Lets post news/views/info about the our retail sector in this thread. Its growing at a huge pace right now. We have threads for auto industry, infotech, telecom etc. Thought this topic too deserved its own thread. Lets also post news relating to malls,shopping complex etc in this thread.

Mods, if you think that this should be in the economy thread, please move it. :)

Pantaloon Retail opens 3 outlets in a single day

http://www.thehindubusinessline.com/2005/05/15/stories/2005051501320200.htm

Aerens group plans to set up speciality malls

http://www.thehindubusinessline.com/2005/05/15/stories/2005051501300200.htm

Lets post news/views/info about the our retail sector in this thread. Its growing at a huge pace right now. We have threads for auto industry, infotech, telecom etc. Thought this topic too deserved its own thread. Lets also post news relating to malls,shopping complex etc in this thread.

Mods, if you think that this should be in the economy thread, please move it. :)

I think it is a well deserved thread. Organised retail is coming up in a big way. With international players like Wal Mart thinking of entering the market, the scenario is bound to become more interesting in the months to come.

http://economictimes.indiatimes.com/articleshow/1108373.cms


some key-points in the article -


On Wal-Mart’s India strategy: At the entry level, the MNC is looking at the possibility of forging joint venture partnerships with Indian business houses. “We have initiated discussions with many of them. It’s premature to talk. There are so many of them,” says Mr Menzer.

On retail standards: The MNC is looking at supercentres with space ranging from 60,000 sq ft to 2 lakh sq ft. Would like to offer a wide assortment of general merchandise and a full-line supermarket.

On sourcing: Establish direct link with manufacturers and encouraging development of local food products and consumer goods for domestic and export markets is the line of action. Sourcing from India should double every three years. The potential is vast and Wal-Mart is now looking at high-value products like silk carpets.

On food safety norms: The MNC is keen to bring in technology so that Indian companies produce items of international quality. Indian consumers will also end up enjoying the same quality.

On the allegation that Wal-Mart is a bully and armtwists suppliers: “There’s no doubt that we are tough,” says Menzer. “But that’s because we want our vendors to grow with us.” Wal-Mart brings about supply chain efficiency, which drives down prices. Through joint business planning, Wal-Mart provides suppliers with tools and data to better forecast their sales demand, plan production and delivery schedules. “We share real-time store and product data with our suppliers including sales of individual products by store.”

ok but do post todays news in one post:)

Acer India opens four new Acer Malls in Delhi

http://economictimes.indiatimes.com/articleshow/1114561.cms

Altho they are claimed as "malls", IMO they are just gigantic retail outlets.

Nilgiris to land at 'God's own country' tomorrow

Nilgiris, the pioneer in the self-service supermarkets in the country, enters Kerala with the opening of its first venture, a 'supermarket and Kapi Kadai' here tomorrow

http://www.thehindubusinessline.com/blnus/02191706.htm

A new store every week and if its not a store then its a new food joint setting up shop in Pune. The first Shoppers’ Stop has been around for four-and-a-half years and had only the Piramyd store for company. But 2005 has seen a spate of launches. About 23.7 lakh sq ft of commercial space is set to hit the market over the next eight months.


The Pantaloon group’s Central Mall has opened its doors to customers so has Food Bazar and more will be coming up this year. Archies has just launched a company owned outlet in the city while Louis Philippe has started its Flagship Store.

Piramal Group’s Trumart has opened its account in Pune. Bookstore chain Crossword opened its seventh store in Pune. Crossword has opened one store almost every year in Pune for six years. The new Crossword store has come up at the Gold Adlabs multiplex. Food chains KFC, Yo China and Not Just Jazz By The Bay have entered Pune wile Pizza Hut and McDonald’s have added more outlets.

Shoppers’ Stop expanded its presence in Pune and opened its second store. The second store is barely three kms away from the existing one and across 40,000 sq ft in Nucleus Mall. Sheetal Choksi, customer care associate and GM, marketing, Shoppers’ Stop says Pune can take in the second store and the company is confident of doing well.

But with increasing competition and more options to customers, Shoppers’ Stop had to organise a Pune Fashion Weekend to attract footfalls and lure them with possibility of walking the ramp in creations of Raghavendra Rathore, Shantanu and Nikhil and Ashish and Smita Soni and Rocky S.

But if the response to the event is any indication then Navneet Sharma, MD, Total Sports Asia, believes there is huge potential for retail business players like Shoppers’ Stop in the city. He was surprised with the response he received in Pune — close to 2,000 entries — even before a big launch has been done. Shoppers’ Stop and the Pantaloons know what they re doing —betting big on Pune.

Govt dresses up retail FDI counter for big blitz

http://economictimes.indiatimes.com/articleshow/1116177.cms

The government is planning to carve up retailing into separate categories, setting the stage for flow of FDI into the sector. As part of the organised retailing policy, the government is trying to fashion ground rules before the likes of Wal-Mart and Tesco land in India.

A division of the industry into segments, such as food and grocery, garments and high-value merchandise is being considered to map out appropriate regulations. To ensure that small players are not crowded out, the idea of putting geographical restrictions on large retailers has also been suggested, sources said. ....

I hope this qualifies for this thread, and because i cant find the Indian malls thread.....

Shopping in the new-age (http://www.thehindubusinessline.com/2005/05/22/stories/2005052201131700.htm)

SPENCERS' on Mount Road was always the right place to shop and years later, when a behemoth plaza replaced it, the shoppers keep coming, in larger numbers.

The mall culture, as such, has left the city largely untouched. But this is not so, in other parts of the country. Today, there are some 400-500 malls across the country, with Gurgaon, near Delhi, alone accounting for 20 of them.

In Chennai, Aerens Goldsouk plans to set up a Gold, Wedding and Home Souk in Vandalur on the southern outskirts of Chennai. This would come up in a 7-acre property. Work on the mall would start by November, he said.

Apart from Aerens Goldsouk's plans for Chennai, a couple of other malls are also likely to come up. Pantaloon Retail (India) Ltd is planning a mall on the Old Mahabalipuram Road to cater only to the home needs category. Lifestyle, a departmental store, has bought land in MRC Nagar for a large format mall, while the RPG group plans to open a hypermarket in Vadapalani. Chennai Citi Centre is a mall with a multiplex that is coming up on Radhakrishnan Salai. It has tied up Lifestyle as the anchor tenant while Landmark, a bookstore, is also taking space in the Chennai Citi Centre.

http://www.thehindubusinessline.com/2005/05/22/images/2005052201131701.jpg

Wal-Mart's suppliers shift base to India
http://economictimes.indiatimes.com/articleshow/msid-1118336,curpg-2.cms

When the going gets tough, the Chinese simply cross the Wall. Faced with a higher tax on exports following pressure from the US and the European Union, large Chinese textile suppliers to Wal-Mart are relocating their manufacturing base to India.

And the world’s largest company seems to be loving it. The company says it “welcomes” the shift and plans to double sourcing from India.

Incidentally, Wal-Mart buys goods from India worth $1bn — close to Coke’s total investments here in the past 13 years.

The Chinese are not the only ones packing their bags. Wal-Mart suppliers in Singapore and the Middle-East have also shown interest to shift production to India. The removal of quotas seems to be helping India’s case.

China is already under pressure from the US to revalue its currency which has been artificially kept low against the dollar. It also faces demands from the EU and the US to curb its surging textile exports. Beijing has reacted to it by hiking the tax on exports. If the yuan is revalued, the combined effect of the changes will make Chinese goods costlier.

Subhiksha plans to invest Rs150cr

Discount retail chain Subhiksha is planning a mega expansion. The Chennai-based chain is mulling entry into the Delhi and Mumbai markets next year, by when it plans to invest up to Rs 150 crore in establishing 180 new stores.


It will be expanding in the southern region as well, with new stores in Bangalore and Andhra Pradesh

http://sify.com/finance/fullstory.php?id=13808696

Camp retail

of the proposed 282 malls expected to come up by 2006 around the country, there are 77 mall projects which are under construction or under serious stages of planning in the six metro cities (Mumbai, Delhi, Chennai, Kolkata, Hyderabad and Banga-lore) and 58 malls in Tier-II cities. According to estimates, more than 25 mn sq ft of organised retail space will come up across the country by 2005.

http://economictimes.indiatimes.com/articleshow/1125781.cms

Monday May 30, 6:33 PM
Hong Kong fashion retailer Giordano plans to open stores in India in 2006

AP - Hong Kong fashion retailer and distributor Giordano International Ltd. plans to open stores in India in early 2006 to take advantage of a boom in consumer spending there.

The expansion would involve a joint venture with a local partner and would start with an initial target of four to six outlets in the first year, said William Yue, Giordano's director of corporate and external affairs.

Yue declined to name the local partner because of a confidentiality clause in the joint venture agreement.

"India has huge market potential for us, especially because incomes there have picked up significantly," Yue said in an interview with Dow Jones Newswires.

Founded in 1981, Giordano, which specializes in casual and office clothing, operates over 1,500 stores in Asia, Australia and the Middle East. The company, whose revenue totaled 4 billion Hong Kong dollars last year, was listed on the Hong Kong stock exchange in 1991.

Yue said that besides plans to establish a retail base in India, the company is also considering whether the country could become a source base for Giordano's products. "But the main problem for sourcing in India is its transportation infrastructure," he said.

Giordano's retail outlets are focused on China, where it had 671 stores at end-2004, and Taiwan with 236 stores. Hong Kong, where Giordano operates 92 stores, is the company's second biggest revenue center after China. In the rest of the region, Giordano has a presence in Japan and most Southeast Asian nations.

Yue said Giordano is looking to expand, especially into developing countries such as in Africa.

"We believe our product pricing would be relatively acceptable there _ and in Eastern Europe, too," he said.

China, which accounted for 24 percent of Giordano's revenue in 2004, will continue to be the main growth driver for the company's earnings, as well its "emphasis of expansion," Yue said.

"We already have full coverage in places such as Hong Kong and Singapore, so their market potential is relatively smaller compared to China," where there is room to expand, said Yue.

Giordano plans to open 100 new stores in China in 2005 after adding 90 stores last year.

The more the merrier.

true true.
Sun, you could merge this in the retail thread.

300 malls by '06! Is the mania set to hit bumps


India is experiencing a revolution in the retail market. The organised retail market, which is just 3 per cent of the overall retail market, is expected to grow from Rs 28,000 crore to Rs 1,00,000 crore business by 2010 as per an Images-Technopak research report.

The industry will cross the Rs 35,000-crore mark by next year itself. The projected growth rate for organised retail is 25-30 per cent.

http://economictimes.indiatimes.com/articleshow/msid-1129701,curpg-1.cms

Package deal: Govt set for FDI in retail

http://economictimes.indiatimes.com/articleshow/1131007.cms

The policy for a measured opening of retail sector is very much on reforms agenda for the next few weeks and officials expect the move to fructify before the PM's July visit to US.

On the basis of the policy deliberations between Planning Commission, ministry of commerce and industry and that dealing with food and consumer affairs, officials see the possibility of even 100% FDI being allowed into specific segments of retail trade.

The priority is to build supply chain and retail distribution of products from the farm to the market.

Wal-Mart's India hopes rise as Singh says retail market will be opened up soon
Jo Johnson , FT Syndication Service
6/3/2005

NEW DELHI: Wal-Mart's hopes of entering India's $180bn retail market were given a significant boost lately as prime minister Manmohan Singh said the country would soon allow foreign direct investment in an industry still dominated by small family-owned businesses.

"There are many fears, particularly among small traders and small shopkeepers, but I believe we can soon move forward," M. Singh told the Financial Times after an informal meeting with foreign journalists in New Delhi. Pressed as to when the government might act, the prime minister said: "Hopefully this year."

Singh's comments came days after he met John Menzer, president and chief executive of Wal-Mart's international arm, who was in New Delhi to discuss the US group's ambitions to enter the biggest emerging economy still closed to foreign direct investment in both food and nonfood retailing.

"Wal-Mart will happen," a senior government official said, adding that the cabinet might lift the foreign direct investment (FDI) ban before Singh flies to the US for a meeting with President George W. Bush in July. "I wouldn't be surprised if this happens before he goes," he told the FT.

Multinational retailers such as Wal-Mart and French rival Carrefour, both already active in China, believe they can expand the Indian market with their investment and retailing expertise.

Small owner-occupied shops dominate India's retail sector. Large retailers control just 2.0-3.0 per cent of the market, although this share is growing by 25 per cent a year.

The cultural impact of opening the market to foreign investment will be significant in cities such as New Delhi, which has a population of 14m-15m and a fastgrowing middle class, but does not yet boast a single significant supermarket chain. Most food is sold through corner shops, street markets and door-to-door hawkers on bicycles.

India has been contemplating liberalising its retail sector for a number of years, but the process has been bogged down by political concerns. Small traders represent an important constituency for the Hindu nationalist Bharatiya Janata party, now in opposition.

Indian retailers have also claimed that FDI will allow global groups to swamp India with imported merchandise. WalMart says its sourcing from India has been rising at least 30 per cent a year since 2003, making it the fastest-growing procurement market for the company.

In recent weeks Kamal Nath, the commerce and industry minister, has been talking up reform, which may include allowing foreign investors to take stakes of between 24 per cent and 49 per cent in Indian retail ventures.

Wal-Mart and other retailers have made clear they want a high percentage of foreign ownership.

Very intresting developments, thanks for opening this thread Hari

I would really like to see more electronics shops in India, i dont beleive there are any except for Sony World(?)
I also noticed electronic equipments are grossly overpriced in India, which makes most of them buy stuff from other countries especially Dubai.

Retail majors step on the gas

http://economictimes.indiatimes.com/articleshowindia/1133462.cms

I would really like to see more electronics shops in India, i dont beleive there are any except for Sony World(?)
I also noticed electronic equipments are grossly overpriced in India, which makes most of them buy stuff from other countries especially Dubai.
Yes, that is true. In fact, it's not just Dubai - also Singapore and Malaysia. I have no clue why electronics are so overpriced in India, though.

in bombay we have an electronics/white goods chain of stores called vijay sales, whose turnover last year was over 200 crores. i think they are planning to go national so this might be india's first national electronics chain

RPG to shift retail base to Kolkata

http://www.hindu.com/2005/06/15/stories/2005061507091600.htm

Mega brands join hands to promote malls in India

http://economictimes.indiatimes.com/articleshowindia/1142269.cms

Pantaloon launches second store in Bangalore

http://www.hindu.com/thehindu/holnus/006200506241924.htm

Govt may let 51% FDI in retail, but with riders (http://economictimes.indiatimes.com/articleshow/1154914.cms)

minimum equity capital of Rs 50 crore by the foreign investor
fixed commitment to source raw food products locally

geographical restrictions on large FDI-driven retail units to make sure they do
not impinge on smaller departmental stores.

will not be allowed to set up outlets in city centres. If allowed, they would largely be in and around suburbs

The government may also put restrictions on the number of outlets.

Large retail owners may not be allowed to enter small towns and cities below a certain size of population.

Does anybody know what are the major retail stores in India. I can think of

1)Crossword
2)Shopper's Stop
3)Adani's

Anybody else?

Shoppers’ Stop to buy 49% in Crossword

http://indianexpress.com/full_story.php?content_id=73651

Mera Jeevan Kora Kagaz, Kora Hi Reh Gaya, Jo Likha Tha, Woh Aasoon Ke Sang Beh Gaya.

Means

My Life Is A Blank Paper, It Has Remained Blank.
Whatever Was Written On It, Was Washed Away By My Tears.

Kora Kagaz.


Common, cheer up. This is an optimist's forum, remember ? :-)

Does anybody know what are the major retail stores in India. I can think of

1)Crossword
2)Shopper's Stop
3)Adani's

Anybody else?

4) Pantaloon's
5) Big Bazaar
6) Giant
7) Marks & Spencer
8) PlanetM

Home entertainment cos propose retail biz

The Ultra Group intends opening 50 Ultra Mini Malls this year and most of them are expected to be franchisee owned. The Rs 35-crore Ultra Group is also looking at an IPO in future.

Under the name of Shemaroo Video Stores, the company plans to launch its first store in Mumbai and depending on its success, it might extend to other cities.


http://www.thehindubusinessline.com/2005/07/08/stories/2005070800450400.htm

shemaroo has had video stores in bombay for donkeys years

India’s the hottest retail spot

Despite advantages, however, AT Kearney cautioned that there are many obstacles global retailers might have to face in India. High taxes, inadequate infrastructure, bureaucratic hurdles and high cost of real estate are some of the challenges that multinationals would have to tackle in the country, it added.

India and Russia are followed by Ukraine, China, Slovenia, Latvia, Croatia, Vietnam, Turkey and Slovakia among the top ten destinations for a retail foray. Neighbouring Pakistan was ranked 30th on the list.

http://financialexpress.com/fe_full_story.php?content_id=96012

Acer Mall' launched in Thiruvananthapuram

http://www.thehindubusinessline.com/2005/07/18/stories/2005071800961303.htm

Hewlett-Packard opens premium retail outlet in Chennai

Outlining H-P's retail strategy in Tamil Nadu, Varadarajan said the state would play a significant role in the overall expansion plans of Hewlett Packard India.

"Tamil Nadu has plenty of industries in the form of BPOs, manufacturing, SME and software. People from these industries are tech-savvy and are constantly looking out for new technologies and products," he said.

