rs 325 and Rs 399. There will be 40 designs to start with. The company plans to introduce new designs each month replacing older ones. The tee shirts will be available across Archies stores and other multi-brand apparel stores. The shirts are being sourced from the textile town of Tirupur in Tamil Nadu. The company hopes the tee shirts will contribute 10 per cent to the turnover by 2010-11. Archies holds over 60 per cent share of the greeting cards' market, with cards accounting for 33 per cent of its overall turnover and the rest comes from the sale of gifts.

The company will also enter a new segment of luxury toys and accessories for infants, this year. Archies has tied up with US based soft toys and infant accessories maker GUND for new-born babies. "We see great opportunity in this segment since not many organised players are present in the category and the ones present offer a very expensive value proportion for these products," Moolchandani said.

GUND's portfolio includes soft toys , apparel, accessories and even room decor products for new borns.

Last month, Archies had entered into a licensing agreement with UK's leading brand Paper Island to market and distribute its flagship brand Fizzy Moon in India. "Fizzy Moon's branded teddy bears will give us another foothold in the industry," Moolchandani said.

Archies already has tie-ups with international brands like Carlton Cards, Expressions Gifts Co (UK), Russberrie (UK) -a designer company and pioneers in soft toys, to source gifts. Apart from advertising in print and television , the company has revamped its online portal, ‘Archiesonline' for better outreach and support the new brands.

The site enables a consumer to shop for any Archies product. The company will also introduce shipping and delivery service for gifts from its stores from August this year.

After clocking Rs118 crore turnover in 2007-08, Archies Limited now hopes to touch Rs 160 crore by 2010-11.

source business standard (http://www.business-standard.com/common/news_article.php?leftnm=1&subLeft=2&chklogin=Y&autono=326555&tab=r)

Subhiksha to invest Rs 1,200 crore for expansion by 2010 (http://economictimes.indiatimes.com/News/News_By_Industry/Subhiksha_to_invest_Rs_1200_crore_for_expansion_by_2010/articleshow/3177277.cms)


MUMBAI: Food and grocery retail chain Subhiksha will invest around Rs 1,200 crore for expansion by 2010, a top company official said.

"We will be having around 3,000 stores by 2010 and we plan to invest around Rs 1,200 crore in the period," Subhiksha's promoter R Subramanian told PTI here.

The funds would be raised through a mix of equity and debt," Subramanian said.

At present, the chain has around 1,480 stores. "We will be present in around 250 cities by 2010," he said, adding that each store will be of an area of 15,000 sq ft to 20,000 sq ft.

In a move to further accelerate its growth plans, Subhiksha is also acquiring a majority stake in a Chennai- based listed company Blue Green Constructions and Investments Limited, he said.

Spencer's to open more than 400 stores in FY'09

http://economictimes.indiatimes.com/News/News_By_Industry/Spencers_to_open_more_than_400_stores_in_FY09/articleshow/3177857.cms

Retail major Spencer's on Sunday said it would expand its operations in the country by setting up additional 22 large format stores and 425 small outlets, especially in tier-II and small cities in this fiscal.

The retail chain has 18 large and 375 small format stores at present in India.

The company is targeting a turnover of Rs 1,800-2,000 crore this fiscal. It had recorded a turnover of Rs 1,000 crore in 2007-08

While Spencer's large format store has area of 20,000- 80,000 sq ft, the small format store are of 2,000-10,000 sq ft size.

Big Bazaar to open 61 megastores this year

http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Big_Bazaar_to_open_61_megastores_this_year/articleshow/3177775.cms

Targeting a turnover of Rs 5,000 crore in this fiscal, Future Group's retail chain Big Bazaar on Sunday said it will open additional 61 stores by the year end. The company currently has a total 89 stores across 55 cities

The new stores would come up on an area of 30,000 -1,25,000 sq ft. After this, Big Bazaar would have total 150 stores. Most of the new stores would be set up in tier-II and smaller cities. Big Bazaar has presence in 16 tier-II and smaller cities.

Benetton to open 20 stores in Tier II, III cities

http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Benetton_to_open_20_stores_in_Tier_II_III_cities/articleshow/3177724.cms

Italian apparel chain Benetton on Sunday said it plans to set up 20 new outlets in tier II and tier III cities across the country by the end of next year.

The company, which owns the United Colors of Benetton brand, currently has 160 stores with a presence in 45 cities across India.

Bata to open 260 new stores in next 3 yrs

http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Bata_to_open_260_new_stores_in_next_3_yrs/articleshow/3177540.cms

Footwear major Bata today said it will open about 260 new exclusive stores at an investment of up to Rs 400 crore in the next three years.

The company is also looking at expanding its exclusive stores dedicated to children wears - Hush Puppy. The company has presently four such stores and is talking to various mall developers for opening of more such stores.

The company plans to close down around 40-50 small stores across the country which, the firm thinks, are not making enough profits.

Vishal Retail to invest Rs 700 cr for expansion

http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Vishal_Retail_to_invest_Rs_700_cr_for_expansion/articleshow/3177401.cms

Delhi-based Vishal Retail on Sunday said it would open 70 more stores at a cost of around Rs 700 crore by the end of this year, taking the total number to 190, while playing down the chances of high inflation dampening its expansion plans.

Tatas to try out Topshop & Topman

Tie-Up With Arcadia To Help Trent Move Up Value Chain

BRITISH billionaire Philip Green is learnt to have finalised Tata Group as partner for the India foray of his high-fashion apparel and accessory retail chains—Topshop and Topman. Mr Green’s Arcadia Group was also in talks with DLF for its India operation, but finally decided in favour of a franchise agreement with Tata Group’s retail chain Trent, a person close to the development said.
A Trent spokesperson neither confirmed nor denied the development.
Topshop and Topman, which cater exclusively to young women and men, respectively, could potentially give retail giant Arcadia Group a toehold in the fastgrowing Indian retail market. Arcadia Group owns several high-street clothing retailers, including Miss Selfridge, Burton, Evans, Dorothy Perkins and Wallis, besides Topshop and Topman.
The arrival of Topshop and Topman, a popular brand with Indian visitors to the UK, is likely to intensify competition in the high-end apparel category, where it will compete with the likes of Esprit. The tie-up with Arcadia Group will help Trent move up the value chain. At present, Trent is a mass-to-mid-market retailer and the tie-up with Topshop and Topman will mark its debut in the premium segment.
Topshop, which has a range of apparel and accessories mainly for young women, also offers a variety of celebrity and designer collections. Of late, a range by supermodel Kate Moss has been a big success in Topshop stores.
Philip Green has of late been pursuing an aggressive expansion strategy, as he aims to turn Topshop and Topman into a global brand. Topshop crossed the Atlantic last year to roll out stores in the US. And now, it has finalised its partner for India, even as it explores options in China. At present, Topshop operates with a mix of company-owned and franchise stores in over 30 countries, including the UK, the US, Russia and Dubai.
Topman, which has an all-pervasive presence on the UK high-street, is now spreading its wings to the US, Japan and Russia. The 30-year-old brand mainly offers a range of formal and informal wears and accessories targeted at young men.
Billionaire Green is best known for buying out distressed retail firms and turning them around. Some of the retail chains he purchased and turned around include Jean Jeannie, sports retailer Olympus, Sears retail chain, Arcadia and BHS. Green’s Arcadia and BHS together are the second-largest clothing retailer in the UK after Marks & Spencer, a firm Green tried to unsuccessfully acquire twice in 1999 and 2004.
Ten-year-old retailer Trent operates lifestyle chain Westside, hypermarket Star Bazaar and books and music retail chain Landmark in India.

source economictimes epaper

Reliance plans specialty stores for cellphones

RELIANCE Retail is planning to open a chain of specialty stores to retail mobile phone handsets across the country. The mobile handset retail initiative will be spearheaded by Navneet Saluja, who was earlier heading Reliance Retail’s operations in Delhi-NCR. Reliance Retail stores will compete with similar stores of other major retailers, including Subhiksha, RPG and Essar-Virgin’s The MobileStore. When contacted, a Reliance Retail spokesman said: “Our initiatives are a full spectrum design across various defined formats and categories within Reliance Retail. As regards separate mobile telephone format, we will make announcement at an appropriate time.”
Reliance Retail’s strategy has been to have a large presence across all categories and formats and the company’s foray into mobile phones is an extension of that strategy. The roll-out of food & grocery stores, Reliance Fresh, the company’s best known format, has been quick although with its own share of controversies. But other specialty formats, which started slow, are now picking up. For a faster roll-out and in order to overcome challenges related to acquiring retail space, the company has chosen to take the franchisee route. Reliance Retail is also entering into alliances with foreign players for some of its specialty formats, where it thinks the foreign partners’ experience could come in handy. Reliance Retail operates stores in various categories, including food & grocery, consumer durables and IT, apparel, wellness products, footwear, books & music, and jewellery.

source economictimes epaper

Biyani may walk with foreign ally

INDIA’S largest retailer may finally be willing to share equity with a foreign partner. In a major restructuring, Future Group CEO Kishore Biyani, is reliably understood to be working on a plan to slice Big Bazaar, the country’s largest hypermarket format into two entities.
While one would be a B2C (business to consumer) front-end consumer facing entity, the other will be a back-end operationsled company. Mr Biyani is believed to be currently working on creating a huge backend entity that may enter into a joint venture with a leading international cash-andcarry retailer, sources said. Ernst & Young is understood to be working on the project.
Mr Biyani has been meeting retailers in the US, France and Germany in this regard, sources close to the development said. Among the top names seen as the likely partners in the wholesale and cash-and-carry space include Carrefour (France), Metro (German), Cotsco (US) and Groupo Casino (France). Currently, around 63% of Future Groups’ revenues come from Big Bazaar.
Sources said the move is an attempt by Mr Biyani to access sizeable funds to scale up the group’s expansion plans in the Indian market. In addition, a foreign partner will help the group improve efficiency in sourcing and logistics that will help drive down prices and boost margins.
The company executing back-end operations is expected to be a retailing behemoth since it will integrate the back-end requirements of Big Bazaar and Food Bazaar formats with that of the group’s home solutions retailing format including KB’s Fair Price Shops.

Biyani plans 3 models for Big Bazaar stores

SOURCES added that by 2011, the turnover projection for the back-end operations from Big Bazaar alone could be around Rs 18,000 crore. The back-end operations of the Future Group will be a giant cash-and-carry business (wholesale stores that would supply to retail stores) along the lines of the proposed Bharti-Wal-Mart joint venture.
“The rate at which the group is expanding, a foreign partner can bring in significant investments that could fuel this growth,” said a source. But sources claim that Mr Biyani is clear that the partnership will only be for the back-end business and not for the front-end business.
It’s also learnt that Mr Biyani is working on three distinct models for the Big Bazaar format. While the standard Big Bazaar stores will measure between 40,000 sq ft and 75,000 sq ft, stores larger than that will be branded Big Bazaar Supercentres and smaller stores will be called Big Bazaar Express. By 2011, the company plans to collectively operate over 350 Big Bazaar outlets, up from the current 91 outlets.
Consequently, Mr Biyani has dropped plans to launch a rural cash-and-carry format, KB’s Wholesale Market, and the land acquired for this is either being merged with the Aadhaar system or being converted into warehouses. Aadhaar is being scaled up on the lines of ITC’s e-choupal to become a major supplychain for commodities and agri-produce. Aadhaar will also be a huge distributor of the group’s financial products like consumer finance and insurance.
Bharti-Wal-Mart and Reliance Retail are also working on their own back-end ventures, something intended to make their front-end retail ventures competitive on the price front.
Retailers such as Reliance and Bharti are likely to roll out dedicated cash-and-carry operations catering to front-end retail. In the coming times, cash-and-carry segment is likely to see a lot of action, with many international retailers, including Carrefour, Tesco and K-Mart firming up plans. Some other well-known players in this segment are Shoprite (South Africa), Ahold (the Netherlands), Delhaize (Belgium), Loblano (Canada), SHV Makro (the Netherlands) and Groupo Gigante (Mexico).
In the face of relentless cost pressures, Future Group is recently understood to have undertaken a management and systems merger combining Big Bazaar, the value retail chain and Home Solutions Retail. This move has already helped the company bring down costs in the region of Rs 60 to Rs 65 crore. The entire initiative is to focus on cutting intermediate layers and passing the benefit to customers. Mr Biyani, source said, has turned his attention back to retail after kick-starting other group initiatives, sources said. The group plans to generate revenues anywhere between Rs 14,000 crore and Rs 16,000 crore from Big Bazaar by the year 2011.


source economictimes epaper

Triumph to set up 450 stores in India

Betting big on the organised retail boom in India, women's inner wear maker Triumph said it will invest up to Rs 200 crore in setting up 450 exclusive stores over the next five years.

"Indian organised retail is growing at a very impressive pace and we really want to tap this growth. We have decided to invest up to Rs 200 crore in the next five years in setting up 450 exclusive stores in 100 cities across the country," Triumph International (India) General Manager and Country Head Thorsten Allenstein said.

Of the 450 stores, 10 would be flagship stores while the remaining 440 would be set up through the franchisee route.

"Our flagship stores will have an entire range of our collection, while the normal outlets will showcase only select items," Allenstein said.

The company has committed to investing $55 million in the country by 2009, of which $30 million have already been invested in setting up a large manufacturing facility in Chennai. The facility, which currently employs 1,300 people, would employ more than 5,000 people when fully operational.

"Initially, the facility would be used for export and later it would be dedicated only to cater to the Indian market. We will invest $25 million (nearly Rs 100 crore) in setting up 100 exclusive stores by the end of next year," Allenstein said.

Triumph is also in the process of finalising a deal for a joint venture for its retail business and is expected to announce the deal by the end of this week.



source business standard (http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=41113)

Reebok on expansion spree, to open 230 stores in FY'08

Global sports wear brand Reebok said on Monday that it is on a major expansion in India which would see the company open one store in almost every two days, taking the total number of stores to 850 by the end of 2008-09.

"The company, which currently has 620 stores across the country, is going for a substantial increase in its distribution, which will see its sales going up by 30 per cent per annum," Reebok India Managing Director Suvhinder Singh told PTI.

"Besides consolidating our existing position in metros and tier I cities, we are also going for a major expansion in tier-II and tier-III and lower-tier cities", he added.

However, he refused to divulge any investment details. "It is not the company's policy to reveal investment and sales figures," he said on the sidelines of the Pure & Play Retail Summit here on Monday.

The company has grown six-time in the last five years and controls 53 per cent of Indian footwear market, Singh said, adding that they would be also bringing in new products.

"We want to maintain the current position and bring new innovation and formats in various segments. We are bringing out 20 new footwear models every quarter, besides a new apparel in every 45 days," he said.

Reebok is also planning to open specialised junior stores for its young customers. As many as seven such stores will come up in Hyderabad, Mumbai and Delhi among other cities.

The company would be aggressive on its marketing strategy as it plans to expand its business in the country.

"As part of our marketing strategy we have roped in Bollywood stars and cricketers as means of communication platform as Indian customers have a tendency to associate with them," he said, adding that the company wants to utilise this for expanding into smaller cities.

source economictimes.com (http://economictimes.indiatimes.com/News_by_Industry/Reebok_to_open_230_stores_in_FY08/articleshow/3182051.cms)

Raymond to expand number of stores;launch new brand for kids

Leading luxury segment retail brand Raymond is planning to launch 40 additional franchisee and six exclusive stores across major tier I cities of the country by the end of current fiscal.

The company has 24 exclusive Raymond stores, besides 65 franchisee and 100 multi brand stores across the country presently, Raymond Apparel Director (kids wear) Vineet Nair told PTI on the sidelines of Pure & Play retail summit here.

As a part of the expansion plans, the company will also launch a new brand for kids wear.

"We are putting more emphasis on the kids wear segment and bring out an exclusive kids wear brand 'Baby Zap', which is focused on toddlers," he said.

The new 'Baby Zap' brand will be tried out at some of the companies' exclusive stores before it is sold in mass markets. The 'Baby Zap' brand will have 40,000 sq feet of area exclusively dedicated at its various Raymond stores.

Besides, Nair added "Raymond is now looking for a major expansion in the international markets and for that we are open to acquisitions, and other kinds of joint ventures."

"We want to emerge as qualified brand in the kids wear segment. For this, we are putting together a collection focusing on kids ," Nair added.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Raymond_to_expand_number_of_storeslaunch_new_brand_for_kids/articleshow/3181393.cms)

Globus to invest Rs 350 cr for retail expansion

Apparel retail chain Globus on Sunday said it will invest Rs 350 crore for opening 74 new stores in the next 30 months across India.

"Seeing the growth in the organised retail industry, we have planned to increase the number of outlets to 100 from the current 26 stores in the next two-and-a-half years. This can entail an investment up to Rs 350 crore," Globus President Subhash Chhabra said on the sidelines of Pure&Play Retail Summit here.

The entire investment would be funded through internal accruals, he added.

To start with, Chhabra said, the company would add 15 stores in the current fiscal in Tier I and Tier II cities, including Nagpur, Kochi, Rajkot and Surat.

The existing stores are located in 15 cities and after expansion, the company would establish its presence in 45 more cities across India.

On the size of the stores, he said it would vary from 7,000-8,000 sq ft per store.

When asked about the formats the company is looking at, Chhabra said, "It will be completely company-managed stores and we prefer to open it in shopping malls".

Last fiscal, Globus India posted a revenue of Rs 170 crore and it is targeting to touch a topline of Rs 230 crore in the current fiscal.

On the range of their collection, Chhabra said: "Fifty-five per cent of our collection is womenwear and while men's, kids' and accessories constitute the remaining 45 per cent".

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Globus_to_invest_Rs_350_cr_for_retail_expansion/articleshow/3177893.cms)

Apparel segment may touch Rs 20-22 lakh cr by 2013: IRIS (http://www.financialexpress.com/news/Apparel-segment-may-touch-Rs-2022-lakh-cr-by-2013-IRIS/329343/)

The apparel segment, which is growing at the rate of 15 per cent per annum, is likely to touch Rs 20-22 lakh crore by 2012-13, according to leading market solution provider IRIS.

Of the Rs 12 lakh crore apparel market, ethnic wear will continue to enjoy the majority share, IRIS Managing Director Vivek Kumar said on the sidelines of Pure & Play Retail Summit in New Delhi.

“Women’s and kids’ wear comprise a huge portion of the retail apparel market in India and the women’s wear in itself is a Rs 42,600 crore segment,” Kumar said.

Studies conducted by IRIS on the Indian retail market shows that the western wear segment of Rs 2,400 crore, which is 12 per cent of the total women’s wear market, and is growing at an exponential rate of 16-20 per cent a year.

“While ethnic wear is declining at around 1-2 per cent a year, increase in over-all size of the market will compensate for the decline in percentage, as the size of the total pie will keep on increasing,” Kumar said.

He said, “the middle class population in India will reach 41 per cent of total population by 2025 and this will contribute for the growth of western wear segment as well as the entire apparel retail segment in India.

In Tier 2 and smaller cities, the growth of the apparel market is quite high and will reach 60 per cent per annum very soon, he added.

IRIS’ major clients include Aditya Birla Group, Pizza Hut and ELDPL among major retail brands.

Girl Forever to set up 25 outlets in metros, Tier I cities (http://www.financialexpress.com/news/Girl-Forever-to-set-up-25-outlets-in-metros-Tier-I-cities/329342/)

Leading girls' wear brand Girl Forever is going for a major expansion in India over the next two years, which will see the company setting up 25 new exclusive outlets in major metros and smaller cities.

"The company is looking for an increase in turnover to reach the figure of Rs 50 crore by 2009-10 fiscal year, up from Rs 12 crore in 2007-08," Girl Forever, Head of Design and Retail, Amarjeet Singh said on Monday in New Delhi.

"The main focus of the expansion would be on western wear for teenage girls," the company, an Indian subsidiary of leading international brand Icon Clothing and Corporation, said.

The new stores would exclusively cater to the needs of teenagers and would sell the Girl Forever label in sports wear, night wear and all other major segments.

The company has presently eight stores located in Delhi, Mumbai, Pune and Bangalore and is now looking to tap the growing demand for western wear in major cities, he added.

"At present, teen western wear comprises 12 per cent of the total apparel sales in the country. However, in figures the total sale value is quite large and we want to tap the growing market," Singh said. The new stores would be developed on an area of 15,000 to 20,000 sq ft, same as the size of the existing ones.

The company presently manufactures around 2,000 pieces of its own apparel brand every week from its Indian facilities located in Chhatarpur in Delhi. Girl Forever launched its India operations in 2004.

Titan Industries to become billion dollar company (http://www.financialexpress.com/news/Titan-Industries-to-become-billion-dollar-company/329354/)

On the back of robust growth in jewellery and watches business, Tata group's Titan Industries is aiming to become a billion dollar company by the end of this fiscal year.

The company has also charted out store expansion programs for its jewellery, watches and eye wear divisions in India, besides planning to enter the US market with the Tanishq brand of jewellery in the US by next month.

"Last year we had turnover of Rs 3000 crore and this fiscal we are looking at crossing Rs 4000 crore mark. By then we would have become a billion dollar company," Titan Industries ltd Vice-President Retail and Marketing V Govind Raj said.

Last year the company's jewellery division had clocked about Rs 2000 crore revenue, while that of the watches was at about Rs 1000 crore.

Commenting on the company's expansion plan this fiscal, he said the Tanishq jewellery store would be increased to 150 from the current 110.

"In the watches segment we are increasing the number to 300 stores from the existing 240, while in the eye wear segment we are increasing the number of stores to 60 by the end of this fiscal from the present 20," Raj said. He, however, declined to comment on the plan investments for the expansion.

On its international expansion plans he said that the company would be launching its Tanishq brand of jewellery in the US market early next month.

The company currently has presence in about 30 countries across the world.

Titan industries is currently in talks with leading international watches brands to bring them to India. It currently sells HuGo Poss and Tommy Hilfiger in India.

High spenders darling of luxury retail biggies

Indian consumers are demanding and getting service extraordinaire from premium brands flocking the high streets. Indulgence, it seems, is the key to the consumers’ wallet. In-shop cafes, lounge areas, kids’ play area, personal stylist, manicures and spas are the new freebies that high retail spenders might expect at Indian outlets of Esprit, UCB, Samsaara, Tommy Hilfiger, Ritu Kumar, Estee Lauder, et al.
Some international brands are providing ‘frills’ to the well-travelled Indian consumer—an incentive to buy the brand at home. For example, Espirit India intends to have in-store salons and spas in select stores, a service that is not provided in its international stores. “The service expectation are exceptionally high (in India),” says Espirit (India) COO Manjula Tiwari.
Others like Estee Lauder will provide ‘frills’ because of their different (luxury) brand positioning in India. Wellness and beauty services seem to have become the complimentary norm for high-end women apparel retail. Spa facility, bridal makeup or photo shoot is offered to high spenders at Satya Paul and Samsaara stores while select shoppers at Ritu Kumar get complimentary ‘glow treatments’ at high-end beauty salons.
In-store cafes and lounges are also a new trend with both international and high-end Indian brands. Most brands right from Tommy Hilfiger, Esprit, Satya Paul to lifestyle retailer Shoppers Stop and table-ware brand Magpie have either introduced or are experimenting with this concept. “Women like to chat and hangout while shopping. Hence, we will have a lounge area in our new outlet of Samsaara at Bandra (Mumbai),” says Genesis Colors CEO Nalini Gupta.
Esprit India is checking out the feasibility of in-store cafes and play areas for children. While wellness, beauty, child-care and fashion advisors are mostly on the house; food and beverages could be paid facilities, depending on the shopping patterns. “The store is going to be spread over 5,000 sqft, out of which about 1,000 sqft would be devoted (one floor) to either a wine club or a sushi club or a cafe. It will be a paid service,” says Ms Gupta.
“Indian shoppers still aspire for the bling of a big brand, but it’s extended courtesies on the side that keep them coming back for more,” says CEO of an international label retailing in India. Brands have also started offering complimentary product maintenance and styling help to select customers. United Colours of Benetton offers free dry cleaning for suits bought at its men formal wear brand Uomo. Wills Lifestyle and Estee Lauder plan to offer personal stylist and makeover help to the high-end regular customers. Luxury watch boutique chain Ethos offers free home delivery of watches. Connected services like strap size adjustment is on the house “regardless of whether the watch is bought from us or not”, says Ethos GM Rakesh Mohunta.

source economictimes epaper

DLF talking to Italian co Boggi for India foray

REAL estate developer DLF is learnt to be close to tying up with Italian apparel brand Boggi for the latter’s India foray. Boggi, which has a significant retail presence across Europe and the Middle-East, is likely to have a majority stake in the joint venture with DLF.
Boggi, a 70-year-old brand, offers a wide range of men’s formal and informal clothing, as well as shoes, watches, fragrance and other accessories. The Italian firm, which reported a turnover of € 70 million in 2006, is controlled by three Zaccardi brothers—Carlo, Caludio and Roberto—who also run multi-brand retail chain Brian & Barry. The firm runs around 70 stores spread across Europe and the Middle-East under both Boggi and Brian & Barry banners.
A DLF spokesperson declined comment on the likely tieup. Boggi will be another addition to a large portfolio of brands DLF is trying to build to tap every possible consumer segment. It’s been more than a year since DLF decided to diversify into retail and started negotiations with a large number of potential retail partners, apparently because it lacked competency in retail. The progress, however, hasn’t been very encouraging. So far, the company has announced tie-ups with only three brands—Giorgio Armani, Dolce & Gabbana and Salvatore Ferragamo. Many potential partners are believed to be peeved over DLF’s extremely slow pace of negotiations.
DLF is aiming to forge partnerships with retailers in every consumer segment as well as for multi-brand stores. The company is understood to have finalised a partnership with Italian travel luggage brand Piquadro. It is also in advanced stage of negotiations with Thailand-based retailer Central Group for launching departmental stores in the country.

source economictimes epaper

Trent to invest Rs 2,000 cr in five years (http://www.financialexpress.com/news/Trent-to-invest-Rs-2-000-cr-in-five-years/331399/)

Trent Ltd, the retail arm of the Tata Group, has drawn up a Rs 2,000 crore investment plan for setting up 50 hypermarkets--Star Bazaar--over the next five years, a top company official said.

"We are launching 50 new hypermarket stores 'Star Bazaar' in the next five years at an investment of around Rs 2,000 crore," Trent Ltd's Managing Director Noel Tata said in Mumbai.

Trent aims to expand to 100 stores across formats by FY 10. The money will be raised through internal accruals only, Tata said.

The company has launched its second Star Bazaar at Andheri in Mumbai today. Spread across nearly 75,000 square feet over two floors, Star Bazaar is a one-stop shop.

"Higher property price has hit retail expansion. In hypermarkets, property is a major and significant cost in our business," Tata said.

Commenting on inflation affecting the retail business, Tata said, "people are looking for better value in inflation. This is the right time for us to be opening hypermarkets to provide value to customers."

"We have huge pressures on cost-- both in terms of raw material and staff. We have been able to absorb quite a substantial portion of those increased costs," he said, adding that the best way of driving cost down was growing the business as fast as possible.

Spencer pumps in Rs 400 cr for expansion (http://www.financialexpress.com/news/Spencer-pumps-in-Rs-400-cr-for-expansion/331408/)

Revealing that Spencer's Retail Limited, a company of Rs 1500 crore turnover was in the Expansion mode, Ramesh Menon, Senior Vice President of the company on Friday said that the company would pump in capital of Rs 400 crore more to achieve the target turnover of Rs 2500 crore in the current financial year.

"We have planned to open 300 more small stores apart from 23 hyper market stores in the country to reach the figure of total 700 crores, for which the company will pump in a fresh capital of Rs 400 crore", Menon, while inaugurating the company's 30th Super Store in the Punjab, told reporters.

Out of total planned 300 new stores, six Hyper Market stores would be opened in districts of Punjab including, Bathinda, Patiala, Amritsar, Pathankot, Chandigarh and Ludhiana, he said adding that apart from six Hyper Market stores, 25 small stores would also be opened in the state.

Asked what was the difference between the Hyper Market stores and Super stores on the company, Menon said that area of the Hyper stores would be approximately 25,000 to 30,000 square fit, having full range of electronic items as well, where as in Super stores, emphasis was being given to daily use items.

On a query that whether the business of the retail chain was on the decreasing trend especially after the rise in the inflation rate, Menon denied the same and said that since the company was mainly dealing in the routine items, where was no adverse impact on the sale due to rise in inflation.

Debenhams to set up design hub in India (http://www.financialexpress.com/news/Debenhams-to-set-up-design-hub-in-India/331134/)

UK’s lifestyle departmental store brand, Debenhams, is planning to set up it’s design hub in India, Francis Mcauley, international director, Debenhams told FE.

According to Mcauley, "After Turkey and China, we are planning to set up a design hub in India. We have about 25 international designers who would be involved in operations at India's design hub too. Besides this, we will rope in select top Indian designers as well, to associate with us for fashionable apparels." Gurgaon-based Planet Retail Holdings Private Ltd is the exclusive franchisee for Debenhams in India.

As for the rationale behind the move, Mcauley explained, "We feel the Indian market is quite attractive for selling branded fashionable apparels, cosmetics, children's fashion, footwear and to address the demand, Debenhams stores in India will host 80 brands of leading British designers. We are planning to set up 30 Debenhams stores in India in the next 10 years. Each store will vary in capacity, from 35,000 sq ft to 50,000 sq ft in size."

Debenhams has recently started talking to retail majors such as Indiabulls, Emaar MGF, Unitech, DLF and InOrbit, in order to set up Debenhams stores within their malls. Mcauley said, "We would prefer being present within malls first and scout for locations in order to set up standalone stores wherever we find suitable deals. After setting up Debenhams flagship store in Delhi, we have recently opened Debenhams stores at Oberoi Mall at Goregaon, Mumbai."

Sameer Prasad, chief operating officer, Planet Retail Holdings Ltd said, "We are planning to bring in international branded children's fashion as well to India." However, Prasad refused to divulge further details. Currently, Planet Retail offers, apart from Debenhams, a portfolio of renowned brands such as Guess, Next, The Body Shop, Marks & Spencer and Accessorize.

Debenhams has 145 stores including 10 Desire by Debenhams stores, across the UK and Ireland with approximately 10.9 million sq ft of trading space and 21,000 employees.

Dubai based Cellucom to invest Rs 500 cr in India (http://www.financialexpress.com/news/Dubai-based-Cellucom-to-invest-Rs-500-cr-in-India/330904/)

UAE mobile retailer Cellucom will invest Dh 500 million (Rs 500 crore) for rolling out 500 stores across India by the end of 2009.

Cellucom Chief Executive and Managing Director Arun Nagar said the company would open 15-20 stores every month in India, "where we already have 200 retail outlets presently."

By the end of 2009, we expect to open 500 stores across the country, with an investment of around Dh500 million, he was quoted as saying in Gulf News.

This year, the company plans to invest Dh 250 million for expansion, he said.

Cellucom, one of the largest mobile phone retailers in the region, has 90 stores across the Gulf Cooperation Council (GCC) countries.

It employs more than 2,000 professionals across its network. The first retail outlet of Cellucom was established in Dubai in 2001. In 2002, it opened offices in India.

M&S-Reliance Retail JV among FDI plans cleared

The government has approved 28 foreign direct investment (FDI) proposals worth Rs 13.28 billion, including one from Marks & Spencer (M&S) Group. The government cleared the proposal of M&S to form a joint venture with Reliance Retail in which the foreign company will hold 51%. Other retail proposals which got approval include Pearle Europe for induction of 50% FDI for single brand retail trading and Giordano Fashions to establish a chain of single brand retail stores. The retail proposals have been cleared subject to the condition of Press Note 3, 2006 under which no single foreign institutional investor can directly or indirectly hold more than 10% equity in the venture.

source economictimes epaper

Debenhams to set up design hub in India (http://www.financialexpress.com/news/Debenhams-to-set-up-design-hub-in-India/331134/)


UK's Debenhams to tie-up with Indian designers (http://www.financialexpress.com/news/UKs-Debenhams-to-tieup-with-Indian-designers/332093/)

UK-based departmental store, Debenhams, will soon tie-up with designers from India, a top company official said.

"We are in talks with around six designers of which three are renowned and the remaining are upcoming," Debenhams' International Director, Francis McAuley, told PTI.

He however, declined to divulge the names of the designers under consideration.

The company is planning to tie-up with one renowned and one upcoming designer, who would design for Debenhams.

If the designer is renowned, the company may tie-up for an exclusive line to showcase their designs in the international market as well, since Debenhams has 145 stores in the UK and Ireland including 10 Desire stores (another format) and has around 41 international franchisees in 16 countries outside the UK and Ireland, he said.

Presently, Debenhams has around 21 designers from across the world and with the addition of two more designers from the country, the number would go up to 23, he said.

"There are a lot of Indians in the UK and if we select designers from India, we can cater well to this segment," he added.

Debenhams has a strong presence in key product categories including women's wear, men's wear, health and beauty, accessories, lingerie and childrenswear. It has a mix of exclusive owned brands and third-party brands.

"We do not have any fixed target consumers as we believe that everyone is our target consumer. We have different product categories that cater from the middle-class to high-end consumers," he added.

Centre consulting states for setting up retail regulator

In a bid to cushion small retailers from corporate giants, the Centre is in consultation with states for setting up a retail regulator. As per the consolations among states, state level legislative authorities would wield powers to grant licences to retailers for operating business.

The regulators in coordination with the state governments would also demarcate zones in the cities for setting hypermarkets. Moreover, the regulators would work in tow with competition commission to oversee pricing of products so that small retailers do not fall prey to predatory pricing. States would submit the final guidelines on the regulatory mechanism in two months to the commerce and industry ministry.

In fact, the proposal is part of the Icrier report on “Big Versus small retail” recently submitted to the government. “We have had several rounds of consultations with the state governments and other ministries. We are now awaiting their comments on the report,” a senior commerce ministry official said. The policy framed by the government based on the report would also set the ground for FDI in retail, which has been facing problems due to lack of consensus among political parties.

The regulator would also look into real estate cornering by large retail chains to restrict competitor access and complaints of muscling out smaller retailers by price undercutting.

Many countries specially in south east Asia like Malaysia, Indonesia and Thailand have put in place tough regulations with a view to balance the conflicts of interests between modern retail and the traditional retailers and suppliers to the modern retail. These countries have imposed a number of restrictions on the growth of large retail companies particularly the transnational companies as against fairly liberal approach to the retail sector practised until the late 1990s.

According to the Icrier report, the retail business in India is estimated to grow at 13% from $322 billion in 2006-07 to $590 billion in 2011-12. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $ 309 billion in 2006-07 to $ 496 billion in 2011-12.

The report also states that due to relatively weak financial state of unorganized retailers, and the physical space constraints on their expansion prospects, this sector alone will not be able to meet the growing demand for retail. Hence, organized retail which now constitutes a small 4% of total retail sector is likely to grow at a much faster pace of 45-50% to 16% by 2011-12.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Centre_consulting_states_for_setting_up_retail_regulator/articleshow/3185896.cms)

Welspun Retail to invest Rs 150 cr on expansion (http://www.financialexpress.com/news/Welspun-Retail-to-invest-Rs-150-cr-on-expansion/332909/)

The Welspun Group's retail venture is embarking on a major expansion with plans to invest Rs 150 crore over next three years for setting up 160 new stores under different formats, while it gets ready for supplying overseas.

Welspun Retail, the group's retail arm, is planning to increase the number of its WelHome (targeted at the middle segment) and Spaces (in the high end range) stores.

"The plan is to open 100 additional WelHome and 60 more Spaces stores across the country, up from the present figures of 220 and 25, respectively," Welspun Retail Director Dipali Goenka said.

She said with the expansion plans afoot, the company is looking to increase annual turnover to Rs 200 crore during the current fiscal and reach a figure of Rs 1,000 crore by 2011-12. It had recorded a turnover of Rs 85 crore last year.

While the new WelHome stores would mostly be set up in Tier II and III cities, the company's expansion of the Spaces' format would focus on the metros and major Tier I cities, Goenka added.

The two formats have a presence in 116 cities in India. Asked about the funding for the expansion, she said it would come entirely from promoters. "We have no plans for venturing into any IPO or private equity route in the near future," Goenka said.

Commenting on reports of Welspun Group's plans to hive off the retail arm, she said: "It is also not true for the immediate future. We will wait and watch for sometime before taking any action."

Subhiksha to open 1,000 outlets by December (http://www.financialexpress.com/news/Subhiksha-to-open-1-000-outlets-by-December/332926/)

Aiming to cash in on the burgeoning retail sector, retail chain Subhiksha on Tuesday said it plans to open 1,000 more outlets by the end of this year.

"Organised retail is growing at a rate of 8-10 per cent per annum, which so far represents only about four per cent of the total retail market. We are planning to open about 1,000 stores by this December across various cities of the country," Subhiksha President (Manpower) S Shashikanth said at the FICCI Ladies Organisation symposium on retail in New Delhi.

The company would add the stores primarily in Tier I & II cities, he added.

"We are exploring smaller cities in Madhya Pradesh and the Eastern part of the country," Shashikanth said.

On the models to be followed for the stores, Shashikanth said, "All will be company owned as we do not have any franchisee concept."

The average size of the outlets would be about 1,500 sq ft, he added.

He, however, declined to comment on the size of investment the company is looking at for its expansion drive.

When asked about the company's plans to raise funds from the capital market, without divulging any detail, Shashikanth said, "Yes, we definitely have plans to get listed."

Subhiksha, which started its operation with one store in Tamil Nadu in 1997, currently has over 1,500 outlets across the country and employs over 25,000 people.

The Indian retail industry is currently pegged at 330 billion dollar, of which the organised sector constitutes only about four per cent. The sector is estimated to cross 650 billion dollar mark by 2015 and the organised retail would touch 130 billion dollar mark by then.

Reliance Retail to open optical chain stores (http://www.financialexpress.com/news/Reliance-Retail-to-open-optical-chain-stores/332924/)

Reliance Retail on Tuesday said it will launch the first outlet of its optical chain stores Vision Express, under a joint venture with Pearle Europe, by September this year in Bangalore.

"We have already got the necessary approval from FIPB.

The first outlet will be opened by September," Reliance Retail President and Chief Executive (Lifestyle) Bijou Kurien said in New Delhi.

The first store would be launched in Bangalore, he added.

On the sizes of the outlets Kurien said: "It will be smaller than our jewellery stores."

Earlier, Reliance Retail had announced the optical chain would comprise independent stores and stores within Reliance Retail's other formats such as Hypermart, Super and Wellness.

The new entity would bring world class retail optical stores to India, with a range of private label frames, lenses, sunglasses, contact lenses and solutions.

Pearle Europe is a subsidiary of HAL Investments, the European investment subsidiary of HAL Holding NV, an international investment company based in the Netherlands Antilles.

It operates 2,200 optical retail stores in 21 countries across Europe and the Middle East. HAL Investments also owns a number of optical retail chains in emerging markets, such as China, Russia, Turkey and Brazil.

cross posting from the investments thread



Catmoss to invest Rs 400 crore for rolling out 500 stores

Kidswear chain Catmoss Retail on Friday said that it would invest Rs 400 crore in the next five years to expand its outlets to 500 stores in India by 2010-11, besides it is planning to foray into overseas markets, including Australia and the Middle East.

"We have just crossed the 100 stores mark across the country and are adding another 100 odd in various Tier II and III cities this year. We also plan to set up 20-25 stores in Australia and the Middle East," Catmoss Retail Chairman Ashwani Chawla told.

In Australia and the Middle East, the new Catmoss stores will come up in Sydney, Melbourne, Dubai and Abu Dhabi among other cities, he added.

The company is aiming for 500 stores in India alone by 2010-11, with an investment of Rs 400 crore, he added.

Chawla said, as part of its expansion plans, the company would invest Rs 50 crore this fiscal for rolling out 100 stores in India and 20-25 stores in Australia and the Middle East.

"From a turnover of Rs 75 crore last year, we are now targetting a figure of Rs 125 crore in the current fiscal on the basis of the expansion," he said.

It also plans to hit the capital market in 2009, besides moves to attract private equity investments. The percentage of share offloading would depend on company's valuation, he said.

"The Rs 20,000-crore kidswear market in India is growing at 20-25 per cent annually and our focus is on tapping the upper middle segment in the price range of Rs 300 to Rs 1,000. The expansion would keep intact the existing 70-30 ratio between company owned and franchisee outlets," he said.

Catmoss is also venturing beyond the ethnic and party kidswear apparel segment and would soon be introducing kids accessories like shoes, belt, caps, sunglasses and bags for both boys and girls in the age group of two to 14 years, he added.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Catmoss_to_invest_Rs_400_crore_for_rolling_out_500_stores/articleshow/3222325.cms)

Vishal Retail to add upto 700,000 sqft space by Diwali

Vishal Retail Ltd is likely to add 600,000-700,000 square feet to its retail space before festival season of Diwali, its chairman and managing director said on Friday.

"The demand for the products we sell is inelastic. We don't see any fall in consumer demand. So our plans continue to be on track," Ram Chandra Agarwal told over telephone.

The discount retailer has 120 stores spread across India, covering an area of 2.36 mn square feet. Agarwal said the firm was however looking at market conditions to improve before it raises money through share sales to fund its expansion plans.

In April, Vishal Retail said it will raise 30 bn rupees through a combination of debt and equity by March 2011 for new store openings.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Vishal_Retail_to_add_upto_700000_sqft_space_by_Diwali/articleshow/3221650.cms)

RPG to invest Rs 160cr in retail business

The RPG Group will invest close to Rs 160 crore in its specialty retail business, especially in Music World and bookstore chain Books and Beyond, in the next two years.

The company will put up 15 Books and Beyond stores this financial year, and eventually have 50 such outlets in two years at an outlay of Rs 100 crore. Simultaneously, the Music World chain will be scaled up to over 60, from the present 90 stores, with an investment of Rs 60 crore. The expansion will see the Music World floor space increasing from the existing 80,000 sft to 200,000 sft, K Dasaratharaman, president (speciality retail business), told mediapersons here on Friday.

Inaugurating the group's fifth Books and Beyond outlet in Hyderabad, he said the store would stock upwards of 35,000 books and magazines. There will be a convergence of both the formats whereby Music World will be an integral part of the bookstore. However, the Music World format will also expand independently and will have 40 more exclusive stores by this year end, he added.

RPG's specialty retail division clocked revenues of Rs 150 crore last year and expects to close the current fiscal with Rs 250 crore. "Music World currently contributes 90 per cent to the division's revenues. With the expansion of Books and Beyond and RPG Cellcom chains, we expect the combination to change from next year," Dasaratharaman said.

source business standard (http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=41987)

Videocon set to tie up with Mitsui, Hitachi for logistics JV

CONSUMER durables heavyweight Videocon is in joint-venture (JV) talks with Japanese majors Mitsui and Hitachi to set up a logistics company to support its retail operations. The JV will be spun off into a separate entity, according to sources familiar with the transaction.
The venture will initially provide back-end support for Videocon’s retail businesses Next, Bolld, Planet M and its appliance business. At a later stage it will cater to external clients. While the exact equity break-up is not yet decided, it’s learnt that Videocon and Mitsui will be the major partners in the venture with Hitachi holding a minority stake.
Next is a chain of stores selling consumer durables, Bolld is Videocon’s cash-and-carry business while Planet M is a leading chain of music retail stores. When contacted Videocon Industries chairman and managing director VN Dhoot confirmed the development, but declined to give details.
Sources indicated that the JV is expected to start operations by the third quarter of 2008-09. Videocon is currently working on the name and the exact equity holdings of the three partners in the JV.
While Hitachi will handle the back-end support for the electronic goods business, Mitsui will handle supervisory functions, sources said. Some of the backend functions which Videocon-Mitsui-Hitachi will handle include warehousing, transportation, inventory control and information management.
Mitsui, along with Delhi-based logistics company TCI has set up a company called Transystems Logistics, which provides back-end logistic support for Toyota. Mitsui and Hitachi’s expertise in backend and logistics and Videocon’s local skill is expected to create an operating model to support the retail ventures. Videocon will provide land, building and warehousing facilities at various locations. The Indian retail industry is currently going through a radical shift with the entry of the global majors, fuelling the need for total quality management and service in the shortest possible time.
Recently, the Venugopal Dhootowned Next Retail bought the music retail brand Planet M from the Times of India Group. The music retail chain launched in 1999, has over 5.5 million annual walk-ins across its stores spanning 42 cities with conversion rate of close to 40%. It has been experiencing a compounded annual growth rate of 33% over the past four years. It has 146 outlets across the country with 74 own stores and 72 satellite outlets.
Videocon is also venturing into the grocery and lifestyle retailing space through cash & carry format across the country. Videocon’s cash & carry business will sell food, grocery, apparel, footwear, consumer electronics, furnishings, hardware and general merchandise. All the retail businesses like Next Retail, Planet M and the cash & carry format currently housed under Videocon Industries, the group holding company, may also be spun off later.

source economictimes epaper

ICICI Bank to focus on unorganised retailing (http://www.financialexpress.com/news/ICICI-Bank-to-focus-on-unorganised-retailing/335905/)

Country's largest private lender ICICI Bank said it will focus on financing the unorganised retail sector as it is emerging as a profitable business area.

Executive Director of ICICI Bank V Vaidyanathan said unorganised retailing has potential to grow at a rate of 20 per cent per annum.

The bank has an exposure of Rs 10,000 crore towards the unorganised retail sector, he said on the sidelines of a retail summit in Kolkata.

"ICICI Bank will like to support by extending finance to the unorganised retail sector," he said, adding "it is a big focus area for the bank".

The bank has already open one million accounts for the shopkeepers.

By extending finance to them, the operational efficiency of the shopkeepers would increase, he said.

Compared to unorganised retailing, the bank's exposure to organised retailing was meagre, he said.

The bank recently launched B2 internet banking model for customers.

Spencer’s to dish out Au Bon Pain cafes

SPENCER’S Retail, part of the Rs 13,500-crore RPG Enterprises, has tied up with the US-based Au Bon Pain to launch a chain of fast casual dining and bakery cafes across the country. As part of this, it plans to set up 100 standalone cafes in the next two years at an outlay of Rs 50 crore. Au Bon Pain, the Boston-based fast casual dining and bakery chain, operates over 225 outlets in the US, South Korea, Taiwan and Thailand. For the Indian operations, a JV company, Novel Confectioners Ltd, has been formed between Spencer’s Retail and Varin Narula, which would be the master-franchisee of Au Bon Pain in India.
Incidentally, Varin Narula is director and promoter of Au Bon Thailand, with 11 years of experience in handling the brand’s franchise in Thailand. “The Indian joint venture is planning to set up its first 2,000 sq ft flagship store in Bangalore by December 2008, followed by outlets in Hyderabad and Chennai. We will initially be concentrating on the south India, after which we will be moving to the North, East and West, respectively,” RPG group vice-chairman Sanjiv Goenka said on Tuesday. He was speaking at a press conference to announce the tie-up with Au Bon Pain.
In India, the 100 standalone stores will have an average size of 1,500 sq ft though smaller formats, such as shop-in-shops or outlets in college campuses and airports, among others, will also be explored. A factory will be set up in Bangalore initially to supply products to the southern region.

source economictimes epaper

Reliance Retail to set up 60 iStores in 2008


seems like the plans have changed a bit


Reliance Retail to open 50-60 'i stores', 150 Reliance digital

Mukesh Ambani promoted Reliance Retail Ltd today announced to open 50-60 'i store' across the country within the next one and half years and 150 Reliance Digital stores by 2011-12.

"We have plans to open 50-60 i stores by next 15-18 months while first targeting top cities of the country and we also plan to open 150 Reliance Digital stores by 2011-12," Reliance Digital Chief Executive Officer Ajay Baijal told reporters here today.

Reliance Digital is a consumer durable and IT arm of Reliance Retail Ltd, which offers home appliance, consumer electronics, IT and telecom products. While i store is a Apple Premium Reseller store, which exclusively deals with Apple products.

On being asked about the earnings, he said, "On an average, we are expecting Rs 7 crore from i store format and Rs 70 crore per annum from Reliance digital."

The company is looking to have 1,000-1,200 square feet of area under i store and 20,000-30,000 square feet under Reliance Digital, he said.

Presently, the company has i store in Bangalore, Hyderabad, Mumbai and Jaipur and Reliance Digital stores in Hyderabad, Bangalore, Mumbai, Gurgaon and Ghaziabad.

The company today announced to open fifth i store here and the first in Punjab.

The new i store at Ludhiana spread over 1363 sq ft, will offer entire range of Apple products, including iMac consumer desktop computers, iPods and the entire suite of Mac software along with over 500 accessories and peripherals complementing Apple products.

Reliance Retail Ltd (RRL) operates over 600 stores in over 57 cities, spanning 13 states with over 3.5 million Sq ft.

source economictimes.com (http://economictimes.indiatimes.com/News_by_Industry/Rel_Retail_to_open_50-60_i_stores/articleshow/3241054.cms)

Titan to foray into eyewear retail
(http://www.financialexpress.com/news/Titan-to-foray-into-eyewear-retail/336342/)

Watch and jewellery retailer Titan Industries Ltd will invest 250 million rupees in its eyewear retail business, a top official said on Wednesday.

The company launched its eyewear brand, Titan Eye+, and plans to set up 80 stores in 40 towns across India by March 2009, Managing Director Bhaskar Bhat said.

Most of the stores will be set up on a franchise basis, Bhat added.

Retailers bet big on private labels

Established as well as wannabe retailers have hit upon a new idea in these days of cut-throat competition, high showroom rentals and rising overheads: Private labels. Apparel, fast-moving consumer goods and healthcare retailers are all moving to their own brands to ease the squeeze on their profit margins.

Till not so long ago, only a handful of retailers like Shopper's Stop had their own labels. Now, private labels have become core to every retailer's strategy.

The list of retailers (see chart) who have either introduced private labels recently or plan to do so in the near future includes all the top names of the business like Future Brands, Reliance Retail, Spencer's, Subhiksha and Dabur India.

The reason for the rush is not far to seek. According to industry experts, private label margins range from 30-40 per cent in the FMCG space to 40-60 per cent in apparels and 15-20 per cent in electronic goods. In most cases, these margins are 5-10 per cent better than the mass market brands these retailers sell.

"To support the current real estate prices, you need overall profit margins in the range of 30 per cent," Dabur India CEO Sunil Duggal said, adding: "The answer to this is private labels which give you margins in the range of 40-50 per cent which when blended with regular products give you margins that are around 30 per cent."

Show room rentals typically account for 35-50 per cent of the non-material cost for retailers. Space in new malls is more expensive because of the rise in steel and cement prices.

Profit margins in private labels, experts said, are higher because these are in-house products and retailers are able to cut out the intermediaries and overheads. This makes them a cost-effective proposition. As of now share of private labels occupy 10-12 per cent of the product mix on average but the retailers see this number growing significantly.

"Private labels may reduce the pressure of the large overhead the retailer might have to pay to the real estate developer and may in that sense help deal with the high real estate costs," said Future Brands CEO Santosh Desai. Future Brands too is keen on introducing a wider range of private labels ignored to provide a value option to the consumer.

Still others said private label is a good way to address the value-conscious customers. " Private labels is more about providing relevant and quality products to the value conscious consumer and given the economic conditions it becomes a way deal with inflation," said RPG Group Vice-chairman Sanjiv Goenka.

The current high inflation scenario seems to be the high point for private labels as more and more consumers are willing to try these new brands. Retailers also taking to private labels to fill in the gaps in across price points and categories and in turn providing a wider choice to the consumer.

"Since most of our sourcing is mostly the same as that of branded goods, the consumer gets the same quality at a better value," explains Goenka.

For Future Brands it is also about building their private labels at par with any other national brand and hence increase the rate of conversion for consumers from other brands to its own private labels. " We are as of now trying to build brands and make the consumer aware of them. We hope that in future our stores will only have our own brands," adds Desai.

source business standard (http://www.business-standard.com/common/news_article.php?leftnm=1&subLeft=1&chklogin=N&autono=328800&tab=r)

Spain’s Inditex, DLF close to stitching franchisee deal

EUROPE’S leading fashion retailer Inditex group, which owns Zara and Massimo Dutti among other brands, is learnt to be in advanced talks with DLF for a franchisee agreement in India.
Inditex, a $15-billion company founded and controlled by Spain’s richest man Amancio Ortega, operates nearly 4,000 stores across 70 countries and gets 60% of its revenue from outside its home market, Spain. Amancio Ortega, a high school dropout who ranked 22 on Forbes richest list in 2008, has been eyeing India for the past few years and looking for a suitable partner. An Inditex executive was recently quoted as saying the company was studying the Indian market and was hesitant in taking the plunge because of constraints in finding real estate for its operations.
This constraint is what seems to have driven Inditex close to DLF, which commands a lot of premium real estate in the country. According to a source, DLF and Inditex are close to finalising a franchisee agreement. “Inditex will play the dominant role and has already started recruiting people for its India operation,” he said. DLF didn’t respond to an email query on the development.
Inditex owns many concept stores with focus on young and fast fashion. Besides Zara, Inditex operates stores under Massimo Dutti, Pull and Bear, Bershka, Stradivarius, Uterque and Kiddy’s Class brand names. It also has lingerie stores Oysho and home furnishing stores Zara Home. Inditex is likely to launch Zara and Massimo Dutti in India next year, the source said, adding that other brands could be introduced post 2011. Mango, another Spanish retailer and Zara’s rival, has already rolled out its stores in Indian metros.
Inditex may initially import all items to be sold through its stores. These clothes will be sold at a price prevalent in South-East Asia, where the retailer is already present. It is learnt that Zara has unofficially started blocking space in the upcoming malls of DLF. The average Zara store size would be around 15,000 sqft. It is also likely that Zara could have standalone stores of 5,000 sqft each for men, women and kids.

source economictimes epaper

Pantaloon Retail plans major expansion in TN

Future Group company Pantaloon Retail India will open new 'Big Bazaar' outlets in the major towns and cities of Tamil Nadu within the shortest possible period, a senior company official said today. To start with, a new outlet would be opened in Chennai within a month. Outlets would soon be opened in Salem, Tiruchirapalli, Madurai, Tirunelveli and Tirupur, company's Senior Manager-Operations S Dharmendra, told reporters here.

Since Kerala is the strongest market for Pantaloon in the South, four branches would be opened in that state in the near future, he said. On the new scheme, Dharmendra said the company has come out with an exclusive 'Wednesday Bazaar' for women, by which a new weekend is being created for them. Free facials, free mehendi and free tattoos would be organised for all lady customers during Wednesdays, he said, adding that Wednesday Bazaar would also offer discounts on all products, ranging from 5 to 50 per cent.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Pantaloon_Retail_plans_major_expansion_in_TN_/articleshow/3265813.cms)

Kerala slaps 10 pc surcharge on retail chains

Under pressure from the domestic traders, Kerala government has slapped a 10 per cent surcharge on the big retail chains, thus becoming the first state in the country to impose such a levy on super and hyper markets run by monopolies.


The proposal in this regard, made by state Finance Minister T M Thomas Isaac in the budget presented in March, came into effect with assembly adopting Finance Bill 2008-09 on Tuesday.

The surcharge would be applicable on retail chains, including direct marketing chains, which import at least 50 per cent of their stock from outside the state or the country.

Commercial ventures, whose 75 per cent of the total business is in retail space and total turn over exceeds Rs 5 crore a year would come under the purview of the surcharge.

The retail chains run by the state and those in the co-operative sector such as Civil Supplies Corporation and Consumerfed, would, however, be exempted from the levy.

Curbing the entry of both national and multinational monopolies in retail sector has been an openly acknowledged policy of the ruling party.

The coalition, however, is aware of the constraints it has in imposing total ban on monopolies and that it could only restrict them through regulatory measures like additional levies.

The well-organised trading community in Kerala has been spearheading a campaign demanding tough measures to curb big retail chains and earlier this month organised a statewide shutdown to press its demand.

source economictimes.com (http://economictimes.indiatimes.com/News_by_Industry/Kerala10_surcharge_on_retail_chains/articleshow/3270086.cms)

cross posting from the investment thread


Subhiksha Mobile to invest Rs 500 cr this year

Telecom retail major Subhiksha Mobile is going for a major expansion and will invest Rs 500 crore this year to add around 800-1,000 stores to its existing 750 outlets in the country.

The company which opened its 100th outlet in Andhra Pradesh today, said in a press release that the state is a important for Subhiksha and we are delighted to be the first mobile retailer to cross the 100 stores benchmark here.

The company said its has mananged to have 15 per cent share in the mobile retailing market in Andhra Pradesh since opening its first store there in second half of 2007, the release added

source business standard (http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=42998)

Reliance Retail to buy transport dept land for outlets in Orissa (http://www.financialexpress.com/news/Reliance-Retail-to-buy-transport-dept-land-for-outlets-in-Orissa/340479/)

Reliance Retail, the retail business arm of Mukesh Ambani’s Reliance Industries Ltd (RIL), will take over three prime lands in Bhu-baneswar, Cuttack and Baripada from Orissa State Road Transport Corp (OSRTC) on a 33-year lease basis for putting up retail complexes.

The company has agreed to shell out Rs 20 crore, besides a monthly rental of Rs 15 lakh, for using the land.

The monthly rental will be revised in every five years. For the land in Baripada, the company has already deposited Rs 6 crore.

Sources in the OSRTC said the amount realised from the deal will be invested for procurement of new buses and modernisation of the government bus-stands.

The public transport company, which has 230 buses, is proposing to add another 50 new buses to its fleet. OSRTC is planning to modernise bus stands at Bhubaneswar, Cuttack, Sambalpur and set up two new stands at Dhenkanal and Angul under public-private partnership basis.

Pizza Hut lines up Rs 50 cr to enhance dine-in concept (http://www.financialexpress.com/news/Pizza-Hut-lines-up-Rs-50-cr-to-enhance-dinein-concept/340488/)

Pizza Hut is all set to get a new look as its parent company, Yum! Restaurants India, is ready to spend Rs 50 crore to introduce the concept of 'enhanced dine-in' across its 143 restaurants beginning with Panchkula and Mumbai.

The concept brings along new menu, more varieties, better ambiance and a fresh outlook for the outlets. “We are testing this affordable casual dining concept in our newly opened outlet in Panchkula (near Chandigarh) and Mumbai. Then it will percolate down to all the existing outlets in metros first and then smaller cities,” Niren Chaudhary, managing director, Yum Restaurants India said. With the brand transformation taking place through a new logo and a tagline—'Stories Happen’, Pizza Hut will be revved up into a place where people bond, forge friendships and create memories while sharing good food.

Through this new concept the company expects an increase of over 25% in its sales revenue.

Niren added further, “The revenue is likely to go up with new customers, old customers coming back to Pizza Hut and customers ordering more variety of food. The new menu will be introduced in all outlets within a year and the asset transformation will take about three years. We chose Panchkula first because the contribution of the Punjab market is 3-5% of our national market share of 27%.”

He added, “The growth has been a bit slow but our base can be and should be faster hence we are looking at opening 30-40 new Pizza Hut outlets by 2010.”

Suncity Projects to invest Rs 2,000 cr in retail sector

New Delhi, July 26: Realty player Suncity Projects on Saturday announced its plans to develop four retail cities in the country with an investment of around Rs 2,000 crore by 2011.

The retail cities, under the brand name 'Jewel of India' would come up at Greater Noida, Indore, Jaipur and Mohali.

The first of these cities would become operational in Jaipur by 2011 and would be spread over an area of 40 lakh square feet. It would house premium retail brands like Lifestyle, Shoppers' Stop, Pantaloon and Westside among many others.

Beside retail area, these cities would also house hotels, office places and entertainment zones.

"This is one of the most ambitious projects in the retail space. 'Jewel of India' will house some of the most prominent brands of the country along with local handicraft of the region and will redefine the entertainment criteria for the customer," Suncity Projects VP (Retail) Vijay Arora told reporters here today.

The Jaipur retail city would house Johari Bazaar showcasing traditional Rajasthani jewellery, a five star hotel, business suites, food courts, six-screen multiplexes, besides other entertainment segments, he added.

Zee News

^^More on that:

Suncity to develop 10 retail cities, to invest Rs 8000 cr over the next six years (http://www.financialexpress.com/news/Suncity-to-develop-10-retail-cities-to-invest-Rs-8000-cr/340854/)

Aiming to cash in on the burgeoning organised retail segment, realty player Suncity Projects announced on Saturday a Rs 8,000 crore project to develop 10 retail cities across the country over the next six years.

"Initially, we will start with four cities in north India at an investment of Rs 2,000 crore. Gradually, it will be expanded to 10 cities in the country, which could entail an investment of about Rs 8,000 crore," Suncity Projects Vice President (Retail) Vijay Arora told reporters in New Delhi.

Besides the retail area, these cities would also house hotels, office spaces and entertainment zones, he added. The first four of the retail cities, under the brand name 'Jewel of India' would come up at Greater Noida, Indore, Jaipur and Mohali.

"This is one of the most ambitious projects in the retail space 'Jewel of India' will house some of the most prominent brands of the country along with local handicraft of the region and will redefine the entertainment criteria for the customers," Arora said.

The projects would be funded through internal accruals and debt in equal proportions, he said.

The company, however, could also consider raising money through private placements on project basis, he added. "We are open to dilute up to 50 per cent stake on the projects for raising funds from private equity players," Arora said adding the company is currently holding discussions with a few domestic as well as international PE firms.

To start with, the first city in Jaipur would be operationalised by 2011 and would spread over an area of 40 lakh sq ft. It would house premium retail brands like Lifestyle, Shoppers' Stop, Pantaloon and Westside among many others.

The Jaipur retail city would house Johri Bazar showcasing traditional Rajasthani jewellery, a five-star hotel comprising 225 rooms, business suites, food courts, six-screen multiplexes, besides other entertainment segments.

"We will tie up with an international firm for managing the hotel and currently we are in talks with a few players, which is expected to be finalised within next two days," Arora said.

The company plans to sell the office space, while the retail areas would be leased out, he added. Suncity Projects has a land bank of about 4,000 acres with major residential and commercial projects undergoing in the northern states.

Digjam rejigs business, eyes 20% market share (http://www.financialexpress.com/news/Digjam-rejigs-business-eyes-20-market-share/340681/)

Digjam Ltd, formerly known as Birla VXL Ltd and part of the SK Birla Group, has revived its fortunes in the Rs 1,600 crore worsted suitings market in India. Following the financial and operational restructuring a few months back, the company has geared up to take on competition in a big way in the worsted suitings market, said CL Rathi, managing director, Digjam Ltd.

Speaking to FE, Rathi, who was here to promote its latest brands, said: “We are geared up now. We are looking at increasing our market share from 14% to 20% of the Rs 1,600-crore worsted suitings market in India in a short span.”

The company will focus on marketing high-end and premium brands of worsted suitings in India while targeting the mass segment with brands at competitive prices, he added.

According to Rathi, the company is looking at export market in a big way. Half of its total production of 5.5 million metres is being exported to countries like Italy, the US, Europe, Middle East, Far East and host of countries. “Italy alone accounts for more than 1.2 million sq m to 1.4 million sq m per annum,” he said. The company invested nearly Rs 30 crore for restructuring, upgradation of equipment at its Jamnagar factory in Gujarat.

The company will start introducing value-added products through its own design and innovative blendings. “We plan to introduce a new variety by September which cost Rs 10,000 a metre. It is a product made of Kashmir wool and is for all seasons,” he said.

Similarly, under our Global Cool fabric brand, which is aimed at addressing global warming, the company will be introducing new styles and trends with rich fabrics, supreme weaves in range of colours, he added.

According to Ravinder Sharma, vice president, (sales and marketing), the market share of the premium products in the worsted suitings has gone up from 1% to 5% recently and is growing fast. “We hope to become a niche player in this category”.

The company has over 10,000 strong dealer network across the country. “We plan to add 70 exclusive outlets in the current fiscal, taking the total size to 100 outlets,” he added.

India set to house $500mn industry of luxury brands (http://news.in.msn.com/business/article.aspx?cp-documentid=1589873)

With disposable incomes increasing in India, the country is poised to become a manufacturing hub for global luxury brands over the next five years, a report to be released Monday by the Federation of Indian Chambers of Commerce and Industry (Ficci) and Yes Bank said.

The report referred to the "core strengths" in India's manufacturing sector, and said manufacturing of luxury items could become a $500-million industry in this period.

"This optimism stems from the fact that global brands like Louis Vuitton and Frette are already looking at India as a manufacturing base for their products, while others are sourcing their requirements from India," the report said.

Moreover, the study said, cost advantages, particularly in labour-intensive sectors like leather and accessories, would goad manufacturing of foreign brands in the country.

The study suggested that in order to promote the luxury market, three initiatives were required - organising the sector, promoting standardisation and branding organisation, and partnerships with international fashion and luxury associations.

"Corporatisation of the luxury sector will bring along with it concepts of organised and innovative marketing, leading to large investments, employments and generating additional revenue streams," the report said.

Moreover, it said, the luxury sector needed to be treated in isolation with other retail sectors "as the dynamics governing it were significantly different in nature". To reach its potential, the Indian retail sector required significant capital, technology and best practices.

"One of the key steps towards facilitating the development of the retail sector and in accelerating its growth would be to further ease foreign direct investment in the sector. The constant back and forth on policy decision on retail at the centre also acts as a dampener for luxury brands.

"The Indian tariff structure also needs to be streamlined. India has one of the highest duties and taxes on imported luxury goods, which drive the grey market and duty free purchases, while the stringent regulatory environment impedes investment by foreign brands." The study called for transparency at all levels for duties and taxes, and a thorough revision of rules and regulations.

Timex to launch three luxury brands in India (http://www.financialexpress.com/news/Timex-to-launch-three-luxury-brands-in-India/341463/)

Watch maker Timex on Monday said it plans to introduce three high-end brands in India in the next few months, besides launching its iControl watches, which connect Apple's music device I-Pod, very soon.

The company is planning to launch Ferragamo brand by next month while another luxury brand Marc Ecko would be introduced by September. It has recently started marketing the Nautica brand.

Timex would also bring iControl to India very soon. The watch helps connect to the I-Pod and change the songs and volumes while the music device remains in the pocket.

"We are launching two-three luxury brands in India starting with Ferragamo next and Marc Ecko by September. We will also bring iControl very soon," Timex Group India Managing Director Kapil Kapoor said in New Delhi.

The company would retail its luxury brands through high-end malls and five-star hotels, while iControl would be sold through its outlets.

"We will first introduce iControl in the metros and later take it to smaller cities. It will be priced at around Rs 5,000," he added.

Timex is also looking to expand its retail foot-print in the country, with adding 40 stores in the current fiscal to take the total number of outlets to about 100. It currently has 62 stores.

"We will open new stores in smaller cities like Lucknow and Coimbatore," Kapoor said.

The company opens all its stores through the franchisee model.

Mall development slows in second quarter (http://www.thehindubusinessline.com/2008/07/29/stories/2008072951850100.htm)

New Delhi, July 28 The second quarter of the year has not been as good as expected for development of malls in the country’s major cities. The quarter saw new mall supply of about two million sq ft, less than the anticipated six million sq ft. The shortfall was mainly due to delays in completion of interior finishing and fit-outs, and the ongoing liquidity squeeze.

According to Cushman & Wakefield (C&W), with international retailers and growing urbanisation propping-up demand, as much as 16 million sq ft of mall supply is expected to flow into the market in 2008. The projected mall supply for the coming two quarters in major cities is expected to be over 12 million sq ft.

Rise in inputs costs and global cash crunch has prompted developers to re-work construction timelines, forcing them to constrain supply by holding back new project launches in most cities this quarter.

“Most of the mall leasing happens well in advance, and so the less-than-expected supply cannot be attributed to demand, which still remains strong. The supply has been below expectation as certain finishing specifications stipulated by clients have taken more time. Also, there is some amount of pressure on the overall funding,” Mr Rajneesh Mahajan, Director of Retail Services, C&W, said.

Retailers too seem to be waiting for a correction in rentals. Pantaloon Retail’s Head of Operations (South Zone), Mr Rohit Malhotra, said that while the company’s plans were running as scheduled, as space had been booked at least two years in advance, many retailers were expecting a price correction that would hasten expansion plans.

Pace low


Interestingly, during the second quarter, Chennai, Hyderabad and Pune did not witness fresh mall supply, even as NCR, Mumbai and Kolkata are expected to emerge frontrunners in the upcoming mall space.



In Chennai, malls such as Ampa and Coramandal, which were slated to enter the market this year, have been delayed and are expected to start operations only by next year. Additionally, mall space planned for early next year is more likely to be ready by the second half of the year or 2010.

Retail rentals, as per C&W report, has stabilised across most main streets and malls in all major cities this quarter, with exception of Rajarhat micro-market of Kolkata and Goregaon in Mumbai, which saw over 50 per cent growth in prime mall rentals over the last quarter.

“Despite lack of quality space in the market, the top eight cities in India are currently witnessing around 18 per cent vacancy across the 40 million sq ft of operational malls. This can be attributed to the fact that most of the supply has come within the same micro-markets targeting the same catchments, thereby creating an oversupply within respective neighbourhoods,” it said.