He said the IT market in the South and the IT retail market in particular was very mature and evolved. "There is a growing demand for notebooks. Notebooks form an integral part of the retail strategy for the South," the GM said.

http://www.hindu.com/thehindu/holnus/006200507211462.htm

Surprise in store

THE line connecting Mumbai and Delhi is longer than the sum of all the sides of the IT triangle, connecting Chennai, Bangalore and Hyderabad. Sounds like a vague theorem in geometry?

http://www.thehindubusinessline.com/ew/2005/08/08/stories/2005080800090200.htm

Indian retail is all set to get IT touch (http://infotech.indiatimes.com/articleshow/1197056.cms)

The traditional Indian local markets and Kirana stores are witnessing a retail revolution. With the changing demographics and an increase in the quality of life and culture of urban people, grocery or home items shopping no longer means neighbouorhood markets or shops. Heralding the revolution are chains like Big Bazaar, Foodworld, Shoppers Stop and Sabka Bazar.

The planned entry of Reliance in retail is a case in point of the growth this segment is set to witness. With the Government allowing Foreign Direct Investment in this segment, retail is all set to boom.

No doubt the boom in the retail sector has set the R&D ball rolling in top Indian software companies. with RFID touted to emerge as the next battleground for IT firms as most of the big software firms are betting big on this developing technology.

IT-major Infosys Technologies has already filed a patent of an RFID solution.
The software giant's rival, too has its plans ready. Wipro has set up a lab dedicated to RFID technology.

Globally, retail is the biggest driver of RFID and this trend is apparent in India as well. Walmart’s entry is one of the biggest driving forces behind RFID.

“Many Indian retail organizations like Pantaloon and Madura Garments have already done pilots of RFID. Also, exporters are seriously considering it especially after the approval of commercial use of frequency from 865 mhz to 867 mhz as previously, this bandwidth spectrum was reserved for Defence,” says Ravi Mathur, CEO, EAN India, a non-profit organization which drives the industry towards using RFID technology based on the global EPC standards.

Retail space seen surging 180% by '07: report (http://www.business-standard.com/bsonline/storypage.php?&autono=200398)

The total retail space in India is set to grow 181 per cent from 32 million sq ft as of August 2005 to 90 million sq ft by 2007, according to a report ‘Malls of India’ released by Images Multimedia at the India Retail Forum today.

This increase would require an investment of around Rs 40,000 crore. The organised retail industry is growing at an average of 30 per cent per annum and by 2010 is expected to stand at $ 24 billion, around 10 per cent of the estimated size of the overall retail industry, the report said. It is also expected that at least two or three of the Indian players would have crossed the $1 billion mark by then.

While there will be a large number of jobs created in the sector (2 per over 150 sq ft of retail space) there are not enough trained people which is one of the immediate areas of concern.

FDI to add to retail shine
http://us.rediff.com/money/2005/sep/29fdi1.htm

Hope Retail is finally opened up which would create
lot of jobs in the country and would be a boost to
the economy. Kudos to Manmohan if he does that
by convincing the commies!!!

Retail boom a boon for malls

http://indianexpress.com/full_story.php?content_id=79256

India readies for shopping mall boom (http://news.bbc.co.uk/1/hi/business/4286020.stm)

Today there are nearly 100 big shopping malls in the country, more than half of them in Delhi and Mumbai alone.

And in two years there will be 360 malls across the country. More than 20 are in various stages of development in Delhi and Mumbai.

Warning: The usual BBC BS is also there :).

Do Mumbai and Delhi really have more than 50 shopping malls in total?

Even for NCR with NOIDA and Gurgaon, this number is insane!

hooray, Bihar's first mall!!

Organised retailers go shopping in Nitish’s Bihar (http://www.financialexpress.com/fe_full_story.php?content_id=113779)

With the change of guard in Bihar, the state could see its first investment by an organised retail player. India’s largest retail chain Pantaloon Retail is planning its first mall in Bihar.

Neighbouring states like UP and West Bengal have already hosted a number of modern retailing formats. However, with a population of over 90 million, Bihar is yet to expreience a ‘modern mall’.

Pantaloon may not be the only retailer on the prowl to gain a first mover advantage. Multi-branded outlet ‘The Loot’ is also planning to enter Bihar.

However, here is a caveat. “Although all our operational stores are company owned, the foray into Bihar will be through franchisee system due to the fear of red tapism and local mafia,” Mr Dungarwal added.

On whether these developments are the beginning of a change Bihar will be undergoing in the months and years to come, a retail analyst points, “Only if other organised retailers follow suit and attract more consumers than politicians.”

As a first step, Pantaloon is going to Bihar’s neighbour Jharkhand’s capital Ranchi. The company is planning its Big Bazaar and Food Bazaar formats in Ranchi this fiscal, with steel city Jamshedpur also on its agenda.

GREEN PIECE
RIL, ITC plan to enter agri-marketing space

Express Interest In Setting Up Complexes By March

Arun Iyer and Boby Kurian BANGALORE 6 JANUARY

THE agriculture sector is increasingly attracting the attention of Corporate India. Reliance Industries and ITC have expressed interest in setting up big box agrimarketing complexes, to be positioned as terminal market complexes (TMC), according to sources. The expression of interest (EoI) for the TMCs was recently floated by the Jaipur-based National Institute of Agriculture Marketing.
Though India’s annual output of horticulture produce is over 125m tonnes, a large portion of it is wasted due to lack of adequate processing and storage facilities. “After the bids are opened, the Union agriculture ministry will initiate discussions with the players. We expect that complete project closure for these would be completed by the end of March this year,” sources said.
Each TMC will handle fruits, vegetables, flowers, aromatics and herbs, besides poultry and meat, and may cost anywhere between Rs 60 crore to Rs 120 crore. The plan is to have eight TMCs operational in centres like Mumbai, Nasik, Patna, Chandigarh, Rai (Haryana), Bhopal, Nagpur and Kolkata. The area covered varies from 200 acres (for Mumbai) to 55 acres (Kolkata). Accordingly, the handling capacity in each TMC ranges from two lakh tonnes annually to six lakh tonnes (in the case of Mumbai).
The new line of thinking (of ensuring that the private sector gets a larger role in the agriculture sector) comes at a time when India has emerged as a global leader in horticulture production. Realising that marketing and processing have been the weak links in the country’s agriculture sector, both the Union and state governments have undertaken a host of initiatives, including amending the state Agriculture Produce and Marketing Committee (APMC) Acts. On its part, the Union government has also formulated a model APMC Act, which could be adopted by the states. By amending the APMC Act, state governments hope to attract large investments into storage and handling of these primary products.

Jet going ahead with building buying plans

Trashes Report Of Backing Out Of BKC Deal

TIMES NEWS NETWORK

Mumbai: Debunking reports that it had withdrawn its offer of Rs 206.10 crore for the Apple Finance building, Jet Airways on Tuesday said it had already paid up part of the amount to the court receiver.
“Jet Airways deposited Rs 51.52 crore with the court receiver within seven days of the auction. This was done as per the undertaking given to the receiver on December 23, 2005, immediately after the auction,’’ Jet officials told TOI.
Jet Airways’ bid of Rs 206.10 crore at the open auction held by the court receiver was declared as the highest offer. The court had set the base price at Rs 160 crore for the 10-storey building located in the Bandra-Kurla Complex (BKC).
Reacting sharply to reports that it had backed out of its commitment, Jet officials said the airline will complete the purchase. “Reports suggesting that Jet is backing out of the transaction is totally incorrect, and could possibly be based on false information provided with mischievous intent,’’ said a source.
The transaction will now have to be approved by the Bombay high court on Friday. The December 23 auction of the building saw five parties trying to outbid each other from time to time. Indepth Trading was virtually neck-and-neck with Jet till the very end, but ultimately gave up at Rs 205 crore.
Last month’s auction was the sixth of its kind since last year. Each time the court had turned down the highest bid as it was not ‘high enough’.
The first auction last year, it is learnt, had got a bid of barely Rs 61 crore. In subsequent auctions, several developers jumped into the fray and quoted various amounts ranging from Rs 135 crore to Rs 193 crore.Jet has been on a major real estate buying spree in the BKC. Last week, it bid the highest amount of Rs 339 crore for a 2.5 acre plot allotted by the Mumbai Metropolitan Region Development Authority.
“We will be using both these premises to expand our operations,’’ said officials. Jet offices are currently located on the Andheri-Kurla road.

Pantaloon to set up 51 malls in 3 years

Company's VC fund, Kshitij, will fund the project.

The Pantaloon group-promoted Kshitij will be setting up 51 malls over 14.5 million sq ft over the next three years.

Shishir Baijal, chief operating officer, Kshitij, said, “These malls will be called Kshitij Retail Destinations and will be spread over 29 cities ranging from Mumbai and Chennai to smaller ones like Siliguri, Guwahati and Ranchi. This is the first time a chain of malls will have a pan-India presence.”

The 51 malls would include the ones being developed using Kshitij Venture Capital Fund, as well as malls both owned and leased by Pantaloon Retail. Baijal said the total cost of the projects being implemented by KVC fund is approximately Rs 2,500 crore, and KVC’s equity contribution is around Rs 600 crore.

In addition, he said the Horizon International Fund, which is a $250 million fund, would have its first closing by the end of January 2006.

He is confident of doubling the 14.5 million sq ft of retail space to 30 million sq ft by July next year.

“While in terms of properties the number would be limited, we would be looking at larger properties where we would set up about four-five town centres like the one planned at the Mukand property in Mumbai,” Baijal said.

The size of these would be about 5 million sq ft each and would be mixed with retail spaces which would also have hotels and convention centres. The company will announce the marketing of the properties at the India Fashion Forum in Mumbai on January 24.

Baijal said these 51 properties had been identified over the last six months and work was already underway in about half of these.

The first property, a mall in Ahmedabad, would be opening later this year. Kshitij would also be setting up a mall management company in collaboration with a foreign firm to define these destinations and provide services such as tenant management, marketing, and events.

In terms of tenant mix, Pantaloon Retail is likely to occupy about 20 per cent of the overall space available. The company has tied up with Inox Leisure to set up multiplexes at the Kshitij properties, and about 37 of the 51 malls coming up would have a multiplex.

http://www.business-standard.com/common/storypage.php?storyflag=y&leftnm=lmnu4&leftindx=4&lselect=5&chklogin=N&autono=212597

Reliance lifts veil off mega retail foray (http://www.indianexpress.com/full_story.php?content_id=86497)

The Big Bazaars and Shopper’s Stops of the country have got some tough competition coming with Reliance Industries attempting to do a Wal-Mart in India. The country’s largest private sector firm today announced that it will invest over Rs 3,315 crore, or $750 million, to set up a nationwide retail store chain.

The Reliance board which met on Monday gave its consent to pursue retail business through a subsidiary. ‘‘The board has approved the initial phase of setting up of hypermarkets or supermarkets or convenience stores, specialty stores etc in select cities and towns covering all the geographical regions in the country at an estimated cost of US$ 750 million.’’

This is the first time Reliance has officially spelt out its plans for the retail sector. The group has been hiring people and identifying locations across the country for its retail foray but never officially confirmed its plans.

Reliance lifts veil off mega retail foray (http://www.indianexpress.com/full_story.php?content_id=86497)


WOW! That may change the retail scenario.

From The Times. Thanks to forumer 'warnings' for the news.

British to design biggest shopping centre in Bombay (http://business.timesonline.co.uk/article/0,,16614-2006497,00.html)

A BRITISH architect has won a contract to create India’s biggest shopping mall.

Benoy, the firm behind the Bullring and Bluewater shopping centres, in Birmingham and Kent respectively, has become the first British firm to win retail design projects in India.

The projects include a two million sq ft shopping centre in Bombay, which will become the biggest retail complex in the country. The £200 million project in India will include a one-acre man-made lake, a 3,000-space car park and a multiplex cinema, as well as 350 retail units.

Benoy’s win came a few days after it had secured the contract to design Calcutta’s biggest shopping mall — a six-storey, 500,000 sq ft complex, with two levels of underground parking. The shopping centre will cost about £100 million to build. The waterfront complex near the centre of Calcutta will have about 200 shops, restaurants and a multiplex cinema.

Both contracts were awarded by Kshitij, the retail development arm of Pantaloon Group, India’s largest retail group.

Benoy’s contract wins came only days after the Indian Government had said that it would allow foreign retailers to set up shop in the country for the first time. The Government is expected to relax gradually its stringent rules on foreign retail, beginning with luxury goods-sellers such as Prada and Burberry.

where is this shopping complex supposed to be? not heard about it in the local papers, though there is talk of pantaloon raising huge funds for its retail business

Reliance’s retail foray rolls out

Mukesh Ambani Lets His Closely Kept Secrets Out, Unveils Mega Growth Drivers

By Abir Pal/TNN

Mumbai: Mukesh Ambani’s next big bet on organised retail has received a stamp of approval. On Monday, the Reliance Industries board approved the initial expansion into organised retail and the formation of a separate subsidiary, and decided to back it with a Rs 3,375 crore ($750 million) investment.
In its notice to the exchange, Reliance did not share specific information on its plans, beyond the fact that it would set up hypermarkets, supermarkets, convenience stores and speciality stores in select towns covering all geographical regions. TOI learnt that, according to a 31-page internal document prepared by its strategy group, four zonal pilot projects will roll out by July.
Reliance is expected to straddle multiple retail formats as diverse as hypermarkets, supermarkets, cash and carry, speciality stores to convenience stores. It has mapped a staggering 784-plus cities, and divided them into four groups, based on parameters like population, socio-economic mix and consumption potential.
So while 24 of the top-tier A, AA & AAA cities will have multiple hypermarkets, supermarkets in residential areas, specialty high street stores for electronics, pharmacies, furniture and apparel and assorted convenience stores, B cities—34 of which have been identified—may only have a single hypermarket and convenience stores. C & D cities, 644 of which have been identified, may only have one hypermarket. Average outlet sizes will range anywhere from 50,000 to 1,50,000 sq ft.
Work has already begun on an integrated supply chain project, with a distribution centre for each state. On staples and commodities, it is looking to build direct linkages with farmers, which will enable it to offer substantially lower prices. It is also in the process of deciding on the technological platform, which will be the backbone for the mammoth project.
Apart from enticing consumers with mouth-wateringly low prices, Reliance expects to create specific value propositions like a huge product range for hypermarkets, close proximity to the consumer for supermarkets and superior service for specialty retail.
The project is headed by Mukesh’s trusted lieutenant, Manoj Modi along with Hital Meswani. Two key retail professionals from Dubai, Rajkumar Kobalia and Pradeep Kedia, are managing the supply chain and category management out of the group’s retail headquarters in Shriram Mill Compound in mid-town Mumbai.
In typical Reliance fashion, a massive recruitment drive has already begun. Apart from supply chain professionals, Reliance is also looking for category managers from a wide range of products including toys, consumer durables, pharma, staples and commodities. So far, the focus is on beefing up the middle level. To lure talent from retailers like Pantaloon and Shoppers’ Stop, Reliance is willing to even double salaries, in some cases.
So far, about 11 executives have been snagged from Pantaloon and another two from Shoppers’ Stop have crossed over. In the past few weeks, reports suggest that it is aiming for senior level managers in LG and Samsung for its consumer electronics foray.
TOI had earlier reported that Reliance is planning to make its retail debut in Ahmedabad, where it has already snagged two large plots in Advance Mills, Shahibaug and a bungalow on C G Road.
It has also made presentations to government officials in Punjab and West Bengal.
(With inputs from Namrata Singh and Amrita Nair-Ghaswalla)

Photos (first time on SSC?) of ITC's rural mall Choupal Sagar.
Photos by Millanprieto

http://img223.imageshack.us/img223/5688/itcmandi1millanprieto7jj.png

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________________________________

And some related news articles:

ITC plans 30 rural malls; 2nd phase of e-choupal in 2006

HAVING successfully established the country's first private sector rural mall, ITC Ltd plans to open 30 more such malls in 2005-06, in synergy with its fast growing e-choupal network.

ITC's rural mall - Choupal Sagar - is at Sehore in Madhya Pradesh.

The construction of nine malls is nearing completion (three each in Maharashtra, Madhya Pradesh and Uttar Pradesh). They may be opened within the next few months.

The Sehore mall, housed in 5 acres of land, has a warehouse space of 10,000 sq ft, besides space for storing 10,000 tonnes of grains, with support facilities such as fuel station, food court and training centre. Each mall, on an average, will cost Rs 5 crore.

Sehore Choupal Sagar is manned by 15 people - six employed by ITC and nine outsourced by Samyojak, a village level co-ordinator. The e-choupals are operated by Sanchalaks or supervisors appointed by ITC.

http://www.thehindubusinessline.com/2005/06/20/stories/2005062000060700.htm

____________________________

This article is from 2004
Rural Mall


It's a mall unlike any in the big cities. Alongside the dazzling array of clothes and consumer goods, the place is stocked with fertilisers, pesticides and even motor pumps. ITC's Choupal Sagar is a shoppers' stop for farmers. Seven thousand sq ft stacked with brand names... a place where Sonata watches and Usha, Prestige and Hawkins home appliances jostle for space with Italio, Cosmo, Springwood and John Players shirts, jeans, and Philips and LG products. Right in the centre of the mall is displayed a TVS Victor motorcycle and, a few rows down the hall, you can buy fertilisers and pesticides or motor pumps. This is ITC's Choupal Sagar at Sehore, about 38 km from Bhopal, put up primarily for the shopping convenience of farmers. It is part of a huge complex, spread over eight acres, that includes the ITC's procurement centre for soyabean, wheat and other grains. It is here that farmers in the Sehore belt and surrounding areas bring their produce packed in huge trucks/trolleys for sale — sometimes pooling their produce in one vehicle — receive the payment in cash, pick up their requirement of fertiliser, pesticide and even diesel packed in huge drums.

http://www.thehindubusinessline.com/life/2004/11/26/stories/2004112600290400.htm

Thanks for the pictures Sun.