Delhi-based Vishal Retail, said it is scouting for standalone properties. “For this fiscal, we had a target of 13,000 sq. ft. of retail space and most of it standalone (not housed in malls). We believe this will give us greater visibility,” said Mr Ram Chandra Aggarwal, CMD, Vishal Retail.

Workwear giant Cintas set for India foray

THE world’s largest work-uniform and custom corporate-wear company Cintas is foraying into India, marking one of its most serious expansions outside North American market, sources said. The Nasdaq-listed $4-billion giant is scouting for top management resources and is expected to make Mumbai its local headquarters.
The development is expected to rev up the niche but increasingly attractive market segment for work uniforms, and comes at a time when some of India’s leading garment companies have started eyeing this space. There are no large organised players in the domestic work uniform and corporate apparel segment at the moment.
An email query to the Ohio-based Cintas remained unanswered at the time of going to the press.
India and China are estimated to be high growth markets for workwear, as this apparel segment in some of the Western markets has been witnessing lesser growth with many countries’ industrial bases declining in recent years, according to reports. India’s uniform market is estimated at around Rs 10,000 crore, but this figure includes the large base for student uniforms in the country.
The workwear market in India is also seen as an attractive option as order sizes are usually large, competition is not very high and the margins are good. The increasingly large base of MNC manufacturing hubs in the country has also buoyed the workwear segment. The uniform business would also provide a substantial hedge for India’s top garment suppliers reeling under the impact of a slowdown.
“Companies are becoming more careful of their corporate images now and even the smallest of companies want uniforms. The largest demand is from industries that are involved in manufacturing sectors and hire a lot of workers on a contract basis. Even sectors like hospitality and retail are giving good demand. In India, however, this is a highly unorganised market, with most of the players located in the North and East,” said Nimish Somaiya, CEO of Industrial Workwear, a company that specialises in industrial garments.
Founded in 1929, Cintas has over the years diversified into other business areas like first-aid products and fire protection equipment. The company operates over 400 facilities in US and Canada and employs more than 34,000 people.

source economictimes epaper

Spencer’s to shut 40 & open 300 outlets

RPG Group company Spencer’s Retail has decided to close down at least 40 unviable outlets and open another 300 in the next 12 months. The company is also looking at developing the Old Mint building on Strand Road where it intends to put up a mall to begin with.
Talking to reporters on the sidelines of the 30th AGM of CESC, Sanjiv Goenka said: “At least 10% of our existing Spencer’s outlets are loss-making and we have decided to close them down. Currently, there are about 410 outlets nationally and the exact number of loss-making stores will be mapped and a decision on closing them down will be taken soon. Stores that have turned unprofitable are mainly due to very high rents, bad hinterland and poor sales. Parallely, we intend to open 300 new stores in the next 12 months.” Mr Goenka, however, declined to disclose details of locales which will see shutdown of outlets.
Interestingly, CESC through its 100% subsidiary—CESC Properties Ltd—has also bid for developing the Old Mint building in consortium with Bengal Silver Spring Projects. “We intend to put up a mall and ‘much more’, but I am unable to share the details now,” he said. Mr Goenka added: “The building will offer about 3 lakh sqft of space that can be developed.”

source economictimes epaper

Coffee Day to brew sports cafe in tie-up with IPL

CAFE chain Cafe Coffee Day is all set to undergo a makeover. It plans to launch new format stores by the end of this financial year. As part of its expansion plan, it has already tied up with IPL teams to introduce a new format—the sports cafe. It also plans to introduce book and movie cafes. Cafe Coffee Day is a division of the Rs 750-crore Amalgamated Bean Coffee Trading Company (ABCTCL). “We are doing everything to expand our business. We want to ramp up the number of outlets to 900 from 620 by March 2009,” Cafe Coffee Day president (marketing) Bidisha Nagaraj told ET.
As per the new strategy, around 15% of the stores will be based on the new formats while the remaining ones will follow the ‘vanilla’ format. “The new formats are being rolled out with the intention of increasing the customer base of the chain,” said Ms Nagaraj. Movie cafe is another format which the chain is trying out. “We will start organising movie festivals in our new outlets to attract cinema lovers,” said Ms Nagaraj.
The existing CCD outlets have already dedicated a section to books. However, it is now in the process of tying up with a publishing house to woo book lovers. “The three formats—movie, sports and books—will attract all kinds of customers,” said Ms Nagaraj. The average age of visitors to CCD currently ranges from 18 to 30. With the new formats, the company will cater to a varied customer base.

source economictimes epaper

M&S Reliance starts filling top key mgt positions

Gearing up for roll-out of its chain of stores across the country, retail company Marks and Spencer Reliance India Ltd has started filling in top key management positions, while it is still scouting for a marketing head.

"We have already filled the positions of Chief Financial Officer, heads of human resources, buying and retail. We are looking out for a local person to head marketing," Marks and Spencer Reliance India Chief Executive Officer Mark Ashman told PTI.

The JV, in which the UK's retail company M&S has 51 per cent and the rest is with Reliance Retail, has roped in Jatin Luthra as the CFO.

"Also we have two expats from M&S Adam Colton and Spencer Sheen who will be heading buying and retail portfolios respectively," Ashman said.

Shalini Naggar will be the HR head of the JV that plans to pump in 29 million pounds (about Rs 230 crore) in the Indian market over the next five years and set up 50 stores.

He said the company is still looking out for a local person to head its marketing team.

"In the long run we are looking at local talent to head the respective teams," he added.

Ashman said in the initial year the company would have a strength of about 40 executives, which is likely to grow to about 55 next year.

Under its current franchise agreement with Planet Retail, M&S has 14 stores with about 250 people overall.

"When we reach the number to 50 stores in the next five years it is likely to grow many folds," he added

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/MS_Reliance_starts_filling_top_key_mgt_positions/articleshow/3311243.cms)

Landor to shape up Cafe Coffee Day

CAFE Coffee Day (CCD) has commissioned leading international brand consultant Landor to reinvigorate its brand and take it to the next level. Says CCD marketing president Bidisha Nagaraj: “Come October-November, only the brand name and logo saying ‘A lot can happen over coffee’ will remain the same. Everything else, including the ambience, look and feel inside the cafes, will be different. The focus will be on projecting a feeling of togetherness and celebration, something which our brand-architecture study identified as our core values. The togetherness could be friendship, romance or even an office meeting in an informal environment.”
CCD is also tapping new segments of the market. Adds Ms Nagaraj: “We will no longer just be proving the plainvanilla concept of a coffee cafe while growing from 520 outlets at the beginning of this financial year to 900 by the end of the fiscal. Some 100 of our cafes will be providing a different kind of experience during the afternoons when the footfalls are comparatively less. We are tying up with publishers for organising book launches on our premises, with authors reading excerpts and signing autographs. Books could also be sold and we could even have a Cafe Coffee Day pick of the month. We are also looking at having movie festivals in the afternoons after discussions with producers.”

source economictimes epaper

Chinese footwear giant starts operations in India (http://in.news.yahoo.com/43/20080801/836/tbs-chinese-footwear-giant-starts-operat.html)

Chinese footwear giant Aokang International, which is the official leather goods supplier to the Beijing Olympics, will invest Rs.3 billion ($75 million) to set up a chain of retail stores and factories across India.

The company Wednesday opened the first of its factories at Manesar in Gurgaon, near the national capital, with an initial capacity of 200 pairs per day.

'This factory will make products that will match the international standards in quality and craftsmanship,' said Anirudh Banerjee, chief executive and managing director of Aokang International's India operations.

He said the company's range of footwear is now available at an exclusive show room at the MGF Metropolitan mall in south Delhi and at similar outlets at malls across Haryana, Uttar Pradesh and Maharashtra.

'We are also coming up with two exclusive flagship stores in south Mumbai by the second week of August,' Banerjee said.

The 20,00 square feet factory will initially cater to the footwear needs of men, mainly in the middle income segment.

'Initially, it will produce middle segment products and we will import all high segment material from China. Full fledged production will be transferred to India by 2010,' Banerjee said.

The shoemaker has offices in China, the US and Hong Kong apart from India, and sources its designs from Milan in Italy and Wenzhou and Guangzhou provinces in China.

High mall rentals haunt retailers

THE heat is on. If the downturn in the residential sector was not enough, real estate developers are now fighting a losing battle to retain their retail clients in malls. High rentals, coupled with low conversion ratio, have forced retailers to issue a red card warning to mall developers — “either reduce the rentals or we are on our way out.” According to reports with SundayET, at least 20-25 retailers have asked their mall developers to look at other options for their survival.
”The dynamics of the mall segment have changed in the last few years, as there is an oversupply of retail space in the country. With a fall in footfalls, the retailers are finding it tough to drive in customers to their malls,” explains Anuj Puri, chairman of Jones Lang LaSalle Meghraj (JLLM).
The year saw the opening of a few mega projects that had been awaited eagerly by retailers and industry alike. Some of these projects had been able to justify the expectations of the retailers and customers, but by and large, most of them have not been able to deliver on the promises of high conversion ratios and revenues. High rental rates have put tremendous pressure on the topline and bottomline of most retailers, who had aggressively expanded into multiple stores in the same catchments, banking on the high growth rate of the economy.
According to Kishore Biyani, CEO of the Future Group, due to the above factors, the group has changed its retail strategy for malls. “We are now operating on a revenue-sharing model in the malls. Earlier, we had issues with real estate developers, but now things have been sorted out. Productivity is a key factor for any retailer to operate efficiently in a mall, in case of a leased deal,” he said.
With most malls offering lease terms of six to nine years and retailers being locked in for two to three years, with high initial investments and rental costs, the operational break-even has been stretched to the lock-in period for most of them. This combined with high inflation rates and strong undercurrents of imminent correction in the rentals have made the expansion plans of most of the retailers quite conservative and limited in the next four to six months.
Says Rajneesh Mahajan, director (retail) of Cushman & Wakefield India: “Most retailers want to wait and watch rather than commit to seemingly inflated rental rates even if it is at the risk of further increase in the rentals due to high land and project costs. Overall, the demand for retail real estate continues to remain strong with the influx of many international retailers and growing urbanisation in the country. However, this is focused on premium high streets and promising developments.”
Interestingly, even as there is an oversupply in most of the micro markets, the supply of desired quality is limited to a handful of projects only and this has led to differentiated rentals being commanded by projects in the same micro market. The malls are getting the footfalls in, but conversion is seen mainly for entertainment, F&B and value brands. There are a few exceptions that have been able to offer a more sustainable rental model to retailers along with buoyant footfalls and sales.

source economictimes epaper

The mall boom is not sustainable. The best bet is individual retail.

Prices head north, but shoppers don’t stop

DESPITE high inflation and concerns of a slowdown, consumer demand is still buoyant. An ET analysis of the top 50 consumer goods and services firms shows sales growth for the June quarter at 24% (year-on-year) — highest in the past one year. The higher revenue growth of companies at an aggregate level is not just due to price increases; companies say that even demand has been in double digits.
The analysis captured firms whose products and services are directly consumed by the households. The firms in the sample cuts across sectors such as textile, automobiles, consumer durable, FMCG, liquor, airlines, telecom services, footwear and retail.
Henkel marketing head Ranju Mohan said: “Net sales growth is not just a result of product price increase; there is also volume growth for consumer goods across industries. Demand for daily consumption items has gone up by 5-10% depending on the category.”
Not surprisingly then, Hindustan Unilever reported high volume growth across product categories. While FMCG business grew by 18.8% — about half ofitwasdue to increase in prices —there was more that 8% volume growth. The growth also helped it clock year-on-year net sales growth of 21.1% during the quarter, the highest in over a decade. The company’s chairman Harish Manwani has gone on record attributing the growth to double digit increase in consumer spending in both urban and rural India.
“There has been some adjustment in the consumers’ consumption. But overall demand is robust. Our July 1-15 sales data shows purchases from our stores have gone up compared to three months ago,’’ says Wadhawan Retail MD Gaurav Modwel.

source economictimes epaper

Gitanjali to open 150 stores in Tier-II cities (http://www.financialexpress.com/news/Gitanjali-to-open-150-stores-in-TierII-cities/345236/)

Gitanjali Gems Ltd, part of the Gitanjali Group of companies promoted by Mehul Choksi, is contemplating setting up 150 branded retail stores in Tier-II cities in the next two years. Gitanjali feels that these cities contribute 60% to the sales.

During the period, the company is also planning to expand point of sale for various brands from 840 to 1,500. For the retail expansion plans, it is planning to pump in $50 million, Anuj Rakyan, vice-president (jewellery division), Gitanjali Gems Ltd, said. The company has also roped Bollywood actress Katrina Kaif as its new brand ambassador for its popular jewellery brand, Nakshatra, replacing Aishwarya Rai, who was its brand ambassador since 2004.

Currently, Gitanjali Group sells its branded diamond and other jewellery products under brands, Nakshatra, Asmi, Gili, D’Damas, Sangini, Collection G, Gold Expressions and Vivaha Gold through 840 outlets.

Addressing a press conference, Rakyan said, “Katrina lends a refreshing look to the brand and is currently the reigning queen of Bollywood. We strongly feel that Katrina epitomises what Nakshatra stands for.”

Company sources added that the endorsement agreement with Katrina Kaif has been signed for about 18 months.

Commenting on the occasion, Kaif added, “I am delighted to be associated with a brand like Nakshatra that has garnered immense popularity not only in India but also worldwide. I hope this association is amiable and mutually profitable.” The Nakshatra collection has floral designs with multiple diamonds encircling a single large diamond to signify the constellation effect.

Thai spa products maker to start retail operations in India (http://in.news.yahoo.com/43/20080805/836/tbs-thai-spa-products-maker-to-start-ret.html)

Thai spa body product manufacturer Spa Siam will soon be setting shop in India in association with Franchise India Holding Ltd (FIHL).

The deal marks the entry of FIHL - which traditionally has interests in providing franchise networking solutions for entrepreneurs and businesses - in the retail sector.

'After franchising, the time has come for us to take the next big step and expand into specialty retailing,' FIHL president Gaurav Marya said.

'We plan to enter various specialty formats and we are starting this process with our entry into the beauty and wellness vertical where we are partnering with Spa Siam,' he said.

The company plans to open 120 Spa Siam stores in the country during the next five years with an initial investment of Rs.200 million.

'After spreading our footprints in all major metros, we will target mini metros, which are equally growing markets for these kind of products and service,' Marya said.

FIHL has estimated revenue to the tune of Rs.500 million annually after three-five years, he said.

The nature of the deal and the revenue sharing model between the two companies has not been disclosed.

Pantaloon to add 55 more Big Bazaars (http://www.financialexpress.com/news/Pantaloon-to-add-55-more-Big-Bazaars/345555/)

Buoyed by an overwhelming response over a period of time, Pantaloon Retail (India) Ltd, part of the Future Group, has decided to go aggressively on the hypermarket front. The company is planning to add 55 more `Big Bazaars' by the end of this year (Dcember 2008), taking the total hypermarket size to 150, said Rohit Malhotra, head, south zone, Pantaloon Retail. The company has opened its second store in Chennai, taking the total number to 94.

Speaking to FE here on Wednesday, he said, "We are on an aggressive growth path. We will be end up the year (December 2008) with 150 stores as against 94 now. In south alone we will be adding 15 more stores, taking the total size in south to 40." "The company is a market leader in this segment," he added.

Explaining the details, he said that each store would be set up on an average size of 50,000 sq ft to 60,000 sq ft area at an average cost of Rs 15 crore per store. "We are looking at a revenue of Rs 100 crore per annum from each of these stores," he said. Currently, the company generates average revenue of Rs 75 crore a store per year, which would be increased through a slew of initiatives, he added. In response to a question, he said that southern region, with a total strength of 25 stores, contributed 30% to the overall revenue of the hypermarket segment. This segment was witnessing an annual growth of 75%, he pointed out. According to him, of the total retail industry, organised retail is only 5% in India, which expects to grow 25% in the next five years.

Meanwhile, Pantaloon Retail has opened its second Big Bazaar hypermarket store spread over four floors in an area of 53,000 sq ft on Wednesday.

LG to add 25 more outlets by 2009 (http://www.financialexpress.com/news/LG-to-add-25-more-outlets-by-2009/345617/)

LG Electronics India Ltd (LGEIL), which at present has 83 Exclusive and Shoppe outlets in India, is planning to add another 20-25 by the end of 2009.

"We actually have a plan to add 30-40 outlets, but are targeting to launch at least 20-25", Nabendu Bhattacharjee, regional manager (east), LG Electronics, told FE. One should fulfil a few criteria like location, floor space, potential turnover, financial strength, etc for having such an outlet, he added.

LGEIL is now busy renovating its 45 Shoppe and 38 Exclusive outlets across the country. The company uses such outlets to have a better display of its high-end products. These also act as one-stop shops for all its digital household products.

"The LG Shoppe goes beyond the concept of normal exclusive stores by providing an interactive environment and lifestyle orientation so that customers can actually experience the best shopping experience," said Pankaj Kumar, the local LGEIL branch manager.

Bhattacharjee, who was here on Tuesday to inaugurate a Shoppe (which has been elevated from an exclusive outlet), said the company already has five such outlets in the eastern region (including two in Jharkhand). It plans to add three more by the end of the year.

The average monthly turnover of a LG 'shoppe' is around Rs 1 crore.

LGEIL's new launches include five to seven models of 21" & 29" Slim TVs and a new LCD range, Scarlet, a new range of 'Spirit' washing machines, upgraded versions of microwave ovens and two to three split AC models. It plans to launch Jazz, a new-look and feature-rich range of Nimbus refrigerators, and two GSM mobile handsets priced between Rs 3,500 and Rs 7,000 in September.

LG Electronics claims its average market share to be around 27%-30% taken all its electronics products together. The company is competing with Sony in the LCD/Plasma category, Whirlpool in refrigerators and Samsung in LCDs and top-loading washing machines.

One of the criteria for starting an LG Exclusive/Shoppe is a minimum space of 2,000 sqft and an investment between Rs 65-75 lakh for the company's product range alone.

LGEIL, which reported a turnover of Rs 9,500 crore in 2007 (it follows a calendar year), is targeting Rs 11,000 crore in 2008.

Brado launches two projects

A Mohali-based firm 'Brado Imexpo (P) Ltd' on Friday launched watch mobile and sunglasses with MP3 and Bluetooth inbuilt technology.

Speaking on the occasion, company's Managing Director D S Brar said that the company incorporated last year had used its own technology through its own R and D department.

"The products are designed with the goal to satisfy the needs and fullfil the expectations of the next generation.
"It is for the first time that such a product has been launched in the country's market," he claimed.

In these products, customers will experience features like touch screen, handwriting, still and video camera, MP3, Blue tooth and FM in GSM wrist watch.

Outlining the future products of the company, he said that soon it will introduce PC, Laptop and Potable Desk tops.


source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Brado_launches_two_projects/articleshow/3341910.cms)

La Perla may flame up Reliance Brands

After rushing into India’s potentially huge market, global lifestyle brands are now grappling with divorce. The latest to switch partner is Italian high-end lingerie giant La Perla, competing with Victoria’s Secret globally, as it moves over to Reliance Brands to start Indian operations.

Sources said La Perla was in fairly advanced discussions with Reliance Brands. Last year, La Perla unveiled an alliance with Mohan Murjani Group, which also operates Gucci, Jimmy Choo and FCUK in India. But the La Perla agreement appears to have fallen through, with the Italian major scouting for new partners.

However, a deal with Reliance is not yet struck, even though the latter has started booking space for La Perla in some of the upcoming retail projects.

Of late, India’s top-end lifestyle market has seen a massive churn with several international brands like Ferragamo, Canali, Diesel and even UK’s largest retailer Marks & Spencer changing their partners. Some of them even before establishing their presence in the country.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Garments__Textiles/La_Perla_may_flame_up_Reliance_Brands/articleshow/3339212.cms)

Reliance Fresh returns to Kolkata amidst police security

The Mukesh Ambani-owned food mart Reliance Fresh, which left West Bengal last year following stringent political resistance, has re-started business here under police security.

Reliance Fresh opened three stores in the city - at New Town, Budge Budge and heritage park Swabhumi - quietly and without any fanfare Aug 1. But employees at the Swabhumi store told IANS that they still feared resistance from Left parties.

"On Sunday afternoon, around 50 men armed with sticks came to protest outside the store. We had to pull the shutters down with customers inside for 20 minutes. This sudden protest triggered panic among the customers," one employee said.
The situation came under control after the police reached the spot.

Incidentally, the store experienced the maximum footfall Sunday before the protesters assembled. Forward Bloc, a Left Front partner is resisting the opening of food marts, forcing Reliance Fresh to fold up business in the state last year. The party says retail stores owned by big corporate houses would hamper the livelihood of vegetable sellers.

"Not only Reliance, all these retail food outlets are illegal and we are conveying the message to the state government," the Forward Bloc-controlled state agricultural marketing board chairman Naren Chatterjee told IANS.
Reliance Fresh staff said the stores are presently stocking fruits but no raw vegetables. "But very shortly we will begin stocking vegetables also," they said.

The 4,500 square feet Swabhumi store is also awaiting the launch of a non-vegetarian section adjacent to the main outlet very soon, the staff said.

The non-vegetarian section is named Delight, designed in a shop-in-shop format. Reliance plans to open a few more stores in the coming months, including a hyper mart in Kolkata's Bagha Jatin neighbourhood.

Reliance Fresh has tied up with Jayshree Tea and the Goodricke Group for a select range of packet teas. The store stocks cereals, pulses, fruits, packed foods, frozen foods, cosmetics, toiletry, utensils and crockery among a host of daily use goods.

Last month, West Bengal's communist government's efforts to portray an industry-friendly image had received a jolt when small shopkeepers and hawkers demonstrated and stopped RPG Enterprise vice chairman Sanjiv Goenka from inaugurating a new mall of the group's retail arm Spencer's here. But unlike Ambani, Goenka did not have to wait for a year to open the store; he successfully opened it after three days.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Reliance_Fresh_returns_to_Kolkata_amidst_police_security/articleshow/3325421.cms)

Bharti Wal-Mart JV to take off from Punjab (http://www.financialexpress.com/news/Bharti-WalMart-JV-to-take-off-from-Punjab/346427/)

The joint venture Bharti Wal-Mart Private Limited is set to open 10-15 wholesale cash-and-carry facilities which will employ approximately 5,000 people over the next seven years. The first facility is expected to take off from Punjab by the first quarter of 2009. The JV has already set up a distribution centre spread over 1,00,000 sq ft in Banur from where goods will be supplied to the nearest facility.

Being tight-lipped over the selection of the place for first cash and carry facility Raj Jain, managing director and CEO, Bharti Wal-mart Private Limited just said the company would commence its operations from the north only.

Talking about the Wal-Mart economics in India, Raj Jain said, “Our aim is to provide best quality products at cheaper prices in India. Wholesale cash and carry operation will provide a wide range of products to small retailers and business owners. The JV will serve Kirana stores, fruit and vegetable resellers, restaurants. The venture will invest in setting up an efficient chain and will support farmers, small manufacturers who have limited infrastructure and distribution strength. We will also help our suppliers to get easy access to finance from banks. The supplier will get the certificate from Wal-Mart, which will help them to avail the loan. But we will not stand as a guarantee if a particular supplier fails to repay the loan”.

The typical facility will stand between 50,000 and 1,00,000 square ft and will sell wide range of fruits, vegetables, groceries, staples, stationery, clothing, consumer durables and other general merchandise items. The chain will enable minimum wastage, particularly food and fresh goods.

Speaking on some of the challenges on the way, Raj Jain said, “Wholesale cash carry is new concept in India and there are various challenges like bringing new technology here. Besides soaring real estate prices is another hurdle especially in the north”. The JV is also mulling to come up with education centre to train people to fulfill the requirement of the retail business.

Spencer’s opens third hyper mart in Kolkata (http://www.sindhtoday.net/south-asia/10517.htm)

Kolkata, Aug 9 (IANS) The Rs.135-billion RPG Enterprise’s retail arm Spencer’s Retail Ltd Saturday launched its third hyper mart in the city.

‘Kolkata is a case study of success for us. We set up our first store here in April last year and since then the growth has been unprecedented. We are already spread over 2 lakh (200,000) square feet in West Bengal which garners a footfall of about 5.5 million on a per annum basis,’ said Sanjiv Goenka, vice chairman of RPG Enterprises.

This is Spencer’s 24th store in the city and 27th in West Bengal.

The new store is spread over 60,000 square feet and offers a wide range and assortment of merchandise in food and grocery, fruits and vegetables, electrical and electronics, home and office essentials, garments and fashion accessories, toys, personal care, music and mobility solutions.

Incidentally, this is the first hyper mart Spencer’s has launched after the Rashbehari Avenue outlet, which encountered lots of agitations from the hawkers’ here and the store’s inauguration was deferred.

By the end of March 2009, the company plans to increase the total number of stores by another 300, which would include 75 in large formats.

Goenka said: ‘Large format is currently driving modern retail in India. It promises to be a superior shopping experience for the current day discerning shopper who values time and money and also looks out for choice before making a purchase decision.’

Indian retail sector fails consumer-friendly test

Despite global brands flooding retail chains across India and domestic players going an extra mile to woo consumers, the Indian retail sector is yet to provide its clients the complete retail experience. In what may come as a revelation to store designers, the otherwise untiring women shoppers are possibly not spending enough time and money during their visit to these outlets.

Crammed outlets, unpleasant mannequins and even lack of seating arrangement to make their husbands comfortable as they go about apparel bingeing are hampering the great Indian retail story, thanks to the unpleasant retail experience, points out a survey by the apparel design and merchandising department of National Institute of Design (NID).

Well, when it comes to being consumer-friendly , retail stores in our country have still have a long way to go. Even some of the leading retail stores fail to take into account customers’ preferences, mainly as they are yet to get down to the concept of ‘retail designing’.

While this is true for almost all major retail stores in the country, some ethnic wear stores surveyed by the final year NID students of the apparel design and merchandising department in the three cities of Ahmedabad, Mumbai and Pune had this to reveal.

The survey concludes that retail stores face huge gaps in modern retail design approach, ranging from the selection of location to services offered to the customers.

Based on consumer feedback , the survey also highlights aspects that retail stores should consider in order to increase footfalls and enhance consumers’ shopping experience.

On parameters ranging from accessibility, location, window display, facade, staff, packaging, decorative & props, ambience and interiors, retail stores-and in this particular case, exclusive branded stores for ethnic wear-do not consider the likes and dislikes of their target consumers.

“Retail stores are yet to understand the value of retail design and are oblivious of the consumer-centric atmosphere. Retail design doesn’t only include interiors but factors like where the store is located, which very much determines consumers’ attraction to the store,” said NID faculty member Somesh Singh under whose supervision the research was carried out.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Indian_retail_sector_fails_consumer-friendly_test/articleshow/3346373.cms)

Retailers step up focus on value retail stores (http://www.financialexpress.com/news/Retailers-step-up-focus-on-value-retail-stores/347154/)

As fears of low consumer spending owing to high inflation loom large, retail majors are setting aside fresh investment budgets to expand large format value retailing concept stores in tier-II and tier-III cities. Value retailing is a mega-savings-large-format stores concept, where the cheapest branded products and accessories under the best deals are made available to customers.

Suresh J, CEO of Brands & Retail, Arvind Brands—a division of Arvind Ltd, told FE, “The Rs 12,000-crore value retailing concept, which is currently growing at the rate of 20%, has started gaining momentum in India. This market is expected to touch Rs 30,000 crore by 2012. Due to the ongoing inflationary trends, we have started focussing on setting up more large format value retailing concept stores in tier-II and tier-III cities as this will yield more return on investments (RoI) than small format stores.”

Bangalore-based Arvind Brands is planning to invest Rs 400 crore in setting up 250 large and small format stores in tier-II and tier-II cities.

Of these, 30 will be large format ‘Megamart Outlet Centre’ stores in top 20 cities in India by 2012. With 16 megamart stores operational in Maharashtra, Arvind Brands has recently opened one of its largest 55,000 square feet Megamart Outlet Centres in Pune after its Chennai store.

KE Venkatachalapathy, COO, Megamart said the return on investment in large format stores is double that of small format stores. Hence, the focus is more on large format stores, post-inflation.

Competitor Loot ( India ), which operates multi-brand discount stores called

‘The Loot’, is launching 20,000 sqUAre ft large format discount store at Metro Junction mall in Kalyan, Thane, Mulund, Ghatkopar in Mumbai, apart from Surat and Bangalore.

Jay Gupta, managing director, The Loot told FE, “We will be one of the biggest tenants on the ground floor of the 8 lakh square feet Metro Junction mall. There are 40 The Loot stores operational and by March 31, 2009, we will add 60 more stores. We are investing Rs 100 crore.”

Meanwhile, K Lifestyle-promoted The Grab Store has earmarked Rs 100 crore for setting up 50 new stores, pan-India. According to company officials, plans are on the anvil to set up large format Grab stores in tier-II and tier-III cities.

According to Arvind Brands’ Suresh, “We will be opening six large format stores this year of which three of similar size will come up in Mumbai too apart from one at Bangalore to be opened shortly. We hope to achieve revenues to the tune of Rs 2,000 crore in the next three to four years.”

He added, “We have partnered with Oracle Retail for an integrated scalable platform to manage its retail processes from supply chain to stores.”

Levi Kids set for India launch early next year

DENIM giant Levi Strauss plans to launch its Levi Kids brand in India early next year and phase out Levi Sykes Junior, bringing to this country the kidswear brand that is present in its major global markets.
“In the past year and a half since we launched Levi Sykes Junior, we have received a phenomenal response, prompting us to launch Levi Kids. Levi Sykes Junior is about 12% the size of our adult portfolio by revenue,” Levi Strauss India marketing director Shyam Sukhramani said.
To begin with, the company plans to distribute the brand through 200 doors, a combination of department stores and multi-brand outlets. Standalone stores for Levi Kids will also be opened simultaneously, first in tier-1 cities.
Mr Sukhramani said that the kidswear market—which comprises teens and preteens—is becoming increasingly attractive with growing affluence and young parents wanting to dress their children in the same brands as themselves.
The Rs 4,000-crore kidswear market is expected to grow 20-30% annually, with the premium kidswear segment expanding by a quarter every year.
The past few months have seen hectic activity, with several national and international brands drawing up plans to enter the lucrative kidswear market. These brands include global majors such as OshKosh B’Gosh, Carter, Diesel Kids and Cherokee Kids. The country’s largest lifestyle apparel retailer Madura Garments is readying to introduce Allen Solly Kids.
Levi Strauss India, which has diversified from being just a denimwear brand to product categories like footwear and accessories, is also reportedly eyeing the market for personalcare products.

source economictimes epaper

PepsiCo to roll out energy drink SoBe

AIMING to bolster its non-carbonated functional beverages portfolio, PepsiCo India is learnt to be giving final touches to the rollout of one of its global brands—SoBe. A fortified energy drink, SoBe, is expected to be introduced in the
domestic market shortly. Sources said the beverage brand will be imported initially, and is expected to be priced in the same range as category leader Red Bull.
PepsiCo already sells a low-calorie sports drink—Gatorade—in India. Similar to Gatorade, SoBe will also cater to a niche, specific market. The Indian energy drink market remains niche with only few players of significance as of now—Red Bull and a smaller brand called Power Horse. Sales are predominantly driven by consumers in metros and Sec-A towns and cities. However, as is the case in global markets, in India too, non-carbs are growing faster than aerated drinks, though on a smaller base.
When contacted by ET, a PepsiCo India spokesperson maintained: “We are committed to bringing beverage innovations to Indian consumers as the market evolves. We have not firmed up plans as of now.”
In developed markets, SoBe is available in a slew of health drinks options, including zero-calorie beverages. In India, however, the focus is likely to be on
the energy drink variant in the initial phase. Last year, PepsiCo India had rolled out Twister—a juice-based drink under the Tropicana umbrella brand.
The beverage firm has identified SoBe and Diet Pepsi Max as its key focus brands for the current year across markets globally. Rival Coca-Cola too is in the process of expanding its beverage brands—Glacueau, Vitaminwater and Coca-Cola Zero. Though India-specific plans for these brands are not known, it is learnt that Coca-Cola India is also in the process of testing out the potential of its functional beverages.
PepsiCo had acquired SoBe in 2000 from Connecticut-based South Beach Beverage Co.

source economictimes epaper

Retailers play the value card

Big Bazaar, Subhiksha, More Focus On Low-Cost Private Labels To Perk Up Sales

INFLATION-HIT consumers are steering clear of discretionary spends to gravitate towards value formats and discount stores to stretch their buying power. The slowdown of growth rates has clipped sales in several high-priced categories like mobiles and apparel by over 20-25% (industry estimates) in the past few months while spends on basic food and home items have grown by over 25%, as per AC Nielsen estimates.
Bargain hunters are flocking to modern ‘value retail’ formats like Big Bazaar, Food Bazaar, Subhiksha and More, which have intensified their bargains and discount offers to encourage consumption. Modern retailers are now pushing private labels (lesser priced inhouse brands) even with consumers opting for cheaper brands.
“Consumers are demanding higher benefits for their spends in inflationary times. We are now pushing the expansion of our value formats to gear up for the challenging times ahead,” said Kishore Biyani of Future Group. The retail group opened over four Big Bazaars in a single day last week to gear up for its massive bargain offerings on 15 August called ‘Maha Bachat Ke Paanch Din’.
Spends on top household categories rose 25% during January-May 2008 with categories like refined edible oils, toothpaste, washing powder, biscuits, toilet soaps, beverages, packaged atta, breakfast cereals, shampoo and others recording an average growth of 25% plus during the period.
KSA Technopak CEO Arvind Singhal said: “I do not think that the impact on purchases is on account of a slowdown. Some of the discretionary products were ridiculously over-priced by retailers and companies are now being forced to correct that. India’s growth rate continues to be one of the highest in absolute numbers, only lower than the previous years. Corporates are under pressure from value-seeking consumers and real-time competition. Consumer trends are merely a reflection of the fact that companies are focused more on capacity creation rather than demand creation.”
Industry observers said that consumer sentiments have been hit owing to inflation, rising borrowing costs, challenging business environment and the fact that salaries will not keep pace with rising costs. Discount formats benefit more during recession and a weak economy with their higher-priced counterparts noting a significant dip in sales. “Discretionary spends are clearly getting to be a challenge for most low and middle income shoppers and even affluent consumers are seeking higher worth for their rupee,” said Subhiksha managing director R Subramanyan.
Retailers are cross-subsidising discounts offered on basic purchases by hiking margins on the discretionary spends. “We have also been scaling down costs in our system to be able to offer value. Given our scale, we are in a position to negotiate better with consumer companies to get the best rate for consumers,” said Food Bazaar CEO Sadashiv Nayak.
Consumers are postponing purchases of big ticket and lifestyle items like durables, apparel, mobiles and accessories in recent times forcing companies to announce pre-season discounts and price cuts. Retailers, however, criticise FMCG companies resorting to what they describe as tactical moves to tackle rising costs and consumer purchases. “Several companies continue to hike prices or lower the grammage or quantity to manage costs. We see this move hurting longterm demand since consumers tend to switch to more competitive regional and lower-priced brands,” sources said

source economictimes epaper

Tata Tea plans exotic brews for China, Far East markets

COME 2009, Tata Tea will storm the Chinese and Far East markets with its range of green tea polyphenols, other green tea extracts, cold and hot water soluble instant tea, liquid tea concentrates and other value-added tea beverage products. The 70:30 JV between Tata Tea and Chinese tea major Zhejiang Tea Import & Export (ZTIE) will manufacture and market the teas from the second quarter of 2009.
“After a sizeable entry into the US, the UK and Europe, Tata Tea has identified Russia and China as two major markets. For China, we've formed a JV with ZTIE and are setting up a factory there. The factory will be operational within nine months,” Tata Tea MD Percy Siganporia told ET.
ZTIE is the largest tea enterprise in China and exports over 40,000 tonne of green tea, black tea, oolong tea, brick tea, scented tea, special gourmet tea and intensive processed tea products.
To enter the Russian and CIS markets, Tata Tea is in talks with Russian companies to form a 50:50 JV. Mr Siganporia, however, didn’t reveal details of the Russian foray. “We are working on our Russian venture. As and when it happens, we will announce it,” he said. For the international markets, the company has stepped up development of green tea, rooibos, fruit and herbal offerings within its brand portfolio. “The black tea business is either stagnant or growing at a lesser pace in key markets. But these new offerings are growing at a faster pace,” said Mr Siganporia. Interestingly, Tetley is now the market leader in the UK and Canada enjoying 31% and 40% market share by volume, respectively.

source economictimes epaper

Parsvnath unveils retail plans amid slowdown concerns

Delhi-based realtor Parsvnath Developers will open 10 retail stores this year and develop 21 commercial projects as part of its plan to foray into retail, Chairman Pradeep Jain said today. The company, in a release to the Bombay Stock Exchange, also named an independent director for the venture.

The developer is pursuing its retail plans even as consumer spending is expected to slow hurt by a series of interest rate hikes by the Reserve Bank of India to contain inflation, which is at a 13-year high.

Parsvnath Retail, a subsidiary of Parsvnath Developers, will build 21 projects with a saleable area of 4.77 million sq ft and open 50-75 outlets in the next five years, which will include super markets, hypermarkets, premium boutique stores and convenience stores, among others. The company is also developing 114 multiplexes across the country, it said.

The company, however, did not disclose any investment figures.

DLF and other property developers in the country have announced similar plans to tap the growing potential of the sector. Parsvnath's foray will pitch it against other corporate retail chains such as Future Group, Relaince Retail, Aditya Birla Retail and Tata group's Trent, among others.

The domestic retail market, which is currently valued at $511 billion, is projected to grow to $833 billion in the next five years, according to retail consultancy AT Kearney.

The company has entered into concessional agreements with the Delhi Metro Railway Corporation (DMRC) on a build-operate and transfer (BOT) basis, which will enable the company to develop shopping malls and multiplexes at 13 stations, comprising 3 million sq ft, it said.

Commenting on the company's reported plans of a possible tie-up with French retailer Carrefour for retail operations in the country, Jain said: "We will announce a tie-up once we sign the documents."

According to property consultancy CB Richard Ellis, nearly 100 million sq ft of retail property development is in the pipeline. "The situation of over-supply and saturation resulting in the subsequent correction of rentals may occur in certain pockets and micro-markets in the short to medium term,'' said the CB Richard Ellis report.

Parsvnath Retail has appointed R J Kamath as an independent director on its board. "It is to bring more focus to the vertical and integrated development with the existing real estate activities," said an official from the Parsvnath.

On asked about why the company is moving into a sector that is bearing the brunt of high inflation, Jain said: "We are not worried about it. We will pass on to consumers rise in manpower costs or the rental increase," he said.

DLF, the country's largest developer, has tied up with Italian retail brands Giorgio Armani and Salvatore Ferragamo to set up their stores across the country. DLF has announced a dozen malls across the country and a similar number of malls are in planning stage.

The company is building The Emporio in Vasant Kunj in Delhi, which is expected to house many global luxury brands. Unitech, the country's number two realtor, has confined its plans to the development of malls. It runs two malls in the National Capital Region and has announced 15 malls in the coming years with an investment of Rs 20,000 crore.

"Though the market is very big, if you do not have the strategy right, success will be hard to come by. Realtors do have some synergies in the retail sector but at the same time, many of the stores are closing due to high rentals," said R Subramanian, promoter of food and grocery chain Subhiksha.

Future Group's joint venture with French brand Etam has closed five stores across the country and the RPG group's Spencer's has relocated 40 stores due to high rentals.

source business-standard (http://www.business-standard.com/india/storypage.php?autono=331144)

Tata ties with Tesco for retail venture (http://www.financialexpress.com/news/Tata-ties-with-Tesco-for-retail-venture/347865/)

UK's largest retailer Tesco Plc on Tuesday announced plans to enter the wholesale cash-and-carry business in India with an initial investment of up to 60 million pounds in the first two years.

The company has also entered into an exclusive franchise agreement with Tata group's retail venture Trent, which will help in driving the latter's hypermarket format Star Bazaar.

"This is another exciting development for Tesco. It complements our entries into China and the United States, giving us access to another of the most important economies in the world. Our wholesale cash-and-carry format will bring improved value, range and service to thousands of Indian businesses," Tesco CEO Terry Leahy said in a statement.

Tesco plans to develop new wholesale outlets, which will offer a range of food, grocery and non-food products to small retailers, restaurants, kirana stores and other businesses.

Based initially in Mumbai, the business would benefit from over a decade of experience of setting up local businesses in international markets, the statement added.

Tesco's exclusive franchise agreement with Trent will enable the Tata group firm to draw on the UK retailer's extensive expertise and technical capability, cold-chain infrastructure and front-end services to drive the growth of its hypermarket business, Star Bazaar.

Currently, there are four Star Bazaars operational in Ahmedabad, Bangalore and Mumbai (two stores) and Trent plans to grow it to 50 stores over the next five years.

"Their (Tesco's) wholesale cash-and-carry business will provide us with the opportunity to tap into a world class supply chain thereby delivering the best of products and services to our customers," Trent Managing Director Noel N Tata said.

Tesco's wholesale business would supply merchandise to Star Bazaar, enabling the two companies to benefit from the rapid development of a modern supply chain.

Star Bazaar offers a wide range of products including fresh foods, fruits, vegetables & non vegetarian products, dairy, home care, health and beauty products, apparel, home decor, gifts and household items.

It already sources over 170 million pounds worth of Indian products each year, with sourcing offices in Delhi, Bangalore and Tirupur. It also employs nearly 3,000 Indian staff at Hindustan Service centre in Bangalore, providing IT, financial and business services to the entire Tesco Group.

Lerros bestows fashion opens its first store in India (http://in.news.yahoo.com/139/20080811/832/tbs-lerros-bestows-fashion-opens-its-fir.html)

New Delhi, Aug 11 (ANI/Business Wire India): LERROS, a premium apparel brand from Germany marked its entry in to the Indian market. The brand launched its first ever store in India at Select City Walk, Saket, New Delhi.

Established in 1983, LERROS is a premium casual wear brand considered finest in quality among apparel players in Germany, specially designed for quality-conscious consumers.

The unique and distinctive collection was unveiled and showcased at a fashion show today at Select CityWalk Mall, Saket.

Hartmut Schwenk, Managing Director LERROS, on this occasion said, "LERROS is a premium and popular brand in Germany. It offers just the right choice for every occasion in daily life along with a selection that provides almost as much variety as life itself. Seeing India making headway with more premium fashion brands entering the market."

"LERROS decided to open its store for Indian consumers. Our clothes are for smart and fashionable customers who are quality-conscious and follow their own sense of style. We always believe in being innovative and authentic, thus bringing out the best designs in all our collections," Schwenk added.

LERROS fashions combine an attractive exterior with a high quality interior to create the perfectly smart casuals. The flexible mix-n-match options and the tailored fit are emphasized by fashionable highlights and unusual details. Its styling is modern, uncomplicated, stylish and avant-garde. The designs are sporty and light with fashionable notes. The flexible combination options and the fit are topped off with specific fashion highlights.

Commenting on the joint venture between House of Pearl Fashions Ltd and LERROS, Deepak Seth, Group Chairman of the House of Pearl Fashion Limited said "It is really exciting to be associated with a prestigious brand like LERROS. I am sure with their entry into the Indian market the brand would attract customers who appreciate the value of a high quality product and loyal clientele. Their clothes are a perfect fit with the preferred European styles popular in India among discerning customers. The joint venture with House of Pearl Fashions Ltd in India will help to strengthen and support the brand."

LERROS designs for both men and women. The signature of LERROS is modern, straightforward and confident in its style. Their range in masculine casual wear and sportswear is distinguished by its reliable degree of fashion as much as by its authenticity.

It is noted for being one of the most successful men's collections in recent years. The LERROS woman typically goes for fashion that has a reliable fit and compliments her lifestyle. It has a reliable fit and has a perfect price-performance ratio. The sporty feminine style combines an attractive appearance with a fair price, making it the best choice for consumers.

Madura Garments plans to set up premium lifestyle stores for men

IF YOU are ready to shell out anything between Rs 50,000 and a lakh, you can get your suit stitched in Europe. Once you pick the fabric, design and cut, the person from one of the soon-to-open made-to-measure stores will take your measurement to get the final cut and finish done in Europe.
The offering is from Madura Garment Exports, a subsidiary of Aditya Birla Nuvo, which will roll out its new chain of men’s lifestyle stores called The Collective in October. The company will invest Rs 275 crore from internal accruals. “We believe that not many stores let the customers choose his own fabric and design. Our final product will come with European finish,” said Vikram Rao, director, Aditya Birla Management Corporation. The Collective will house 35 international brands, ranging from Armani Collezioni to Henry Pool.
The company has hired the New York-based brand retailer Kramer Design for the project. Madura Garments Exports will open 14 stores over four years. It will start with Bangalore followed by New Delhi in December and Mumbai in March or April. Each store will be of around 18,000-20,000 sq ft. Madura Garments Exports is grappling with lower margins due to high input costs. Mr Rao said the company might hike prices in a month in the premium line leaving alone the mid-price segment.

source economictimes epaper

Reliance Brands may propel Adidas retail

Adidas may bank on Reliance Brands, a subsidiary of Reliance Retail, for expanding its store network in the country. Reliance Brands is in discussions with Adidas to pick up store franchisee rights.
Sources said Reliance has pitched in to accelerate store development plans of Adidas. Reliance Brands and its parent, Reliance Retail, till now have stayed focused on striking equity joint venture or exclusive licensing deals to launch lifestyle brands in India.

But the move with Adidas is a pure distribution play, which is considered the single biggest challenge for the global lifestyle companies. There are just a few independent distribution companies focused on the lifestyle sector, with Aryan Lifestyle, part of Emaar MGF, and Primus being the prominent ones. These entities primarily pick up store franchisee rights for global brands operating in India, and the entry of Reliance into this space is significant, industry observers added.

“We are in discussions with several potential partners for franchisee operations and Reliance is one of them. We have very aggressive expansion plans and they can not be executed by one company alone,” Adidas India managing director Andreas Gellner told ET.

Mr Gellner said it will continue to operate with existing francisee partners like Primus in propelling the growth engine. “India’s fashion industry is singularly challenged by distribution (capabilities), and not by demand and supply challenges,” an industry source explained.

Adidas has around 330 stores at present and plans to open 100 more within a year, as it charts forays into smaller towns. The global giant saw its domestic business jump 30% in the first six months of the calender year.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Reliance_Brands_may_propel_Adidas_retail/articleshow/3353897.cms)

UK retail giant in wholesale entry (http://www.telegraphindia.com/1080813/jsp/frontpage/story_9686715.jsp)

London, Aug. 12: Tesco, Britain’s biggest and most controversial supermarket chain, will set up in India a wholesale cash-and-carry business which it said would not undermine the small retailer.

“We will be supplying them,” a Tesco spokesperson said.

Wholesale business is virtually the only way large global retailers can gain a toehold in India, one of the fastest growing retail markets in the world. Indian rules do not allow foreign retailers, other than single-brand vendors, to enter retail.

Tesco, which has 2,115 stores across the UK, has also tied up with the Tatas to whom it will lend its expertise in retail.

An earlier deal with Sunil Mittal’s Bharti group collapsed two years ago when the latter opted for Wal-Mart of America. “It is not about being the first,” the spokesperson said. “It is about finding the right partner.”

Under the franchise agreement with Trent, the retail arm of the Tatas, Tesco will receive a fee for letting the Indian company draw on the UK chain’s “extensive retail expertise and technical capability to support the development of its hypermarket business, Star Bazaar,” a statement said.

Star Bazaar currently has four outlets, of which two are in Mumbai and the others in Ahmedabad and Bangalore.

Tesco will invest £60 million (Rs 480 crore) in setting up its wholesale cash-and-carry business in the first two years, developing three wholesale distribution hubs in Mumbai, Delhi and Bangalore, and then gradually roll it across India.

The German chain, Metro Cash and Carry, has set up a similar venture on the outskirts of Calcutta but is awaiting a key licence from the agri-marketing board.

Tesco, which already has a sourcing network in India for its UK stores, will buy staple food, fresh vegetables and other “mainly vegetarian” products from farmers, and then provide “value for money” to small retailers.

In the UK, Tesco does provide cheap food but it has also run into controversies. Critics have accused it of using its enormous financial muscle power to buy up land and available sites wherever it can and generally driving competition out of the area.

Tesco doesn’t have to go through a long-drawn approval process that Metro and Wal-Mart had faced. The other two hubs will come up in the next two years. In 2006, the investment rules were changed to allow global retailers to establish fully owned cash-and-carry operations without having to seek prior government approval.

Asked whether the company wished to enter the retail sector, Philip A. Clarke, Tesco’s international and IT director, said: “That’s a hypothetical question. But we would love to operate our hypermarkets here, if allowed.”

Reliance Retail to launch Hamleys toy shops (http://www.financialexpress.com/news/Reliance-Retail-to-launch-Hamleys-toy-shops-here/348148/)

Mukesh Ambani-owned Reliance Retail has announced an exclusive pan-India franchise arrangement with Hamleys, the UK’s popular toy retailer. Reliance Retail plans to open 20 Hamleys outlets by 2015 at an investment of Rs 125 crore. Two flagship stores, in Mumbai and Delhi, will open in 2009, followed by expansion across India, Bijou Kurien, president and CEO, Reliance Lifestyle Holdings (a wholly owned subsidiary)told FE.

“We hope to bring in world-class toy stores, which will capture the imagination and attention of children in India,” said Kurien. Reliance Retail will replicate the experiential elements of Hamleys’ famous flagship store on London’s Regent Street. The stores will sell a wide range of toys, including Hamleys' own range. They will also host demonstrations, magicians and other activities. The brand was established by William Hamley in 1760.

This arrangement is aimed at combining the distribution dominance and scale of Reliance Retail and Hamleys’ heritage, theatre, magic and entertainment. Hamleys also brings to the partnership its skills and capabilities of creating a store experience which is unique, training its staff to deliver this experience, designing stores and developing private label products to complement the brands.

Kurien also said Reliance Retail would continue with its strategy of selling private labels and other brands in its generic stories and tying up with large global brands in speciality categories.

Paul Currie, trading director at Hamleys, says, “We are thrilled to be bringing the magic of Hamley to India, partnering with Reliance Retail, where we have already received such a warm welcome. It’s going to be a fantastic and exciting stage in our international development.” The Indian toys and games market is estimated at Rs 2,500 crore.

Fabindia launches its first-ever jewellery line (http://in.news.yahoo.com/43/20080812/836/tbs-fabindia-launches-its-first-ever-jew.html)

Fabindia, the country's largest retail platform for handcrafted and natural products, has added a new item to its accessories portfolio - crafts-based jewellery.

Company officials said the range, sourced from 21 states across the country, is an extension of the Fabindia brand aimed at offering buyers the complete ensemble so that they do not have to source jewellery from somewhere else to match their clothes. And it also hopes to lure new buyers.

The collection, priced between Rs.100 and Rs.8,000, comprises ethnic jewellery in silver, beads, thread, wood, bell metal (brass and copper), clay, ceramic, leather and glass - representing the wealth of the indigenous crafts of the states from which the company also sources its cache of textiles.

The collection - of traditional as well as contemporary jewellery - is available in three designs - Anusuya, the classical range; Ananya, the unusual and contemporary designs; and Amna, the trendy and casual range.

The jewellery will be available in select Fabindia stores in Delhi, Mumbai, Bangalore, Hyderabad, Kolkata, Pune, Chandigarh and Chennai in the first phase.

In Delhi, the collection will be available in eight of the 17 Fabindia outlets and in four of the seven stores in Mumbai.

Product development head Shilpa Sharma said the new product line will allow customers to accessorise the garment offerings. "The synergy with our existing range is clear. We are offering our customers the complete ensemble look," Shilpa Sharma told IANS at Fabindia's crowded jewellery and home accessories outlet in Khan Market.

The company hopes to lure new segments of buyers with its jewellery collection.

"There is a vast crowd of youngsters who prefer wearing jeans and T-shirts. They do not usually wear Fabindia clothes and nor are they interested in home accessories. We expect the jewellery to pull them to our stores. The appeal of jewellery cuts across all segments," Sharma explained.

The collection, Sharma said, has been sourced from both designers and craftsmen.

"There is something for everyone," said Priya Rao, the head of markets, commenting on the price range.

The jewellery range will be sold in India for the time being. "Though we have eight stores in the Gulf and a growing presence in the region, at the moment we are not sending any jewellery out. We will market it in phases as this is a new line of business for us. We are trying to brand the unbranded," Pableen Sabhaney, head of communications, said.

The company, set up in 1960 by John Bissell, links contemporary urban markets with traditional crafts-based, largely rural producers. It hawks merchandise and products that emphasise an alternative to the mass-produced and offers livelihood to village artisans.

The company's ability to balance the creation of sustainable jobs in the rural sector while posting healthy profits in a field dominated by non-profit groups and government-aided organisations made it a Harvard Business School Case Study in 2007.

^^it was tough enough keeping my sister away from fabindia, but now...:ohno:

Tata ties with Tesco for retail venture (http://www.financialexpress.com/news/Tata-ties-with-Tesco-for-retail-venture/347865/)

Tesco teams up with Tatas for India play

UK Co to invest £60 m over 2 years

TESCO, UK’s supermarket group, on Tuesday announced plans to develop a wholesale cashand-carry business in India, committing an initial investment of up to £60 million (Rs 480 crore) in the first two years. The wholesale outlets, which will be initially set up in Mumbai, will sell fresh food, grocery and non-food products to small retailers, restaurants, kirana stores and other business owners.
The world’s third-largest retailer, with sales of $99.9 billion, has also signed an exclusive franchise agreement with Trent, the retail arm of the Tata Group. Trent will draw on Tesco’s retail expertise and technical capability to support the development of its hypermarket business, Star Bazaar, for which Tesco will be paid a fee. Tesco’s wholesale business will also supply merchandise to Star Bazaar.
At present, foreign retailers are only allowed to sell to retail consumers through franchisees and licensees. Current norms allow 100% foreign direct investment (FDI) only in cash-and-carry wholesale formats, the model chosen by Germany’s Metro and South Africa’s Shoprite Holdings which already operate in India. Cash-and-carry can only sell to other retailers and not to individual consumers.
ET Online broke the story on Tuesday morning. The announcement ends months of media speculation about a possible partnership between the two high-profile groups. Tesco was reported to be in joint venture talks with several leading Indian business groups, including the Tatas and Mahindra & Mahindra. It had earlier almost finalised a joint venture in late 2006 with Sunil Mittal’s Bharti Enterprises before the latter opted for Wal-Mart. Tesco’s international division, which accounts for almost 40% of group sales, reported a 13.9% rise in sales with strong growth in Europe and Asia.
Tesco CEO Sir Terry Leahy said: “It complements our entries into China and the US, giving us access to another important economy in the world. Our agreement will enable us to share our global retail expertise, supporting Trent in the development of their Star Bazaar hypermarket business.”
Tesco is a multi-format retailer and operates hypermarkets, superstores, supermarkets and convenience stores. The group, which has operations in 13 countries, runs 3,729 stores and employs over 440,000. It has 814 stores in Asia in markets like China, Japan, Malaysia, South Korea and Thailand. At present, Tesco sources over £170 million worth of Indian products each year, with sourcing offices in Delhi, Bangalore and Tirupur. It also employs nearly 3,000 Indian staff at its Hindustan Service centre in Bangalore, providing IT, financial and business services to the entire Tesco Group.
Trent MD Noel N Tata said: ”Our ability to access Tesco’s retail knowledge and expertise will play an important role in our endeavour to offer a unique shopping experience to customers across the country. Their wholesale cash-and-carry business will provide us with the opportunity to tap into a world class supply chain.”
Trent’s retail formats include the hypermarket Star Bazaar, departmental store Westside and bookstore Landmark (as a subsidiary). Trent will invest Rs 2,000 crore to set up 50 Star Bazaars over the next few years. Infiniti Retail, a wholly-owned subsidiary of Tata Sons, operates a national chain of multi-brand electronics stores under the brand name Croma with a technical and sourcing agreement with Australian retail giant Woolworths.
Trent has been grappling with a slowdown in the June quarter sales. Though the scenario is not as bad compared to March quarter, where sales growth was negative, the company managed a low 2.7% growth for the first quarter of FY 2008-09. However, sales have declined by 600 basis points on a year-on-year basis. Slower rollout of its value format store ‘Star Bazaar’ could be one of the reasons for the slowdown. In the lifestyle segment, the company is struggling to keep its input costs under control.
The company has, however, managed to maintain its net profit margins at 6% which had declined to almost 1% in the March quarter, a whopping 500 basis points increase. As more value format stores become operational, the company would be able to make use of its economies of scale. Being a private label retailer, Trent is better placed as compared to its industry peers as margins are higher in in-house brands.
Retail analysts said the deal makes sense for both groups. “Tesco is clearly focusing on building up capabilities in the country and preparing for a strong presence in the Indian market until FDI rules in retail are relaxed. How mutually beneficial the partnership pans out to be in the long run needs to be seen. The association may even strengthen into sharing stakes in the long run. For now, the Tata group has merely offered a supporting role for Tesco’s entry, which will help it to access the retail heavyweight’s expertise,” said an analyst with a foreign research firm.


source economictimes epaper

^^it was tough enough keeping my sister away from fabindia, but now...:ohno:

Good for her :devil:


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Titan to open 50 more stores by 2008 end (http://www.financialexpress.com/news/Titan-to-open-50-more-stores-by-2008-end/348435/)

In tune with its plan to take the total number of exclusive outlets to 300, Tata Group company 'Titan Industries' will open 50 more exclusive stores for its popular watch brand by the end of current fiscal.

"Titan at present has 250 exclusive outlets in the country and by the end of current fiscal, we will be adding another 50 stores to take the total number to 300," Titan Industries Global Marketing Head Suprana Mitra said in New Delhi.

Speaking about the company's expansion plans, she said all these exclusive stores would be of 1,000 square feet or more and would opt for franchise mode for these stores.

The company has also charted out store expansion programmes for its jewellery, watches and eyewear divisions in India, besides planning to enter the US market with 'Tanishq' brand of jewellery by next month.

It currently has presence in about 30 countries across the world.

Titan Industries Ltd is a joint venture between Tata Group and Tamil Nadu state Industrial Development Corporation.

HUL partners with Disney for packaging initiative (http://www.financialexpress.com/news/HUL-partners-with-Disney-for-packaging-initiative/348608/)

In a strategic move, FMCG major Hindustan Unilever Ltd (HUL) is partnering with Disney to design packaging strategy for its flagship brand ‘Kissan Jam’ in the processed foods sector. In a bid to woo kids, HUL is using Disney characters such as King Louis, Mougli and Sher Khan on the packaging of its new launch, an ‘easy-to-squeeze’ tube called “Kissan Jam Squeezee”. Incidentally, HUL’s arrangement with Disney is only for the Indian market place. Meanwhile, HUL’s arch rival ITC Foods is planning to launch its brand ‘Kitchens of India Fruit Conserves’ in easy-to-squeeze tubes to pump up volumes. At present, ITC‘s portfolio includes six variants of fruit conserves.

On the company’s new packaging initiative, Siddhartha Singh, category head, processed foods, HUL said: “Our consumer research showed that involving kids in the process of preparing food would encourage them to eat it. The format of having jams in a tube is based on this insight. The launch strengthens the Kissan brand promise to “help moms feed good wholesome food to kids.”

According to Singh, HUL’s new launch is being partnered with Disney. “The packaging is colorful and has the favorite Disney characters such as Baloo and Sher Khan. The partnership with Disney will also be leveraged in bringing interesting marketing initiatives to promote the launch,” he added. HUL’s new launch will be available in both general and modern trade outlets across the country. The packaging and identity has been designed by “DCell” and the advertising has been created by Lowe India.

Increasingly, Indian FMCG majors are opting for packaging initiatives that feature famous cartoon characters to lure kids, according to industry analysts. ”Recognising the pester power of kids, many FMCG majors now opt for innovative packaging designs that feature cartoon characters,” said an analyst based in Mumbai. According to HUL, the company has used similar marketing approach of using popular characters in other categories too.“For example, our oral category recently used Barbie, Pokemon and Superman characters in their packaging for Pepsodent toothpaste for kids,” explained a spokesperson from HUL.

Good for her :devil:


:lol:



:shifty:




:cry:


FDA cancels licences of Subhiksha, 3 cos

Maharashtra's Food and Drug Administration (FDA) on Wednesday cancelled the licences of retail chain Subhiksha and three of its packaging firms. It also extended the suspension of two trading firms over hygiene issues at its warehouses. The retail chain is preparing to challenge the state’s move before the Bombay High Court.
Subhiksha termed the order ‘totally illegal’. “We will file a case in the Bombay High Court against the FDA order,” Subhiksha managing director R Subramanian said. Subhiksha has been under the scanner following charges of flouting hygiene regulations in the state.
“The appeal was made before FDA commissioner Dhanraj Khamatkar who ruled that the suspension period be doubled and licences of three firms, Intuitive Software, Analog Financial Services and Quadrangle Trading Services be cancelled,” FDA joint commissioner HD Salunkhe said. Minister of state for food and drug administration Baba Siddiqui on Wednesday described the FDA action as warranted, saying those violating norms should be penalised. Opposition leaders had raised concern over hygiene issues at Subhiksha’s warehouses during the recent monsoon session of the state legislature.
“We have been informed — we are yet to go through the order in full — that the FDA Commissioner has quashed one of the two suspensions against our company. This was a case where FDA was not even sure when they had conducted the inspection. It is quite obvious that the orders are not passed in the normal course and seem to be done to please certain vested interests who have been attempting to sully our reputation. Given that the orders are so absurd and without doubt passed on considerations other than law and fact, we shall be immediately approaching the High Court for remedy,” Mr Subramanian said.

source economictimes epaper

FDA cancels licences of Subhiksha, 3 cos
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Subhiksha Mumbai ops not to be hit by FDA order, says chief

Retail chain Subhiksha, which has been slapped with a 20-day suspension order on its Mumbai warehouse by the Maharashtra Food and Drug Authority (FDA) on issues of hygiene, said its operations in the city would not be affected by it.

"We always have a back-up for supply from other warehouses in case there is some problem in any particular warehouse," Subhiksha's Managing Director R Subramanian told reporters.

However, he said, "We don't think that the need will arise since we are appealing to the Bombay High Court at the earliest and are confident that the matter will be resolved soon."

If need arises, the company may outsource from its warehoused located in nearby Gujarat, Indore and other places, Subramanian said.

"We have a total of three warehouses in Maharashtra -- Pune, Nagpur and Mumbai -- comprising around three lakh square feet," Subramanian said.

Subhiksha has around 125 stores operational in Mumbai while in Maharashtra, it has around 210 stores, he said.
In addition, there were eight mini-warehouses in Mumbai which would remain operational, he added.

source economictimes.com (http://economictimes.indiatimes.com/News_by_Industry/Subhiksha_Mumbai_ops_not_to_be_hit_/articleshow/3364617.cms)

FDA cancels licences of Subhiksha, 3 cos



Subhiksha Mumbai ops not to be hit by FDA order, says chief

Retail chain Subhiksha, which has been slapped with a 20-day suspension order on its Mumbai warehouse by the Maharashtra Food and Drug Authority (FDA) on issues of hygiene, said its operations in the city would not be affected by it.

"We always have a back-up for supply from other warehouses in case there is some problem in any particular warehouse," Subhiksha's Managing Director R Subramanian told reporters.

However, he said, "We don't think that the need will arise since we are appealing to the Bombay High Court at the earliest and are confident that the matter will be resolved soon."

If need arises, the company may outsource from its warehoused located in nearby Gujarat, Indore and other places, Subramanian said.

"We have a total of three warehouses in Maharashtra -- Pune, Nagpur and Mumbai -- comprising around three lakh square feet," Subramanian said.

Subhiksha has around 125 stores operational in Mumbai while in Maharashtra, it has around 210 stores, he said.
In addition, there were eight mini-warehouses in Mumbai which would remain operational, he added.

source economictimes.com (http://economictimes.indiatimes.com/News_by_Industry/Subhiksha_Mumbai_ops_not_to_be_hit_/articleshow/3364617.cms)

Maha Bachat Sale likely to generate 350 cr (http://www.financialexpress.com/news/Maha-Bachat-sale-likely-to-generate-350-crore/349294/)

Future Group, which kicked off country-wide 'Maha Bachat Sale' across its stores, on Friday said that the five-day bonanza that began from August 13 is likely to generate Rs 350 crore revenue.

"We had set a revenue target of Rs 200 crore in five days. In the first two days, sales have been recorded at more than 20 per cent above our expectation. We hope to record Rs 350 crore revenue at the end of five days," Future Group Head Kishore Biyani said in Mumbai.

Future Group has been offering discounted annual sales for three years in a row.

The bonanza is open for customers across its 97 Big Bazar stores and 45 standalone Food Bazar stores and is expected to generate five to seven million footfalls across.

Asked whether runaway inflation was impacting the overall sales of the company, Biyani said that to offset cost push Future Group has taken initiatives to by-pass middlemen and source directly from the manufacturers.

"The fight is to keep prices low. We are trying to make sure inflation does not burden the buyer," Biyani said.

Inflation surged to 12.44 per cent for the week ended August 2, against 12.01 per cent in the previous week.

Biyani said that though inflation numbers remain high, consumer spendings would only go up in the coming days since organised retail has only started taking roots in India.

Future Group has also introduced an innovative insurance offer this week for Big Bazaar customers. Life insurance cover of Rs 15,000 is being offered to all customers on a minimum purchase of Re 1.

Customers can double the policy, powered by the Future General Life Insurance India Pvt Ltd, by paying an additional amount of Rs 50.

Diageo India eyes 40% revenue share for its reserve brands (http://www.financialexpress.com/news/Diageo-India-eyes-40-revenue-share-for-its-reserve-brands/349630/)

Diageo India, a subsidiary of Diageo plc, plans to focus more on reserve brands than on its mid-priced and low-priced offerings. “A couple of years down the line, Diageo India plans to take up the revenue share of its reserve brands to 40%,” informs Santosh Kanekar, director, marketing, Diageo India. Currently, the luxury brands yield 20% of it’s revenues.

The UK-based liquor company is planning to launch its luxury brand of single malt Scotch whisky, Singleton, in October. Also in the pipeline is the launch of its Thomas Burton range. It launched two reserve brands—Tanquery No Ten, a premium gin, and King George V whisk in this month and the last. Currently available in the major metros, these brands will be available across the country by the end of the year.

Kanekar says, “With our luxury products we are targeting cities such as Mumbai, Delhi, Pune, Bangalore, Hyderabad and Ludhiana.” Diageo’s portfolio of products includes Smirnoff Vodka, Johnnie Walker Whisky, VAT 69, J&B and Black & White

For Diageo, the world’s biggest alcoholic drinks company, the emphasis has always been on the US, the world’s most profitable spirits market. It has recently expanded more aggressively into emerging markets in Africa and Asia, including India.

The reason for Diageo’s focus on the luxury market In India are obvious. With increased income, growing prosperity in tier II cities, and higher aspiration amongst today’s youth, there has been a drastic change in the spending pattern in the recent past. As a result, demand for luxury liquor has increased along with luxury cars, apparel brands, accessories and high end housing facilities.

Titan eyes $1 billion in sales this fiscal (http://www.financialexpress.com/news/Titan-eyes-1-billion-in-sales-this-fiscal/350373/)

Titan Industries Ltd (Titan), one of the leading lifestyle brands with interests in watches, jewellery and eyeware, has set a $1 billion revenue target by the end of this fiscal, said Bhaskar Bhat, managing director, Titan Industries. This will be achieved through new products, more outlets in all three verticals and improved marketing exercises, he added.

Speaking to FE here on Monday, he said, “We are looking at a 30% growth in topline as well as bottomline in the current fiscal.” For the year-ended March 31, 2008, Titan reported a turnover of Rs 3,041 crore with a net profit of Rs 150 crore, he said.

He said that both the watch and jewellery divisions are doing extremely well. “The jewellery division contributes two-third of the overall sales while the rest comes from watch division. We hope eyeware sales turnover to treble from Rs 12 crore to Rs 50 crore in the current fiscal,” he said.

He said, “We have opened an exclusive ‘Tanishq’ boutique in Chicago last month on a experimental basis and plan to open one more in New Jersey.” Titan will also start distributing watches in Pakistan, he added. Currently, global operations contribute less than 5% to Titan’s total sales.

Now, Koutons to step in leather footwear,expansion plans (http://www.financialexpress.com/news/Now-Koutons-to-step-in-leather-footwear/308727/)

High on expansion plans, apparel manufacturer Koutons Retail India plans to add leather footwear and other accessories such as handbags. For this, it has tied up with a local Uttarakhand company for manufacturing shoes and handbags. The accessories are expected to hit the stores in the next three to four months. The company also plans to procure raw leather from Kanpur and Agra markets and have them manufactured at its Uttarakhand factory. An initial amount of Rs 25 crore has been set aside for this venture.

This is in addition to the company's other expansion plans, which include opening 300 exclusive women's and kids stores and 100 family stores in this fiscal.