Companies like ITC have shown that theres economic potential in our rural masses as well, and their e-choupal initiative is unparalleled.

Christian Dior enters India; sets shop in Delhi

International designer brand Christian Dior on Monday announced its foray into the Indian market and set up its first boutique in the capital.

"India is growing fast. Entering this market would mean good business for us. We want to establish our name and brand in India at the moment," Christian Dior General Manager (Middle East and India) Regis Rimbert told reporters here.

Rimbert said the company would set up another boutique in Mumbai within a year's time. "We will plan our further expansion thereafter," he said.

Asked about the kind of revenues Dior was looking at and when it expects to break-even, Rimbert said the focus would be to establish the brand in India rather than making profits.

Prices of the products ranging from cosmetics, shoes, leather bags, costume jewellery and dresses would be slightly higher in India than in Paris and other Middle East countries due to the different tarrif regime and import duties, he said.

Gucci steps into India with Murjani

Putting all speculation to rest, Italian luxury goods maker Gucci has announced that it will enter India via a tie-up with the New-York-based Murjani Group. The latter, for the record, is no stranger to the world of brand marketing, having developed and launched designer labels such as Gloria Vanderbilt, Coca-Cola Clothes among others.

Gucci, which closed the first half of 2005 with sales of euro 1350.8 million, will open exclusive outlets in the metros of Mumbai and Delhi by 2007. An official communiqué from the group points to the Murjanis' “firm understanding of the Indian marketplace” as the main reason for the tie-up.

http://www.financialexpress.com/fe_full_story.php?content_id=117995

Wal-Mart may enter India with local partner (http://www.thehindubusinessline.com/2006/03/10/stories/2006031003850100.htm)


Wal-Mart, the world's largest retailer, which has been waiting in the wings for the government's go-ahead to enter the Indian market, may consider entering it with a local partner. Ms Beth Keck, Director, International Corporate Affairs, Wal-Mart International, said, "We often work with partners and have done so in countries like Japan, Central America, Mexico and China. They have been able to give us a better understanding of local customers, which has helped us to operate more effectively in these countries. We may consider this approach for India too."

She was responding to a specific query from Business Line on the subject.

According to information available, Wal-Mart entered Japan, the world's second largest retail market in 2002, by picking up a minority stake in the Tokyo-based Seiyu super market chain. It spent an estimated $600 million last year to increase its stake to over 53 per cent, making Seiyu a Wal-Mart subsidiary.

Policy hitch


Of course for Wal-Mart, there is still a policy hitch to be over come in India as the present official stance allows only `single brand' retailing to be carried on with foreign direct investment. But here too, Wal-Mart is hoping that things would change.

"We welcome the Indian Government's movement in allowing 51 per cent FDI in retail to single brand companies and hope they eventually will open this sector more broadly to foreign investment," Ms Keck added.

Asked if Wal-Mart would discuss the issue of a broader scope for FDI in retail, Ms Keck said, "The Indian government's policy on foreign direct investment in retail is just one of several topics which we discuss with Indian government officials. As a purchaser of goods, we also are interested in learning about a wide range of areas that affect our sourcing from the country."

The Arkansas-based retailer's interest has to be seen in the context heightened activity in retailing with,corporate heavyweights such as Reliance Industries jumping in on the retail bandwagon to cash in on a market estimated to be worth $350 billion by 2010.

^^ Finally some good news

Its boom time, folks (http://economictimes.indiatimes.com/articleshow/1445020.cms)


Did you know that out of the 10 richest individuals in the world, more than five come from the retail industry. Today retailing is the world’s largest private industry estimated at over $ 6.5 trillion. Then how can India be left behind? The Great Indian retail boom is here and happening, and both metro and 2-tier cities are fast catching the new retail fever. Out of 282 malls expected to come up by 2006 around the country, there are 77 mall projects which are under construction or under stages of planning in six metro cities (Mumbai, Delhi, Chennai, Kolkata, Hyderabad and Bangalore) and 58 malls in 2-tier cities.
According to estimates , more than 25 million sq ft of organised retail space will be coming up across the country by the year 2005. Out of the 77 malls, 20 malls will be operational by the year-end . Moreover, out of these malls, over 72% of the mall areas in these 20 malls have already been pre-leased to anchor and smaller vanilla retailers. For malls which will be operational in 2006, 32% of the area has been pre-leased by the anchors.Hence, there will be no real oversupply of malls.
Says Tanaji Chakrabarti, head, India Property Research: “ The availability of land, coupled with the flexibility of retail use has been the key trigger for the supply deluge.” Anshuman Magazine, MD, Richard Ellis, agrees: “ The mall culture is the talk of the town and many metro towns has certainly taken the spotlight. Organised and convenient retailing will be the most essential factor for the future, and metro malls have a lot to offer.” There is more than 25 million sq ft of space up for grabs. The variety ranges from wedding malls to auto malls, mega malls, highway malls and rural malls.
The builders are also looking at small towns. The key drivers of retail activity are the apparel and the F&B sectors. The organised apparel segment is expected to grow at a steady pace of 9.5 % per annum over the next three years, driven primarily by large domestic brands. A notable trend in the market is the development of integrated retail-cum-entertainment centres. An increasing number of retailers are focusing on malls as opposed to stand-alone developments. Besides this, there are Mega Malls which have large space and entertainment facilities. In Noida, the Unitech group is coming up with a mega mall, measuring 1.6 million sq ft and in Bangalore, the Mantri Mall measuring 1.8 million sq ft is coming up soon.
For the success of any mall, a anchor retailer is required. In India, organised retail players like Pantaloon, Shoppers Stop, Trent, Globus are set to occupy more than 50 million sq ft. In the next two years, Pantaloon alone will have more than five million sq ft of space around the country. In fact, Pantaloon is the first retail chain in the country that is working on the zone system and this has helped it develop a better national network of distribution and marketing .”
In places where we already have our megastores, we wish to consolidate our position . We want to expand retail floor space, either through new stores or by adding space to existing ones, and thereby increase the market share.We aim to be the undisputed leaders in the departmental form of retailing in India. It took us a little time to establish ourselves in the north zone as it is different from the other zones in the country,” says Kishore Biyani, MD, Pantloon Retail (India). The Knight Frank survey points out that for a retailer, the most important parameters in selecting a mall is location, consumer demographics and developer reputation. Mumbai, Delhi, Bangalore and Pune rank amongst the top cities in the country for retail growth even though other metros and 2-tier cities will also grow in prominence over the next few years.

The commercial capital of India, Mumbai , is one of the fastest growing cities in the country. Over 90% of the new mall development is concentrated in the suburbs, two-thirds of which is in the western suburbs . The far-flung eastern suburb of Mulund has recently become the focus of retail development activity with two new malls spread over a total of 1.3 million sq ft. Andheri Link Road itself will soon house two
more malls adjacent to each other. With new mall development on the rise, an aggregate of 4.7 million sq ft of retail space is expected to be added to the already existing 550,000 sq ft by the end of 2005. Further, there is potential for about 1million sq ft of existing space in the form of non-functional mills and other industries that is likely to be converted into retail in the near future. Malls comprise of 90% of the total retail development in the pipeline. These malls are located in new retail destinations, in close vicinity of densely populated, residential pockets like Andheri, Malad and Kandivali . Retail activity in the malls of Mumbai is primarily driven by apparel , department and discount stores. This will, however, change with the increasing level of competition and the arrival of professional mall management, when tenant mix will be given top priority.The entertainment sector is likely to get a huge boost with at least 15 new multiplexes to be added to the market by the end of 2005.

more on rural retail...

Shriram plans 35 rural marts in 12 months (http://www.business-standard.com/common/storypage.php?storyflag=y&leftnm=lmnu1&leftindx=1&lselect=1&chklogin=N&autono=218241)

DCM Shriram Consolidated Ltd’s initiative in setting up rural/semi-urban utility marts by the brand name “Hariyali Kisaan Bazaar Chain” is set to get a boost as it plans to open 35 outlets over the next 12 months.

Currently, there are 24 outlets spread over Uttaranchal, Punjab, Haryana, Rajasthan, and Uttar Pradesh. Another four will be opened this month. The Hariyali Kisaan Bazaar model seeks to empower the Indian farmer by setting up retail centres and providing all retail solutions, from utilities to banking.

With an investment of Rs 2 crore the outlets are set up over 2-3 acres, providing infrastructure to farmers.

"We will also have petrol pumps of Bharat Petroleum, extensions of ICICI Bank branches, LPG outlets, and a Yamaha Motorcycle showroom at these outlets," he said.

Tie-up with Motorola

Motorola today announced an alliance with Hariyali Kisaan Baazar for sale and distribution of handsets aimed at the country’s mass market consumers in rural and semi-urban areas.

The alliance will offer consumers direct, over-the-counter access to a wide range of handsets across categories and price brands.

Tesco rumoured to be India-bound (http://www.freshinfo.com/index.php?s=n&ss=nd&sid=38587)



Tesco is reported to be in negotiations with India's largest mobile phone company over a £750 million joint venture to set up a supermarket chain on the sub-continent.

According to Thisismoney.co.uk, Bharti Tele-Ventures is keen to establish a retail food business in the region, and the website believes Tesco could take as much as a 49 per cent stake in the new operation.

The link has been made with ex Tesco chairman Lord MacLaurin, whose Vodafone paid £831m a 10 per cent slice of Bharti Tele-Ventures just six months ago. Lord MacLaurin is rumoured to have played a big part in bringing the two groups together.

At present, foreign chains such as Tesco and Wal-Mart are barred from operating in India to protect the country's 9m family-run stores.

Indian government policy has previously barred foreign retailers from operating in the country, in part to protect its 9m plus family-run stores. But a change of stance allows Tesco to take a stake in a domestic retailer without government permission.

India’s retail infrastructure is almost totally undeveloped and as the country's economy is growing by seven per cent a year, there is a growing degree of interest in potential amongst international retail giants.

At the time of writing, Tesco had declined to comment on the article.

India's retailers change fast as Wal-Mart waits (http://www.financialexpress.com/latest_full_story.php?content_id=121502)

India's fast-growing, young, urban middle class is driving a retailing revolution, bringing Western-style formats including hypermarkets, department stores, specialty chains and even dollar stores. As many as 250 malls are expected to open in India over the next two years, up from around 60 now.

But the next phase is still to come as global giants such as Wal-Mart Stores Inc wait anxiously for India's government to ease restrictions on foreign investment.

"India is becoming a consumer economy," Mike Duke, Wal-Mart's vice chairman and head of international operations, said in a recent interview in New Delhi.

Duke was the second high-level Wal-Mart executive to meet government officials here in the past year, as the world's biggest retailer tries to convince India to open up its retail market to outsiders.

India recently allowed retailers that sell a single brand--Nokia, for example--to own a majority stake in stores. Nokia, Benetton and others are already here through franchise deals.

Opponents say big foreign players will drive local firms out of business and destroy jobs, replacing quaint corner shops with characterless superstores.

But many analysts argue that modernising retailing will add good jobs with opportunity for advancement, particularly for Indians who don't have the education to find high-paying work in hot sectors such as information technology.

Small, corner shops dominate the retail sector, accounting for some 97 per cent of trade, but chain stores are popping up as retailers scramble to expand before Wal-Mart and others arrive.

Analysts say most consumers aren't worried about foreign investment, and appear more than ready to embrace Western-style retailing.

A recent clearance sale at India's biggest retailer, Pantaloon Retail (India) Ltd, drew such large crowds that police were called in to control traffic jams and the store was forced to close early.

There are signs that trouble is brewing, however.

In Gurgaon's malls, retail analysts say foot traffic has declined, suggesting the novelty is wearing off. A KPMG survey found most retailers think India is heading toward mall overcapacity.

Part of the problem is planning. In Gurgaon, analysts say some malls will likely fail because too many are too close together, selling too much of the same merchandise.

Newer malls are being built near public transportation--a key issue in India's major cities where trucks, buses, taxis, cars, pedestrians, pushcarts and cows vie for space.

Developers are also paying more attention to demographics, choosing tenants that fit local income levels and tastes.

All this brings a smile to the face of Wal-Mart's Duke, who sees the rapid changes as a sign that Indian consumers are ready for more retailing options--including Wal-Mart stores.



all of these American media reports give me the impression that we are a fattening cow and they are just about ready to pounce on it!

Wal-Mart takes its China lessons to India (http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2006-03-27T051724Z_01_SP5974_RTRIDST_0_BUSINESSPRO-RETAIL-INDIA-WALMART-DC.XML)


Some ideas about how a Wal-Mart store in India should look.


For starters, it should have an expansive spice section, where employees can custom grind orders while shoppers wait. It would also boast a large bakery section.

In India, as in China, few households have ovens, so baked goods must be purchased.


Analysts in India say it will be tough for Wal-Mart to get into the mega-cities such as New Delhi or Mumbai, where real estate is pricey and large parcels of land are hard to come by.
Hatfield said Wal-Mart was interested in cities both large and small. He said his strategy would be to make a big splash early on, opening 12 to 18 stores in the first 18 months, to show consumers that Wal-Mart was committed to India.

Stores would probably be smaller than they are in China -- no more than 140,000 square feet, instead of the 200,000 square-foot supercenters in China and the United States

Bharti eyes $10bn revenues

Retail, Insurance And Agribusiness To Be The Next Big Money Spinners

By Sanjay Anand/TNN

New Delhi: Bharti Enterprises might soon become a case-study of how a company that grows fast has no other choice but to develop faster, yet manage its growth well. Abounding in funds and manpower, created during the rapid advancement of its telecom business, Bharti will see the take-off of new businesses starting next fiscal.
Over the next 12 months, the company’s coffers will witness revenue inflows from insurance (a joint venture with AXA), horticulture (FieldFresh, a joint venture with UKbased Rothschild) and a nationwide chain of grocery and vegetable stores, the details of which are yet to be finalised.
Of these, Bharti is betting big on retail, which could possibly be the next billion dollar business after telecom. And, it could happen within five years, says Bharti chairman and managing director Sunil Mittal in an interview with TOI.
It is targeting to be a $10 billion group within five-to-six years, with its telecom business contributing under 75% of that turnover.
At present, telecom services under Bharti Tele-Ventures contributes a lion’s share of the about $2.75 billion the group expects to earn this fiscal. In the next few years, the grocery retail-chain, fruit and vegetable exports and insurance are expected to contribute about 25%. With Bharti Tele-Ventures emerging as a nationwide, integrated telecom player offering cellular, landline, STD, ISD and VSAT services over the last 10 years, the group has accumulated financial and manpower resources that need to be deployed beyond telecom, says Mittal .
After the failure of its foray into the airport business, Bharti began to focus on the highly capital-intensive retail segment, which will be the high thrust area for the company in future. But before that Bharti’s insurance business is expected to takeoff in June. “We have set up base in Mumbai and hired a CEO from the banking sector—an Indian settled abroad. We’re awaiting the licence,’’ says Mittal.
The agribusiness, FieldFresh, has started shipping consignments to Europe through Tesco. “By March next, I expect FieldFresh to be a Rs 100 crore business and about $100 million within four-to-five years. From there it should be only a few years for FieldFresh to bring in revenues of a billion or so,’’ he added.
“We have tied farming contracts that cover about 3,000 acres. Soon we will contract 2,000 acres.’’ Field-Fresh is already in talks with retail chains like Tesco and Wal-Mart to become a key supplier of fruit and vegetables to the US and Europe.

FUTURE IS BRIGHT

Insurance: JV with AXA to start in June

Agribusiness: FieldFresh, which ships consignments to Europe through Tesco, expected to be a $100 million business within 4-5 years; in talks with Tesco, Wal-Mart to become a key supplier of fruit and vegetables to the US and Europe

Telecom: Bharti Tele to have 25% market share, with at least 75-80 million subscribers by 2010, with an average spend of Rs 5,000 a year

Retail: A nationwide chain of grocery and vegetable stores to be set up

Bharti bets big on retail


New Delhi: The Bharti Group is betting big on the retail segment, its CMD Sunil Mittal says. Still in the nascent stage, Bharti plans to invest heavily in setting up a nationwide presence of vegetables and grocery stores. “That should be Bharti’s billion dollar business within five years of operations. We are reviewing our plans and within a few months, the first stores should be set up,’’ says Mittal.
The produce of FieldFresh will be for exports and not constitute more than 2-3% as a supplier to Bharti’s retail stores. For the retail venture local suppliers will be contracted with. “We will talk to HLL, Proctor & Gamble, among others for supplying tooth-brushes, soaps and toiletries,’’ he added. Mittal noted that Bharti should have a 25% marketshare, with at least 75-80 million subscribers by 2010 (out of the 300 million projected subscriber base for India), with an average spend of Rs 5,000 a year. “Give or take a year or two over that, each of our businesses should be a billion plus in revenues eventually.’’
It took Bharti Tele-Ventures nine years to generate its first billion in revenues a couple of years ago. Offloading just about 10% of it to Vodafone fetched Bharti’s promoters and investors $1.5 billion last year.
On whether he will sell off some businesses once the valuations grow big, Mittal says, “We don’t sell businesses, we build them, unless I decided to walk away from some, like the healthcare business. But, if I need a billion to fund the retail business, for example, I will offload some stake.’’