Talking to FE, Balwinder Singh Ahluwalia, president, Koutons Retail said the idea behind the family stores is to establish comfort zones for the entire family. “Our USP is of making quality in fashion, affordable to the middle class segment. Opening family stores was a step in the right direction as we wanted to maintain the number one position in the apparel retail segment by tapping on women's and kids apparel too,” he said.

Commenting on the company's plans to foray in Middle East and China by the end of this year, Ahluwalia said that talks are on whether the company would open its stand-alone stores or enter into a tie-up with a local retail chains.

“We are exploring all options to enter Middle East by the end of this year,” he said, adding that there was a lot of scope for the brand because of the rising demand of the Indian population residing in that region.

Koutons Retail, which posted a 97% growth in the fiscal ending 2008, plans increase the total figure of stores from 1,200 to 3,000 by 2010. For this, the company would pump in Rs 100 crores. According to Ahulwalia, the company is aiming to focus South and Western India in a big way. “We will penetrate into all the four southern states as well as Maharashtra as the demand for branded apparel is huge in these regions,” he said.

Ahluwalia, who was in Lucknow to inaugurate the company's 3rd family store of the company in Uttar Pradesh, after Ghaziabad and Aligarh, said that in the fiscal ending 2008, the state had given Rs 150 crore business to the company and hence, it also figured high on the expansion spree of the company. “By its sheer size and population, UP has a huge potential, which we plan to fully exploit,” he added.

Reebok India plans 55 more Classic stores (http://www.financialexpress.com/news/Reebok-India-plans-55-more-Classic-stores/353070/)

Footwear and apparel major Reebok is planning to open 55 additional stores of its exclusive lifestyle brand Reebok Classics in the country by end of the current fiscal year.

"We have already opened 20 Reebok Classics stores till now in key cities of NCR, Mumbai, Bangalore, Hyderabad, Chennai, Jaipur, Chandigarh and Pune, and plan to take the tally to 75 by end of 2008-09," Reebok India Managing Director Subhinder Singh Prem said.

He said the brand, which is present in the international market since many years, would carry 'edgy' and 'stylish' collections from the domain of Reebok International like the Scarlett Johannsons Hearts collection, DGK skate, NFL and the Evolution range.

"It would also consist of Indian origin collections like the Dance inspired collection being promoted by Bipasha Basu, Dhoni 7 collection designed with inputs from MS Dhoni himself and Fish Fry for Reebok designed by Manish Arora," Prem said.

The expansion plan is a follow up to the company's foray into the lifestyle segment, he added.

"Reebok has been there in the lifestyle space for quite some time now and we started off by foraying into lifestyle last year with niche initiatives like Fish Fry for Reebok by Manish Arora ... and launch of some very stylish collections like DJ shoes and Canvas collection," he said.

Prem, however, refrained from divulging company's investment plans for the brand in India.

"It is difficult to pin-point a figure for investment right now. We will focus on retail expansion and building the brand over the next few years with the objective of delighting the consumer and providing him easy access to the brand," he said.

While a few of the lifestyle collections will be available in both performance stores and Reebok Classics stores, the high-end lifestyle and fashion collections will be available exclusively in Reebok Classics stores.

The company is targeting "young people, 18 years of age onward with a strong inclination towards fashion, fitness and sports" for the brand.

"All over the world, sports and style are merging giving rise to a whole new trend... Reebok Classics stores present a unique, classy and trendy range to the consumer which is characteristic of energy through its designs, colours, motifs, fabric and inspirations," Prem added.

He refused to speculate upon the turnover likely to achieved by the Reebok Classics.

Pizza Hut eyes expansion, plans 30 more stores (http://www.financialexpress.com/news/Pizza-Hut-eyes-expansion-plans-30-more-stores/354032/)

Global casual dining chain Pizza Hut is embarking on an expansion drive that would see the company spending Rs 95-100 crore over the next three years and undertaking a brand transformation strategy.

The company plans to invest around Rs 45 crore to set up 30 more stores in metros and Tier I cities in the next three years, up from the existing 135 stores.

Besides, it is rolling out its concept of 'enhanced dining', announced last month and started from Mumbai, to cover all the 110 Pizza Hut 'restaurant stores' at an investment of Rs 50 crore.

"We want to set and change the standards of our stores keeping pace with the change in taste of our customers," Pizza Hut Director for Marketing Anup Jain said.

He said the company is aiming for an increase in sales of 25 per cent over next three years on the back of the brand transformation and stores expansion.

He, however, refrained from giving out the exact sales figures of the company in India.

Reports from market experts stated that the chain reported a sales figure of 70 million dollars in the country, forming around 7 per cent of the one billion dollar branded eating-out market.

The company's brand transformation involves the launch of an enhanced dine-in concept in the casual dining segment at its restaurant stores.

Retailers Take a Slower Road in India (http://online.wsj.com/article/SB121969735455670319.html?mod=googlenews_wsj)

BANGALORE, India -- India's expected retail boom hasn't taken off, leaving companies large and small to rethink their expansion plans.

Wal-Mart Stores Inc., which unveiled plans to enter India with a joint-venture partner two years ago amid great fanfare, will open its first wholesale store next year, but it won't comment on future plans. Three Build-A-Bear Workshop Inc. franchises in India opened by Murjani Group have closed. Straps, a chain run by India's Oswal Group that featured Wonderbra lingerie from U.S.-based Hanesbrands Inc., has closed its more than 20 stores. Big German retailer Metro AG, after five years here, operates only four wholesale stores; the company says it is taking its time developing its Indian business.

India's retail industry -- including everything from carrots to cars -- clocks around $350 billion a year in sales. That figure had been expected to double in the next seven years. But now, some retail executives are taking a closer look. Growth is less than hoped for. And thousands of new shops have sprouted in the past few years, so there are more players competing for the same consumer.

Just three years ago, an explosion of conferences, analyst reports, Web sites and magazines predicted the arrival of a new Indian consumer who would change the global retail landscape. The first modern retail stores here were so popular that many entrepreneurs thought people would buy almost anything at any price. They were wrong, as both large and small retailers are discovering. For some, the forecast retail boom that promised jobs for Indians and a new market for global retail giants is already a bust.

"I was an eternal optimist; now I have become a realist," says Kishore Biyani, chairman of Pantaloon Retail India Ltd., India's largest retailer by sales, which has revamped its expansion plans as it discovered more about Indian consumers. "Everybody has miscalculated."

Most retailers say they are grappling with the same problems: rising costs and fewer buyers. In the early days of the boom, retail rents and salaries soared, though recently they have started to come down a bit. Many outlets discovered that consumers didn't really want their products. And unlike shoppers in Asia's other booming economy, China, Indians are rarely willing to pay three to 10 times more for an international brand than for its domestic equivalent. The average Chinese consumer has more disposable income, and more than a decade extra of experience with international brands.

Ritu Sureka opened her home-furnishings store "All Living" in the Grand Sigma Mall, Bangalore's newest, in 2005. She was sure the Indian tech capital's programmers and call-center workers would spend their rising salaries on stylish lamps and pillows for their new homes. Now she is advertising a 70%-off sale, and still doesn't make enough money to cover the rent. "I think this retail thing has been a failure," the 45-year-old says.

Nevertheless, India still generates excitement among some investors. Earlier this month, both British retailer Tesco PLC and Vornado Realty Trust, one of the largest mall developers in the U.S., announced plans to enter the country with local partners.

Some retailers, especially those catering to budget shoppers, are thriving. And deep-pocketed companies like grocery-store chains are willing to shoulder losses for a few years, assuming Indians will become accustomed to mall and supermarket shopping instead of buying at the country's millions of mom-and-pop stores.

Shoppers Stop Ltd., one of the first companies in India to attempt modern clothing and houseware chains, has posted net losses for the past two quarters. Some companies that still have big plans, including Indiabulls Financial Services Ltd. and Aditya Birla Group, have changed tack, closing some stores and making management changes.

"We all have to go through some restructuring and shake-up," says Thomas Varghese, chief executive of the Aditya Birla retail unit, which has more than 500 grocery stores. Most were built in the past two years, and few are profitable yet. "The Indian consumer is a damn tough customer."

If retail growth sputters, India will lose an important avenue for growth to trickle down to the masses: the jobs retail provides.

The country's recent economic expansion has been fueled largely by its service sector, and hasn't created millions of manufacturing and export jobs in the way China's boom has. But the Indian government had counted on retailing to soak up millions of rural and young job seekers. Two years ago, Mukesh Ambani, chairman of Reliance Industries Ltd., projected that thousands of his new stores would provide jobs for "500,000 young boys and girls in the next few years." Since that speech, the company has built around 700 stores, an impressive number but far from earlier targets.

In the Grand Sigma Mall, not far from Ms. Sureka's shop, an outlet that sold VF Corp.'s Wrangler Jeans has pulled out. On the ground floor, other stores are empty, including a former Reebok store.

"Everything is overpriced here," says Vignesh Vishwanath, 21, a computer programmer for Microsoft, drinking coffee with a friend at the mall. "This coffee, for example, is 85 rupees here. At the cafe near my house it is only 60 rupees. You can never compete with the local market."

Reliance Retail to axe 3,000 jobs (http://www.financialexpress.com/news/Reliance-Retail-to-axe-3-000-jobs/353957/1)

Barely two years after the launch of the country’s most ambitious retail venture, the Rs 25,000-crore Reliance Retail seems to be revamping its business model. The first step in this mid-course correction is rightsizing: the company is in the process of retrenching around 3,000 employees, nearly one-fifth of its total employee strength of around 20,000 across the country.

Big Bazaar plans to open 15 stores by Nov end (http://www.business-standard.com/india/storypage.php?tp=on&autono=46040)

Retail chain Big Bazaar plans to open 15 more stores by November end, some of them in new markets, at an investment of Rs 1,500-1,600 crore.

With this, Big Bazaar, a subsidiary of the Kishore Biyani-spearheaded Pantaloon Group, will have 112 stores pan-India by November, a top company official said.

Big Bazaar is targeting a network of 145 stores by June 2009.

"We have zeroed in on several new and existing markets for the 15 stores that we plan to open by end-November. The investment will be in the range of Rs 1,500-1,600 crore," Big Bazaar's CEO Rajan Malhotra said here.

The stores would be set up in places such as Mysore, Pune, Cuttack, Kolkata, Chandigarh, Agra, Faridabad, Surat, Nashik, Mumbai, Delhi and Solapur, Malhotra said, adding that in some locations two stores would be opened.

The retail chain would be extending its footprint into new markets such as Mysore, Cuttack, Chandigarh, Faridabad and Solapur.

"These are new markets for us. We have done our research and expect these stores to perform well," Malhotra said.

Presently, there are 97 Big Bazaar stores with the 98th and 99th to be opened in Mysore and Pune.

"Our 100th store will be opened in Cuttack market — all the three stores are likely to be set up by mid-September," he said.

Big Bazaar wanted to mark its century by opening its 100th store in the same location where it had launched its first ; Kolkata, "but there were some issues and hence, we moved ahead in search of other markets," Malhotra said.

Vishal Retail Ltd (http://www.vishalmegamart.net/) has opened three new showrooms at various locations.

The company has opended showroom at A-5, Opposite Cinemax Behind Bank of Baroda, Thane (W), Mumbai. with an area covered with an (approx) of 19,500 sq.ft.

The company has opened second showroom at Central Road, New City Tower, Dimapur, Nagaland with an area covered (approx) of 20,369 sq.ft and third showrpom at Jiwa Ram Ganga Ram, Old Grain Market, Masheti, Sunam, Punjab with an area covered (approx) of 840 Sq.ft.

The tally of total number of stores of the company has reached 157 stores spread across India, spreading across an area of 27,44,800 sq.ft. (approx).

Source (http://www.indiainfoline.com/news/innernews.asp?storyId=80863&lmn=1&cat=5)

Rosebys kicks off retail roll-out in India (http://www.financialexpress.com/news/rosebys-kicks-off-retail-rollout-in-india/371342/)

Global home fashion and lifestyle major Rosebys has kicked off its retail roll-out in India with plans to set up 650 exclusive stores by 2012 for which it has roped in Bollywood actor Soha Ali Khan as brand ambassador.

Two years after its takeover by the USD 700 million Gujarat Heavy Chemicals (GHCL), Rosebys plans to penetrate the estimated Rs 10,000 crore Indian decor market using the franchise route with 600-1,200 sq ft stores in all metros and Tier-I and II cities.

"We will start our Indian roll-out with 150 franchise stores within the next six months in all metros, Tier-I and Tier-II cities. Our plan is to set up 650 stores by 2012," Rosebys Chief Executive Officer Aloke Banerjee said.

He said the company is planning to invest Rs 250 crore in advertisement and brand building during the next four years.

"We are aiming for a turnover of Rs 1,000 crore by end of the 2011-12 fiscal. Our vision is to emerge as a leader in the affordable luxury brand segment," Banerjee said.

The company has signed up Bollywood actor Soha Ali Khan as brand ambassador for its exclusive lines and collections.

Rosebys, which has 320 stores in the UK, is venturing into the Indian market with 75 design combinations prepared by its design houses in UK, USA and India.

Its product range include bed covers, bedsheets, towels, cushions, and adornments like photo frames, vases, candles, stainless steel ware and personal care products.

"To begin, we are introducing four broad lines with themes including Eco Chic, Geo Retro, Indulgence and Peony Garden," Banerjee said.

"We are targeting the young women in 25-35 years age category for giving them an all-inclusive luxury home solutions at an affordable price," he added.

Nikon India launched the D90, a digital single lens reflex (SLR) camera that redefines the creative boundaries of digital photography allowing photographers to easily create stunning still images and High Definition (HD) movie clips with sound—with the same camera. A host of Nikon core technologies were leveraged to develop the D90’s scope of versatility, calling on years of photographic and optical expertise. Whether consumers are graduating from an advanced compact digital camera or are a seasoned D-SLR enthusiast, the Nikon D90 emphasizes brilliant image quality and versatility with its exclusive advanced Scene Recognition System, intuitive creative controls, blazing fast performance and the industry-first ability to create HD movie clips at 720p in the new D-Movie mode.

"The incredible features of the D90 will enable photographers to involve in the kind of photography previously thought impossible. The D90 delivers incredible imaging performance and control, setting a new standard for its class. This marriage of outstanding still image performance and HD movie clip capacity represents the dawn of a new age for D-SLR cameras. The D90’s handling characteristics and long list of features are sure to deliver the photographic experience that Nikon photographers have come to expect from Nikon engineering," said Hidehiko Tanaka, Managing Director, Nikon India "Everyone at Nikon is especially eager to see the myriad of ways that imaginative D90 photographers in India will explore the world of cinematic 24fps HD video through the eyes of NIKKOR optics."

Inspired by Nikon’s acclaimed flagship DX-format digital SLR camera, the D300, and building on the success of the wildly popular D80, the D90 delivers stunning image quality. The CMOS image sensor and 12.3 effective megapixels combined with Nikon’s exclusive EXPEED™ image processing system deliver outstanding

images with fine details, smooth tones, brilliant colors and low noise across a broad ISO range.

Photographers are able to easily compose stunning images using the Live View Mode on the large 3-inch 920,000-dot high-resolution LCD screen. The 11-point auto focus (AF) system utilizes Nikon's exclusive Scene Recognition System and Face Detection to help make the best shot in a variety of environments. Matched with the new versatile AF-S NIKKOR 18-105mm Vibration Reduction (VR) image stabilization lens, and a burst rate of up to 4.5 frames per second, photographers can confidently capture fast action and precise moments as they unfold. Also

helping to ensure no memory is missed, the D90 offers fast handling with a power-up time of a mere 0.15ms and split-second shutter response measuring just 65ms, eliminating the frustration of pictures lost to shutter lag.

Legendary Image Quality
For shooting in a variety of lighting conditions, the D90 has a wide sensitivity range of ISO 200 to 3200 (expandable to Lo 1 ISO 100 and Hi 1 ISO 6400) to deliver incredible low-noise images. The camera also employs an Image Sensor Cleaning function that works to free image-degrading dust particles from the sensor’s optical low-pass filter, helping to ensure spot-free images.

The new D90 companion lens, the AF-S DX Zoom-NIKKOR 18-105mm f/3.5-5.6G ED VR provides a versatile focal length, and the benefits of Nikon Vibration Reduction (VR) image stabilization technology. Nikon VR reduces the image blurring effects of camera shake allowing photographers to shoot hand-held at as many as 3 shutter speeds slower than would otherwise be possible*, assuring dramatically sharper images, even in challenging lighting conditions.

Borrowed from Nikon's professional line of digital cameras, the D90 is the most affordable camera to include Nikon's Scene Recognition System and adds newly-developed advanced Face Detection technology. The intelligent Scene Recognition System interprets color and brightness information of each individual
shot from the 420-pixel RGB sensor, and applies changes to AF, auto exposure and auto white balance. The D90 can also detect up to five faces using the new Face Detection system, producing flattering portraits with astounding definition and accuracy. While in playback mode, simply press the zoom button and portraits captured with Face Detection can be immediately magnified to ensure proper focus on the subject and faces are displayed on the LCD screen within brackets for easy reference and subject tracking.

The D90 benefits from Nikon’s comprehensive digital image processing engine, EXPEED, which provides smooth tones, rich colors and defined image details, as well as enhanced processing performance. Additionally, Nikon's exclusive 3D Color Matrix Metering II helps to ensure accurate exposures, even in the most challenging lighting conditions. Evaluating each scene, input data from the system's sensor is automatically referenced against an internal database of over 30,000 scenes derived from actual photographs to calculate correct exposure values. To push the creative boundaries even further, Variable Center-Weighted metering and Spot metering centered on the active focus area are also available, as are exposure compensation and auto exposure bracketing.

The Next Big Blockbuster
For the first time in digital SLR photography, Nikon introduces the addition of the D-Movie mode, allowing consumers to create their own HD movie clips (1280 x 720) with sound from their D-SLR camera. Photographers will appreciate the cinematic qualities that come from the 24fps frame rate, which matches theatrical film, whether producing vacation clips or creatively melding stills with video. Additionally, the large size of the D90’s DX-format sensor, combined with the optical superiority and broad selection of NIKKOR lenses, provides shooters with the ability to capture amazing perspectives not possible with typical camcorders. D-Movie clips also benefit from Nikon VR image stabilization, which is automatically activated during recording to aid the low-light capability that trumps many other hybrid devices. Users can record movie clips onto an inserted SD / SDHC card, created as Motion JPEG AVI files that are easily edited with widely available video editing software. The D90 also features an HDMI terminal, allowing viewing of both pictures and movies on High Definition televisions.

D90 Delivers Peak Performance
The D90's unprecedented start up time and imperceptible shutter lag derives from the same standards as the professional sports photographer choice, the Nikon D3. JPEG bursts can be shot as rapidly as 4.5 frames per second, allowing photographers to capture detailed action sequences or catch fleeting expressions that might otherwise be missed. Images are also processed and previewed rapidly at 120ms, which is less time than it takes to move an eye from the viewfinder to

the screen. Users are also able to creatively stop the action with a maximum shutter speed of 1/4000 second or create long-time exposures down to 30 seconds.

Nikon's 11-point AF also offers best-in-class speed and performance, helping to ensure sharp focus at any focal length. Adopting a refined version of Nikon's advanced Multi-CAM 1000 AF Module, the AF system’s center area wide-frame operation adds inherent focusing options that will instill greater confidence in getting the desired shot. Single-point AF is suggested for static subjects, dynamic-area AF for moving subjects, auto-area AF for spontaneous shooting and 3D-tracking (11 points) AF for when changing the composition after focusing on a subject.

Push Creative Boundaries to the Limit
No matter the level of experience, the D90 makes high-quality photography fun and easier for a remarkably broad range of picture-takers. Users can enjoy complete control over all manual features or let the camera optimize settings automatically. For the camera novice and photography enthusiasts, the D90 puts all of the tools to explore new creative possibilities at their fingertips through the simple menu-driven interface. For those looking to enjoy the added performance and versatility of digital SLR photography, creative shooting is as simple as rotating the Mode dial with Advanced Scene modes on the camera. There are many options when it comes to realizing creative vision, such as Picture Control settings to provide an assorted palette of color effects that optimize color, saturation and hue through user-selected choices of Standard, Neutral, Vivid, Monochrome, Portrait, and Landscape. Popular editing tools such as Nikon’s exclusive D-Lighting and image trimming, image overlay, and a wide assortment of color filters can also be applied to images after capture. The D90 also provides new options for in-camera image enhancement, including:

* Distortion Control: Adjusts lens aberration
* Straighten: Helps to correct linear inclination of an image for straight horizons and landscapes
* Fisheye Effect: In camera filter produces optical effects similar to a fisheye lens

Skillfully Capture Inspiring Images
The D90 has been engineered with the photographer in mind with an intuitive interface that places a variety of automatic and advanced features at the hands of the user. The camera is built to withstand the rigors of an urban excursion or backcountry safari while boasting an impressive shutter mechanism that is tested to 100,000 cycles for durability. Whether upgrading from a compact digital camera or already a seasoned hobbyist, the D90 D-SLR will help anyone take great pictures, thanks in part to the following new features:

* Battery life: New circuitry enhances power consumption, affording up to 850 shots in typical conditions on a single charge of the Lithium Ion battery (CIPA standard)
* Viewfinder: The bright viewfinder offers a luminous 0.94x magnification to more accurately compose images
* LCD screen: The high-resolution 920,000-dot, 3-inch LCD screen gives a 170-degree angle of view to make both composing and sharing easy and fun
* New playback function: Users can show their images in either four, nine or 72 thumbnail images, or use a new calendar format to easily find photos; users can also show their photos via Nikon's Pictmotion slideshow, including background music

Built-in Flash: The built-in Speed light offers a guide number of approximately 18/56 (ISO 200) and can wirelessly control up to two groups of Speed lights in full iTTL mode

Nikon System Legacy
The D90 also offers unprecedented compatibility with Nikon’s extensive selection of NIKKOR lenses, including DX NIKKOR lenses, which are designed for optimum performance with Nikon DX format digital SLR cameras. NIKKOR lenses offer legendary optical superiority and add to the D90’s ability to deliver outstanding images. Paired with the D90 is the new AF-S DX Zoom-NIKKOR 18-105mm f/3.5-5.6G ED VR lens, which provides a versatile 5.8x optical zoom and VR image stabilization, for even sharper handheld picture taking. This lens offers a

27-157.5mm focal length in 35mm equivalent, a one-lens solution that offers a broad focal range to let photographers get up close and personal to their subjects from a distance, or wide for breathtaking landscapes. The built-in Silent Wave Motor ensures quick and quiet AF operation, while an aspherical element and ED

glass deliver high resolution, high contrast images with minimal chromatic aberration and distortion.

Photographers will also enjoy advanced functionality anywhere in the world with system accessories designed for the adventurous globe trekker. When used with the Nikon GP-1 GPS unit (available separately beginning November 2008), the D90 provides geotagging to images with latitude, longitude and altitude data imprinted on the images' metadata. Users can also prolong their adventure with the MB-D80 battery pack that accepts two EN-EL3e or six widely available AA-size batteries. Additionally, photographers can share and upload their images with a wireless interface optimized for the Eye-Fi™ wireless enabled SD card wherever there is a wireless network.

The D90 is also fully compatible with Capture NX2 software (available for purchase separately), Nikon’s highly versatile and elegantly simple new photo editing solution designed to help photographers tap into the full potential of NEF (RAW) images. Featuring an innovative user interface that provides easier access to powerful and visually intuitive enhancement tools, Capture NX2 affords photographers the ability to use revolutionary control points.

Price and Availability
The D90 will be available throughout India beginning Oct’08 at an MRP of INR 81900.

Source (http://www.indiainfoline.com/news/innernews.asp?storyId=81921&lmn=1&cat=8)

"The D90 will be available throughout India beginning Oct’08 at an MRP of INR 81900."

you can get a d300 for that. i cant see why anyone would go for a d90, except people who want to experiment with video

Dubai-based Splash to invest Rs75 cr, open 15 stores in India

Kolkata: Dubai-based high street fashion brand Splash, part of the Landmark Group, will open 15 stores in India by 2010 with an investment of around Rs75 crore.
“We have just opened our first store in Hyderabad and the next will come up in Bangalore by the end of the year. We plan to have 15 stores in India by 2010.” Splash CEO Raza Beig told PTI.
Each store is expected to bring Rs12-15 crore revenue in a year. The 15,000 sq ft area allocated to each store is likely to cost around Rs5 crore. The group is not planning to bring in any partner for this venture.
The stores would house fashional apparel and accessories to suit a customer’s lifestyle and cater to the middle and upper middle segments of the market, Beig said.
Apart from local sourcing, bulk of the merchandise would comprise of imports from China, UK, Turkey and Bangladesh. “We are not planning to put up any manufacturing base in India as of now. Up to 60% of the apparel will be sourced from China,” he said.
Since opening its first store in Dubai in 1993, Splash has a presence in seven countries with 78 stores.

Wadhawan Retail to invest Rs500 cr by 2013

New Delhi: Mumbai-based retail food and grocery player Wadhawan Food Retail (WFRL) plans to invest Rs1,500 crore over the next four years to set up 1,300 stores across the country,
The retail chain, which runs stores under four branded formats -- ‘Spinach´, ‘Sabka Bazaar´, ‘The Home Store´ and ‘Smart Retail´ -- currently has 200 stores.
“Our expansion plan would cater to all the brands and we are looking at having a total of 1,500 stores by 2012-13,” Wadhawan Food Retail managing director Ashok Bhasin told PTI.
He said the company is looking for a daily average footfall of 15 lakh in its stores once the expansion is over.
“We have currently an average footfall of around one lakh across all our stores. We are looking at increasing our footfall by 15 times over the existing figure when all our additional 1,300 planned stores are in place,” Bhasin added.
WFRL began its food and grocery retail operations in 2005 with the ‘Spinach´ and ‘Smart Retail´ brands, and subsequently acquired the Sabka Bazaar and The Home Store brands.
It also runs a non-store format direct-to-home delivery business ‘Sangam Direct´ which the company acquired from Unilever India.
Asked about the funding of the investments, he said it would be through debt and internal accruals. Bhasin said the company would continue to position its stores as neighbourhood stores

Live Mint

open2save an innovative new online venture for the retail industry, has announced that it has launched its service in Delhi. open2save is a service from Bangalore-based AeNwis e-Systems, India’s first multi-channel Target Marketing and Promotions Management service. AeNwis has been promoted by Vaibhav Tewari and Sridhar Turaga, who were earlier the co-founders of iSeva in 2000 - that went on to be one of the top rated BPO services companies in India through a track record of innovative services and offerings.

open2save is India’s largest aggregator of all deals and discounts available in the retail market. With this, consumers can log on to the open2save site (www.open2save.in) and start using the service to get the best deals and prices in their city for Laptops, Mobiles, LCD TVs, Apparel, All Electronics and products from over 35 categories.

The service was initially launched in Bangalore, followed by Mumbai and Pune. open2save in less than 9 months has one of the largest and most comprehensive collections of best deals for consumers in Bangalore, Mumbai and Pune. This service would also be launched in other major cities very soon, and aims to be present in at least 20 cities by the end of the year.

Announcing the launch, Vaibhav Tewari, CEO, AeNwis, said, “Delhi is an important and large consumer market. It has some of India's most demanding consumers. Our service will be very valuable in helping consumers make smarter choices and get better value for their money. With the Delhi launch we also get a National footprint and this will help us to get increased value for our consumers going forward”

“We now have over 1,700 retailers in our network and expect to take this number to 2,500 within the next few months. We aim to have at least 10,000 retailers on our network by year end”, added Vaibhav Tewari.

Source (http://www.indiainfoline.com/news/innernews.asp?storyId=82747&lmn=1&cat=14)

DLF eyeing Luxottica franchisee

The country’s largest real estate developer, DLF, is set to sign a franchisee agreement with Italian group Luxottica to retail its pre
mium and luxury eyeware brands, including Oakley, Ray-Ban, Chanel, Dolce & Gabbana, Donna Karan, Prada, Versace and Polo Ralph Lauren.

Euro 15 bn Luxottica group is a leading designer, manufacturer and distributor of prescription frames and sunglasses in the premium and luxury segment. The group owns 10 premium eyeware brands, including Ray-Ban, Oakley, Vogue and Revo. Luxottica has licence agreements with 20 top brands, including Burberry, Prada, Tiffany and Salvatore Ferragamo.

DLF will open over 100 Sunglass Hut stores over five years, under the franchisee agreement, which is initially valid for seven years, according to a source. The first store is likely to be opened in New Delhi next month. Luxottica currently operates over 2,000 Sunglass Hut retail stores across the globe. In all, the company has over 6,000 optical and sun retail stores across Asia, China, South Africa, Europe and America.

Luxottica has been operating in India since 1999 when it purchased the ailing Ray-Ban from its then owner Baush & Lomb. The company has lately started distributing its other eyeware brands through a wholly-owned subsidiary in India. The company also has a local manufacturing facility. But now, DLF will take over entire distribution and retail of Luxottica’s products.

The eyeware market has been rapidly growing in India. Besides several leading global brands, the domestic eyeware makers, too, have exploded on the scene trying to access different segments of the market.

For DLF, the tie-up with Luxxotica is significant as it will give the realty firm a toe-hold in accessory space and help it build a strong retail portfolio. The real estate giant has been looking at tying up with several high-end brands in each category to launch itself in the domestic market as a major retail player.

It has already tied up with premium fashion brands Armani, Dolce & Gabbana and Salvatore Ferragamo. The company is also eyeing multi-brand retail and has been in talks with some major foreign retailer for a partnership, although a deal has not been finalised yet.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Durables/DLF_eyeing_Luxottica_franchisee/articleshow/3653331.cms)

Coffee Day set to brew 3 premium formats

India’s biggest cafe chain Coffee Day will unfurl three new premium formats as it brews the next phase of growth. Coffee Day Square,
which will become the chain’s flagship outlets, will roll-out into four metros over the next six months, specialising in ‘single origin’ coffees—classic beans sourced from a single estate in a single country across the world—targeted at a more discerning consumer.

Coffee Day Lounge will be cafes where beverage is paired with food, where people “meet over a meal” and not just coffee. The third format, still to be named, may be resembling a cafe nightclub and would look at offering a more vibrant experience with live DJ music and bar-stool seats.

The decade-old Coffee Day, which heralded a cafe revolution in urban India, is also powering ahead with its existing core format that has carved out a place as ‘young hangouts’. At present, the chain has 694 outlets and is seen adding 20-25 every month in a slowing market. The 3,000 sqft first Coffee Day Square, the most premium of the emerging formats, is expected to open in Bangalore next month, to be followed by 8-10 more outlets across the four top metros in six months, Cafe Coffee Day director Alok Gupta told ET. “Cafe Coffee Day has been a youth hang-out, now Coffee Day Square will be a ‘coffee hangout’ for a more discerning, young-at-heart consumer who wants a truly great cup of coffee,” he added.

Besides the single-origin brews from around the world, it will also propel India’s signature coffees —like Araku Emerald and Rajgiri Pearl—into the cafe culture. “The effort is to take consumers up the value chain and connect them with India’s coffee heritage in a contemporary way,” Mr Gupta said.

The next in the line, Coffee Day Lounge, will be more focused on the dining experience. “This will be a gourmet format where we will look at food as a separate vertical. Here we will offer diet food, traditional foods and separate offerings for children, among others,” he said. The biggest youth puller, however, is likely to be the third format resembling a nightclub, which the company will start rolling out only after six months. Mr Gupta describes this as an outlet where people can “connect standing rather than sitting”.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Food/Coffee_Day_set_to_brew_3_premium_formats/articleshow/3724989.cms)

Mumbai's Linking Road most expensive retail location in India

Linking Road in Mumbai has emerged as the most expensive retail destination in India and the 5th most expensive location in Asia,
according to a report.

Colaba Causeway, also in Mumbai, showed the strongest annual growth in the world with rents rising over 182 per cent as on June 2008, according to real estate consultancy Cushman & Wakefield's 23rd Annual Main Streets Across the World report released.

Linking Road was also among the top three locations in the world that witnessed highest annual growth in rental values with an increase of 100 per cent between June 2007 and June 2008. The report is based on a survey conducted in the middle of 2008 across 236 locations in 48 countries across the world.

The report also revealed that India occupied 6 out of 10 positions in Asia in terms of annual growth of rental values.

Explaining the the steep rise in rents, Cushman & Wakefield India Retail Director Rajneesh Mahajan said: "The substantial increase in main street rents was driven by demand from existing retailers upgrading and expanding their space to create flagship stores. Demand was further buoyed by the entry of new international and domestic retailers."

The first half of 2008, however, witnessed rental stability across most micro markets with rents peaking, thereby increasing pressure on store sustainability, he added.

Other retail locations in India that saw a huge jump in rents are Fort/Fountain and Kemps Corner, both in Mumbai.

According to the report, the third quarter of 2008 has been significant for retail real estate as for the first time in the recent past many established locations saw correction in values both in mall and in high streets.

source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Mumbais_Linking_Road_most_expensive_retail_location_in_India/articleshow/3733392.cms)

cross posting from the investment thread


RPG Enterprises investing Rs.15 bn to open 325 new stores

Kolkata-based RPG Enterprises Tuesday said it will invest Rs.15 billion in its retail business to open 325 Spencer's stores across the country by end-2009.

"We will open 325 stores in 15 months with an investment of Rs.1,500 crore (Rs.15 billion)," RPG Enterprises vice-chairman Sanjiv Goenka told reporters here on the sidelines of India Economic summit.

The retail sector is certainly not as robust as it was predicted six months earlier. However, there is little impact as compared to the rest, he said.

The group's retail arm, Spencer's, is currently growing at 60 percent despite the shutdown of 56 stores in the last few months.

Commenting on Finance Minister P. Chidambaram's suggestion to the industry to cut prices, Goenka said: "We need liquidity injection in the companies to ease the tension."

There is a problem of demand and liquidity, and banks are not lending to the industry though they have funds, he added.


source economictimes.com (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/RPG_Enterprises_investing_Rs15_bn_to_open_325_new_stores/articleshow/3728227.cms)

... while positioning to play in the world's last and largest market long-run ... hehe ...

Vishal Retail Ltd informed that during the last fortnight ended the Company has opened a new Showrooms at below mentioned locations, 1) C-24, Vikaspuri, New Delhi. 2) 987, Sudamanager, Opposite HP Petrol Pump, Ranjit Hanuman Main Road, Indore (MP). 3) House No Sir Seth Hukum Chand Marg, Itwariya Bazaar, Indore.

House No 291/41, Victoria Street, Bhawani Ganj. Lucknow. Plot Chowkm Umred Road, Shakardara, Nagpur (Maharashtra). Swami Adhyan Nagar, Kolhapur (Maharastra). B-4, Moti Nagar, New Delhi-110015. Near Gort Hospital, Ciculat Road, Bhararpur, Rajasthan.. Shahpuria, Bypass Road. Bhadrak, Orrisa. Jawali, District, Kangra (HP). Bakshi Nager, Puli, Alhnoor Road (J&K).

Source (http://www.indiainfoline.com/news/innernews.asp?storyId=85753&lmn=1&cat=14)

Future Group, announced the opening of it's first 'Big Bazaar Express' store in Tarapur. The new 'Big Bazaar Express' is located in Ostwal Empire, at the Grampanchayat village in Boisar. Spread over 13,090 sq.ft, Big Bazaar Express will cater to all household shopping needs of consumers from Boisar, Tarapur, Palghar and Dahanu Road. In addition to Food and Grocery (Food Bazaar), the store now offers a wide range of formal, casual, ethnic and denim apparel for women, men, children and infants. The store also offers a wide collection of accessories such as sunglasses, watches and handbags.

Additionally, consumers can also choose from a variety of home care and home fashion products, utensils, footwear, toys, plastics, stationary, luggage, sports goods, and gifting options. Books and music, as well as beauty and wellness products will also be available at Big Bazaar Express. Café Bollywood, a multi cuisine food court located within Big Bazaar Express, will be opened soon, to add zing to the experience. Thus, the new Big Bazaar Express will provide a complete outing experience for the entire family, catering to all their shopping and leisure needs.

Said, Sadashiv Nayak CEO – Food Bazaar, “The Food Bazaar in Tarapur received tremendous response from consumers. Over the last one year, several customers suggested that we enhance the range of product offering at the store. The conversion of Food Bazaar to Big Bazaar Express is in line with what our customers demanded, and we are happy to be able to deliver it to them. We are confident that Big Bazaar Express, will become the preferred shopping destination for consumers in and around Tarapur.”

Source (http://www.indiainfoline.com/news/innernews.asp?storyId=87588&lmn=1&cat=14)

Bose Corporation, the world leader in audio technology, announced the launch of its operations in Pune, strengthening its presence to thirteen cities. This further enhances the company’s commitment to India as a market and to its customers in the country.

The Bose Store is located at the second level of the 04 Arcade of Ishanya Mall, located Opp. Golf Course, Off Airport Road at Yerwada in Pune, and will offer products for the omes. Sporting a welcoming and contemporary look, ‘The Bose Store’ has been designed to deliver the unique ‘Bose Experience’ to the music and movie lovers in the city. Created in line with all the other Bose Stores in the country, the store has systems displayed in such a way that it allows the consumer to comfortably interact with the products and understand the benefits that the unique Bose technologies bring to the customer.

The store will showcase a representation of the entire range of Bose home products namely the Bose Lifestyle Systems- a range of out-of-the box home theatre systems; Wave Systems – a unique range of complete music systems, Speaker Systems – home theatre speakers, Headphones, Digital and Multimedia offerings. Similar to Bose’s national and international stores, the outlet will provide each customer, a personalized service.

Speaking on the occasion, Ratish Pandey, General Manager, Bose Corporation said, “Our entry into the Pune market is a response to the increasing number of customer requests and visitors from the city to our Mumbai outlets. This store further consolidates our presence in Western India, making our products accessible to a larger number of consumers. It gives me great pleasure to introduce the unique Bose benefits and the ‘Bose Experience’ to the music and movie enthusiasts of the city.”

Source (http://www.indiainfoline.com/news/innernews.asp?storyId=87586&lmn=1&cat=14)

Reliance Retail is reportedly engaged in preliminary negotiations with a large retailer for its main retail business.

Reports state the talks may get a boost from last week’s announcement on new foreign direct investment (FDI) norms.

The alliance could be at the level of value formats, which include hypermarts and smaller formats such as supermarkets.

Source (http://www.indiainfoline.com/news/innernews.asp?storyId=93745&lmn=1&cat=14)

Future Group is reportedly relaunching Crossroads as SoBo Central, a seamless mall with over 500 national and international brands across categories including apparels, cosmetics, fragrances, eyewear, watches, accessories, sportswear, toys, mobiles.

It will also include food court and fine dining to complete the shopping experience.

Source (http://www.indiainfoline.com/news/innernews.asp?storyId=94191&lmn=1&cat=14)

Future, Hidesign close to signing JV (http://economictimes.indiatimes.com/News/News-By-Industry/Future-Hidesign-close-to-signing-JV/articleshow/4185640.cms)

Retail major Future group is close to inking a 50:50 joint venture deal with the promoters of luxury leather goods maker Hidesign, a group
that supplies to most top retail chains in the US and Europe.

The JV, which will be signed between Future Ventures — the venture capital arm of Future group — and Hidesign will launch an India-oriented lifestyle brand, Holii, said top officials.

The product will be priced 30-40% lower than Hidesign, which is one of the few internationally well-known brands of Indian origin. The brand will cater to consumers in the mid-to-mass market segments across all retail formats, including that of the Future group.

Currently, this segment largely comprises products that are unbranded or catered to by cheap imports from countries like China, industry officials said.

Vishal Retail plans venture into shop-in-shop format

http://economictimes.indiatimes.com/News-by-Industry/Vishal-plans-shop-in-shop-venture/articleshow/4240991.cms

Diversified retail player Vishal Retail is planning to venture into the shop-in-shop format, with a target to have around 40 such corners in its large format stores within the next three months.

The company has tied up with laundry retail chain White Tiger as the first part of the strategy and is talking with another four-five companies for allotting space in Vishal Retail's hypermarkets for the Vishal Shop-in-Shop Corners.

"We have tied up with White Tiger and under the agreement, they would be setting up shop-in-shops in about a dozen of our hypermarkets across India. We are also in talks with another four-five companies and are planning for at least 40 such corners in the next three months," Vishal Retail Group President Ambheek Khemka told PTI.

He said the company is looking at the merchandise, food and entertainment companies to expand this concept.

"The shop-in-shops would be modelled upon kiosk desks. Such value additions to our existing customer service would boost our footfalls and at the same time give better visibility and branding to our partners," Khemka said.

White Tiger's kiosk desks would provide laundry services on the home delivery and over-the-counter models, he added.

Vishal Retail has presently around 150 supermarkets around the country.

Tata group co, Titan, to add 40 more stores by March 2010

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Durables/Tata-group-co-Titan-to-add-40-more-stores-by-March-2010/articleshow/4241435.cms

Tata group company Titan Industries plans to augment its store network across India by adding nearly 40 Titan stores by March 2010, company's COO Harish Bhat said.

"We plan to add 40 stores, of which half would be company-owned and the balance franchisee stores. For our 'World of Titan' stores, we have earmarked Rs 50-lakh per store," Bhat told PTI here.

Titan has identified Chennai, Delhi, Kolkata, Salem, Pune and Madurai, among other locations for setting up its stores.

At present, the company has 260 stores. It plans to have a 275-strong network by end-March 2009. Of the existing 260 stores, 10 per cent are company-owned and 90 per cent are franchisee stores.

The global meltdown had not hit the company's business, Bhat said.

"There are a few sectors such as automobiles, real estate and those selling high-value goods that have been affected by the on-going economic slowdown.

United Spirits to uncork 10 new bottling plants

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Liquor/United-Spirits-to-uncork-10-new-bottling-plants/articleshow/4242619.cms

United Spirits (USL) is adding 10 new bottling units in the next 12 months through regional alliances, as its liquor volumes continue to remain buoyant well past the peak season, a top company official said.

India’s largest liquor company is expected to post over 19% volume rise in FY09. The company’s sales volume will rise to 89 million cases, up from 74 million last year.

For the first nine-month period of the financial year, USL had announced volume jump of 18%. But the figure could rise further, as the company reported a 26% y-o-y volume growth in January, which is usually a cooling off month coming after the October-December festive quarter.

“We will have to add 10 new bottling capacities as growth continues unabated. We will be adding almost 14-15 million additional sales this year, which is almost the total annualised volume of our nearest rival,” USL MD Vijay Rekhi told ET.

This will see the company’s bottling network going up to 84 units across the country at a time when firms across other sectors are ramping down production base in a slowing economy.

The company will add two new units in the eastern markets of Assam and West Bengal. There will also be new production footprints in Orissa, Rajasthan, Haryana and Chandigarh. The new production lines will be commissioned mostly through contract bottling alliances with local partners.

The move is reflective of USL’s plan to take on Pernod Ricard, which is seen as the main rival for the future, in the northern markets.

Mr Rekhi said the company’s frontline brands were reporting robust double-digit growth with premium Whisky brand, Signature, recording a 30% jump to touch a million cases in FY09. “Signature will touch a million cases this year becoming our 18th millionaire brand (selling a million cases or more annually),” he added.

Royal Challenge Whisky has nearly doubled its yearly growth to 15% and is projected to end the financial year with 1.5 million cases. The brand appears to have gained after its association with Indian Premier League (IPL) with sales vaulting 17% in the months that followed the Twenty20 championship.

White Mischief Vodka also reported almost 30% volume rise and expected to end the year with around 1.5 million cases. The company’s flagship brand McDowell’s No 1 is projected to cross 14 million cases, up from a little over 11 million cases in FY08. USL’s biggest volume grabber, the regular priced Bagpiper Whisky, is expected to cross 16 million cases in the current financial year, growing from over 13.5 million cases last year.

Scotch brand eyes bigger pie of Indian liquor market

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Liquor/Scotch-brand-eyes-bigger-pie-of-Indian-liquor-market/articleshow/4252442.cms

Recession it seems has not dampened the spirits of followers of Bacchus with foreign brands eyeing a bigger share of the Indian market.

The Famous Grouse, one of Scotland's best selling label is planning to entice more Indian customers.

"We have got data that after Scandinavians Indian nationals are the second largest purchasers of whiskey. Also Indian fliers at Bangkok, Dubai and Singapore have been seen to be the biggest consumers and purchasers," Geoff Kirk, area director (S E Asia, Africa and Indian subcontinent) of the Edrington Group from Scotland told PTI.

The domestic market for Scotch whiskey in the country currently stands at an estimated 1.2-million-cases and grew at a compound annual growth rate (CAGR) of 25 per cent from 2003-08.

"We will launch our premium single malt whiskey brands - Macallan and Highland Park - priced over Rs 3,500, soon," says Kirk.

High taxation and an increase in the frequency of flyers has led to a spurt in foreign made brands making an entry in the country.

Most imported liquor labels attract central and state excise levies to the tune of almost 300 per cent of the cost of a bottle.

Geoff Kirk who has overseen the company's operations in China says the dinner culture of India and China are completely opposite.

^^^^

zhiemi Ji :

Could you please check with the Liquor Shops and advise me the current the price of the following Indian Single Malt Whiskies :

1 : McDowell’s Oak Matured Single Malt
whisky– 42.8% Alcohol by Volume

2 : Amrut Indian Single Malt Whisky – 46% Alcohol by Volume

2 A : Amrut Peated Indian Single Malt Whisky – 62.78% Alcohol by Volume

2 B : Amrut Indian Single Malt Whisky Cask Strength – 61.9% Alcohol by Volume

Please note that I bought my last Bottle of MacDowell’s – 750 ml – at about Rs. 450 or so in Mumbai.

Many Thanks in Advance.

Cheers:cheers:

^^ Hi Naresh, I can look them up for you if I come across a liquor shop. Since I don't drink, I might take a few days. Please bear with that. Or our fellow forumers can help here if they happen to know :)

^^

^^ Hi Naresh, I can look them up for you if I come across a liquor shop. Since I don't drink, I might take a few days. Please bear with that. Or our fellow forumers can help here if they happen to know :)

zhiemi Ji :

Many thanks.

It would help if there were any "Liquor Store" Websites one could refer to so that one could check the prices so as to compare the prices of "Imported" Alcoholic Beverages in India.

Cheers:cheers:

^^

Lol yeah. I tried googling the other day but I couldn't find any website that has listed the Indian rate.

I checked two liquor stores today, one in Kalkaji and the other in Lajpat Nagar. Much to your disappointment, both don't stock Amrut products (has it to do with them being expensive or that they are more export oriented?). Mcdowell's 750 ml is Rs. 600 (that's quite a leap, I thought excise duty and VAT are more in Mumbai than in Delhi?).

Sorry that I couldn't be of much help.

^^

Lol yeah. I tried googling the other day but I couldn't find any website that has listed the Indian rate.

I checked two liquor stores today, one in Kalkaji and the other in Lajpat Nagar. Much to your disappointment, both don't stock Amrut products (has it to do with them being expensive or that they are more export oriented?). Mcdowell's 750 ml is Rs. 600 (that's quite a leap, I thought excise duty and VAT are more in Mumbai than in Delhi?).

Sorry that I couldn't be of much help.

zhiemi :

Thank you ever so much. Well done Indeed.

McDowell Single Malt corresponds to Amrut Single Malt is about £ 22 in the UK which at a rate of INR 73 Equates to Indian Rupees 1606.

In other words the Duties Charged in the UK on a Bottle of Indian Single Malt are such that it is priced here at 2.67 Times the Indian Rates.

A Bottle of Glenfiddich Special Reserve Single Malt Scotch Whisky, 70cl, in the UK is also £ 22.

As such it would be logical that the Glenfiddich should sell in India at around £ 60 which equates to about Indian Rupees 4,400.

I wonder what the “Scotch Lobby” would do if the Indian Government also charged such exorbitant Duties.

Thanks you again!

Cheers:cheers:

^^

Thanks for the info, Nareshji. Glad that I could be of a little help :)

The 'Scotch Lobby' will surely complain and may not bring their products to India at all :lol:

Morarka launches country's first organic retail in Mumbai

http://economictimes.indiatimes.com/News/News-By-Industry/Services/Retailing/Morarka-launches-countrys-first-organic-retail-in-Mumbai/articleshow/4267717.cms

Morarka Organics on Sunday launched its brand 'Down to Earth' with the opening of the country's first organic retail strore in Mumbai.

The retail store will boast a wide variety of organic products with more than 200 products will be offered to the customers.

"This is a ground-breaking step not only for Morarka Organics but for organic industry in the country as the organic food is more of a business to business activity rather than a business to consumer one," Morarka Organics Executive Director Mukesh Gupta told reporters here.

Morarka's products are well known for its quality as well as 100 per cent organic purity in the country as well as in abroad.

The organic sector is flourishing today at a much higher pace than ever before. World-wide 30.4 million hectares of land is utilised for the organic production. The global trade of organic touched USD 38.6 billion. India's organic exports is around Rs 300 crores (USD 62.5 million, which is only 0.2 per cent of the organic trade).

Pantaloon sees future in Value Retail

http://economictimes.indiatimes.com/News/News-By-Industry/Services/Retailing/Pantaloon-sees-future-in-Value-Retail-/articleshow/4273995.cms

In a move that could pave the way for new investors to step in, Pantaloon Retail will spin off two of its biggest revenue grossers — Big Bazaar and Food Bazaar — into a new entity, Future Value Retail. The two formats constitute over 55% of the turnover of the country’s biggest retailer. Food Bazaar president Sadashiv Nayak has taken charge of both Big Bazaar and Food Bazaar while Rajan Malhotra, president of Big Bazaar, has moved to the Future Group as president, retail strategy.

When contacted, Future Group CEO Kishore Biyani said: “We have been evaluating the option of creating a new entity for our value retailing businesses.” Last year, Pantaloon Retail had secured board approvals for hiving off the businesses into independent subsidiaries that could be listed at a later date.

Under the proposal, Pantaloon Retail will be a holding company. Pantaloon officials familiar with the development said the group is examining a structure that would eventually enable it to strike a JV with a global retailer. Pantaloon Retail has been in talks with Carrefour, the world’s second-largest French supermarket group, for a JV in India.

Under the scheme of things, Future Value Retail would serve as a major supply-chain entity for all Future Group store formats and help the company prune costs, a group official said. Technically, the sourcing and back-end of the store formats would be one while the front ends would continue to operate as separate entities. Currently, all Food Bazaar outlets, comprising its food and grocery supermarket business, are located within Big Bazaar formats.

While Big Bazaar is the group’s hypermarket business and has 109 stores, Food Bazaar is a supermarket chain that has 152 stores with most of them housed adjacent to Big Bazaar. Food Bazaar’s business model resembles the value model of global retailer Wal-Mart. According to Nielsen data, Food Bazaar’s share in the FMCG space in terms of modern trade is about 28%. Pantaloon Retail is estimated to report sales of Rs 10,000 crore for 2008-09 while the combined revenues of Big Bazaar and Food Bazaar are estimated to touch Rs 5,000 crore.

A proposed joint venture with a foreign retailer would enable the Future Group access sizeable dollar funds needed to expand its business. A foreign partner will also help the group bring in more efficiency in sourcing and logistics, helping it drive down prices and boost margins. Besides Big Bazaar, the Future Group runs Food Bazaar, KB’s Fair Price shops, Pantaloons, Central, Home Town, eZone and Aadhaar. The Pantaloon Retail stock closed at Rs 130.15, up 5.46%, on the BSE on Monday.

In a challenging consumer environment, bargain hunters are flocking to modern value-retail formats like Big Bazaar, Food Bazaar, D’Mart and More, which have been coming up with discount offers to attract customers. This reflects a global trend, wherein value-retail formats are growing despite the overall slowdown in the economy.

Last month, US-based Wal-Mart reported a strong 5.1% increase in same-store sales (excluding gasoline sales) in the US, even though lifestyle chains, like Target, Macy’s and Abercrombie & Fitch, suffered a drop in sales.

^^

Thanks for the info, Nareshji. Glad that I could be of a little help :)

The 'Scotch Lobby' will surely complain *and may not bring their products to India at all* :lol:


zhiemi Ji :

You are Welcome!

* : Indians could be so lucky!!

Mark my words. With "Dedication to Quality" Indian Whisky Distillers - be it Blended, Grain or Malt - as well as Sensible and Aggressive Marketing will eventually wipe the Floor with the "Scottish Distilleries"!!!

Cheers:cheers:

on a bottle of imported whisky in bombay you have

170% import duty on CIF
200% state excise duties on CIF
7% octroi on the total (7% x 4.7 times CIF= 33% of CIF)
VAT of 20% on end user price (after importer, distributor & retailer margin)

besides these you have annual registration charges, license charges, label fees, etc

so the total taxes that go to the government are usually ranging between 550%-700% of CIF. this is after reduction in customs duties, which used to range from 150% to 400%

Pantaloon sees future in Value Retail
A proposed joint venture with a foreign retailer would enable the Future Group access sizeable dollar funds needed to expand its business. A foreign partner will also help the group bring in more efficiency in sourcing and logistics, helping it drive down prices and boost margins. Besides Big Bazaar, the Future Group runs Food Bazaar, KB’s Fair Price shops, Pantaloons, Central, Home Town, eZone and Aadhaar. The Pantaloon Retail stock closed at Rs 130.15, up 5.46%, on the BSE on Monday.

Why does Future Group need dollars to expand into it's own local market?? And how exactly does a foreign group help in expanding efficiency in operations, when the fact of the matter is that only because of India's cheap labor pool, can we have a low-price retailer which is doing so well, and can even offer more competitive prices during the current downturn. Do Indian's really need to learn cost management techniques from outsiders? Also, as long as Indian infrastructure is in it's current state, no amount of logistical expertise can improve the performance of the company. We have to live with what we have! Bringing in a foreign partner will only result in management clash and screwing up of whatever advantage, the group has amassed amongst the locals. Would be interesting to know, which foreign retailer has outperformed the locals. Retailing is a very "Local" skill, and a lot more goes into it than management efficiencies to make it a success. And value retailing, where Future Group concentrates the most, becomes an even more riskier proposition with a foreigner involved.

Spurious Journalism at it's best

on a bottle of imported whisky in bombay you have

170% import duty on CIF
200% state excise duties on CIF
7% octroi on the total (7% x 4.7 times CIF= 33% of CIF)
VAT of 20% on end user price (after importer, distributor & retailer margin)

besides these you have annual registration charges, license charges, label fees, etc

so the total taxes that go to the government are usually ranging between 550%-700% of CIF. this is after reduction in customs duties, which used to range from 150% to 400%

Bombay Boy Ji :

Many thanks for the above dtailed information.

Would I be right in stating that in Bombay hte payment on Indian Whisky is just the 200% state excise duties and 7% octroi on the total?

Cheers:cheers:

zhiemi Ji :

You are Welcome!

* : Indians could be so lucky!!

Mark my words. With "Dedication to Quality" Indian Whisky Distillers - be it Blended, Grain or Malt - as well as Sensible and Aggressive Marketing will eventually wipe the Floor with the "Scottish Distilleries"!!!

Cheers:cheers:

Nareshji, those are encouraging words :D

I'd like to believe you :cheers:

Germany's Metro Cash & Carry to focus on private labels for hospitality industry in India

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Food/Germanys-Metro-Cash--Carry-to-focus-on-private-labels-for-hospitality-industry-in-India/articleshow/4276394.cms

German wholesaler Metro Cash & Carry India, which is targeting hotels, restaurants and catering companies (HoReCa) as prime customers, has decided to launch an array of private labels in India. These private labels from the Metro stable will be in the food and non-food segments.

Some of Metro’s international private labels that have hit India in the first flush are Aro, H-line, HoReCa Select and Fine Food. And the focus is to widen the product range under these private labels. For instance, Metro has launched tea bags in India in nine flavours under its H-line label --cardamom, lemon, Earl Grey, English Breakfast, masala, ginger, Darjeeling, Assam Tea and Green Tea.

While Metro officials declined to comment on the revenue potential from the HoReCa segment or its private labels in India, industry analysts claim such a strategy will ensure much higher margins for the company. Globally, Metro’s brand strategy is to offer outstanding price-benefit ratios through a mix of well-known brands and private labels. Metro’s private label strategy will also build a strong supplier base in India who could later be part of its global sourcing network.

The German wholesaler also plans to customise its private label offerings to meet niche requirements of the Indian hospitality industry. Besides, it has recently entered the frozen sea foods segment under its Fine Foods and HoReCa Select brands in India. These include a variety of sea foods like octopus, lobster, cuttle-fish, squid, prawn and speciality products like sea-food mix barbeque skewers, marinated butterfly shrimps and shrimp skewers.

"The strategy is to learn the needs of our HoReCa customers and provide a complete solution with a wide range, the right packaging size and competitive pricing. The products are developed in close consultation with professionals in the industry and will meet all kinds of requirements, from kitchen to table and guest amenities," Metro Cash & Carry India director (customer management) Ajay Singh Sheodaan told ET.

"The HoReCa segment is important in India from the perspective of professional customers that Metro focuses on. In fact, we are even customising our products and private label range for a particular region in India. For instance, in Kolkata we may keep certain varieties of rice or spices to cater to the local taste," said Mr Sheodaan.

Metro also plans to build long-term relationships with HoReCa customers in India through various strategic initiatives. It has recently rolled out a industry connect programme, called ‘Chef, U & Metro.’

Through this initiative, Metro plans to bring together the entire hospitality industry and provide value-added services and expert consultations in areas like thematic cuisine and menu merchandising. The initiative was piloted in Kolkata and thereafter rolled out across the four other wholesale centres in Mumbai, Bangalore and Hyderabad.

Bombay Boy Ji :

Many thanks for the above dtailed information.

Would I be right in stating that in Bombay hte payment on Indian Whisky is just the 200% state excise duties and 7% octroi on the total?

Cheers:cheers:

yes

Philips forays into home healthcare business

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Electronics/Philips-forays-into-home-healthcare-business/articleshow/4292694.cms

Dutch electronics major Philips, on Friday, announced its entry into the home healthcare business in India. The company rolled out the Philips Respironics range of products for management of obstructive sleep apnea and home respiratory care.

India is the first country where the Philips Respironics portfolio has been launched outside the US. Philips had acquired Respironics Inc, a leading provider of innovative solutions for the sleep and respiratory ailments market, for nearly $5-billion in 2008.

ET was the first to report Philips’ entry into the Indian home healthcare market in October 2008. The company also strengthened its position in the hospital segment by rolling out Respironics’ non-invasive ventilation and respiratory monitoring products in India.

Priced between Rs 40,000 and Rs 1.5 lakh, the products will help the euro 26-billion company to further drive growth in the Indian healthcare market. "A core part of Philips’ healthcare strategy is to take leadership position in the home healthcare segment. Philips is now present throughout the cycle of care," Philips Electronics India CEO Murali Sivaraman said here on Friday.

This apart, Philips also announced a slew of launches in the Indian home decorative lighting market and the Philips Aluminum range of small appliances. It rolled out 150 decorative lighting products, juicers and blenders. "We are currently in the process of setting up an entirely new pan-India distribution network for decorative lighting. Initially, we plan to hit the top 35 markets and expand our portfolio to 1,000-odd products by end-2009. The range will be segmented into functional products, the decorative range and lifestyle products," Philips Electronics India senior marketing director (lighting) Mathew Job said.

Philips will be the first organized player in the estimated Rs 400-crore market for home decorative lighting in India.

Around 90-95% of the market is currently controlled by imported products from China. Presently, around 50% of Philips’ revenues in India come from lighting division and the company enjoys 30% share in the overall domestic lighting market.

The company plans to make substantial marketing investment to set up ‘Light Lounges’, which are experience centres to showcase the entire home decorative lighting range. The company is looking at setting up at least 35 such standalone centres and several multiple shop-in-shop outlets inside retail chains.

Besides the existing 25 malls and multiplexes, these are the new malls coming up in Pune, which include atleast 3 malls thats are 1 million + sq ft.


http://img403.imageshack.us/img403/777/2009032251021501.jpg (http://img403.imageshack.us/my.php?image=2009032251021501.jpg)

Philips to roll out new line of domestic appliances

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Philips-to-roll-out-new-line-of-domestic-appliances/articleshow/4310676.cms

Dutch electronics biggie Royal Philips Electronics is developing a totally new line of consumer lifestyle products in India, which will be positioned in the value segment.

While these products are under development at the Philips Innovation Campus in Bangalore, the company plans to export these products from India for its growth cluster markets — China, Brazil, Russia, Poland, Ukraine and Argentina.

The products under development are in the domestic appliances space, which include electric irons, mixer grinders, juicers and rice cookers. The latest range will be around 30-50% cheaper than Philips’ existing product-line.

In fact, Philips has recently commercialised its water purifiers — the first major product developed in India — in other emerging markets.

Talking to ET, Philips Electronics India head (consumer lifestyle) Mahesh Krishnan said the company expects to roll out its new range by September to coincide with the festive season.

"The strategy is to develop products that can compete with those available in the unorganised sector. The kitchen appliances segment is vital in India as it is recession proof," he said.

Philips had formed the consumer lifestyle division by merging its domestic appliances and consumer electronics businesses last year. The estimated Rs 5,000 crore domestic appliances market in India is growing at 10%.

Philips is one of the largest players in the market. The company plans to gain presence in Tier II and III markets with its new value portfolio.

"These products will target the low income group consumers in urban markets and overall rural markets. We will export them to other growth clusters where there is huge potential for similar entry-level products. This testifies the importance Philips is now giving to the Indian operations," said Mr Krishnan.

Philips also expects to roll out its smokeless chullah (stove) for the rural Indian consumers by September. The company plans to tie up with NGOs, micro finance companies and rural co-operatives to sell this product.

This apart, Philips is also looking at computer and mobile phone accessories as a key growth driver in India.

"We are setting up a new distribution channel and sales team for the accessories business in India. We will soon launch products like Bluetooth stereo headphone, digital wireless headphone, iPhone and iPod docks and lifestyle IT peripherals like keyboard. We expect to double sales in this business year-on-year," said Mr Krishnan.

Tata Tea forays into branded cold drink market

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/FMCG/Tata-Tea-forays-into-branded-cold-drink-market/articleshow/4293684.cms

Tata Tea on Friday announced its foray into the branded cold drink market with launch of its cold beverage T!ON.

The product has been launched in three flavors-Mango Rush, Peach Punch and Apple Buzz and will be initially launched in Chennai, a press release said here today.

"This is a defining moment in the history of Tata Tea as it symbolizes the transformative change taking place in the company," Tata Tea, Executive Director, Sangeeta Talwar said in the release.

The 400 ml bottle has been competitively priced at Rs 22, the release said.

The move is significant for Tate Tea, which has been steadily transforming itself from a company with primary focus on tea to a beverages company focusing on the wellness and health platform, the release said.

Tata Tea has operations in over 40 countries.


Tata Tea to buy stake in Russian firm

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Tata-Tea-to-buy-stake-in-Russian-firm/articleshow/4317871.cms

Tata Tea Ltd's overseas unit and the European Bank for Reconstruction and Development (EBRD) will acquire 51 per cent in a Russian firm Grand, the two firms said in separate statements.

Grand is a Russian branding, packaging and distribution company and a well known player in coffee and tea sector of that country, EBRD said in a release on its website.

The acquisition will help Tata Tea strengthen its presence in Russian beverages market, the India tea company said on Thursday, adding that Tata Tea will hold 33.2 per cent, while EBRD will hold 17.8 per cent after the acquisition.

The founders of the Russian firm will hold the balance 49 per cent, Tata Tea added. The acquisition would be completed during the first half of 2009, it said.

DKNY enters India through DLF Brands

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Fashion--CosmeticsJewellery/DKNY-enters-India-through-DLF-Brands/articleshow/4321063.cms

Global fashion design house Donna Karan International, part of the world’s leading luxury goods group LVMH Moet Hennessey Louis Vuitton, is set to enter India.

The company on Wednesday signed an agreement with DLF Brands, the retail arm of real estate major DLF Group, to set up exclusive DKNY stores in India. DKNY, currently a public-traded venture, was founded in 1985 in New York by Donna Karan and her late husband Stephan Weiss. It was later purchased by LVMH Moet Hennessey Louis Vuitton.

DLF Brands is the recently-formed, wholly-owned subsidiary of DLF. It promotes over half-a-dozen leading international brands, including Armani, in India. DLF Brands managing director Kelvin Coyle told ET : "We have entered into an agreement with Donna Karan on Wednesday to bring its two brands — Donna Karan New York and DKNY — to India. Initially, we will set up three DKNY freestanding stores in India, which will showcase the DKNY ready-to-wear and accessories collections. Other Donna Karan New York and DKNY freestanding stores will be unveiled in the capital shortly."

India is fast becoming a major fashion hub and the next big destination for luxury. In India, the brand will cater to globetrotters and individuals who have a penchant for style, he added.

A top official of Donna Karan International said the company recently forayed into South Korea and Mainland China. The company has a long-term perspective on the growth potential of the Indian market and it plans to fully capitalise on the strong awareness the Donna Karan New York and DKNY brands already have in India, he said. The proposed entry in India is in line with the company’s strategy of selecting the most competent local partners, he added. Another source said both the companies have been in talks for over nine months.

Meanwhile, DKNY is also learnt to be in negotiations with Mumbai-based textiles and apparels firm S Kumars Nationwide (SKNL), to form a JV, where SKNL will be the sole supplier of raw materials to most of DKNY’s retail outlets. The JV will have the right to appoint all future franchisee of DKNY, barring 14 countries including India.

Donna Karan International designs, markets and distributes collections of women’s apparel, sportswear, accessories and shoes under the Donna Karan and DKNY brands.

Panasonic to complete consolidating Indian ops by 2011

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Panasonic-to-complete-consolidating-Indian-ops-by-2011/articleshow/4361247.cms

Japanese consumer electronics major Panasonic, which is consolidating operations in India in line with its global strategy to cope with the economic slowdown, will complete bringing six entities under one umbrella company by 2011.

Panasonic Corp, which has six entities in India, plans to bring them under one umbrella company- Panasonic India Pvt Ltd- and had stated that it would set up a greenfield plant by 2011.

"This (consolidation) is a strategy that goes in line with our global consolidation plan. We have six different firms and we are consolidating them into one entity. So in this time of recession, this would help us (becoming) cost efficient as well as give a single face to the consumers," Panasonic India General Manager Sabiha Kidwai told PTI.

"2009 will be the year of expansion, 2010 will be investments and setting up of manufacturing facility and 2011 will be consolidation, by which time all our consolidation process will be completed," she added.

In India, Panasonic has already consolidated two of its entities- Panasonic Sales India and Panasonic Automation. At present it has six firms- Panasonic Home Appliances India Co Ltd, Panasonic AVC Networks India Ltd, Panasonic Battery India Co Ltd, Panasonic Carbon India Co Ltd, Indo National Ltd and Panasonic Asia Pacific Pte Ltd.

Spain's Inditex turns sight on India

http://economictimes.indiatimes.com/News/News-By-Industry/Services/Retailing/Spains-Inditex-turns-sight-on-India/articleshow/4361141.cms

Spain's Inditex, Europe's largest clothing retailer, plans to start opening stores of its flagship Zara brand in India next year as part of its aggressive expansion into the fast-growing Asian market.

The company, which opened its first shop in China in 2007, expects to open 25 Zara shops during its first three years in India in major cities like Mumbai and New Delhi in partnership with India's Tata conglomerate, Inditex chief executive Pablo Isla said recently.

The move is part of Inditex's strategy of hedging its dependence on Western Europe, which accounted for over half of its total sales of 10.4 billion euros (14 billion dollars) last year, said Greg Hodge, the retail research manager at London-based market research firm Planet Retail.

......

Investment bank Goldman Sachs predicts India, the world's second-most populous country after China, will expand annually by some 6.2 percent from 2011 to 2050.

The country will overtake Germany as the world's fifth-biggest consumer market by 2025 as the size of its middle class expands to 583 million people, or about 41 percent of the population, from about 50 million, or roughly five percent currently, according to global consultancy firm McKinsey.

Many members of this rising middle class are already familiar with Zara's stylish designs which resemble those of the big-name Italian fashion houses and are sold at moderate prices.

......

Bharti Wal-Mart to roll out first store in May (http://www.livemint.com/2009/04/06221612/Bharti-WalMart-to-roll-out-fi.html)

Mumbai: Bharti Wal-Mart Pvt. Ltd, a joint venture between Bharti Enterprises and Wal-Mart Stores Inc, will open its first wholesale cash-and-carry store in Amritsar in May, Bharti Enterprises vice-chairman and managing director, Rajan Bharti Mittal told NewsWire18 on Monday.

“In all, three cash-and-carry stores will be opened this year (2009-10, Apr-Mar), all in the north,” he said on the sidelines of the national executive meeting of the Federation of Indian Chambers of Commerce and Industry.
Bharti Enterprises and Wal-Mart Stores had set up the joint venture company in August 2007 for wholesale cash-and-carry and back-end supply chain management operations in India.