Hindujas eye real estate biz

By Namrata Singh/TNN

Mumbai: The booming Indian real estate market has got yet another corporate group, to start thinking of unlocking value of its vast excess real estate in the country.
The Hinduja Group—which has around 3,500 acres of surplus land spread across the country—is exploring the possibility of developing this property in order to extract value, sources said.
Global consultants US-based Cushman & Wakefield and Germany-based Bioallianz are said to be advising the group on matters of property development.
In the past, corporates like Tatas, the RPG group, Hindustan Lever, among others, have either sold off or developed surplus property to improve asset utilisation.
Sources said that the Hinduja group, which has diversified business interests in from transport, banking and financial services to IT/BPO, telecom & media, healthcare & energy, is considering various possibilities of unlocking the value of its unused, surplus real estate. The possibilities include setting up a real estate fund within the group, or entering into joint ventures or partnerships with interested parties.
The development opportunities being explored include setting up of knowledge parks, probably in Bangalore and Hyderabad, where it has huge real estate. The group also owns estates in Mumbai, Vizag, Haridwar, Gurgaon, Delhi and Chennai.
It is in the process of getting clearances from group companies for the real estate development and is expected to give this plan some form in the next three months, sources said.
The Hinduja group of companies in India include Ashok Leyland, Gulf Oil Corporation, IndusInd Bank, IndusInd Media, IndusInd Entertainment, Hinduja HTMT, among others.

State plans policy to hitch a ride on retail bandwagon

MAHARASHTRA will soon have a policy in place to attract the growing retail sector, reports Girish Kuber in Mumbai.
The state government, conscious of the sector’s potential, is working on a policy that will offer a slew of concessions to attract the happening retail sector. “The proposed policy will address all the important issues affecting growth of the retail sector,” highly-placed sources told ET. The policy is expected to be released in a couple of weeks.
In the proposed policy, the government has categorised indoor multi-vendor shopping into three categories. It will also consider plazas, bazaars, departmental stores and shopping centres along with grocery shops as places where wholesale trade can be carried out. “We are looking forward to an amendment in the Agricultural Produce Marketing Act. This will allow malls to buy directly from farmers,” an official said. The APMC Act in the existing form prevents such transactions. The Act also states that “any wholesale trade in notified agricultural commodities will have to be done within a physically notified market area and not just from anywhere”.
The government, however, expects stiff opposition from a body of grocers. The Federation of Associations of Maharashtra has already indicated its opposition to the intended amendments. The proposed policy will handle two other important issues, shop timing and labour laws. The change in the former will allow malls, shopping complexes to carry on their activities beyond the stipulated time, while the latter will help them in introducing flexible timing for the workforce. To begin with the state expects to allow malls to stay open till 1 am.
The government has already had a round of discussion with officials from Wal-Mart, Home Depot, Office Depot, along with Noel Tata of Westside, and Reliance Industry officials. The Mukesh Ambaniled group is planning a foray into retailing. The government’s efforts to have a special policy in place to woo the retail sector received a boost after the Centre allowed FDI in single-brand retail outlets.
“It’s a first step that will eventually lead to more openings,” a political functionary of the government said. First, the government wants to dispel the impression that single-brand retail outlets would displace shopkeepers. “We have our own considerations. Don’t expect all in one go when we are banking on the Left’s support,” he said while justifying the pace.
According to him, Maharashtra is better placed to benefit from the approaching boom in the retail sector. “With more than half of the state urbanised and better infrastructure already in place, the retail sector can be the next big thing for Maharashtra,” he said. A government official pointed out how major global players are showing interest in the state. Shoprite Checkers of South Africa has already acquired over 60,000 sq ft space in a mall in Mumbai’s central suburb.

India hopes job logic will coax left on retail

http://today.reuters.com/business/newsarticle.aspx?type=reutersEdge&storyID=2006-03-16T124409Z_01_BOM161964_RTRUKOC_0_US-ECONOMY-INDIA-RETAIL.xml

Nandan Piramal is a harried man. As vice-chairman of a leading Indian retailer, he can't find the technology to ensure farm products stay fresh on their way from the fields to his stores.

Food retailers in India are mainly family-run businesses too small to have created much of a market for a home-grown refrigerated transport industry.

Piramal, of Piramyd Retail Ltd. (PMDR.BO: Quote, Profile, Research), says one solution would be to tap into foreign expertise. Yet, there's a hitch -- foreign investment in Indian retail is heavily restricted.

"We don't consider foreign direct investment as too much of a threat," he said. "I think it will add to the pie instead of eating into the pie."

Piramal's situation is one reason the ruling Congress-led coalition wants to open retailing to foreign investors. It has so far shied away due to opposition from its communist allies, avoiding the issue in last month's annual budget, but analysts say it will tackle the issue once state elections in May have run their course.

A small step was taken in January -- allowing single-brand foreign firms to own 51 percent of retail joint ventures. Until then, these brands depended on franchisees to sell their wares in Asia's third-largest economy.

But multiple-brand firms such as Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) and Carrefour (CARR.PA: Quote, Profile, Research) are still barred.

JOBS GALORE

Developing the $8.5 billion retail sector carries huge opportunities and huge risks. Economists say it has a clear link to overall economic growth and thousands, if not millions, of jobs stand to be created to make up for those lost through competition.

The government expects foreign investment in retail to make India the factory to the world and push growth beyond its current annual rate of 8 percent.

Analysts said chains like Wal-Mart and Carrefour will tap local vendors once they set up shop, to ensure better margins in a high volume market with a population of more than a billion. This may also prompt them to export to their stores abroad.

"The global retailers taken together buy about $60 billion of goods each year from China for exports," said Alok Ray, economics professor at Indian Institute of Management Calcutta.

"Contrast this with India, where less than $1 billion of exports are accounted for by global retailers."

India is on a drive to boost exports, which form just 10 percent of the $700-billion economy. They are a key growth driver in years when domestic demand, driven by rural consumption and dependent on capricious monsoon rains, is sluggish.

POLITICAL QUAGMIRE

But there are roadblocks to opening a part of the economy in which tiny shops and bazaar stalls have 97 percent of the market and which the government's communist allies, facing elections in their stronghold states in April and May, want protected for ideological reasons.

The ruling Congress party and the communists are locked in an electoral battle in two of the five states due for polls and Congress does not want to open retailing beforehand and hand the left a stick with which to beat it.

"Opening the single-brand retail was the pebble and the rock will follow," said Mahesh Rangarajan, political commentator and analyst. "The budget was a quiet one and the government took care it offended no one. Particularly with the elections, they would not be wanting to raise the left's hackles too much."

Analysts say the communists oppose the move on the basis that foreign investment is not good for the country's development rather than because it might threaten jobs, as labor unions have little influence among retail employees.

So the government hopes they will come around on the potential for new jobs and higher rates of growth.

Consultancy firm KSA Technopak expects retailing to employ 2.5 million people in the next five years as it expands into a $45 billion industry. Another 2-3 million people would be indirectly employed in manufacturing, packaging and transport.

The government could copy China and first partially open the sector, giving local players time to gather strength before removing all the caps, analysts say.

In fact, the government does plan to cap foreign money at 26 or 51 percent, to ensure foreign firms have a local partner.

This may also silence local retailers who say they are not yet strong enough to face the might of foreign giants.

"Being closer to the consumer, small retailers can reinvent themselves and stock products which have high frequency like fruits, eggs and milk and also cater to the top-up needs of personal care," said Purnendu Kumar, Principal Consultant with KSA Technopak.

Small retailers say they will also retain some advantages.

"The foreigners will have shops in big malls and not many of my customers have cars to load all their groceries," Mussaddi Lal said at his shop in a residential area of New Delhi. "Moreover, we deliver at home for free."

So is there any chance Wal-Mart might come to India in the next few years?

So is there any chance Wal-Mart might come to India in the next few years?

I read Anil Ambani is planing a deal with Walmarts chief,lets see what happens. :cheers:

E-tailing gets another fan as Globus logs in (http://www.dnaindia.com/report.asp?NewsID=1023776)

The Indian retail industry is truly on a livewire. After Pantaloon Retail, it’s now fashion apparel retailing brand Globus that is planning to enter the online retailing space.

The company is in the process of finalising its online retail plans which is likely to be a part of its unique resource location (URL).

Launched in 1999, Globus now commands a retail space of over 2,25,000 sq ft. Globus has 12 stores in eight cities and it has a turnover of over Rs 100 crore. Targeting a Pan-Asian presence, the company is looking at increasing its revenues manifold by adding over 1 million sq ft retail space in the coming five years. “We will be setting up retail stores in over 40 to 50 towns and cities in the country,” said Nadkarni.

With an average size of 15,000 sq ft per outlet, Globus will add 13 stores to its portfolio this year. Not restricting to primary cities, the company has identified places like Lucknow, Ahmedabad, Nagpur, Pune, Hyderabad and New Mumbai for establishing its retail stores.

Growing at a CAGR of 26%, organised retail is pegged at around Rs 35,000 crore of which apparel retailing is approximately 45% or Rs 16,000 crore. Growing steadily in tandem with the organised retailing industry, the apparel retailing market is expected to touch Rs 45,000 to Rs 50,000 crore by 2010.

India ‘priority 1’ for global retail: Study (http://www.financialexpress.com/fe_full_story.php?content_id=124314)

India ranks first, ahead of Russia, in terms of emerging markets potential in retail and is deemed a ‘priority 1’ market for international retail, a newly-released Ernst & Young report on the retail sector said.

“The retail sector in India is highly fragmented and organised retail in the country is at a very nascent stage. Of the 12 million retail outlets, more than 80% are run by small family businesses which use only household labour. China and Brazil, took 10-15 years to raise the share of their organized retail sectors from 5% to 20% and 38% respectively. India too is moving towards growth and maturity in the retail sector at a fast pace,” says Ranjan Biswas, Partner, Ernst & Young India.

According to the study titled The Great Indian Retail Story, although the organized sector constitutes only 3% of the $230 billion Indian retail market, it is expected to grow 400%—from $7 billion currently to over $30 billion by 2010.

The boom in the retail sector is also associated with rise of malls across India. There are 220 mall projects in the pipeline till 2007, 139 in the big 8 cities-including the metros-and 81 in other Tier II cities. The study notes that even though the six metros have the greatest concentration of India’s wealth, the other 61 cities have consistently outpaced the metros in growth rates since 1995.

The report also indicates a shift towards value retailing with the hypermarket route emerging as one of the most preferred formats for international retailers entering India. Currently there are less than 50 hypermarkets in India, operated by 4-5 big retailers. The report says that India’s 67 cities with populations of half a million or more have potential to absorb many more hypermarkets in the next 4-5 years.

The footwear and clothing categories have seen the highest organized retail penetration (ORP). Footwear has a 22% ORP while clothing, with a 12% penetration, is also hotting up due to the high level of branding activities by apparel retailers.

i personally think local players should first be given a chance and then by 2010, open the market for FDI.

i personally think local players should first be given a chance and then by 2010, open the market for FDI.
I agree. Atleast 5 years head start.

Metro AG to invest €300 m (http://www.financialexpress.com/fe_full_story.php?content_id=124836)

German trading major Metro AG has lined up an investment of €300 million in India. The company, which is present in India through Metro Cash & Carry with its two stores in Bangalore, is set to open three more stores in Kolkata, Hyderabad and Chennai, the company’s chief executive Hans-Joachim Korber told FE.
He said that the new stores will be opened within few months so as to scale up the company’s operations in India that has been growing steadily. The company intends to invest €45 million in opening the three new stores. “Our expansion is hindered by the Agricultural Produce Marketing Committee (APMC) Act, though at the time of our investment Karnataka government had promised us that they would do away with the law. Eight states have done away with the law but Karnataka is not one of them,” Mr Korber said.

He indicated that higher level of investments may flow into the country if the APMC law, which was aimed at protecting farmer interests, was repealed. In the central government circles also the law is considered an impediment to investment and free movement of agricultural products across states. However, several states continue to operate under the rule. Metro made it clear it was not looking at entering the retail trading business in India. “We want to focus on selling to hotels, retailers and institutional buyers. But yes we are all for allowing foreign investment in retail trading ,” Heinrich O E Birr, V-P, international affairs, said.

Sitting back in the butter-soft leather seat of her Cessna jet, in which I am a fractional partner, I rummage inside my Louis Vuitton bag for my Sir Henry Tate Mont Blanc pen and sign my sister's birthday card.

A sip of Dom Perignon later, I slip my feet out of burgundy Chanel stilettos and decide to take a nap before the jet lands in Mumbai, where I will attend the launch of the new product line by Moschino.

Oh, all right, I admit that would be a fantasy-come-true. But I'm not alone in dreaming about such a life: every luxury brand in India is right there with me, wishing it were real. It may be a little while before I live out that particular dream, but meanwhile their prayers certainly seem to be getting heard.

According to a recent report on the affluent Indian consumer by Technopak Advisors' The Knowledge Company, there are one million luxury consumers in India, and the figure is expected to treble by 2010.

The 2001-02 Household Income Survey by the National Council of Applied Economic Research says that by 2010, there will be 140,000 households with an annual income of more than Rs 1 crore (Rs 10 million) -- and the city with the most crorepatis is not Mumbai or Delhi, or even IT-driven Bangalore, but Nagpur.

Which should be great news for the international upscale brands now in India - here's overwhelming proof that there can be life for them outside the metros.

But don't uncork the bubbly just yet. The report by The Knowledge Company adds a not-so-encouraging fact: there may be 1 million luxury consumers in India, but there are actually as many as 8-9 million people who can afford these pricey products - but they don't.

So what are luxury brands doing to sell in Nagpur and Surat (another millionaire-riddled city), convert those-who-can-afford-but-don't-buy into die-hard followers of their products


http://ia.rediff.com/money/2006/apr/25spec.htm?q=bp&file=.htm

the city with the most crorepatis is not Mumbai or Delhi, or even IT-driven Bangalore, but Nagpur.

what?!? thats sounds extremely dubious. i have been to nagpur at least 3 dozen times and i cant see how that is true

Nice , the underworld can now migrate to Nagpur

sounds surprising to me too....maybe among tier-2 cities..it has the highest number of crorepati's

what?!? thats sounds extremely dubious. i have been to nagpur at least 3 dozen times and i cant see how that is true


May be they don't follow the current "flash-it-all" urban trend.

what?!? thats sounds extremely dubious. i have been to nagpur at least 3 dozen times and i cant see how that is true

I think it must be the ratio of crorepathis to total population

somehow i doubt that too. would like to see some data. i know nagpur and its people very well

it sounds dubious, but then my hostel roommate is from nagpur. he is ghati to the core straight from a village, but hes more than just a crorepati its insane. very unassuming and doesnt at all 'look' like it.

Nagpur has the sixth highest number of crorepatis in the country. Nagpur has 425 crorepati households, or those with an annual family income of more than Rs 1 crore (Rs 10 million). Delhi's has 5,085 and Mumbai's 4,439.

In the period 1995-96 to 2001-02, the NCAER's latest household income survey shows, Nagpur had the highest annual growth in the number of crorepati households -- 91 per cent per annum.

http://www.rediff.com/money/2004/jul/15rich.htm

^ I think with land rates going up with development....those who own lots of land are getting richer.

There are a lot of crorepati farmers in Maharashtra ...they look very ghati..and straight from huts..wearing old dhoti's and chappals but are very rich..i know of a farmer.who lives in a very old stone house in Kolhapur but is worth more than $ 1 million ( Rs 5 crores + in his a/c ) ..though he drives a old jeep...

while down the street is a businessman who had sold his mercedes to 1 of the actors from Mumbai..u see them in alot of hindi movies wid car plate MH-09..which is for Kolhapur...i remember the new movie PLAN ..the S-class in it had a MH-09 number plate

India remains the most attractive destination for global retailers -AT Kearney

NEW DELHI (AFX) - India has emerged as the most attractive global retail destination for a second straight year, ahead of rival China which trails in fifth place, says a new study by global consultancy AT Kearney.

'India is at the peak of attractiveness for retailers right now with a 350-billion-dollar retail market expected to grow 13 percent this year,' says Fadi Farra, who headed the study by global consultancy AT Kearney.

The annual study ranks India in top spot followed by Russia in second place, Vietnam third, Ukraine fourth and China fifth, down one spot from last year.

'The Indian retail market is gradually but surely opening up while China's market becomes increasingly saturated,' a trend fuelled by international retailers, says Farra.

The study released late last week rates nations on such factors as market saturation, political risk and economic growth.

Besides having a population of over one billion, a fast-expanding middle class and a strongly growing economy, India's retail sector is deeply fragmented, dominated by the 'unorganised sector' -- small family-run stores.

'Organised' large-scale retailers account for 2-3 pct of the sector compared to 20 pct in nations like China and Thailand.

This is what is making foreign companies as US-based Wal-Mart, the world's largest store chain, and British supermarket giant Tesco, among others, take notice of India, the study says.

While rules still bar foreign direct investment (FDI) in most of the sector, foreign retailers' hopes have been buoyed by a February government decision to allow FDI of up to 51 pct in single-brand retailers such as shops selling Nike sportswear or Nokia handsets.

'This is a significant break for global retailers and will spark a flurry of investment,' predicts the report. But the relaxed regulations do not extend to companies that sell a variety of brands.

Last week, Commerce Minister Kamil Nath said India is working to open the 'next window' in the retail sector and an announcement would be made in June.

In the meantime, Wal-Mart has announced it will open an Indian office for market research. John Menzer, chief executive of Wal-Mart, which has a massive presence in China, has called India a 'huge organic growth opportunity'.

Tesco is entering the market through a partnership with Home Care Retail Mart Pvt Ltd and expects to launch 50 stores by 2010, the study says.

Not to be outdone, domestic conglomerates are racing to capture business.

Putting together the biggest plans is petrochemicals behemoth Reliance. It is assembling a multi-billion-dollar scheme to set up 1,575 stores by March 2007, the study says, and has already scooped up some of India's brightest managerial talent.