Bharti Retail, another Bharti Enterprise subsidiary, has opened 26 stores in Punjab and Haryana so far, and will soon venture into Rajasthan and National Capital Region, he said. Bharti Retail opened its first store in April last year. The company is not fast-tracking retail store rollouts despite fall in rentals over last few months.

“Rentals have come down 25-30%, already. But that’s not the only factor.
Fixing back-end is more important. Further, there have been delays in real estate projects as well,” said Mittal.

He also said there has been some slowdown in sale of lifestyle products over past few months, but consumer goods of ”day-to-day” usage have not been affected much.

Amway to invest nearly Rs 185 cr in India in 2-3 years

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Amway-to-invest-nearly-Rs-185-cr-in-India-in-2-3-years/articleshow/4398608.cms

US-based direct selling FMCG firm Amway will invest nearly Rs 185 crore in India over the next 2-3 years to buy space for its headquarter in the National Capital Region, besides setting up branches in other places.

"We are looking to buy our headquarter here (NCR). We have been looking for the last two years and that will be (in) an investment between Rs 100-Rs 150 crore," Amway India Managing Director and CEO William Pinckney said.

The company was looking at an area with sizes varying between 30,000 sq ft and 50,000 sq ft in Delhi, Gurgaon and Noida, he added.

"Over the last year-and-half, we have talked to both real estate developers and private owners," Pinckney said without divulging the details of the developers.

Besides, Amway India is also planning to have up to eight new centres across various locations in the country.

"We will develop 5-8 new centres, about 8,000-10,000 sq ft each. It will require an investment of about Rs 2-4 crore per centre," Pinckney said.

The company presently has 127 offices and pick-up centres at many places, including Delhi, Mumbai, Chennai, Bangalore and Pune. It also has 55 warehouses, which are outsourced to service partners.

Direct selling is a practice of marketing or selling products without a fixed retail location. Amway sells products ranging from FMCG to healthcare supplements in India, of which about 95 per cent are locally manufactured.

The company is increasing its product portfolio in India as it aims to clock a turnover of Rs 2,500 crore by 2012-13 and add over 50,000 distributors annually.

Amway India, which has over 35 per cent market share in the Rs 3,500 crore Indian direct selling market, is a wholly-owned subsidiary of the US-based 8.2-billion-dollar Amway Corp. It entered India in 1995 and started its FMCG operations in 1998.

Pantaloon to realign companies, raise Rs 1,500 cr in 2 months

http://economictimes.indiatimes.com/News/News-By-Industry/Services/Pantaloon-to-realign-companies-raise-Rs-1500-cr-in-2-months/articleshow/4403475.cms

Kishore Biyani's Pantaloon Retail India intends to complete in the next two months legalities for its ambitious plans of raising Rs 1,500 crore and realigning of group companies for expansion.

"Two months time is a good estimate (for the proposal's completion)," a company source said here.

The Board of Directors of the BSE-listed firm met here yesterday and approved raising Rs 367 crore through preferential allotment of shares and warrants.

It is believed that Future Group is in talks with Carlyle, Bain Capital, Blackstone, Kohlberg Kravis & Roberts for private equity funding of about Rs 1,100-1,200 crore.

"We are looking to raise funds independently without diluting any stake," the source said, without giving details.

In a major realignment exercise, the board proposed to rechristen Pantaloon Retail India (PRIL) as Future Market & Consumer Goods (FMGC), which will be the holding company for its multiple subsidiaries.

It is believed that Big Bazaar and Food Bazaar (its value retail segments) may be hived off into a separate entity called Future Value Retail, if they find a suitable partner.

"The proposed company - FMCG Ltd - will be the holding company for our two main subsidiaries, which will be created to focus on fashion and retail," Future Group founder and CEO Kishore Biyani told reporters.

Carrefour to open India outlet in late 09, early 10 (http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSBOM47361620090415)

MUMBAI, April 15 (Reuters) - France's Carrefour (CARR.PA), the world's second-largest retailer, said on Wednesday it planned to open its first cash-and-carry outlet in India in late 2009 or early next year.
Ahead of the launch of its first outlet, planned for Delhi, Carrefour said it was finalising sourcing arrangements with suppliers of food and non-food items.

"Every market we enter, we work closely with local producers, farmers, agricultural co-operatives and manufacturers... this concentration on domestic sourcing allows us to make valuable contribution to the development of the local economy," Managing Director of Carrefour India, Herve Clec'h said in a statement.

Multi-brand foreign retailers such as Carrefour are restricted to franchise or license operations in India.

Wal-Mart (WMT.N), the world's largest retailer, and other foreign firms such as Britain's Tesco (TSCO.L) and Germany's Metro AG (MEOG.DE) have already started operations in India. (Reporting by Janaki Krishnan; Editing by John Mair)

Six global pet food and accessory brands enter India

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Six-global-pet-food-and-accessory-brands-enter-India/articleshow/4404662.cms

About 10 million pet pooches in India may be in for a treat as six global pet food and accessory brands enter India from next month.

Germany-based pet toys and food brand Karlie, US-based largest dog leash maker Flexi, South Africa based dog toys company Rogz, US-based Isle of Dogs and South Korea-based Forbis are all set to make an India entry under PetSetGo, an umbrella company being launched in India next month.

Even as the ongoing economic slowdown impacts peoples salaries and livelihood, pets, it seems, are proving to be their best companions. The Rs-300 crore pet food and accessories market shows no signs of a recession, growing at over 25% annually, in times of an economic slowdown!

“In slowdown times, people become more attached to their pets,” says Raghav Modi, MD & CEO of PetSetGo, a new company being launched under Avanti Overseas, which claims to be the world’s largest stainless-steel dog bowl maker. “Pet parlours, dog spas, premier vets, breeding homes and pet food stores will house global brands from next month. We are also talking to major hypermarkets to allot a pet care
corner exclusively to house all pet needs.”

From regular dog toys like swim pools and buggies to premier dog care products like luxury coat shampoos with evening primrose oil to coat supplements (each costing over Rs. 1000 per bottle), the luxury dog care market is on the rise in India. Companies like Gucci and LMVH also sell premium dog leaches over Rs 25,000 a piece!

Currently, Pedigree and Royal Canin are the major dog food brands in the Rs 210-crore dog care market, capturing about 65% market share in the country. There are about 7-million pet dogs in the country, and about 2-million cats, the rest being occupied other pets like rabbits , birds and even some snakes. Avanti Overseas, for instance, procures sand and gravel from Thar desert to be exported for use in aquariums and terrariums (used for keeping snakes and reptiles).

Agrees Nitin Kulkarni, manager, professional services, Mars India, owner of Pedigree and Royal Canin; “We are seeing 25%-plus growth this year. We are also seeing large scale increase in demand for niche foods for senior dogs and puppies.”

Pet dating companies too have opened shop in India.

^^

Pet dating companies too have opened shop in India.

Aww :lol:!

Cute, eh :D

Domino's ranks as best Indian QSR employer in Hewitt survey

http://economictimes.indiatimes.com/News/News-By-Industry/Services/Hotels--Restaurants/Dominos-ranks-as-best-Indian-QSR-employer-in-Hewitt-survey/articleshow/4410588.cms

Fast food chain Domino's Pizza today said it has been ranked as the best Indian employer in the quick service restaurant (QSR) segment by global HR consultancy Hewitt Associates.

The Hewitt Best Employer Survey 2009 has ranked the pizza speciality chain at ninth place among all Indian companies across segments and it is the only QSR company to feature in the list, Domino's Pizza India Ltd said in a statement.

"It is an honour to be ranked among the top employers in India and Asia. The credit goes to the entire team at Domino's India," Domino's Pizza India Ltd Chief Executive Officer Ajay Kaul said.

Hewitt's survey was based on company leadership, CEO's talent, performance of workforce, company's HR policies and customer focus, the statement said.

The company has also featured among the top 25 employers in Asia, according to the survey which is carried out twice a year.

Domino's Pizza currently operates over 250 restaurants in around 50 cities across India with an staff strength of more than 6,700 employees.

Coca-Cola says India investment plan on track

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Food/Coca-Cola-says-India-investment-plan-on-track/articleshow/4445277.cms

Coca-Cola Co sees India as one of its key markets and is committed to its planned investment of $250 million announced last year, a company official said on Friday.

Coca-Cola and its smaller rival PepsiCo are increasingly relying on developing markets like China, India and Russia for growth, as North American sales of traditional soft drinks have slowed amid a growing consumer emphasis on health and an economic slowdown.

Coca-Cola has so far invested $1 billion in its Indian operations and last year announced a further $250 million to be invested over three years.

"India is a strategic market. We have our investment plans, which are intact," Atul Singh, president for Coca-Cola's India and Southwest Asia business unit, told reporters.

"All our investments are on track. We have added more bottle lines, we have added trucks, we have added cold equipment," he said. "We continue to invest in all the brands that we market."

Coca-Cola, which gets bulk of its revenue from abroad, saw its India sales volume rise 31 per cent in its fiscal first quarter to April 3, leading its international sales growth, while China grew 10 per cent.

"Our investments have been in infrastructure, people, cold drink equipment, and behind brands... we have trained lot of people, retailers, distributors, salesmen," Singh said.

"Whatever will be needed, we will do." Coca-Cola sells drinks including Diet Coke, Thums Up, Fanta, Limca, and Georgia in India, the world's second-most populous country, and growth in the market is important for the firm at a time when it is facing roadblocks in its China expansion.

In March, China blocked Coca-Cola's planned $2.4 billion takeover of the country's top juice maker, Huiyuan, saying the deal would have been bad for competition.

PepsiCo has also invested $700 million in India and Chief Executive Indra Nooyi said last September $500 million more would be spent over three years to beef up operations with an aim to triple revenue from the country.

30 Apr 2009, 0144 hrs IST, Pankaj Doval, TNN

SHANGHAI: The Chinese dragon has set its eyes on the Indian car market. Two biggies Chery Automobile and Great Wall Motors are planning to enter
India soon through joint ventures, senior company officials told TOI at Shanghai Motor Show.

"We are looking at a joint venture partner for India as it holds a good potential for car sales in the coming time," Chery Automobile president Yin Tongyao said. He termed India as a "very important" market and said the company was looking at "several proposals" for finalising a local partner.

Chinese carmakers are shifting focus from their main markets like US and Europe as volumes there are shrinking due to the global slowdown. At the same time, India's rising status as one of the fastest-growing car markets in the world, spells opportunities.

Chery was believed to be in talks with tractor maker Sonalika's car venture, International Cars & Motors Ltd (ICML), around three years back to roll out its small car in India. But the talks never fructified into a joint venture. Chery, famous for its small car QQ, is eyeing sales of 4.19 lakh units in 2009, an 18% increase over 2008. The QQ comes in two petrol engine sizes 0.8-litre and 1.1-litre.

Gavin Chen, marketing specialist with Chery's international division, said the company plans to sell cars in India by 2010. "While initially we will look for a distributor, the final plan is to build a factory in India." Chen said the company saw India as a big market due to its huge population and thus wanted to develop some specific models. "The plan is to make cars at good price with good quality," he added.

Great Wall Motor (GWM) listed on the Hong Kong Stock Exchange is China's largest privately-owned car maker and specializes in SUV and utility models, while recently expanding into the multi-purpose vehicle and hatchback segment.

Chris Guan, GWM's South Asian region GM, said the company wanted to launch at least one or two models in India this year. "We are currently evaluating partnerships. Initially, we are looking for a distributor for which we have been contacted by some companies," he said.

On 100%-plus import duties, he said the company wanted to have a partner that can assemble the models. "If the partner has a factory, the customs duty can be reduced," he said. GWM sold 1.25 lakh units in 2008 and exports cars to countries like Russia, Ukraine, Egypt, Senegal and the Middle-East region.


source:http://timesofindia.indiatimes.com/Business/Chinese-biggies-want-to-enter-Indian-car-market/articleshow/4465357.cms

Press Trust of India / New Delhi April 30, 2009, 16:02 IST
Telecom major Bharti Airtel today signed a five-year managed services deal valued at $500 million with Alcatel Lucent for its fixed-line and broadband operations.

The services would be managed by a joint venture in which Alcatel Lucent would hold 74 per cent, while the remaining 26 per cent would be held by Airtel, Bharti Airtel Chief Executive Officer Manoj Kohli said.

The JV would be run by Alcatel Lucent with 4,000 employees, some of whom would come from the network management firm. "The JV will manage Airtel's fixedline and broadband services," Kohli said.

Bharti has already outsourced its network management to Nokia Siemens and Ericsson in two different deals for its wireless business while its IT infrastructure is managed by IBM.


source:http://www.business-standard.com/india/news/bharti-alcatel-in-500-mn-deal-for-network-mgt/59961/on

Samsung eyes $2 bn sales in India this year

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Electronics/Samsung-eyes-2-bn-sales-in-India-this-year/articleshow/4464123.cms

New Delhi: Korean consumer electronics major Samsung on Wednesday said it is aiming to achieve a turnover of two billion dollar this year in India on the back of new products and sale of mobile handsets.

The company, which is targeting sales growth of 30 per cent over the last year, will infuse 20 million dollars to bring more products in the country.

"There is no recession in India, we had around 1.7 billion dollar turnover last year and this year it may cross two billion dollar, with around 30 per cent growth," Samsung President and CEO (South West Asia) Jung Soo Shin told reporters here.

The company is primarily banking on new product launches and sale of mobile handsets to drive the growth. Samsung introduced its latest LED TV range, priced between Rs 1.25 lakh and Rs 3.5 lakh, here today. It has recently launched a new series of ACs, refrigerators.

According to a company official, Samsung India has lined up a few launches this year, in different categories including air-conditioners, home appliances, mobile phone. "So our over all investment would be around 20 million dollar this year," the official said.

FDI in retail can boost business, says expert

http://economictimes.indiatimes.com/News/Economy/Finance/FDI-in-retail-can-boost-business-says-expert-/articleshow/4475978.cms

Foreign direct investment in organised retail, if allowed, can bring in a flurry of economic activity to India by global players, an expert with a US-based think-tank said on Saturday.

"FDI (in organised retail) is allowed in most of the countries in the world ... why not here. If the government opens it to FDI, there will be a flurry of (activity) by foreign players who will not only bring in investible funds but also global expertise and knowledge, much needed to develop this growing sector," the International Food Policy Research Institute Director (Asia) Ashok Gulati said.

FDI in multi-brand retail is not allowed in India and it is permissible only for the wholesale cash and carry firms and in the single brand retail.

The organised retail is growing annually by over 70 per cent since 2002. However, since the multi-brand domestic retail sector is in the infancy stage, it has shown significant expansion on a low base, Gulati said on the sidelines of a function here.

"Let the domestic players take first positions," he said adding FDI could follow.

How soon the sector can be thrown open to the foreign players depends on "political wisdom", Gulati said.

Foreign brands look to Indian market to survive slowdown

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Foreign-brands-look-to-Indian-market-to-survive-slowdown/articleshow/4493611.cms

How about enjoying evening coffee at mobile Alto Cafe mini-van parked in your neighbourhood or trying out the newest flavour of fruit Juice at Revive Juice outlet — the coffee and juice retail brands from France and the UK — in your very own city? Well, this may soon be possible.

Several American and European retail brands in segments as varied as fashion, cosmetics, lingerie, food & beverages, among others, are preparing to make their presence felt in the Indian market through franchise route, as a result of sharp drop in sales in these markets following economic slowdown. Certain brands from countries like the UAE, Brazil and Thailand are also eyeing Indian market.

“Drop in retail sales in Europe and the US markets are leading to this phenomenon. Retail brands that built great amount of manufacturing capacities are under pressure to offload excess inventories and are therefore entering into alternative sales practices by setting up their franchise in large-sized markets like India,” Gaurav Marya, franchising expert and president, Franchise India Holding, told ET.

Following the collapse of the international retail markets, several brands like Beverley Hills Polo (USA), Spa Siam (Thailand), Taman Gang Restaurants (UK) and others entered Indian market through franchise route.

Others like Revive Juice Bars (UK), Mrs Fields Cookies (USA), Jamba Juice (USA), fashion brand Jules (France), cosmetics brand Mikyajy (UAE), lingerie brand Nayomi (UAE), car-wash service brand Moly Company (Thailand), food & beverages brands Habibs (Brazil) and Herfy, BBQ Chicken (Singapore), Pizza Company and Spicchio Pizza (both Thailand), Marina Furniture (UAE), and Alto Cafe (France) are learnt to be at various levels of negotiation to start their services in India.

Companies that have long nurtured ambition to enter retail-friendly markets like India and China are finding this a convenient time as sales in their own countries have tapered. They are trying to convert this as an opportunity to taste Indian waters, which they plan to do for 2-3 years before they decide on their future plans in these countries, says business strategy specialist Harish Bijoor.

“Several brands are looking for green pastures, and India having a decent GDP growth of 4.3% holds lots of potential for them. They are taking up franchise route as they cannot risk coming on their own at this juncture. This also means a big chunk of business coming in for entrepreneurs,” Mr Bijoor said.

Several brands are targeting grade B and C cities rather than expanding in metros, as smaller cities are more brand hungry and retail is not much hit here, say experts.

“With the presence of limited brands in India markets, the country holds big opportunity for these brands as this would also help them re-route inventories and orders to new markets and keep their sagging sales volume intact. At the same time, their Indian counterparts are finding this a right opportunity to strike negotiations to their advantage,” added Mr Marya.

Hindware plans Rs 300 crore retail expansion

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Durables/Hindware-plans-Rs-300-crore-retail-expansion/articleshow/4525901.cms

HSIL Ltd., the manufacturer of Hindware sanitary ware and kitchen products, is pumping in Rs 300 crore to fuel retail expansion in the country with focus on South India where the company is aiming at leadership position.

As part of this exercise, the company is launching exclusive brand mega stores called Hindware Lacasa in select cities starting from Kochi. Mr Sandip Somany , joint managing director of HSIL Ltd. told ET that company would come up with five stores in the first year with an investment of Rs 5 crore for each store.

The stores each having 6000 sq ft would showcase Hindware’s elite product range across all categories which the dealers may not have space to stock. The next concept store will come up in Mumbai, Mr Somany said.

Apart from the concept stores, HSIL will help dealers to improve their showrooms and set up more Evok stores specializing in home interior solutions as part of the retail expansion strategy. Currently the company has 1000 direct dealers and 12,000 sub dealers.

’’We are at present the market leaders in north and east India but hold the second position in south India. Our market share in the country is 40 % in sanitary ware products. The company’s growth rate exceeded the sanitary ware industry growth rate of 10 to 12 % last year,’’ Mr Somany said. With the launch of 200 new products this year, the company is also planning to make its presence felt in smaller towns.

Its turnover touched Rs 700 crore in 2008-09 and in the current year HSIL is hoping to touch the Rs 1000 crore mark. Its existing production capacity will be expanded next year to 3.6 million pieces per year from the current level of 3.2 million pieces per year. Around 12 % of the production is being exported to Australia, Nw Zealand, some European and African countries.

HotSpot to spend Rs 200 crore on expansion

http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/HotSpot-to-spend-Rs-200-crore-on-expansion/articleshow/4542414.cms

Spice Group's mobile retailing arm HotSpot will spend Rs 200 crore this fiscal on acquisitions and expansion of its operations across the country, a company official said.

"We are looking at 1,200 stores by the end of this fiscal with focus on the smaller cities...The total capex for the fiscal is Rs 200 crore," HotSpot CEO Sanjeev Mahajan said.

The company plans to almost double its number of stores from the present 614 to 1,200. The company has about 500 stores under its brand, while the rest still operate as Cellucom, a Dubai-based mobile retail chain which the Spice Group acquired earlier this year.

HotSpot is also examining the inorganic route to grow its business in India. "The time is opportune to acquire and grow business and we would definitely use the inorganic route to expand...We are talking to (various) companies and looking at firms with at least 200 stores," Mahajan said.

The Spice Group firm would fund the expansion through internal accruals. "Going ahead, the focus would be on value-added services like gaming and music as well as accessories... as the margins on handsets are slim," Mahajan said, adding that the company would push content like movies and music.

Estimates put the Indian mobile handset market at about Rs 30,000 crore with most handsets being sold in the unorganised market.

UK's Vitabiotics to expand presence here

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/UKs-Vitabiotics-to-expand--presence-here/articleshow/4544070.cms

UK-based nutritional and food supplement company Vitabiotics is looking at expanding its presence in India by setting up manufacturing and research facilities apart from introducing new products, said its CEO Tej Lalvani told ET.

The $385 million firm has already identified and started construction of a plant in Karnataka. “We will invest $30 million in a new plant. We have just completed our R&D centre at Thane and it’s up and running now,” Mr Lalvani said.

The company exports products made in its Indian unit to other developing countries like Nigeria, Cambodia, Vietnam, Kenya, Iran and the Middle East. The Karnataka plant aims at exporting to developed countries as well.

“We are test marketing our Wellman & Wellwoman range of health food supplements. Wellwoman will be launched in June while Wellman will be launched in August,” Mr Lalvani said.

Wal-Mart to open first cash-and-carry in Amritsar

http://economictimes.indiatimes.com/News/News-By-Industry/Services/Retailing/Wal-Mart-to-open-first-cash-and-carry-in-Amritsar/articleshow/4556017.cms

Wal-Mart Stores is set to open its first cash-and-carry centre in India next week, a spokesman said, just days after the Congress-led coalition won a general election and vowed to carry forward economic reforms.

Bharti Wal-Mart Pvt Ltd, the joint venture between India's Bharti Enterprises and Wal-Mart, will open its first centre in Amritsar, Punjab, the spokesman said. "It will be opened early next week," Arun Mowar, spokesman for Wal-Mart in India, told reporters.

The entry of multinational retailers like Wal-Mart in India has been mired in controversy, with moves to open the sector up to more foreign investment opposed by the previous government's former leftist allies and small traders.

Tatas to start e-mall in two months

http://economictimes.indiatimes.com/Infotech/Internet-/Tatas-to-start-e-mall-in-two-months/articleshow/4572102.cms

Salt-to-software maker the Tata Group is gearing up to start an electronic mall through which products made by all group companies would be sold on-line in the next two months.

"We are in the process of doing that. A team of ours is developing the project. This is going to start in the next two months," a top Tata Group official told PTI.

Without divulging much details, the official said products made by all Tata Group companies would be sold through the channel.

Sources, however, said that the e-mall, like any other e-commerce portals, would be the electronic variant of the brick and mortar malls that has revolutionised the shopping experience in recent times.

The proposed e-mall of the Tata Group is aimed at serving people who find it difficult to spend time on shopping and ensuring them convenience of shopping at home thereby saving their time and efforts capitalising on the information technology penetration of the country, sources said.

Industry experts said that six triggers like, saving time and efforts, wide variety, convenience of shopping at home, good discounts, getting detailed information of the product to able to compare products and brands motivate the shoppers to buy on-line.

Genesis Colors to bring more luxury brands, expand overseas

http://economictimes.indiatimes.com/News/News-By-Industry/Services/Retailing/Genesis-Colors-to-bring-more-luxury-brands-expand-overseas/articleshow/4571308.cms

Fashion retailer Genesis Colors is planning to bring in more international luxury brands in India, while it looks to expand presence not only in the domestic market but also overseas, including countries like Morocco and the US, for its homegrown labels.

The Gurgaon-based firm, which currently retails global luxury brands like Jimmy Choo, Canali, Kenzo and Just Cavalli, plans to add more brands and is in talks with a few more European labels, besides planning to add more stores.

"One of our focus would be enhancing our luxury segment. So we are planning to open around 20 stores in the segment across the country. Besides, we are also in talks with some European brands right now. We will announce it very soon this year," Genesis Colors Managing Director Jyoti Narula told PTI.

He, however, did not divulge the names of the global brands that the company is in talks with. At present the firm has 17 stores in the luxury segment.

The firm, which owns homegrown labels such as Satya Paul, Deepika Gihani, Samsaara and Sobha De, plans to expand its presence in international markets beyond Singapore and the Middle East, where it is present currently. Plans are on to set up more stores in places like South Africa, Morocco and New York, he said.

In India, Genesis Colors will open about 40 accessories outlets, following up on its recent tie up with London-based fashion accessories firm, Tie Rack. "We will invest Rs 20-25 crore on setting up the accessories outlets alone," Narula said, but did not comment on the overall investments.

"Accessory items form a very important part of our business. For every fashion house, accessories account for about 5-10 per cent. But for some of the brands that we associate with, it accounts about 35 per cent. So this category has a lot of potential," Narula said.

The company, which operates two standalone accessory outlets in the capital said it will open more such stores across the country.

"Most of the items are tucked with other high-end products. So starting with Tie Rack, which is only into accessories, we are opening 40 stores dedicated to the category. Of which 15-20 (shop-in-shop model) would be Tie Rack and around 20 would be exclusive Satya Paul accessory stores," he said.

Genesis Colors, which introduced its own lingerie label 'Bwitch' a year-and-half back, also plans to include nightwear and loungewear in the range as well as increase its presence to 500 retail points in the next 3-5 years.

"We will introduce the nightwear and loungewear of our Bwitch in the next one and half year. Besides, we will also take it to around 500 retail points in the next 3-5 years from our existing 150 points," he said.

Premium kidswear cos eye big growth

http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Premium-kidswear-cos-eye-big-growth/articleshow/4573487.cms

Slowdown or no slowdown, parents never seem to ease up on indulging their kids. With spends on kidswear showing no signs of letting up,
even major players in the premium kidswear segment like Gini and Jony and United Colors of Benetton are eyeing growth of 10-40%, while at the same time, going in for significant expansion.

What's more, they are capitalising on the current environment to cut costs by increasingly opting for revenue-sharing models. Benetton India MD (South Asia & South East Asia Pacific) Sanjeev Mohanty said: "We've been growing at a healthy rate of 35% y-o-y, and plan to expand both, on exclusive stores, and store-within-UCB formats. Within the next 12 months, we want to ramp up to 20 and 200, respectively, from 10 exclusive stores and 120 store-within-UCB store formats at present."

Leading kidswear brand Gini and Jony is, in fact, targeting growth as high as 40%-plus, said its business head (East) SR Mahapatra. It opened 100 stores last year, and is planning another 100 in 2009-10. "In all new malls, we are going in for the revenue-sharing model and getting good deals on high street locations as well."

Dinesh Maurya, country head, JIP Fashion, which retails Pumpkin Patch in India, said: "Right now, we have four stores and another four shop-in-shops within Shoppers Stop. By 2012, we are targeting 30-35 exclusive brand outlets and 20 shop-in-shops."

Levi Strauss India marketing director Shyam Sukhramani too said that they would be launching their line, Levis Kids, sometime in June.

Wal-Mart to open first cash-and-carry in Amritsar

http://economictimes.indiatimes.com/News/News-By-Industry/Services/Retailing/Wal-Mart-to-open-first-cash-and-carry-in-Amritsar/articleshow/4556017.cms


Wal-Mart defers cash-and-carry launch in Amritsar

http://in.reuters.com/article/businessNews/idINIndia-39857320090525

Wal-Mart Stores Inc has defered the launch of its first cash-and-carry store in Amritsar, after riots in Punjab following an attack on a Sikh temple in the Austrian capital Vienna on Sunday. Punjab, where the first store was scheduled to open on Tuesday, is a predominantly Sikh state.

An official at Bharti Wal-Mart, the joint venture of the American retailer and India's Bharti Enterprises, said she could not say when the launch would now happen. "It's too early to say when. We just have to wait and watch," Arti Singh, vice president for corporate affairs, said. "Hopefully the situation will settle down quickly and we'll launch soon."

The Bharti Wal-Mart centre, named Best Price Modern Wholesale, will be the first of between 10 and 15 planned wholesale facilities in India, measuring about 50,000-100,000 sq ft each, and employing about 5,000 people over the next seven years.

India's fragmented and tightly controlled $500-billion retail industry is seen rising to more than $800 billion by 2013 but less than 5 percent of the market is in the hands of modern retailers.

Bharti, Wal-Mart open first joint store in Amritsar (http://www.hindu.com/thehindu/holnus/006200905301421.htm)

Amritsar (IANS): India's Bharti group and Wal-Mart, the world's largest retailer, opened their first cash-and-carry joint venture store here Saturday on an investment of $7 million, and are planning to open at least 15 stores in the next three years.

The stores will be run under the brand name of Best Price Modern Wholesale.

"This is a beginning and we will come up with 15 more stores in the next three years. We have already tied up with 30,000 retailers and 8,000 suppliers and expect more to join us," said Bharti Enterprises vice chairman and managing director Rajan Bharti Mittal.

"About 80 percent of our suppliers are from Punjab, we will set up our next store in Ludhiana," Mittal said after inaugurating the outlet in this pilgrim town. "Each store will require about $7 million. This does not include the land price."

According to him, the Amritsar store, spread over about 10,000 square feet, will provide 200 direct and 500 indirect jobs.

The two companies had earlier planned to open the store May 26 but this had to be deferred on account of the violence that erupted in Punjab after the killing of a spiritual leader in Austria.

Pics from Reuters

http://img29.imageshack.us/img29/3228/31071422.jpg
Policemen stand inside the first cash-and-carry Wal-Mart store during its inauguration ceremony in the northern Indian city of Amritsar May 30, 2009. Bharti Wal-Mart, the joint venture between the American retailer and India's Bharti Enterprises, was scheduled to launch the store on Tuesday but had deferred following riots in Punjab related to an attack on a Sikh temple in the Austrian capital Vienna.

http://img43.imageshack.us/img43/3596/94496090.jpg
Workers cheer during the inauguration ceremony of the first Wal-Mart store in Amritsar, India, Saturday, May 30, 2009. World's largest retailer Wal-Mart Stores Inc. and local partner Bharti Group opened their first wholesale outlet in India as rising disposable incomes boost demand in the world's second-fastest-growing major economy.


http://img193.imageshack.us/img193/8691/72957525.jpg
Bharti Enterprises Managing Director Rajan Bharti Mittal, fourth left, holds a mango as he poses for photographs after the inauguration ceremony of the first Wal-Mart store in Amritsar, India, Saturday, May 30, 2009.


http://img241.imageshack.us/img241/8849/86272955.jpg
Bharti Enterprises Vice Chairman and Managing Director Rajan Bharti Mittal (R) gestures during the inauguration ceremony of the first cash-and-carry Wal-Mart store, in the northern Indian city of Amritsar May 30, 2009.

Finally, India is going to witness a large scale retailing upgrade. The Americans bring efficient, clean, large scale operation expertize globally. Mittals have joined hands with Walmart one of the largest conglomeration in the world. Walmart's staying power even during a recession have been proven. Walmart is a super efficient company that strives to get lower prices to the end consumer. Most of the stuff nowadays is made in China. India needs to get into the supply side of Walmart and supplant the China made goods at least for India. IT operations in Walmart is very efficient, they use RFID for logistics, Just-in-time inventory, real-time tracking and stocking, the list is endless. I am just rooting for Mittals to eventually own the retail business worldwide just like the other Mittals who own steel. Trust the Marwari to one up the Global businessman.

I noticed the large amount of florescent lights in the warehouse.. wish this is driven by large solar panels on the rooftop of the warehouse. I don't know why these warehouses are not built to LEED standards, natural daylight can light them up during day time only during night they need power.

While it's true that Walmart's expertise will help and is a good thing, you do realize that what kept India in the dark ages on this front (and still in the dark ages in much of the country) is the fact that these kinds of stores are essentially banned to keep vegetable peddlars and corner shops happy.

McDonald's India to open 180-190 more restaurants by 2015

http://economictimes.indiatimes.com/News/News-By-Industry/Energy/Power/McDonalds-India-to-open-180-190-more-restaurants-by-2015/articleshow/4580421.cms

Mumbai: Fast-food chain McDonald's India on Tuesday said it plans to open 180-190 company-owned restaurants by 2015 with an estimated investment of up to Rs 570 crore.

"We have 157 restaurants now and we plan to open 180-190 company-owned restaurants by 2015, including between 30 to 40 this year," McDonald's India Managing Director Amit Jatia said here.

Jatia said it generally takes around Rs 3-crore investment to open a restaurant. Existing restaurants are also owned by the US-headquartered company. McDonald's India has presence in 30 cities, he said, adding all the proposed restaurants would come up in the cities where the company already has outlets.

The company would fund the proposed investment through a mix of internal accruals and debts. However, the ratio would be decided later on, he said.

Jatia said the company expects sales to grow by 35 per cent this year. It had recorded around the same level of growth in 2008, as well.

McDonald's India, he said, employs over 5,000 people now and as the proposed new restaurants are opened up, the total headcount should go past the 12,000-mark. "We generally employ 40 people in a restaurant," Jatia said.

Delhi and Mumbai are the two biggest markets for the company in terms of sales, while cities like Hyderabad and Bangalore are also fast catching up, he said. McDonald's India plans to open seven new restaurants in Bangalore this year, he said.

Declining to disclose the company's total sales, Jetia said McDonald's India caters to 3-4 lakh customers in a day across the country.

While it's true that Walmart's expertise will help and is a good thing, you do realize that what kept India in the dark ages on this front (and still in the dark ages in much of the country) is the fact that these kinds of stores are essentially banned to keep vegetable peddlars and corner shops happy.

My sentiments exactly. And here's just one way we pay

http://www.business-standard.com/india/news/ikea-will-continue-sourcingindia-for-global-operations/64407/on

Finally, India is going to witness a large scale retailing upgrade. The Americans bring efficient, clean, large scale operation expertize globally. Mittals have joined hands with Walmart one of the largest conglomeration in the world. Walmart's staying power even during a recession have been proven. Walmart is a super efficient company that strives to get lower prices to the end consumer. Most of the stuff nowadays is made in China. India needs to get into the supply side of Walmart and supplant the China made goods at least for India. IT operations in Walmart is very efficient, they use RFID for logistics, Just-in-time inventory, real-time tracking and stocking, the list is endless. I am just rooting for Mittals to eventually own the retail business worldwide just like the other Mittals who own steel. Trust the Marwari to one up the Global businessman.

I noticed the large amount of florescent lights in the warehouse.. wish this is driven by large solar panels on the rooftop of the warehouse. I don't know why these warehouses are not built to LEED standards, natural daylight can light them up during day time only during night they need power.

you actually like this...I thought you were anti-large corporations? Do you realize that WalMart would be the death of a lot of local stores? walMart does not have a permission to operate a store in NY city and other prominent US cities for the same reason. I hope Indians can take informed decisions at the local level whether to have a WalMart in their city or not. And I hope these arent senseless agitations but informed, intelligent decision processes.