Other top Indian business groups like the Tatas and telecoms conglomerate Bharti Enterprises also have plans to enter the retail sector in a big way.

http://www.forbes.com/home/feeds/afx/2006/04/30/afx2708868.html

Pantaloons eyes upto 40 stores in east (http://business-standard.com/compindustry/storypage.php?tab=r&autono=89453&subLeft=1&leftnm=1)

Big Bazaar, the hypermarket from the Pantaloons Retail (India) Ltd is expanding in the east, and it is the tier-II towns where most of the expansion will take place.

Haldia in West Bengal will get its Big Bazaar by June-July this year, while the one in Barddhaman will open some time in September or October 2006,

In the next two years, Big Bazaars will also reach Kharagpur and Siliguri in West Bengal, as also Ranchi in Jharkhand, Agartala in Tripura and Patna in Bihar.

The mall in Haldia will be spread over 40,000 square feet and will be located in a shopping complex on Durga Chowk, while in Bardhaman, it will be situated in the Dhiraj Promoters' retail-cum-entertainment project being built on Jailkhana More.

In Kharagpur and Siliguri, the Big Bazaars will be part of the malls being developed by Kshitij, the asset-management venture of Pantaloons.

^ I think with land rates going up with development....those who own lots of land are getting richer.

this has gotto be the understatement of the century.

Rahejas set Rs 100 crore sales target for HyperCITY

TIMES NEWS NETWORK

Mumbai: Over three years in the making, K Raheja Corporation, promoters of Shoppers’ Stop, have finally launched HyperCITY, a 100,000 sq ft hypermarket at Malad. With 30 check-out counters, 360 employees and over 38,000 products this large format store built at a cost of Rs 24 crore, stocks categories ranging from groceries, fresh produce, consumer durables, homeware, furniture, sports, apparel to toys
“We are targeting sales of Rs 100 crore in the first year,’’ said B S Nagesh, vice-chairman, HyperCITY. In the first three days since it opened, the store attracted nearly 20,000 footfalls, 60% of who have made a purchase.
Designed by UK firm JHP Design, the hypermarket has a decidedly more sophisticated look and feel compared to other such formats in the country. That’s because Nagesh says the plan was to target the same upper middle class clientele that its other formats like Shoppers’ Stop cater to. “We are definitely not for the bottom of the pyramid,’’ said Nagesh.
From consumers who will be able to walk in with their bags, to a separate section for meat, to misting machines which ensure vegetables and fruits stay fresh, the idea is to make shopping fun and enjoyable, said Andrew Levermore, CEO, HyperCITY.
Features range from extra wide aisles, to colour coded sections to a travelator-which lets shoppers ride up to the first floor with their trolleys. There are experience builders—places like a demo kitchen, mock rooms, gaming zones—which provide a space for the consumer to try out and interact more closely with the products. There is also an express checkout for shoppers with less than six items.
Also included is a 24-hour pharmacy, a bakery and two in-store coffee shops. The store has an aggressive private labels programme, particularly in categories like staples, crockery and gifts, and accounts for almost 30% of the store’s products. Most of the goods have been specially sourced from partners like Youngguan of China which supplies to retailers like Wal-Mart, Tesco and Carrefour. There is also an exclusive tieup with Waitrose, a leading UK-based supermarket chain. And though 30% of the products are imported, Levermore said that plans were on to gradually develop local sourcing arrangements. For instance, it was working with furniture makers in Pune.
Unlike other hypermarkets, HyperCITY will allocate about 25% space to food, with general merchandise accounting for the rest. Among the emerging categories that the store plans to focus are on sports and fitness equipment, toys and electronics.

http://img381.imageshack.us/img381/3193/image11vh.jpg

interesting development. i havent seen this level of world-class retail format yet in india. any other stores like it? metro in bangalore is proper world class, but thats only b2b

coming to farmers and others who seem poor as hell but are really rich, there are several such examples. i knew a guy in delhi who was a roadside "laundrywala" and had a ford icon, and owned an apartment in East Delhi.

I recently visited Hyderabad and surprised to see so many farmers carrying cash worth crores of rupees. I went to a Mandal Office for some registration. These rich land lords have cell phones, wear very dirty clothes and slippers. They hire a TATA indica and do land deals through out the day.

I overheard them taking about land deals from 1-5 crores. They do not believe in banking.. Some of them even carry crores of rupees cash in plastic bags.

Because of the tremendous rise in land prices in HYD outskirts.. (1 acre now costs 1.5 crores versus few laksh three years ago)...

Most of them came from tribes from very poor families and used to live in very poor conditions and as their farms are very unproductive. Now their barren lands have turn into gold....

^^ and the shameful fact is that we still can't get all these people to pay income taxes.

^^ and the shameful fact is that we still can't get all these people to pay income taxes.


right on the spot.

no deviation from the topic but i'll say this: with so much money we still are giving them quotas, b/c apparently these ppl are in much worser conditions thank FCs.

Aerens Goldsouk plans 100 jewellery malls, to spend Rs 1,500cr (http://www.business-standard.com/compindustry/storypage.php?tab=r&autono=90263&subLeft=1&leftnm=1)

Aerens Goldsouk International, pioneers of India's first exclusive jewllery mall, is planning to develop 100 gold souks in 100 cities in India and abroad in the next 100 months. The project entails an investment of Rs 1,500 crore.

The 100 souks will be opened in a phased manner with the first phase covering Ludhiana, Amritsar, Jaipur, Kochi, Chennai, Hyderabad, Bangalore, Mumbai, Ahmedabad, and Kolkata.

The company's foray in the internatonal market will be marked by the launches of souks in the US, UK, Canada, UAE, Thailand and China.

India: food retailers bet on bigger stores

Twenty minutes before the doors open at HyperCity, suburban Mumbai's new hypermarket, a long line of shoppers wait restlessly while employees stock shelves with everything from fruit to decorative fountains.

First-time visitor Mariam Ghoghawalla said she had only come to see the store, but added she was open to buying "something small".

HyperCity, owned by K Raheja group and sprawling across 120,000 square feet, is symbolic of major Indian retailers' efforts to expand their meagre slice of the market.

Other firms including Pantaloon Retail and Trent are also setting up more hypermarkets, targeting economies of scale and bigger profit margins on non-food items.

India's major retailers have an annual turnover of an estimated billion, but that only accounts for 3 per cent of the overall retail market, compared with 20 per cent in China and 40 per cent in Thailand.

The Raheja group, which also owns part of department store chain Shopper's Stop, plans to open six to eight more hypermarkets over the next 18 months.

The group has seen some encouraging signs at HyperCity.

"The response to the packed fruits and vegetables was an education for us," said Chief Executive Andrew Levermore.

"We were led to believe Indian women wouldn't buy them if they couldn't touch and feel them, but we can't keep up: we're replenishing these shelves at least eight times a day."

Still, the big retailers face a number of hurdles.

The rising cost of real estate and scarcity of large plots of land in big cities pose a challenge, while poor roads and transportation are a deterrent to development in the suburbs.

"Convenience and proximity are very important to the Indian shopper. Even those who have a car don't want to spend hours to get to a store," said Anil Rajpal at consultancy KSA-Technopak.

"The Indian consumer is also quite pampered. We can call and have groceries delivered at our door and get even very small packs, which hypermarkets would find difficult to do," he said.

Furthermore, competition is heating up, with regional retailers such as RPG Group's Spencer's, Subhiksha and Nilgiri's looking to expand beyond their bases in the south as supply chains and distribution improve and investor interest in Indian retail grows.

The food and grocery sector, which makes up nearly 77 per cent of the total retail market, is dominated by small local stores.

"Our competition is not other formal retailers. We are going head-on with the traditional mom-and-pop stores," said managing director of Chennai-based Subhiksha, R Subramanian, which has a chain of discount supermarkets and pharmacies.

At the other end of the market, foreign investors are also keen to move into India.

After the Indian government allowed single-brand foreign retailers to take up to 51 per cent stakes in joint ventures earlier this year, there is growing speculation that it will soon also open doors to multiple-brand retailers like Tesco Plc, Wal-Mart and Carrefour.

Major retailers' turnover is forecast to grow at 25-30 per cent a year over the next four years, attracting big players such as Bharti Enterprises and Reliance Industries Ltd to the market.

Reliance is investing 0 million initially and has started managing the supply chain for about 20 state-owned supermarkets in Mumbai.

For midsize players like Subhiksha, that may be bad news, but Subramanian is confident.

"Large-format retailers are being forced to set up in expensive in-city locations, which impacts efficiency, whereas small guys are fairly efficient in the back-end, and score in proximity," he said.

Analysts say hypermarkets can thrive in suburbs that are not too distant, partly by striking land deals.

Raheja is also a realty developer, while Pantaloon has a joint venture with Singapore's CapitaLand to manage malls.

The bigger retailers are also differentiating themselves in terms of store size: Spencer's, which previously had a franchise deal with Dairy Farm International Holdings Ltd, has hypermarkets that measure about 25,000 sq ft each, while Pantaloon's Big Bazaars range from about 30,000 sq ft in the city to 65,000 sq.ft in the suburbs.

"There is scope for both - for consumers it's a question of all under one roof or convenience and proximity," KSA-Technopak's Rajpal said.

The task for Raheja's Levermore, then, is to give shoppers like Ghoghawalla reason to buy everything she needs at HyperCity.

http://www.freshplaza.com/2006/22may/1_in_foodretailers.htm

Wal-Mart Expected as First Global Retailer with India Presence

Wal-Mart will likely be the first global retailer to move into India, according to international food and grocery expert International Data Group. But the days of India residents shopping in a traditional Wal-Mart store are still only a possibility at this point.

"The market is in the very early stages of the retail sector," Fiona McTavish, senior international business analyst for IGD, told CPN this morning. Earlier this year the Indian government relaxed the Foreign Direct Investment regulations, allowing companies that sell single branded goods into the country. McTavish cited Reebok and Chanel as examples of companies that can now sell in India.

Over the next 6 to 18 months, FDI regulations are expected to continue to relax, eventually allowing companies like Wal-Mart, Tesco and Carrefour a window of opportunity. All three companies have a strong Asian strategy, but Tesco and Carrefour have their attention turned elsewhere, which will give Wal-Mart the advantage.

"Over the past six to nine months, Wal-Mart has made it really very clear they are interested in the Indian market," McTavish said. "But Wal-Mart will only enter when they believe the market is ready for them and when it is key to their international strategy."

Should Wal-Mart be allowed to enter India, it may be under restrictions similar to those it encountered when expanding to China. The Chinese government geographically limited Wal-Mart, only allowing development in highly metropolitan areas, and required joint ventures between Chinese companies and Wal-Mart.

http://www.cpnonline.com/cpn/property_type/article_display.jsp?vnu_content_id=1002576640

with the Left's pressure, it is unlikely they will open the market yet. even the domestic retail players are opposing this so i'm not sure how wal-mart can make it to india even by 2010.

In Mumbai, size does matter (http://specials.rediff.com/money/2006/jun/08sld1.htm)

http://specials.rediff.com/money/2006/may/30sld1.jpg

i went there today itself as i was passing by it. pretty impressive, the first real world class supermarket i have seen here. they have quite a bit of their own branded stuff, with good packaging. price wise its not much cheaper than mrp, but quite convenient for people living nearby. quite a few people coming in cars and stocking up with large supplies, much like suburbs anywhere else in the world

Germany's Metro Expands in India

CALCUTTA, India -- Germany's Metro, the world's third-biggest retailer by sales, will spend "millions of euros" to expand its operations in India over the next year, a top company official said Monday.

Metro will open distribution centers in Mumbai, in the eastern city of Calcutta and the southern city of Hyderabad, Managing Director Harsh Bahadur said.

The company also plans to start operations in New Delhi and Chennai, in addition to several smaller cities.

"The expansion will be huge in the coming months," Bahadur said by telephone from Bangalore.

"We are looking to invest 15 [million] to 16 million euros in each of the proposed wholesale distribution centers in India," he said.

The Metro Cash and Carry chief executive was in Calcutta last week to scout for locations for up to five distribution centers, state officials said.

Bahadur said the company was looking at investing 4.5 billion rupees ($98 million) in the eastern state of West Bengal in these centers and in the development of the back-end, including cold-storage facilities and air-conditioned vans.

It is estimated that more than 40 percent of produce spoils before it reaches the consumer because of poor cold storage, inadequate power and transport and the number of intermediaries.

Metro's chief executive said in June that the company planned to open six to eight stores per year in India in the medium-term. He also said he expected the company to turn a profit in India in the near future.

Metro, Germany's biggest retailer, currently has two stores in India, which operate on the cash-and-carry model. It also has two distribution centers.

Foreign retailers are in a race to tap the fast-growing Indian market. The branded sector, which makes up just 3 percent of the total market, is valued at about $6 billion and forecast to grow at 25 percent to 30 percent per year over the next four years.

Multiple-brand foreign retailers can only operate wholesale or franchise units in India. Analysts expect rules to be eased within two years.

http://www.themoscowtimes.com/stories/2006/07/04/257.html

Destination Hyderabad: City turns retailers' hotspot
HYDERABAD: With retail space taking up almost 1.5 million square feet over the next two years and around 12 malls set to dot city landscape, Hyderabad seems to have become a hot spot for retailers.

The Rahejas and IJM, two leading developers who have recently entered Andhra Pradesh, plan to set up new malls.

Companies such as DLF, GVK and IVRCL are planning to set up malls in the city and are planning investments of around Rs 500 crore.

The city is now warming up to the organised retail format with the changing economic structure.

“Most of the malls are targeted at the middle and upper middle-income groups,” says industry sources.

More and more younger people are walking into malls and almost 60% of the customers are expected to be below 25 years of age.

Hyderabad today is one of the best markets for retail selling and this is possibly why there are so much demand for floor space for these mega projects, sources add.

“The population of Hyderabad is very mature in terms of its shopping habits and its perception of value,” said one industry source.

Premium brands seem to be willing to come in and capitalise on these market dynamics. This is probably the reason why the tenants and retailers expected to set up shop here include both national and international brands.

Some of names include Pantaloon, Shoppers’ Stop, Globus, Pyramids, Lifestyle, Mc Donald’s and KFC, among others. Food courts and hotels are also expected to find a place in some of these malls.

Of these 12 malls, five are coming up in the up-market Banjara Hills area, two close to Hyderabad’s IT areas like Hitech City and Gachibowli.

The first mall to be launched will be the City Center mall, which is expected to come up around the third quarter of 2006.

The two biggest malls will be the Inorbit and IVRCL malls which will occupy about 3,00,000 square feet each in retail space, while the total built-up area for Inorbit will be 6,50,000 square feet and IVRCL Mall 5,80,000 square feet, according to Trammell Crow Meghraj estimates.

The Rahejas plan to invest Rs 120 crore-Rs160 crore in the Inorbit Mall.
http://economictimes.indiatimes.com...how/1516781.cms

There are malls and malls. Even then, most of us moan that the city doesn't offer us a complete shopping experience. We'd also groan at the thought of traffic choking the arterial roads. This is just the beginning. In the next two years, Hyderabad will have at least a dozen malls. Most are high-end ones that come with multiplexes. Of course, most of them promise multilevel parking facility that will put an end to parking woes. Here's a look at the shape of things to come...

Cities like Delhi, Gurgaon and Kolkata have generic malls co-existing with specialty malls — exclusive wedding, automobile and jewellery malls and so on. But what Hyderabad can expect, to begin with, are malls that will have something of everything — high-end fashion, jewellery, cinemas and food courts. In different stages of planning and execution are eight shopping centres at Road no 1, Banjara Hills, one at Himayat Nagar, one at Gachibowli and one overlooking Durgam Cheruvu, Madhapur,, all targeting the middle, upper middle class and the elite sections.

High-income groups


Where are the buyers, did we hear you say? The GVK group undertook a consumer study and learnt that most families in Banjara and Jubilee Hills areas have an annual income that exceeds five lakh rupees. The intention of most malls is to make the elite consumers — who travel to Mumbai, Delhi and Bangalore for some bling-bling shopping — open their purse strings in Hyderabad.

"There is very little organised shopping in the metros, say two per cent. This can go up to 10 per cent," reasons Girish Malpani, CEO of Maheshwari group, which is planning a shopping centre near Nagarjuna Circle, Banjara Hills and at Himayat Nagar, opposite Pick `n' Move eatery. The former will have an area of two lakh sq ft that will include four-screen multiplex and multilevel parking for 900 vehicles. The one-lakh 20,000 sq ft Himayatnagar mall will have three multiplex screens.

GVK One, spread across six lakh sq ft area, boasts of a six-screen multiplex by the Inox group, national and international brands, food courts and a 1000-car multilevel parking. Talks are on with the government to expand the parking area, if necessary. The mall is expected to open by March-June 2007.

The bigger, the better


The outskirts, too, will undergo a makeover. IVRCL and Inorbit groups are looking to cash in on the lack of huge malls in the outskirts. Nandini Mishra, spokesperson, IVRCL, informs, "The mall is part of our township, which will also have an IT Park. The five-floor mall will be near the Infosys and ISB campuses. We want to have 12 multiplex screens and parking for approximately 2,000 cars. The parking facility will be expanded; we are still working at it"

The Inorbit mall will overlook the Durgam Cheruvu. Anand Sundaram, Vice President, design and planning, says, "Among the metros, Hyderabad has the maximum potential for growth. It is investor friendly and there's market waiting to be tapped. People in Hyderabad and Bangalore are movie lovers so multiplexes become an integral part of their lifestyle. We are planning to have five to eight screens. There are three elements that contribute to good shopping experience - retailing, food and entertainment. Most malls lack in one or the other area. The idea is to do the best in all the areas." Inorbit, spread across seven lakh sq ft area, will have multilevel parking for 1000 cars."