MP

Ebony Gautier to invest Rs 120 cr to set up 20 stores
29 Jun 2009, 1946 hrs IST, Nandini Sivakumar, ET Bureau

Source (http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Fashion--Cosmetics--Jewellery/Ebony-Gautier-to-invest-Rs-120-cr-to-set-up-20-stores/articleshow/4716996.cms)

CHENNAI: EBONY Homes, the home furniture retail arm of the $3 billion DS Constructions, has plans to invest Rs 120 crore to set up a chain of
20-25 furniture stores styled Ebony Gautier across the country by March 2012.

"In the first phase, we plan to expand operations in the north and the south, setting up around 10-12 stores in the next one year. We will hit the west and the east the following year with another 8-10 stores," Ebony Homes CEO KA Parameswaran told ET.

The company has an exclusive distribution agreement with French furniture major, Gautier, in India and the Saarc countries. In three years time, it will look at exploring these markets too, he added. It currently operates two stores in the NCR, one each at Noida and Gurgaon.

This is Gautier’s second innings in India, the first being its tie-up with the KK Birla group. The license to use the Gautier brand name ended in 2003 and the Birla entity renamed itself Style Spa. In its earlier avtaar, furniture was manufactured in India and the French company had lent its Gautier brand. In its current agreement with Ebony, the entire product range is manufactured in France and exported to India.

The total home furniture market in India is estimated at Rs 20,000 crore, of which around 15% is in the organised segment. A number of retail majors have their presence in this segment, including Home Town and Home Bazaar of the Future Group, @ Home by Nilkamal, KK Birla Group’s Style Spa, Godrej’s Lifespace and Home Stop from Shopper’s Stop.
Most of these players are in the home solutions segment, offering a range of products for the house — from furniture and furnishings to kitchen units and home appliances. Ebony Gautier plans to limit itself to the furniture segment along with and some furnishings to complement its products.

While work has begun for its Chennai and Bangalore stores and would be operational by mid-August, it is close to finalising the location at Hyderabad. The store size would average around 15,000 sq ft. Two more stores in Delhi are on the anvil and the company is scouting for properties at Lucknow, Jaipur, Kochi, Coimbatore and Visakhapatnam, Mr Parameswaran said.

It is also in the process of setting up a 20,000 sq ft warehousing facility in Chennai. "Chennai would be our southern hub. Being a port city, we can directly import our furniture from this port, instead of routing it through Mumbai," Mr Parameswaran said. For the north, it already has a warehouse of similar size in Delhi
.

Central seeking indian tie-up

The Nation Published on July 3, 2009


Central Trading, a unit of Central Marketing Group, is negotiating a joint-venture possibility with a local partner in India for distribution of its S'fare men's apparel into the market.

The company yesterday also introduced a "new look" of S'fare products to boost the image of the international brand.

The new line-up has been launched to cater to young executives or first jobbers, aged between 25 and 35, who have a "smart and casual" lifestyle.

Central Trading recently signed a licensing agreement with the Cotton Council International to use its 100-per-cent cotton fibre and Cotton USA label. The move will help boost the credibility of the S'fare brand, particularly in export markets.

Winai Inthiraworanon, senior marketing manager for S'fare business, said the company saw great potential for its S'fare products to be promoted in markets abroad.

The company already exports S'fare men's apparel to many markets, including Dubai, Saudi Arabia, Bangladesh, the Maldives, Laos, Burma, Singapore and Malaysia.

"We want to push the brand into new markets this year, including India, Vietnam and China," said Pichai Chirathivat, president of Central Marketing Group.

Pichai said the company was discussing with an Indian investor - with whom it has had a business relationship for almost 30 years - as part of its plan to find a distributor or joint venture partner with strong retail experience in India to market the S'fare products.

He said the negotiation with the potential partner would be concluded by the beginning of next year.

"We are studying to adjust the fitting and size of our S'fare products with the plan to export the products into Europe and the USA in the future," Pichai said.

He said that the company began exporting S'fare men's apparel last year and had achieved Bt150 million in export sales. Driven by new major markets, the company expects export sales to increase significantly this year to Bt250 million.

Winai said that for Thailand, the company will allocate about 6 per cent of domestic sales to marketing activities and roadshow events in major centres such as Chiang Mai, Nakhon Ratchasima, Udon Thani and Hat Yai to promote the new look of S'fare.

No plans to open up retail sector further: Minister

http://economictimes.indiatimes.com/News/Economy/Policy/No-plans-to-open-up-retail-sector-further-Minister-/articleshow/4781016.cms

In a signal that India's retail trade sector may not be opened any further, the government Wednesday said the interests of small traders will be protected as the industry is the second largest employer after agriculture. "The government is fully committed to securing the legitimate interests of all stakeholders engaged in the retail business," said Minister of State for Commerce Jyotiraditya Scindia.

"The government also fully recognises the need to ensure that small retailers are not adversely affected by the growing organised retail and that there is no adverse effect on employment," Scindia said in a written reply in the Rajya Sabha, the lower house. In his reply, the minister also enclosed a study by the Indian Council for Research on International Economic Relations (Icrier), which says the country's retail trade industry will grow 10 per cent per annum from $10 billion in 2006-07 to $496 billion in 2011-12.

It said the organised retail trade segment of the industry, which presently stands at just 4 percent, will grow at a much faster pace of 45-50 percent, to grab a 16-percent share of the market by 2011-12. The study, however, made a pitch for opening up of retail trade sector, saying there was no evidence of a decline in overall employment in the unorganised sector as a result of the entry of large companies into the business.

The study also said farmers stood to benefit "significantly" by selling directly to organised retailers. "Profit realisation for farmers selling directly to organised retailers is about 60 per cent higher than that received from selling in the mandi (wholesale market)," the Icrier report said.

Finally, India is going to witness a large scale retailing upgrade. The Americans bring efficient, clean, large scale operation expertize globally. Mittals have joined hands with Walmart one of the largest conglomeration in the world. Walmart's staying power even during a recession have been proven. Walmart is a super efficient company that strives to get lower prices to the end consumer. Most of the stuff nowadays is made in China. India needs to get into the supply side of Walmart and supplant the China made goods at least for India. IT operations in Walmart is very efficient, they use RFID for logistics, Just-in-time inventory, real-time tracking and stocking, the list is endless. I am just rooting for Mittals to eventually own the retail business worldwide just like the other Mittals who own steel. Trust the Marwari to one up the Global businessman.

I noticed the large amount of florescent lights in the warehouse.. wish this is driven by large solar panels on the rooftop of the warehouse. I don't know why these warehouses are not built to LEED standards, natural daylight can light them up during day time only during night they need power.

While it's true that Walmart's expertise will help and is a good thing, you do realize that what kept India in the dark ages on this front (and still in the dark ages in much of the country) is the fact that these kinds of stores are essentially banned to keep vegetable peddlars and corner shops happy.
I like Costco a lot, but not Wal-Mart. Take a look at this article: http://www.fastcompany.com/magazine/77/walmart.html

I know a guy who works at Costco, making $17/hr as a floor employee (stacking shelves, helping customers, etc) with full health insurance for himself, wife and five kids. Costco provides excellent insurance and benefits, not to mention the salary, to all employees. Walmart provides health insurance to just about half the employees, and pays minimum wage (~$6.5/hr) to several. FYI, Costco even pays college tuition for many of their retail floor employees (not just the office employees and managers).

Many studies (just search on Google) show that Walmart has one of the highest employee turnover rate in the retail business and Costco has the lowest. Besides, whenever I go to a Walmart, the employees look like zombies with no smile on their face. Compare this to several other stores (Costco for one) where the employees seem to be generally happy.

Besides, Walmart sells a ton of cheap crap which isn't very reliable or long lasting. None of the non-stick fry pans (and many other things) I've bought at Walmart lasted longer than 6 months.

Another disturbing article: http://www.pbs.org/itvs/storewars/stores3.html

It would be unwise to welcome Walmart with open arms and heart given their track record. Walmart has proven to be bad for the local economy (destroys small shops and the local retail market economy), suppliers (burns them out), their own employees (poor salary and benefits) and the customers (cheap, low quality products). One needs to be sceptical until they earn one's trust.

Disclaimer: I have no personal financial interest in Walmart, Costco or any other retailer.

Retailer Knockoffs Abound in India (http://www.nytimes.com/2009/07/16/business/global/16brands.html?_r=1)
By HEATHER TIMMONS
New York Times
July 15, 2009

http://graphics8.nytimes.com/images/2009/07/15/business/16brands_600.jpg
Cocoberry's frozen yogurt and fresh fruit toppings are like Pinkberry's.
J. Adam Huggins for The New York Times

NEW DELHI — Retailers are flocking to India, thanks to an economy that is still growing and a young population eager to gobble up new brand names.

But some Western brands — once they conquer the regulatory hurdles to getting into the market here — may get a sinking sense of familiarity. For instance, Timberland, the maker of hiking boots and other outdoor gear, identifiable by its tree logo and chunky, durable shoes, will find Woodland, which sells similar shoes and clothing, and has a tree logo.

Pinkberry, the Los Angeles-based frozen yogurt chain, will encounter Cocoberry, a frozen yogurt retailer with a look-alike logo and a similar array of candy and fresh fruit toppings.

And The Financial Times, Pearson’s newspaper published with a pink tint since 1893, is locked in a legal battle with Bennett, Coleman & Company, owners of India’s largest English-language newspaper: a pink-tinted supplement it calls The Financial Times, which it registered in India in 1984.

Pearson’s Financial Times is eager to publish in India, but Bennett Coleman is challenging that right in court. Indeed, in recent months, a subsidiary of Bennett Coleman registered similar names with India’s newspaper registry, including FT Asia and Worldwide Financial Times.

Like Bennett Coleman, Woodland — the Timberland look-alike — is no mom-and-pop operation. It has 230 stores nationwide and 50 more on the way, and it is a staple of urban shopping malls. That could cramp Timberland’s planned expansion in India, potentially confusing would-be customers and costing Timberland sales.

The United States has long tussled over intellectual property rights with China, where counterfeiters crank out knockoffs of designer bags and iPhones (and manufacturers have even made entire vehicles that look just like foreign cars). But as brands look to India as one of the few opportunities for growth in an anemic global market, foreign companies and governments alike are protesting the country’s lack of intellectual property protections, too.

As Gary Locke (http://topics.nytimes.com/top/reference/timestopics/people/l/gary_locke/index.html?inline=nyt-per), the commerce secretary, told a group of Indian executives visiting Washington this month, “U.S. businesses need assurances that when they come to India, they’ll be operating in a secure and reliable environment for intellectual property.”

India will be the best market in the world for retail sales growth this year, A. T. Kearney said in a report released in June. India’s “growing, educated and aspirational middle class is demanding a better retail environment and more global brands and styles,” the consulting group said.

Wal-Mart (http://topics.nytimes.com/top/news/business/companies/wal_mart_stores_inc/index.html?inline=nyt-org), Carrefour and Tesco (http://topics.nytimes.com/top/news/business/companies/tesco-plc/index.html?inline=nyt-org) are opening wholesale stores that will sell to restaurants and owners of small shops. Dozens of foreign brands that have not already entered the Indian market are searching for domestic joint venture partners, which they need before opening a store here.

When questioned about the inspiration for Woodland, Harkirat Singh, managing director and the third generation to run the family shoe company, said the assumption should not be made that “just because the name sounds similar,” Woodland is copying Timberland. There is a “similarity,” he acknowledged, “but our line is quite different from theirs.”

Mr. Singh said he thought Timberland’s entry into India could help, not hurt, his business. Foreign brands “bring more awareness about quality footwear” to India, he said. Then Indian consumers “buy our product because it is more value for money.”

Timberland’s spokeswoman, Robin Giampa, said that Woodland’s “imitation of several of the valuable and well-recognized Timberland brands is a concern.” The company is addressing Woodland’s “brand piracy” through the appropriate legal processes in India, she said.

Whether that will be successful is unclear. “Our courts have recognized that you can’t have an isolated approach to trademark law,” said Gayatri Roy, a lawyer with Luthra & Luthra in New Delhi, meaning judges have often ruled that brands that are well known around the world cannot be copied by someone else in India, even if the companies with those brands do not do business in India. In such cases, Indian courts have decided in favor of Whirlpool (http://topics.nytimes.com/top/news/business/companies/whirlpool_corporation/index.html?inline=nyt-org), Dunhill and Volvo, among others.

In the case of Timberland and Woodland, though, it may be difficult for Timberland to prove that it should be protected, Ms. Roy said. After all, Woodland has been in business since 1992, she said, so they have created their own identity.

When asked whether Pinkberry frozen yogurt was his inspiration, Cocoberry’s chief executive, G. S. Bhalla, said he wanted to create a brand “associated with nature, health and social responsibility.”

(The company said Mr. Bhalla’s 7-year-old daughter was the inspiration for combining the words coco, for cocoa, and berry, for the fresh fruit that tops the yogurt.)

“Our product, recipe, store design, menu and philosophy are unique and very different from any other brand in the world,” Mr. Bhalla said. “We plan to expand at a steady and controlled pace in India,” he said. Pinkberry had no comment.

Citigroup (http://topics.nytimes.com/top/news/business/companies/citigroup_inc/index.html?inline=nyt-org) has been active in India, as Citibank, for decades, and the country’s urban areas are dotted with bank branches with the blue-striped sign. But that did not stop Yes Bank, a retail banking chain that rolled out branches throughout India in recent years, from using a very similar sign.

Some imitators are so loosely based on the original that they may not be considered a threat — like the 6Ten convenience stores. With their yellow and blue signs and piles of loose grains for sale rather than Slurpees, they are unlikely to be seen as competition to 7-Eleven.

And sometimes, the imitation is less about the brand than about what it represents. Across India, a number of scooter and motorcycle drivers sport the familiar Marlboro cigarette logo of a red and white chevron on their helmets. On closer inspection, those logos say “Marlborne” or “Melbourne.”

The helmets, made by several manufacturers, are “basically replicas of the helmets worn by Michael Schumacher (http://topics.nytimes.com/top/reference/timestopics/people/s/michael_schumacher/index.html?inline=nyt-per) during his racing days at Ferrari,” explained Rahim Premji, a partner with Allibhai Premji Tyrewalla, a bike dealership. Mr. Schumacher, a Formula One (http://topics.nytimes.com/top/reference/timestopics/organizations/f/formula_one/index.html?inline=nyt-org) driver, was sponsored by Marlboro.

Helmet manufacturers were forced to replace the Marlboro name after the authorities said that tobacco advertising was not allowed in India, Mr. Premji said. Marlboro, not surprisingly, has not complained about the free advertising.

Pavers England Footprints Limited, a venture from London based US$60mn Pavers Foresight Smart Ventures and Chennai based Forward Group, unveiled its first exclusive franchise store at the departure terminal of Domestic Airport in Chennai.

Deputy British High Commissioner, Mike Connor launched the store in the presence of the leadership team of PEFL comprising Yavar Dhala, Managing Director, Utsav Seth, CEO. Chennai Airport Director K. Natarajan was the guest of Honor.

• Exclusive store at Chennai Domestic Airport
• Plans 10 such outlets by end of 2009
• US$3mn earmarked to develop Franchise network over next 12 months

Yavar Dhala, Managing Director, Pavers England Footprints Ltd said, “We initially entered the country with a concessionaire route but in our experience, the franchise model will provide exclusivity, and allow us to showcase the entire range of SKUs. Our focus is on providing the customer the same ambience and customer service which is available in our stores in Europe. “

“We have had a good launch phase with presence in 40 MBOs across the county and we have also launched the innovative concept of “Destination Stores” where we partner exclusively with select MBOs in each geography to carry our entire range,” he added.

Through the franchise arrangement, Pavers England provides every franchise partner training in front end training spanning retailing, visual merchandising, CRM etc., both in UK and India to maintain the high standards set by the brand in the European markets.

Utsav Seth, Chief Executive Officer, Pavers England Footprints Limited said, “Customer experience management is a key differentiator to our success and the accent is on the right training. Pavers England has a unique concept of Brand Ambassadors in each territory, who work closely with the retailers to train their customer facing staff on the brand, on footwear fashions, trends, and empower them to guide the customer in making the right choices. The accent is on customer delight”.

Pavers England aims to establish 200 outlets with 10 flag ship franchises by end of 2009 with an average store size of 1000 sq. feet. The company is looking for individual outlets / retail groups with a track record in retailing and managing international lifestyle brands. The company plans to be present both in single brand and multi brand outlets.

Source (http://www.indiainfoline.com/news/innernews.asp?storyId=110791&lmn=1&cat=14)

Linc Pen has registered its brand “Linc” in 12 more countries worldwide. These countries include a number of countries in South East, Middle East and USA .The company has also successfully registered a number of brands such as “Glycer”, “Storm”, “Safron”, “Revolution”, “Spel”, “Goodluck”, “Ocean Gel”, “Hi School”, “Micro”, “Sincere”, “Markline”, “Smart” and “Success” in these countries. With this strategic move, Linc Pen will be one of the few Indian Pen brands to be registered in over 50 countries worldwide.

Deepak Jalan, Managing Director - Linc Pen said “This registration is in keeping with the company’s strategy to expand its footprints to more countries and become an internationally recognized brand. This is also in keeping with our export focused growth.”

Linc Pen is one of the few companies among its peers who believe in focusing on overseas markets such as US, UK, South America, West Asia and neighboring countries such as Nepal, Myanmar & Bangladesh. The writing instrument industry is roughly pegged at Rs21bn of which the branded segment is worth about Rs.1600 crore. Linc Pen currently occupies 10% of this market share and plans to capture 15% of the Indian writing instrument market by 2010-11.

The company’s export growth has not been marred despite the slowdown and it plans to touch Rs.50 crore mark in 09-10 through export revenue. Linc Pens is planning to invest 20 crore in capacity expansion to raise its manufacturing capacity from 2.5 million to 5 million pens per day by 2011-12.

Source (http://www.indiainfoline.com/news/innernews.asp?storyId=111251&lmn=1&cat=5)

Who are the major retail consultants in India?
Retail realty and consumer business?

Index revives plan for India franchise Indian market seen as lacking competitors

Bangkokpost Published: 4/11/2009 at 12:00 AM


Index Living Mall Co, the Thai home-furnishing retail chain, is reviving its plan to open franchise stores in India after its first deal two years ago did not get through.Jarinthorn Patamasatayasonthi, the company's managing director, said the business plan was reviewed after it was contacted by a new Indian investor, who had visited Index Living Mall in Dubai recently.

"We saw a huge opportunity in the Indian market because there are only conventional furniture stores available in the country. While the Indian economy is booming, there is less competition [in the segment] there," she said.

Index was in talks with another Indian investor in 2006 but the deal could not be concluded.

Verachai Kunavichayanont, vice-chairman of the furniture club under the Federation of Thai Industries, said demand for Thai-made furniture in India gradually rises every year because products are cheaper than comparable designs from Western brands.

Thai furniture will enjoy an even greater competitive advantage after the free trade area agreement between Thailand and India takes effect next year. Under the FTA, the import tariff on furniture to India will be gradually cut to between zero and 5%, down from 35-40% at present, he said.

Currently, few Asian furniture brands are available in India, leaving Thai brands with much room and potential to expand their businesses.

As well as in India, the company is conducting a feasibility study to open new outlets through the franchise system in the Middle East, said Ms Jarinthorn.

At home, the company plans to spend 1 billion baht to open two more outlets in Bangkok next year in addition to the Bang Na branch, which is to be opened early next year under an earlier plan.

Moreover, the company plans to renovate its existing stores and to adjust product displays.

More designers will be hired to design home decorative items and furniture while the number of exclusive items available at its stores will be increased to 50% from 30% at present. These plans should help Index Living Mall differentiate itself from its rivals.

The company expects its sales to reach 7.5 billion baht this year. Of the total, about 2 billion baht will come from exports. Sales of Index in the first 10 months grew by 8%, slightly below its earlier projection of 10%. Business from Dubai has provided much of the company's sales.

Mumbai: Mukesh Ambani-led Reliance Retail Ltd plans to open 85 stores of its jewellery retailing business -- Reliance Jewels -- across India over the next three years.

The multi-format retailer, which operates 15 Reliance Jewels outlets, has charted a road-map designed to give a greater focus on metros and larger towns.

"We have a five-year plan for expansion, which drills down to (penetration at) the town level. In the next three-years, we want to have a total of 100 Reliance Jewels stores across the country," Reliance Retail Ltd (RRL), Business head and vice president, Jewellery, Ashok Kaul, told PTI here. He said the company plans setting up stores in cities where it already has a presence.

"We are expanding through saturation, so we will open stores in cities where we already have a presence. We will be adding another eight to ten stores by March 2010 in Mumbai, Bangalore and Hyderabad among other places, for which construction has already begun," Kaul said.

RRL operates jewellery stores in Ahmedabad, Bangalore, Dhanbad, Gurgaon, Hyderabad, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Ludhiana, Mumbai, New Delhi and Vizag.

While he did not specify the capital expenditure for the roll-out, Kaul said funding requirements are met from internal accruals.The average size of a Reliance Jewels store ranges between 3,000-6,000 sq ft and the company adopts a mix of rented and company-owned stores for expansion.

Kaul said real estate prices have softened in the past one-year due to the economic meltdown, but there was still scope for prices to correct further. However, the opportunity in the Rs1,00,000 crore Indian jewellery market more than made up for the challenges of costly real estate and volatilty in gold prices, he said.

"The size of the opportunity is large. The jewellery market in India is around Rs 1,00,000 crore and branded retailers make up only three to four per cent of this," Kaul said.

Reliance Jewels store offers a wide range of unique designs in gold, diamond and wedding jewellery in Kolkata filigree, Rajkot antique, Junagadh polki, Rajasthani kundan, Amritsari jadau, Hyderabad ruby and emerald collections.

The stores also offer an exclusive range of diamonds and have a separate trousseau room for guests who want to customise their ornaments.

Reliance Retail is an unlisted and wholly-owned subsidiary of oil and gas giant, Reliance Industries Ltd. The fashion-food-gadgets retailer today serves over five million customers in 86 cities across 14 states through nearly 1,000 stores.

Source: http://www.dnaindia.com/money/report_reliance-retail-plans-85-jewellery-stores-over-next-three-years_1325532

In India, Wal-Mart Goes to the Farm (http://www.nytimes.com/2010/04/13/business/global/13walmart.html?ref=asia)

we need more of this!! take the power away from the wholesalers and give more choice to the farmers!!!! i sincerely hope that the govt. relaxes the restrictions on them!!

Walmart set to boost sourcing from India (http://business.rediff.com/report/2010/apr/13/walmart-set-to-boost-sourcing-from-india.htm)

There was a time when India's first mall, Crossroads Mumbai, found it difficult to manage customer traffic. In order to restrict footfalls, the mall decided to allow entry to those who had either a credit card or a mobile phone. A lot has changed in the last 10 years: malls are now being abandoned by retailers and consumers alike. Perceived to be the ultimate money churner, anyone with a piece of land decided to enter the retail business with a mall.

Indeed, 2008 saw 9.6 million sq ft of mall space coming up all over the country, an 18 per cent increase over 2007. The deluge was followed by a slowdown and mall mania turned into mall trauma. The tide has truly turned for developers and retailers, who had blindly jumped into the mall business without understanding the demographics and demand. Now these glitzy temples of consumption wear a deserted look, with retailers and consumers checking out. From Gurgaon to Ahmedabad, consumers are walking out of malls that don't cater to their needs.

Last month, UK fashion retailer Debenhams walked out of DLF Place in Saket, Delhi, while Indiabulls Mega-store and Magnet Hypermarket signed out of Dev Arc Mall in Ahmedabad.

Explains Amanpreet Banga, commercial manager with Segece India: "The Indian retail real estate market is only a decade old and during the course it has seen the worst phase already. The conceptualisation of a shopping centre is not like a residential or commercial towers hence professional assistance is essential, which was missing in all these unsuccessful projects. Other attributes like multiple floors, high vacancy rate, unviable location and poor commercialisation have also contributed in this catastrophic story."

Empty malls are a phenomenon that plagues most Indian cities. Of the 200-odd malls that have mushroomed in the last five years, a majority are grappling with high vacancies and low footfalls. Some have shut shop and others are converting themselves into commercial spaces. DLF's Star Mall and DT Mega Mall in Gurgaon are classic examples of a business plan gone wrong. While DLF's Star Mall has been lying completely vacant for want of retailers, several have walked out of the DT Mall due to poor customer traffic.

A few years ago, the sector attracted new players like Indiabulls, the Zee Group, Action Shoes and Odeon Builders. In 2007, Indiabulls announced its foray into the retail business with its acquisition of Piramal's Pyramid Retail, which later became Indiabulls Retail Services. The group acquired 14 sites across 16 cities to build malls, multiplexes and hypermarkets. Due to cheaper land prices in smaller cities, developers launched mall projects mindlessly. These "boom towns" are now giving nightmares to mall developers.

With the fifth highest household income among Indian cities, Ahmedabad should have been a dream destination for retailers, but the biggest retailers have burnt their fingers in this city as most malls are devoid of buyers. It isn't as though Gujaratis don't spend on consumer items.

Luxury carmaker Audi would vouch for the city's spending power, with its sales of over 200 cars last year. Explains Kishore Biyani, chairman of the Future Group, "There have been mishaps in the industry, where players came up with offerings that did not keep the consumers in mind, but the industry is learning fast from its mistakes."

-Over 6.57 million sq ft of mall space is lying vacant in India across 8 top cities.

-Post meltdown, retail sales dropped by 11% and rentals by over 40%.
Cracks started appearing in the industry in the second half of 2008, when the retailers couldn't afford the high rentals as revenue growth turned negative. According to a retail report by Cushman and Wakefield, sustainability has become the main issue for retailers and brands and many are working towards innovative revenue models and retail formats.

n the last couple of quarters, retailers across India have resized stores, renegotiated rentals and exited unviable locations. Players like Indiabulls have decided to exit the mall business while other developers are going slow on it. Sameer Gehlaut, chairman, Indiabulls, explains: "We exited because retailers don't have the capacity to pay rentals that make the economics of mall development comparable to residential development."

Another instance of a development going wrong is the 500,000 sq ft Vasant Square Mall in Delhi's Vasant Kunj area. Promoted by Suncity Projects, the mall failed to take off as this property came under a community centre category and the developers couldn't build a cinema hall. Many retailers backed off and moved to other malls in the vicinity, which had a cinema.

"If I had a cinema I could have got better footfalls", says Gaurav Bansal, director, Suncity Projects. Also as rentals moved up from Rs 80/sq ft in 2005 to Rs 350/sq ft in recent times, retailers moved out. Bansal admits that retailers weren't coming in at this rate. So they decided to change their strategy and started attracting companies for corporate offices and other commercial ventures like banks and car showrooms.

The retail business, like many other businesses, is paying for its excesses now. If the traffic in malls is any indicator, the organised retail business is likely to take much longer to touch $10 billion from the current $4-billion level. Says Abhishek Kiran Gupta, head of research at Jones Lang LaSalle Meghraj: "The mall business is in trouble as developers thought of it as any other real estate business and sold the property. A mall is finished if it's following a sale model."

Hoping to catch the high growth wave, real estate developers and retailers decided to capture a share of the consumer's wallet by creating fancy infrastructure, without focusing on the demographics and their requirements. Builders thought they could double profits out of the same parcel of land by developing it into a mall, retailers mindlessly expanded their footprint to get higher valuations. The economic slowdown has clearly taken the Mickey out of both. Peak rentals of Rs 400 to Rs 800 per sq ft are now down by almost 50 per cent and for anchors it's even more affordable.



Given that the mall business is still in its infancy in India, most developers sold spaces in their malls to investors, who, in turn, leased out the space to retailers. In the absence of any science being applied to the business, the retail mix in such malls went for a toss. A mall in Hyderabad had a hypermarket and a lifestyle store sitting next to each other, which experts say is a big no-no.

Says Manoj Motta, CEO of Shopping Centres Association of India (SCAI): "Mall developers and retailers need to plan the merchandising by the customer needs. Just the way a store has to choose appropriate merchandise, so does a mall need to have a good mix of good retailers. To get couple of anchor tenants is not enough to make a mall successful." This is clear as brands like Debenhams, Pantaloon and Spencer's have moved out of several malls in India, which did not assess the need of the catchments right.

Internationally, malls and shopping centres are treated as assets and are owned by real estate investment trusts (reits). These reits own and manage the property and earn returns for its investors through lease rentals. However, in India developers treated it like any other real estate business and sold spaces and then exited.

Explains Vikas Verma, CEO of Colour Factory: "DT Mega Mall (Gurgaon) had sold space to some 200 different people, so as a result there was no unified management to promote the mall and landlords were interested in rentals. There was no revenue-sharing model, which is what progressive malls are talking about today. I foresee the decline of malls not on lease models."

With rentals going up by 15 per cent every two years, the model spelt disaster for most tenants. Malls are fast learning that in order to have a healthy mix of retailers, differential rates have to be offered to a multitude of tenants. Today, malls take a minimum guarantee from retailers and take a share in profits.

Experts also believe that most malls that have come up between 2005 and 2007 are not up to international standards. Many malls or shopping centres have come up as part of some other development in congested residential areas, without even parking in many cases. In other cases, the development didn't have much happening except a few anchors. An example of this is the Ashoka Mall in Hyderabad. Both Spencer's and Pantaloon moved out of the mall. Explains Biyani: "The mall went wrong in its design and, therefore, we had to move out."

With most retailers slowing down on expansion, developers are now delaying or shelving projects. It is expected that 2009-10 will have seen 44 million sq ft of mall space coming up but Cushman and Wakefield expects only 28 per cent of this to be delivered. Real estate companies are now realising that for a mall to succeed a lot more than physical infrastructure is required, which is causing the rethink.

Explains Kishore Bhatija, CEO of Inorbit Malls: "Every city has a finite consumption demand, which cannot be changed radically. If more space is added in a given micro market then it needs to be supported by retail. If the catchments and demographic profile do not match with the retail mix, the result can be disastrous."

The biggest and best retailers have burnt their fingers in the Ahmedabad region as people prefer to shop in local markets.

No wonder, players like DLF, Satara Properties and DB Realty have shelved their mall projects and converted it to residential projects. Satara Properties has shelved its mall project in Borivali, Mumbai, and DB Realty converted its Orchid Carnival mall project in Dahisar, Mumbai, into a residential one. Suncity too has decided to scale down its plans of developing 50 lakh sq ft of retail space in Jaipur, Mohali, Indore and Bareilly. Its 20,00,000 sq ft mall on Jawaharlal Nehru Marg in Jaipur has been scaled down to 500,000 sq ft.

Undoubtedly, the mall business is facing tough times but it would be wrong to say all malls are suffering. In the midst of the carnage too there are ample success stories like Mumbai's High Street Phoenix and Inorbit Mall, Select City Mall in Delhi's Saket and Forum Mall in Bangalore.

Clearly, Indian consumers do spend, provided there is a value proposition that the mall offers. Mall owners now perhaps realise that the Indian consumer won't be lured by sheer glitz. Even those wearing it look for value for money. It is a complex formula that they need to master if they want to say all is well!

Source (http://indiatoday.intoday.in/site/Story/92080/Malls+not+well.html?page=0)

The Rs 1,400-crore Home Solutions Retail, a Future Group company, is exploring new direct selling channels for consumer durables retailing under its existing brick and mortar format — eZone.

Apart from its recent online e-commerce portal, ezoneonline.in, it is also considering mediums such as mobile phones, catalogues, and kiosks.

Mr Vivek Biyani, Director, Home Solutions Retail, told Business Line, “We are exploring new formats such as landline and mobile phones keeping in mind the cost of delivery. These would be channels of the future.''

Considering that Home Solutions is in the process of merging with the group's flagship company – Pantaloon Retail, the new selling channels could be extended to product categories under Pantaloon Retail going forward.

“At the moment all the other formats such as Pantaloon Retail and Big Bazaar have their own e-commerce sites but we are exploring innovative selling channels to become more accessible to consumers,” said Mr Biyani.

Besides, eZone is also offering easy credit to its consumers for buying big budget items through Future Money (owned by Future Capital Holdings).

“Today, between 15 and 18 per cent of our sales comes through credit,” he added.

More stores

eZone is adding 22 stores to the existing 64. Last year, it closed down two to three stores due to the economic slowdown.

The Future Group also has a value retail format under Electronics Bazaar (now a part of the newly floated company Future Value Retail).

“After food and apparel, consumer durables is going to be the next big category for the Future Group. We are expecting sales at Rs 1,200 crore for the category this year,” said Mr Nitish Tipnis, President, eZone. eZone is the centralised buying agency for the group's consumer retail business.

Source (http://www.thehindubusinessline.com/2010/06/12/stories/2010061251461600.htm)

prozone mall aurangbad 22lakh sq ft toatal area

http://www.youtube.com/watch?v=vtO5dBPhjno

facebook page
http://www.facebook.com/pages/Prozone-mall/144279425594537

Not a big deal, but interesting
noIjpFYxBJk&NR=1&feature=fvwp

del.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8556711/Indias-door-will-be-open-to-Tesco-in-four-months.html


A committee formed to explore deregulation in the sector has submitted a favourable report, and ministers are preparing to put the proposal to cabinet. It is likely to include obligations on new entrants to invest heavily in "back-end" warehousing, food processing and refrigerated transport networks and to create new jobs in rural India. "The way I envisage it is that it must involve investment not only in the front end but also in the back end," he said.

Online retail: Are e-retail firms in India building a bubble again? (http://timesofindia.indiatimes.com/business/india-business/Online-retail-Are-e-retail-firms-in-India-building-a-bubble-again/articleshow/9280844.cms)

Online travel has dominated the internet commerce industry in India, accounting for nearly 80% of the 46,000-crore market, according to a report by the Internet and Mobile Association of India. But as consumers begin to buy everything from books to electronics, clothes and consumer goods online, the share of retail ecommerce currently at about 8% will grow to $20 billion in the next five years.

But the real growth that online retailers are betting on in India is an increase in buying in smaller towns and cities that have no access to modern retail.

"The opportunity here is not to replace offline retail but to just deliver products to first-time customers," says Sandeep Singhal, co-founder of Nexus Venture Partners, which is a repeat investor in group-buying portal Snapdeal.com.

High level govt group recommends opening multi-brand retail (http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/high-level-govt-group-recommends-opening-multi-brand-retail/articleshow/9126478.cms)

NEW DELHI: A high level inter-ministerial group has recommended opening up of multi-brand retail sector to foreign direct investment at the earliest to check price rise.

But, the panel appointed by the Prime Minister and headed by chief economic advisor Kaushik Basu has suggested allowing FDI in a properly regulated fashion.

"We must guard against the risk of these new corporations becoming monopolistic and charging high prices," a working paper of the panel has said.

Outdated technology and managerial methods used in moving farm products leads to excessive value erosion and in turn, raises the price that consumers have to pay, the IMG said making out a case for modernisation of the supply chain infrastructure.