When the malls are up and functioning, we'll get to see whether the customer stands the chance of being a king, finally.






Mall world

Road no 1 Banjara Hills:

GVK One, City Center Mall, Ashoka Mall, Alcazar Plaza and Towers, one by the Maheshwari group at Nagarjuna Circle and more.

Himayat Nagar: A mall by the Maheshwari group

Gachibowli: IVRCL project

Madhapur: Inorbit

www.inorbitmalls.com (Check the upcoming malls section)
http://www.ivrcl.com/news_display.a...3&currentPage=9

The city will see a revolution in organised retailing, with approximately four million sq ft of retail space entering the Pune market in the next three years, says Padma Ramakrishnan

The mall culture has come into Pune in a big way, driven by young professionals and migrant white-collar workers. The increase in office space has meant an increase in space for residentials and retail as well. This has led to an evolution in organised retailing.
Organised retailing is growing and some of the prominent locations that are preferred include Boat Club Road, S.B Road, J.M Road, Bund Garden, Kalyani Nagar, Airport road, Kothrud, Hadapsar and Kondhwa.
Ashok Kumar, Principal and MD, CRESA Partners, says that besides the strong macro economy, this growth has been further boosted by the IT boom in the city, attracting thousand of employees, and resulting in generating a high demand for organised retailing.
Well-established brands like Shoppers Stop, Central, Westside, and Pyramid have already made a huge impact on the market. Leading developers like Vascon Engineers, Kumar Builders, Kolte- Patil and Kakde Constructions have planned a number of malls.
About four million sq. ft. of retail space supply will become available in the next three years. Some of the new malls that will be coming in soon are Kakde City in Kothrud and Kakde Magnum Mall on Moledina Road, Cross Road at Nagar Road, Connaught Place on Bund Garden Road, Fun N Shop at Fatima Nagar and Ishanya at Airport Road.
Kakde Constructions is coming up with seven retail projects in Pune. The Kakde Magnum mall, which will be launched at the end of August with 1.5 lakh sq. ft. carpet area. The Group is also coming up with Kakde One Centre Port, a 250,000 sq ft mall near E Square. The third mall, Kakde City Mall coming up in Kothrud, will be a 750,000 sq ft mall with six screen multiplexes.
A spokesperson from Kakde Constructions says that with IT growing, there is a good future for retail as people have the ability to buy branded products.
"Bigger is better is the motto as far as malls are concerned," feels Lalitkumar Jain, CMD, Kumar Builders and president, Promoters and Builders Association of Poona. Kumar Builder's Pune Central at Bund Garden is already operational while its Fun n Shop and Fun n Food are under construction. "We will by this year end start construction of a 1.6 million sq ft project in the heart of the city near Karve Road”, says Jain.
According to R Vasudevan, director, Vascon Engineers and the developer of Nucleus mall in Camp and Mediplex in Kalyaninagar, "The fashion is catching on here just like in other cities and the malls that have come up are doing well. There is no oversupply as many had feared earlier. There will always be various models and success would depend on the target audience. The developer should be sure who he is targeting and fix the tenants. If that does not happen, malls will be a failure or their shops will not do well."
Interestingly, Pune will lead the mall culture in the country by being the first ever city to get niche malls. Ishanya Mall – The Design Centre, developed by Pune-based Deepak Fertilisers and Petrochemicals Corporation Ltd, is being projected as a "one-stop mall for interiors and exteriors". Kumar Builders are also developing a mall opposite Saras Baug, which will specially cater to children. It can be noted that across India, while the mall culture is catching up, segmentation or catering to niche clientele is something that hasn't been given a serious thought. Developers in Pune, however, seem to have realised the need for specialised malls. The Ishanya mall spread over 5 1/2 lakh sq ft over 10 acres of land will, apart from offering specialist shopping, allow for relaxation in a pleasant environment and cultural entertainment.
"Organised retailing is happening faster in Pune than in other cities. In other words, the expected mall space will be more in Pune compared to other cities," observes I S Narula, President and CEO, Ishanya Specialty Mall. The next two years will see it emerge as number two in terms of organised additional space.
About 95 per cent prefer to go to organised retail for most products except fresh food and vegetables, which are not up to the mark so far, he adds. However, he is confident that this too will happen shortly with the entry of players like Reliance, Godrej and Bharati.
The retail story is unfolding in Pune as in other cities in the country. It will be an interesting story as the potential and benefit to the ultimate customer is yet unimagined. Basically what will happen is that different formats will work in different areas, and ultimately the market will determine which malls will succeed. The success of malls will hinge on the location, right product mix, right pricing and promotion strategy, demographic and product differentiation, circulating space and parking.

Starbucks to enter India next year (http://www.business-standard.com/common/storypage_c.php?leftnm=11&bKeyFlag=IN&autono=3918)


Coffee connoisseurs can look forward to a new brew in their cups soon, with US-based coffee retail giant Starbucks Corporation set to open its outlets in India in 2007.

Starbucks is currently in talks with a number of potential joint venture partners and is in the process of finalising the locations for opening its retail outlets in the country.

Starbucks' spokesperson T May Kulthol, speaking from seattle said the company is excited about the great opportunities that India presents to the company.

"We are looking forward to offering the finest coffee in the world to customers in this country within the next 18 months," she said.

Sources close to the company said it has zeroed in on Delhi and Mumbai for its first retail outlets in India, while it was scouting for other locations as well for a grand foray into the country.

The company is also in talks with a number of leading companies - including the existing players in the market and others, who are planning to foray into the retail market, they added.

"When we open a new market, we take time to make sure we have the right joint venture partner or licensee to help develop the brand," Kulthol said.

The company plans to target the young adult of the country for expanding its presence into the country and also aims to reap the benefits of a growing coffee culture in a traditionally tea-drinking nation.

isnt reliance planning a big entry into retail? the "WalMart" of India?

they're already trying their best to ruin reliance
in the oil-for-food scandal, reliance was involved according to commies

Max Retail opens outlet in Bangalore (http://www.hindu.com/2006/08/12/stories/2006081211440400.htm)



Max Retail of the Landmark Group (Dubai) on Friday launched its first store in Bangalore, focussing on the mid-market retail segment here. This is the third store in India, after Indore and Ahmedabad, and the company will be having eight by the end of the year.

Vinesh Singh, vice-president (marketing) of Max Retail, told presspersons here that the firm would focus on "value retailing" with the price-point of 95 per cent of the products not going beyond Rs. 599. Spread over 20,000 square feet, the outlet will offer apparel, footwear and accessories. The company would be launching similar outlets by the yearend in Delhi, Navi Mumbai, Hyderabad, Lucknow and Agra.

Max Retail executive director Vasanth Kumar said the average investment in a store was nearly Rs. 5 crore, inclusive of merchandise estimated at Rs. 2 crore.

The Landmark Group planned to have 100 stores in four years in major cities and tier-II towns. The group sourced nearly 20 per cent of its products from India and the remaining from another eight countries.

The rapid growth in the Indian retail industry had tremendous opportunity, he said and hoped to replicate the overseas success. Max Retail had about 35 outlets in West Asia and the group had a turnover of over $1 billion. The Landmark Group is present in India through its chain of 10 Lifestyle stores in five cities. There were plans to upgrade the Lifestyle stores soon, considering the competition that the malls in Bangalore have been giving.

TIMES NEWS NETWORK[ SATURDAY, AUGUST 19, 2006 02:07:40 AM]

NEW DELHI: Even as the country is in the midst of a mall boom, around half-a-dozen ‘turnaround specialists’ are already on the lookout for malls that are likely to be in the sick bay — either due to bad tenant mix, poor mall management or simply due to competition from new malls springing up in the neighbourhood.

Already there have been some isolated cases of malls being turned into multiplex, though no mall — despite low occupancy — has shut shop. Analysts remain divided over the viability of the 200-odd malls that are slated to come up across the country over the next couple of years.

“We are in touch with at least two companies — one based in London and another in South Africa — which have undertaken turnaround of malls in the markets of Africa and Eastern Europe. These two companies are interested in future opportunities in India,” Pranay Vakil, chairman, Knight Frank (India), said, but declined to names the companies.

Most malls in the national capital region have been reporting tenant occupancy in the range of 40-60%. Moreover, conversion of footfalls into actual business has been a challenge for most players.

According to analysts, malls that are likely to hit the ‘sick-bay’ are those with fluctuating footfalls, downed shutters, and where there is a growing reluctance on part of retailers to pay the common area maintenance charges. Another indication of a mall-in-distress could be low rentals compared to other neighbouring malls, says Mr Vakil.

Industry players note that ‘turnaround experts’ resort to changing the tenant mix, re-working circulation of traffic within the complex or take a re-look at the anchor store of the mall. “Some may even advise a change in the architecture,” said a senior executive from a mall management company.

Pranav Sinha, president, Select Infrastructure, who are developing Select City Mall at Saket in Delhi, points out there are already cases where mall developers have approached them to re-jig their existing product. “At times developers realise that the product may not suit the market conditions, and they have to re-structure and come out with newer versions,” Mr Sinha added. Many analysts feel that a shake-out in the mall-sphere is likely over the next 12 to 18 months. That’s when ‘turnaround experts’ will step in with vigour.

At present, the large format malls complete with entertainment, retail and leisure components have sprung up in all major cities in India. A study by Knight Frank India last year indicates that by ’07, approximately 75m sq ft of mall space would be available in India. Within this, Mumbai, Pune, NCR (including Gurgaon, Noida, Greater Noida, Faridabad & Ghaziabad), Bangalore and Hyderabad will have a 74% share. The balance 26% would be made up by the cities like Kolkata, Chennai, Ahmedabad, Jaipur, Nagpur, Lucknow, Indore, Ludhiana and Chandigarh.

http://economictimes.indiatimes.com/articleshow/1906248.cms

UAE's Emaar plans over 100 malls in India

(MENAFN) The great Indian mall boom has arrived and it's bustling with activity both in metros and two-tier cities, Khaleej Times reported.

Estimates indicate that over 280 malls are expected to come across the country by the end of 2006, a number expected to more than double by 2010 according to a recent survey conducted by KSA Technopak that predicts India to be home for up to 600 malls.

The chairman of Dubai-based Emaar Properties, said that the company is planning over 100 malls in India.

Among the two-tier cities, Jaipur has become one of the hottest destinations with many retail malls setting base here, triggering off a realty boom.

The industry analysts say the reason behind the realty boom in Jaipur is that a lot of infrastructure development is taking place.

http://www.menafn.com/qn_news_story_s.asp?StoryId=1093126160

these malls are going to saturate commercial real estate

most of the new malls are very small scale

Carrefour to enter India with Dubai’s Landmark group

French retailer Carrefour is set to enter India with Dubai-based Landmark group which already operates in India, the Economic Times newspaper said yesterday.

The world’s second-largest retailer will set up hypermarkets with Landmark, which operates a chain of department stores named Lifestyle in India.

“A formal announcement is expected in three to four weeks,” the newspaper said, citing unnamed sources.

Officials at Landmark could not be immediately reached.

Foreign multiple-brand retailers are only allowed to operate through licencees and franchises, or a cash-and-carry model, like Metro AG and Shoprite Holdings have chosen.

UK’s Tesco Plc is expected to announce a deal soon with India’s Bharti Enterprises, while Wal-Mart Stores has a liaison office in India and is lobbying to set up shop.

http://www.thepeninsulaqatar.com/Display_news.asp?section=Business_News&subsection=market+news&month=September2006&file=Business_News2006092374751.xml

In India, mom and pop get shoved aside (http://www.iht.com/articles/2006/10/19/business/retail.php)

Forty percent of Indian produce perishes between farm and consumer, distributed mainly through the 12 million mom-and-pop retailers that dot the country and still garner $19 of every $20 spent in India. Yet as this country rushes into the future, its Byzantine, wasteful, millennia-old retailing regime is confronting a new foe: the ruthlessly efficient supermarket, with its boulevard aisles, refrigerated trucks and meticulous workers.

No industry ties together India - from its pressed farmers to its consumptive urbanites - more than the $300 billion-a-year retail trade. No industry has more potential, if transformed, to resolve modern India's most pressing challenge: to channel more of the country's new wealth into its poor, restless villages.

The spread of supermarkets is forging new links between city and village, and a recent journey along Reliance's supply chain gave glimpses of an economy on the cusp of revolutionary change. Everywhere - from the farm to the wholesale market to the supermarket - were signs of a country being rewired.

For India's 700 million villagers, new supermarkets augur the breaking of a centuries-old trap of dependency and exclusion. Economists say inequity will narrow as farmers are coached to grow better crops at higher yields, and as leaner supply chains help them capture more of their crops' final price.

As the emergence of big- box retailers sows change across the supply chain, it is also planting the seeds of another transformation, this one in the nature of Indian retailing itself: Fearful that a Reliance or a Carrefour may crush an ages-old, hereditary caste of traders, a slowly growing number of India's mom-and-pop shops are studying how to combine their operations to emulate the efficiency of big stores. At the same time, big retailers are mimicking parts of the intimate, full-service model that has made small stores nearly indispensable to the lives of most Indians.

Reliance, the largest Indian company outside government control, just entered the supermarket business in the last few months, and its first wholly owned store is set to open in the coming weeks in the southern city of Hyderabad. There are signs, farmers in Manchar said, that the advent of big supermarkets, like the ones being planned by Reliance, is beginning to break a centuries-old subsistence trap.

Indian farmers live today as farmers everywhere lived 500 years ago: always on the brink of ruin.

The problem is cyclical: Farmers have no savings because they grow crops with low profit margins and because each acre fails to churn out enough of whatever it is they do grow. They have low margins and low yields because they do not invest in better seeds and in technologies like drip irrigation. They cannot invest, of course, because they have no savings.

Rahul Gulab Pokharkar, a fresh-faced farmer at 20, stood with three generations of family in his carrot fields in Manchar and spoke of breaking that cycle.

For as long as they can remember, the Pokharkars have lived from loan to mouth, with never more than a few rupees on hand. The middlemen gave them seeds and fertilizer on credit, and then took the harvest as repayment.

When the middlemen lied about prices, the family had no recourse.

Two years ago, the family turned to big companies - first Godrej Industries, an Indian conglomerate with a small chain of high-end supermarkets, then Reliance.

Because the companies cut out middlemen, they pay more than market price. They also pay in cash. With farmers' help, they select, package and transport the produce more vigilantly than was done before. Farmers earn higher incomes even as more and better produce reaches the city.

Under a silvery sky, the Pokharkars were carefully "grading" carrots, choosing the best ones for Reliance. "Before, we sent even spoiled ones to the market," Pokharkar confessed. "Not anymore."

Before Reliance arrived, the top 25 percent of his carrot crop earned a "B" grade, with the rest inferior. Today most of it earns an "A," translating into eight times more revenue for the same field. Only the packaging and shipping methods were changed.

Now the Pokharkars have $100 to $200 in cash on hand, and no debt to middlemen. They are looking to make investments with Reliance's backing.

The next project is to convert some acres from carrots to cauliflower. It will cost $220 an acre, but it will earn a 100 percent return in the first year if market prices are good. It is the kind of no- brainer investment that every farmer should make but cannot without funds.

In conversations with the Pokharkars and other villagers in Manchar, the subsistence mind-set appeared to be ceding, slowly, to entrepreneurial élan.

"Before, we were practical farmers. Now, we are improvement farmers," Pokharkar said, breaking from Hindi to use the English words "practical" and "improvement."

But for all the optimism at the beginning of India's food chain, there is anxiety at its end. India's mom-and-pop retailers, heirs to one of the world's longest-surviving selling traditions, say that supermarkets will destroy them.

Small shops are chronically wasteful, lifting prices 20 percent higher than they are in big stores. They buy in small quantities. They have no expertise in inventory control and category management, so they fail to buy the most profitable mix of products: At Nutan Stores on Carmichael Road in Mumbai, a typical operation, the offerings include such slow-moving items as dipping ink, birthday candles and oil pastels.

But small stores are still indispensable to Indians. They provide credit. They deliver 20 cents worth of medicine to a home at midnight.

So a war is gathering between the efficient but sterile supermarket and the neighborly but wasteful mom-and-pop store. As with a modern army battling guerrillas, each side is seeking to defeat the other by emulating it.

As supermarkets think smaller, small stores are thinking big. Technopak, the consultancy, has been hired by a group of 150 mom-and-pop shops in the city of Rajkot, in western India, to help them survive. The stores, with annual sales of $22 million, want to build a joint purchasing organization and computerize their operations. Other consortia of shops from around the country are exploring similar options to compete with the efficient operations of Indian supermarkets and the Western retailers that are expected to enter the country.

Yet for small-time sellers without the means or will to change, penury draws closer.

Jagram Yadav is a second-generation vegetable seller who has sat for 20 years on the sidewalk in front of Reliance's first supermarket in Mumbai.

Before Reliance came, Yadav fed his wife and two children 60 kilograms, or 132 pounds, of vegetables a month - equivalent to two potatoes and two tomatoes per person a day. Now, with the first of 1,500 planned supermarkets luring his customers away, the Yadavs eat half that much. "Reliance has come," said one passerby, "and these people will be swept away."

Video preview of Reliance Fresh store in Hyd -
http://in.news.yahoo.com/061030/211/68wqq.html

Or -

http://www.ibnlive.com/videos/25053/reliance-fresh-a-shoppers-paradise.html

To say that it's raining malls in happening Hyderabad would be an exaggeration. But there is also a mad rush among real estate developers and builders. With real estate booming in the city, both in residential and commercial property development, the herd is heading towards constructing malls.

The city has got what retailers love relatively reasonable property prices and people who love to shop ..... Retail property Prices have risen just 15 per cent over the past year and experts believe they will rise less than 30 per cent in the coming year.

With Reliance Retail opening its supermarket in Hyderabad and many others planning retail investments, the city has become the new retail hotspot of the region.

Consider this: there are around 15 malls slated to come up in and around the city in the next few months to a year. Some of the big names include the GVK One Mall in the upmarket Banjara Hills and MPM Mall in the same area. In fact, contrary to popular perception that there is an oversupply of space for malls and retail, there is a growing demand for them. "It is not true that there is an oversupply of space. In fact, many of the malls are not planned correctly by developers. Moreover, most of them do not have a good understanding of the economics of the tenants' business and pricing them accordingly," observes Arvind Singhal, chairman, Technopak, a consultancy specialising in retailing and consumer goods. That is the reason why in some areas there is a dearth of customers, and some are even offering mall space as as office space.

Hyderabad Retail Space
Company ........... Retail Plan (sq feet)
Reliance Retail .................... 5 lakh
Landmark's Max Retail .......... 1 lakh
IVRCL ................................ 6 lakh
Lanco ................................ 8 lakh
GVK .................................. 5 lakh
Rahejas (Inorbit) ................. 6 lakh
Divyashree ........................ 4 lakh

Moreover, there is a herd instinct among developers resulting in a heavy concentration of malls in some select areas like Gachi Bowli and Kukatpally. For instance, infrastructure majors Lanco and IVRCL are coming up with their own brands of malls in the Gachi Bowli area, dubbed the IT and ITeS bay of Hyderabad.

"Yes, it's a herd mentality leading to a skew in the spread. There are many areas which are good catchment areas for malls to come up like Tarnaka, Uppal in the south and Tirumalgiri in the north with a vast middle and upper middle class population but the rush seems towards the West for the IT crowd," explains I Syamprasad Reddy, managing director, Indu Projects Ltd. Another interesting trend of the spread of malls in the twin cities is their preference for the existing commercial locations, often converting old properties even cinema theatres into malls which neither have the space nor the supporting facilities for a mall. Parking space is one major issue that often causes chaos in the surrounding areas. This is done either by flouting building norms or by making use of loopholes in the weak building laws.

While this is so, observers say that the demand for malls will remain buoyant for the next five or more years once the skew is corrected. "There will be a definite demand for malls. But the issue is of rent. Most developers price it based on the old showroom on the ground floor, and offices on the first and above floors model which is not logical anymore," points out Reddy. According to one estimate at least 600 million sq ft of space is required.

Hyderabad has a million square feet of retail space under construction and it's expected to cross three million in the next two years. And the city has got what retailers love relatively reasonable property prices and people who love to shop.

Source: CNN-IBN / Financial Express

Kumar Mangalam Birla's Aditya Birla group may spend 150 billion rupees, or $3.3 billion, to set up a network of supermarkets, the Financial Express reported Tuesday, making him the fourth billionaire to enter the $300 billion retail Indian market.



Aditya Birla will set up the retail store business on its own and open its first store by the middle of next year, the Financial Express said. The group would face competition from Reliance Retail, Pantaloon Retail, RPG Enterprises and the Bharti Group.
Aditya Birla plans to set up 6,000 retail stores in three years, the newspaper reported, without citing its sources. Pragnya Ram, a spokeswoman for the Mumbai-based company, declined to confirm the report. Kumar Mangalam Birla, 39, ranked the seventh-richest Indian by Forbes magazine in March this year, may join two tycoons Mukesh Ambani, chairman of Reliance Industries, and Sunil Mittal, chairman of Bharti Airtel in tapping the chain store retail market, which Morgan Stanley estimates will surge 15-fold to $60 billion by 2015.

Analysts like Mitia Lathia said such a move would make sense. "They are a big group and it will be feasible," said Lathia, an analyst at Brics Securities in Mumbai. "The question is how soon they announce their plans and get started." A third billionaire, Adi Godrej, runs a supermarket chain and a fresh produce chain. The Aditya Birla group includes Hindalco Industries, the biggest aluminum producer in India, and the nation's second- and third-largest cement makers UltraTech Cement and Grasim Industries.

Aditya Birla will set up the retail store business on its own and open its first store by the middle of next year, the Financial Express said. The group would face competition from Reliance Retail, Pantaloon Retail, RPG Enterprises and the Bharti Group.

Reliance Retail last week opened its first 11 stores in the southern city of Hyderabad. It plans to open stores in another 783 cities and towns and 6,000 smaller towns by 2011, said Raghu Pillai, the company's chief executive of operations and strategy.

Pantaloon Retail in Mumbai has 33 Big Bazaar supermarkets and had plans to open another 10 in October and November, according to a statement on its Web site. Bharti Group of New Delhi said it was in talks with Carrefour, Tesco and Wal-Mart Stores to partner an India venture. The group is yet to announce its plans.

Overseas ownership in India's retail industry is limited to single-brand merchants, preventing global chains from taking stakes in local ventures.
http://www.cyberabadtimes.net/2006/11/birla-retail-to-follow.asp

Reliance Fresh
photo cc rights sumith meher

http://img101.imageshack.us/img101/3751/reliancefreshsumithmehewm4.jpg

sun u realy are solid on this forum.Photos of everything!!Cheers for that mate.
Its all exciting news for Indian retail.Went into a supermarket in pheonix mall, my first in India .Size wise was a bit tight but product wise, it had everything, including i think, Miso!!
Its all good. If only the gov would wake up & start to be serious about infrastructure.
Or maybe PPP is the india will do it?

http://timesofindia.indiatimes.com/NEWS/Cities/Ahmedabad/Hi-tech_shopping/articleshow/548391.cms

AHMEDABAD: A 24-hour mall with intelligent trolleys keeping track of how much you have spent and a swipe of a card at an unmanned payment counter before you step out. And during all this you hardly come across any attendants. Sounds like the year 2020?

Not at all. Come 2007, and you will be able to walk into a fully automated shopping mall in Ahmedabad replete with hitech changing rooms that provide you with the required ambience to match your choice of clothes.

Dubbed the "intelligent shopping mall", the futuristic shopping experience is being conceptualised at the National Institute of Design.

Somesh Singh, head of the apparel design and merchandising department of NID,who is readying the concept and technological infrastructure, said, "Instead of having big malls we need intelligent malls to provide better services, comfort and minimise human interface.

In the era of connectivity, sellers will have to extend personalised services powered by advanced technology. The few employees at these malls would be the security guards.

"NID, with the help of a private company based in Mumbai, is designing the futuristic mall to provide a unique shopping experience. In this hi-tech shopping complex, shoppers need only to roll their trolleys into the mall and start collecting groceries.

By the time they finish, the trolley will have automatically calculated the price of all that they have bought. This will be done with the help of radio frequency identification (RFID) technology developed by the Massachussetts Institute of Technology.

A microchip is embedded in the price tag of each item and it stores information and commands. Then, a mere swipe of the 'intelligent card' — which consumers will have to buy for use at the malls — at the automated cash counter, will complete your shopping spree unlike present malls where one has to stand in long queues to make payments.

The shopping card will also store personal preferences of the consumer to provide them customised products and services the next time he or she visits the mall.

The pilot project will be first tried in Ahmedabad to check consumer response. Dipen Jain, managing director of Rupam Exports, is providing logistical support and technological inputs in the retail model.

"We are streamlining core people and technology for the whole project,"Jain said.

http://skyscrapercity.com/showpost.php?p=9118763&postcount=101


Metro Cash & Carry to expand to 8 more cities

German retailing giant Metro Cash & Carry is currently holding discussions for acquisition of properties in over eight cities – Chennai, Ghaziabad, Delhi, Gurgaon, Pune, Coimbatore, Vijayawada and Viskhapatnam – to launch its distribution centres.

http://www.business-standard.com/common/storypage.php?autono=266428&leftnm=1&subLeft=0&chkFlg=

Hindustan Times - December 2, 2006.

http://img247.imageshack.us/img247/7011/htmm8.jpg

Reliance Fresh
photo cc rights sumith meher

http://img101.imageshack.us/img101/3751/reliancefreshsumithmehewm4.jpg

Is it just me or some items on the shelf are kind of pricey?

^^ Yeah....they kinda look high. But have to see at what weight denominations they are selling them.

Reliance Retail to roll out more stores in metros

Source: Financialexpress.com (http://www.financialexpress.com/fe_full_story.php?content_id=147892)
HYDERABAD, DEC 1: Enthused by its overwhelming response in Hyderabad, Reliance Retail is all set to enter Mumbai, Chennai and Delhi markets. The company is expected to roll out about 100-odd Reliance Fresh stores in these cities before March 2007.

As part of its first phase of rollout in Hyderabad, it has unveiled six more stores thus totalling to 17 stores. And by before March 2007, it is planning to have about 40-odd stores in this city.

According to company officials, there has been an overwhelming support from the customers at the existing 11 stores. The average footfall per store is about 1,000 people which translate to over 11,000 stores. The stores were opened at Uppal, Dilsukhnagar, Miyapur, Vengal Rao Nagar, Saket and Bowenpally.

About 12 more stores are expected to be opened in tier-II cities which include Vijayawada, Visakhapatnam, Warangal and Tirupathi in the state.

In terms of sales, each store earns revenue of Rs 10 lakh per day across the 11 stores. The average tonnage of vegetables sold is about eight tonne per day, informed company officials. These air-conditioned stores sell a variety of vegetables, fruits, eggs, dairy products and its own private label of groceries.

Moreover, the cleaner environment has even attracted those customers going to Rhythu Bazars, which was hitherto attracting more people from the mid-class of the society. Meanwhile, as part of its next venture, the company is planning to unveil hypermarkets in February 2007.

Is it just me or some items on the shelf are kind of pricey?
They won't be able to remain competitive if their prices aren't. Even if they are pricey now (and I'm not sure if they are), the market will stabilize in a short amount of time.

They won't be able to remain competitive if their prices aren't. Even if they are pricey now (and I'm not sure if they are), the market will stabilize in a short amount of time.

Do you live in India because those things do look pricey..like buying bell pepper in US instead of India..

^^ Yeah....they kinda look high. But have to see at what weight denominations they are selling them.

Can't be more than a kilo?

The Yellow and Red peppers have always been pricey in India. Im guessing they are most probably imported and not grown in India.
I remember buying Red/Yellow peppers in India 4 years ago for Rs 25 /kg. which was 4 times costlier than the regular green peppers that used more commonly. So with the inflation this might be the normal price for today. Green peppers surely must be 3-4 times cheaper.

The Yellow and Red peppers have always been pricey in India. Im guessing they are most probably imported and not grown in India.
I remember buying Red/Yellow peppers in India 4 years ago for Rs 25 /kg. which was 4 times costlier than the regular green peppers that used more commonly. So with the inflation this might be the normal price for today. Green peppers surely must be 3-4 times cheaper.

Same is the case in US. Green capsicum costs about $1 per lb, whereas, yellow and red Capsicum costs about $2.5 per lb. At least that is the case here in Florida.

Do you live in India because those things do look pricey..like buying bell pepper in US instead of India..
No, I don't live in India at the moment. They are quite pricey though. I meant that eventually the prices will come down once the novelty wears off.

If you compare them with the US prices, remember that in the US, it would be price per pound, and India, that would be per kg.

Fossil enters India

Rajesh Exports has formed a 50:50 joint venture (JV) with US-based lifestyle consumer products firm Fossil Inc.

According to an official release issued by the company to the BSE today, the JV firm, to be named Fossil India Inc, would be engaged in manufacturing, distribution and retailing of jewellery, watches and lifestyle products. It will also outsource all its domestic jewellery retailing requirement and Fossil's international requirement from Rajesh Exports. The JV will have a significant impact on the profitability of Rajesh Exports due to the high margin nature of the products.

http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=18210

Vishal plans to set up 80 stores

Shabana Hussain / New Delhi December 04, 2006

Joining the recent retail boom, retail chain Vishal Mega Mart is planning to launch 80 more hypermarket stores at an investment of Rs 480 crore in the next financial year. This would take the company’s total number of stores to 126.

The company’s expansion is partly aimed at widening its presence in the southern region. Out of the proposed 80 stores, more than 15 would be launched in cities such as Chennai, Coimbatore, Madurai, Thiruvananthapuram, and Kochi, Ram Chandra Agrawal, managing director, Vishal Mega Mart, said.

It would also be launching hypermarkets in Chandigarh, Jaipur, Jalandhar, Kolkata, Ludhiana and Vadodara by the mid of 2007. Hypermarts are bigger than supermarkets and combines supermarket and departmental stores in terms of product range.

The Rs 288 crore company has 46 stores at present in 34 cities in northern and western regions. In the south, it has presence in Hyderabad.

Desi retail is expanding to take on the global biggies... :)

INDIAN RETAIL SECTOR SETS SIGHTS ON RAPID GROWTH

Whether it was the Rs 25,000-crore Reliance retail juggernaut or the behemoth Wal-Mart-Bharti combine, or even private equity players investing in retail, the consumer has clearly been crowned the undisputed king. Arguably, this has been the year of retail. So, does this hold a promise for the future or is it just hype?

Arun K. Nanda, president of the Infrastructure Development Division at Mahindra and Mahindra, said at the Confederation of Indian Industries’ (CII) recently-held National Retail Summit that there was a need for greater integration between town-planning and real estate to develop proper retail zones in urban centres that would be sustainable. He cautioned: “There are plans to build over 600 malls across the country, but the market will not absorb all of them and there will be consolidation over time.”

While investing in retail is an uncertain and expensive proposition, it is a sunrise industry that offers the possibility of profitable exits. Investors are keen to invest in businesses that benefit from the rising spending power of Indian consumers.

There is no denying India’s retail potential. At Rs 14, 40,000 crore, the Indian retail sector has been growing at a compounded annual growth rate of 7-8 percent. By 2010, the domestic industry will be larger by another Rs 45,000 crore. What has contributed to this surge so far is the boom in organised retail, which according to a study by CII and consultancy firm AT Kearney, has been growing at 35 percent year-on-year.

A key factor for this growth has been the burgeoning consumer class. The 2001 census reported that India’s urban population constitutes 27.8 percent of the total population. The consumer class alone is over 400 million. “And disposable income available to this lot is rising,” says Raman Mangalorkar, principal, consumer industries and retail practice, AT Kearney.

By some estimates, India’s organised retail is only about 4 percent. The CII-AT Kearney study however, pegs the national average at 6 percent. Incidentally, the organised retail averages in other Asian countries like China and Vietnam are much higher at 20 percent and 22 percent respectively. In South Africa, Brazil and the USA, the figures touch 32 percent, 75 percent and 82 percent respectively.

With international players entering the sector, however, this is likely to change. Already, companies such as Reliance Retail are in talks with fast-moving consumer goods majors such as Nestle for a possible tie-up in their dairy business. The Tata-promoted Chroma store, for instance, has an exclusive arrangement with Australian retailer Woolworths for the procurement of its products. n the next few months, more activity will be visible in this area as new and existing retailers clamber to get their act together.

One of the biggest deals in the retail space was the acquisition of a 51-percent stake in Nilgiri Dairy by Actis. Recently, Matrix Partners also invested $5.5 million in fast-food retail chain Yo! China. Similarly Sequoia Capital made a $20-million investment in Café Coffee Day, primarily to fund its global expansion plans.

Earlier this year, Malaysian-based Navis Capital bought Delhi-based fast food chain Nirula’s for Rs 90 crore and invested in Sanjay Narang’s Mars Restaurant. “The heightened interest in the food and beverage space is not surprising given the 20 percent growth it is witnessing,” says Technopak Advisors’ chairman Arvind Singhal.

There are a quite a few retail players who are scouting for private equity; popular brands such as Fab India and Weekender are in queue to offload stakes and pick up capital to grow. Menswear brand Koutons Retail India attracted investments of Rs 50 crore from US-based private equity player Argonaut, and Avinashi, Karnataka-based sp Apparel sold 10.7 percent equity to New York Life Fund for close to Rs 45 crore.

Indian metros have shown around 10-12 percent growth in organised retail though in some areas in the South, organised retail has grown 20 percent.

Chairman of the CII National Retail Summit, Rakesh Biyani, observes that the huge retail market in India also requires immense credit support. Credit agencies could play a major role in this context. A large part of this disposable income goes into purchasing food, groceries and other essential commodities. A break-up of the various segments in organised retail shows that food retailing constitutes 19 percent of the overall pie. Apparel and accessory retailing is the only other segment in the country that is ahead of food retailing at about 40 percent. Consumer durables retailing, on the other hand, is about 13 percent, while footwear retailing is about 9 percent.

With organised retail on the rise, the share of these segments is bound to go up, says the study. Food and consumer durables retailing are likely to see a spurt in the next few years. AT Kearney believes that large and niche-format stores will coexist in the country. Already, international retailers are making a beeline for India with new concepts and ideas. Corporate houses here are foraying into the sector at the same time.

As retailing takes off, new challenges emerge in the sector. A crucial issue is how to gear up supply-chain management and logistics to the requisite level. Simply put, this implies retailers will have to ramp up back-end operations. Till now, the focus in the retail sector, at least in India, has been on the storefront.

The logistical cost of goods in India is also very high as compared to many other countries, which need to be reduced by investing more in infrastructure, according to V. Vaidyanathan, executive director of icici Bank. He cites the example of China which had made large investments in infrastructure in an attempt to reduce logistics costs and asks the Indian government to do the same, saying this is the opportune moment to develop infrastructure in the country.

Biyani has also emphasised that innovation needs to be driven into Indian industry to fuel the retail boom. Revolutions in supply chain are required along with improvements in productivity. While the government is in the process of carrying out amendments to the Agricultural Produce Marketing Regulations Act to lend support to contract farming, the retail sector needs to evolve plans to invest in supply chain and logistics infrastructure.

The ministry of state for food processing industries has said that Indian retailers must contribute towards generating growth and employment opportunities . It has also emphasised the need for upgrading the rural retail and agro-business markets as Indian retail surges ahead.

The retail industry in India is now at the crossroads. It has emerged as one of the most dynamic and fast-paced industries with several players entering the market. But because of the heavy initial investments required, it’s difficult to hit the break-even point for many players. The market is growing, government policies are increasingly becoming market-friendly, and emerging technologies are facilitating operations.

The retail market was on fire after Bharti’s deal with the world’s biggest retailer, Wal-Mart. Experts think that other global biggies, who do not want to be left behind, are trying out every option to enter the lucrative India retail industry. Since organised retail is a still a small segment, foreign players see great potential for growth here.

Foreign firms like Swiss luxury goods and fashion group lvmh Moet Hennessy Louis Vuitton are preparing to ride the retail boom in India, and intend to invest in setting up company-owned boutique retail chains for premium brands like Tag Heuer and Zenith in the country. The group has already initiated talks with leading retail companies in India to set up joint ventures to enter single brand retailing in the country. Foreign direct investment norms today permit overseas firms to own up to 51 percent stake in single-brand retail ventures.

The firm has already earmarked an investment of close to Rs 25 crore for establishing a chain of Tag Heuer boutique retail outlets across the country next year. This would also mark a big strategy shift for the company, which today operates through six standalone franchisee outlets.

Already, domestic retailers are expanding base and international retailers have a significant presence in India. Big Bazaar with a presence in 12 cities leads in the hypermarket section with a turnover of $80 million in 2004-05, Shopper’s Stop leads in departmental stores with $112 million, Spencer’s Retail, present all across India, leads in supermarkets with $70 million.

The Indian retail sector however, is relatively small by global standards, with retail giants like Wal-Mart alone reporting $315 billion in global sales. Issues like the lack of industry status, real estate hurdles, information technology infrastructure hurdles and inadequate utilities need to be taken care of to ensure growth. Stan Erwin, senior managing director, Trammel Crow Company, says that besides infrastructure, the government should also take greater control over the sector since it is growing very rapidly and without much discipline. He suggests that companies carry out in-depth research before launching their projects.

The Indian retail sector seems promising. But the players to make the the right moves. If the government is responsive, the Indian retail sector might well realise its true potential.

http://www.tehelka.com/story_main23.asp?filename=Bu121606Indian_retail.asp

Can't be more than a kilo?

Yeah....but i heard from my Dad y'sday that the prices at Reliance fresh are reasonable. He checked out the store near our house y'sday.( In Hyderabad)

The USD 3.2 billion Munjal family promoted Hero group is all set to become the next big entrant in the Indian retail sector, reports Business Standard. The group is scouting for a foreign joint venture partner for this venture.

http://www.myiris.com/newsCentre/newsPopup.php?fileR=20061211152427115&dir=2006/12/11&secID=livenews

India's retail sector is set for dramatic changes as the world's largest retailer, Wal-Mart, gets ready to open hundreds of stores in the country with a local partner. As Anjana Pasricha reports from New Delhi, Wal-Mart will be the first foreign superstore to break into India's under-developed retail market.



http://voanews.com/english/2006-12-03-voa5.cfm

The boom in India's retail industry is mainly due to the rise in shopping malls across the country in the past five-six years even as their management has emerged as a big challenge, industry experts say.

Industry leaders discussed the need for an effective mechanism for the proper management of the shopping malls at a seminar

http://news.monstersandcritics.com/india/article_1225448.php/Mall_management_biggest_challenge_in_Indias_retail_experts

With Wal-Mart (nyse: WMT - news - people ) champing at the bit to enter the country’s nascent mass-market retailing industry, labor unions in India are already getting ready to protest.

The Center of Indian Trade Unions, which is affiliated to the Communist Party in India’s coalition government, say Wal-Mart’s entry will destroy the livelihood of small-scale retailers across the country. There are around 40 million shopkeepers whose businesses could be hurt, says B.K. Pandhe, president of the CITU.

http://www.forbes.com/markets/economy/2006/12/08/wal-mart-india-markets-emerge-cx_rd_1208markets04.html

Amidst all this wal mart stuff,Discovered that 'Waitrose' already sell their products in India at cyber city(forget the name??) next to inorbit.Now thats intertesting cos it means the food retail market is muturing.And that quality is being recognised.

hypercity. in malad

they even have an organic section. certainly the best designed and planned supermarket i have seen in india

Reliance Retail loses 5 execs to Subhiksha

Source: The Economic Times (http://economictimes.indiatimes.com/articleshow/793472.cms)
MUMBAI: The war for talent in retail is affecting even players like Mukesh Ambani-led Reliance Retail. Close on the departure of Rajeev Karwal, several middle to senior level managers from Reliance Retail have moved to join food and grocery retail format Subhiksha.

Subhiksha MD R Subramanian told ET that about five professionals have moved to Subhiksha from Reliance Retail in the last one-and-a-half month. “They have joined at assistant vice-president and vice-president levels at Subhiksha,” informed Mr Subramanian.

He adds that these people were handling operations at Reliance Retail and have moved to similar duties at Subhiksha across various regions where the retail format is currently on an expansion spree. Some of the movements have been from Hyderabad, where Reliance Retail made a debut into food and grocery retailing with its Reliance Fresh format stores.

“Retailing in India is at a stage where people movement is happening at a furious pace as every player requires personnel for their operations,” says Mr Subramanian.

This is unusual......>Reliance is loosing its men to some other retail store corp.!

hypercity. in malad

they even have an organic section. certainly the best designed and planned supermarket i have seen in india

Yeah thats the one. Is it busy?

dunno, was fairly busy when i went. too far for me to consider going there, had some work when i passed by so just popped in

Letter From India: From the 'subzi mandi' to the hypermarket (http://www.nst.com.my/Current_News/nst/Monday/Columns/20061211075822/Article/index_html)

RETAILERS from across the world are coming to India, to use a cliche, wholesale. So much so that nostalgia is setting in for those used to shopping at Delhi’s Chandni Chowk, Kolkata’s New Market, Bangalore’s Russell Market and Mumbai’s Crawford Market.

One is not even talking of the subzi mandi, the wholesale greengrocer’s market that is integral to urban and semi-urban India. But retail is not confined to fruits and vegetables. India’s cash-rich corporations, raring to go multinational wherever they can, are readying for international tie-ups to sell just about everything. Clothes, stationery, sportswear, inner and outerwear, tailored clothing, eyewear, watches, fragrance, footwear and accessories — the list is endless.

Apparel, however, remains the key revenue driver accounting for almost 80 per cent of total sales. According to industry insiders, the total apparel market in India for kids alone is around US$2.9 billion (RM10.7 billion).

The Indian retail market is estimated at between US$300 billion and $350 billion. But organised retail accounts for only US$8 billion. By 2010, it is expected to touch US$22 billion.

The Wal-Mart agreement with communications major Bharti last month is expected to energise other global retailers, including French giant Carrefour and Hong Kong-based A.S. Watson and AEA Holdings, to firm up their India plans.

As in many other fields, Tata is the pioneer with the apparel retail chain "Westside". Last year, they brought in Australia’s Woolworth’s and are now turning to British Tesco for a strategic alliance to set up a chain of hypermarkets.

Setting up a shop and running it for long hours come naturally to Indians. Prince Klaus of The Netherlands, told me this in 1986: "My first glimpse of Indian enterprise was in East Africa in the 1940s, watching a family run a grocery. When the man rested, his wife or one of the children would manage. The shop closed for but a couple of hours."

The retailing revolution is inevitable when India is changing quietly. Economist Ashok Gulati says that in the past two decades, consumption of vegetables has trebled in villages and doubled in towns; milk and milk product consumption have doubled in both urban and rural areas. The share of high-value foods has risen in India’s farm output from 32 to 44 per cent between 1983 and 2003.

Since retailing infrastructure must exert pressures on real estate, the phenomenon has seen a dual process. With branded players looking for quality space and high convertible footfalls, Khan Market, an upmarket shopping street in New Delhi, has become the costliest location with a 75 per cent jump, while South Extension, has recorded a jump of 111.5 per cent. Mumbai’s Linking Road too has registered a rise.

Soon, an estimated 50 million square feet of quality retail space will be available across India. Today, in Delhi, Mumbai and their suburbs, there are about 100 malls. They all mean thousands of jobs for skilled and semi-skilled youngsters.

Retailers are spreading out of the metros. Of the 700 new malls coming up, 40 per cent are in the smaller cities. Organised retailing in small-town India is growing at a staggering 50-60 per cent a year compared with 35-40 per cent in the metros. Cities like Dehradun, Vijayawada, Lucknow and Nashik will power India up the rankings soon.

But it is not going to be easy. The Left parties whose support is crucial to the government are against what they call "the backdoor entry of MNCs" and are opposing the foreign direct investment that major players are seeking.

Even without the communists’ accusations, Wal-Mart’s history is known. It entered Hong Kong in 1994 and quit the region two years later, after what some experts saw as poor choice of location and merchandise selection. It entered Indonesia in 1996, but left a year later, following the looting and torching of a store in Jakarta. Earlier this year, Wal-Mart exited Germany, where it had lost hundreds of millions of dollars since 1998, and South Korea.

When the malls spring up across India, and people take the Metro to buy green vegetables, a generation will pass clutching memories of mom-and-pop shops, home-made cloth bags, sustained haggling in open bazaars and the quiet thrill of getting an extra dash of chilly or coriander for free.

But I have no doubt that the small shopkeeper will survive. What will keep him going, I presume, will be the ability to make available that "something" the big retailers will have discarded for being either uneconomic or too cumbersome to handle. There will always be homegrown wisdom that will have escaped the PhDs of the Ivy League business and marketing schools.

A Reliance Fresh store in Hyderabad
photos cc rights nehavish

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http://i10.tinypic.com/2cpq1c9.jpg

http://i12.tinypic.com/4c8hfsm.jpg

Reliance Retail loses 5 execs to Subhiksha

Source: The Economic Times (http://economictimes.indiatimes.com/articleshow/793472.cms)


This is unusual......>Reliance is loosing its men to some other retail store corp.!

I had never heard of this chain so I did some googling. It's a pretty interesting retail chain

photo from bangalore metblogs
A Subhiksha store

http://img348.imageshack.us/img348/4649/subhikshablriz2.jpg

Subhiksha hits 500 store mark
http://www.freshplaza.com/2006/13dec/rn_in_subhiksha.htm

The discount retail chain with 500-store across the country is now India’s largest supermarket chain. The announcement was made at the launch of Subhiksha in Maharashtra, which is the final leg of Phase 1 of Subhiksha’s 300 cr expansion plan across India.

Speaking on the occasion Mr R Subramanian MD Subhiksha said, ‘With Maharasthra we will complete our 600-store target, and we will shortly activate Phase 2 of our expansion plans foraying into 5 more states including Chandigarh, Punjab, Madhya Pradesh, Uttar Pradesh, Haryana and West Bengal. We hope to hit the 1000-store mark during 2007.’

Subhiksha’s total outlay for both phases of expansion is a whopping Rs 500 crore. Subhiksha has already crossed the 450-store mark across 5 states with over 1million Sq feet of retail space, making it the largest supermarket chain in India. Its closest competitor trails at a distant 90 .

Subhiksha’s customer focused retailing format emulates the neighbourhood kirana-store model, with its innate convenience along with the added advantage of consistent and every-day discounts and assurance of quality. Subhiksha operates in 4 verticals - Fruits and Vegetables, Pharmaceutical, FMCG and Telecom.

‘Our goal of becoming India’s favorite neighborhood store is now well on its.. We want to be able to provide customers from all segments of society, in all parts of the country, with a viable smart shopping option”, added Mr. Subramanian

Subhiksha’s unique direct supply arrangements with manufactures considerably reduce supply-chain costs helping Subhiksha sustain the EDLP model. Resulting benefits as well as that accrued by economies of scale is passed on to the consumer, keeping prices of all products sharply lower than the market, consistently, with simultaneous assurance of quality control. To the consumer, the marked discounts on prices are visible on all bills, which compare in store with market prices and tally the total saving

Commenting on recent industry speculations Mr Subramanian said “We categorically deny any discussions with any other company. Speculations or claims on discussions in this regard are baseless.’ Since we are so successful any number of people may covet us – but we have no intention to sell. Infact we are constantly expanding and not averse to buying anything suitable.”

____________________________

An old interview which gives some insight about this company

http://www.outlookmoney.com/scripts/IIH021C1.asp?sectionid=10&categoryid=109&articleid=5603

And another interview article

http://promosnew.sify.com/prideoftn/subhikshainterview.php

___________________

I think there was a subhiksha in chowdi, the town we were near in S goa? A good store.all this debate about whether mom 'n' pop shops will close is tempered by the above article.
But what about all the humour that will go? See funny pics thread.Were all gonna miss that.the human touch.No one can deny that life in west is although easier & richer , somewhat flatter.And thus in a way less engaging.The corporate high st has flattened it all out. I have as usual no solution...

they seem to have pretty big plans. all over the news this week

Subhiksha charts Rs 500cr expansion plan

TIMES NEWS NETWORK

Mumbai: Discount retailer Subhiksha has announced a Rs 500 crore expansion plan that will take its national network to 1,000 stores by the end of next year. Of this 180 stores will be in Maharashtra, with Mumbai accounting for the lion’s share of 100. Delhi is also expected to have 100 stores.
Subhiksha, with 450 stores across India, most of which are in the south, is competing directly with the neighbourhood kirana store on one hand and a large supermarket on the other. At its modest 2,000 square feet stores, the emphasis is on selling everyday items like fruits and vegetables, pharmaceuticals, FMCG and telecom. Prices though are discounted unlike neighbourhood stores which continue to charge the maximum retail price for items. On medicines for example, a flat 10% discount is offered.
R Subramaniam, MD, Subhiksha Trading Services, said this is possible due to the direct arrangements it enjoys with suppliers across categories.

Subhiksha to blitz Kolkata in 2007
http://cities.expressindia.com/fullstory.php?newsid=213490

Discount retailer Subhiksha aims to blitz West Bengal with 90 stores in the space of a month, and has already begun the groundwork to select the locations and build the supply chain, according to R Subramanian, managing director of the chain.

Unlike existing majors like Food Bazar or C3, or homegrown Arambagh, Chennai-based Subhiksha bets big to start with and then saturates the city it has decided to enter. It will take around nine months to get the Kolkata distribution centre and stores ready.

It will also extend its online buying site to loyalty customers, apart from having an edge in store timings with its 9am to 9pm hours.

A Subhiksha store is typically 2000 sqft, way smaller than a Food Bazar or C3, but this helps it be present in every neighbourhood.

At the moment, Subhiksha does not deal in poultry or fish, but it has been studying the market so it could have these items by the time it sets up shop in Kolkata.

India : Carrefour & Wadias to enter Indian retail sector

Wadias (Bombay Dyeing Group) will tie up with Euro Carrefour, second biggest global retailer based in France, facilitating the latters entry in the Indian markets.

This $74 billion company operates a chain of supermarkets, hypermarkets and convenience stores and it has about 7,000 outlets worldwide.

Carrefour has been studying Indian markets for some time for retail expansion.

Wadia is a prominent name in the textile sector and Bombay Dyeing Chairman Nusli Wadia’s elder son Ness Wadia will take charge of the project, sources inform.

http://www.fibre2fashion.com/news/company-news/carrefour/newsdetails.aspx?news_id=27891

Read in the Financial Times UK that interestingly the american grocery union is objecting to Tescos going into the US just as the indian unions are objecting to Walmart entering India...

Select retail may get 100% FDI (http://business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=BO&autono=269311&chkFlg=)

Sectors include electronics, sports goods, building equipment and stationery.

The commerce ministry will soon put up a note to the Cabinet seeking to permit foreign direct investment (FDI) in at least five speciality retail areas, including electronics, sports goods, building equipment and stationery.

Although pharmaceutical retailing will not be brought under this move, there is a strong likelihood that furniture may also see a similar relaxation.

Highly placed sources in the government said Commerce Minister Kamal Nath had discussed the matter with Prime Minister Manmohan Singh, who is understood to have directed him to bring the matter to the Cabinet for discussion.

The commerce ministry is also initiating a discussion with the Department of Consumer Affairs on this proposed move, which is likely to take shape in a month or so.

When asked, Nath confirmed that the move was being considered. “I am looking at this,” he said. The logic behind the move, which comes amid the Left parties’ opposition to FDI in the retail sector, is that this relaxation will not impact nay domestic interest groups.

For instance, with the Commonwealth Games scheduled to be held in New Delhi in 2010, Nath feels that there will be a need for good sports goods stores.

Interestingly, Nath made it clear that he was personally opposed to diluting FDI norms for retail in a manner that would impact neighbourhood grocery stores.

“Even if the Left were to agree, my line would be that we cannot allow it,” he said. At present, the government does not allow FDI in retail trading, except 51 per cent FDI in single branded product retailing.

FDI via the automatic route is permitted in trading wholesale, cash and carry, exports and items sourced from the small scale sector. A similar rule also applies to warehousing facilities.

The commerce ministry feels the proposed reform in retail FDI would induce a number of global chains in these sectors to set up shop in India. In fact, US based Best Buy, a large electronics retail chain, has sounded out the ministry regarding its interest to source goods from India.

Bharti lines up $7 bn for retail (http://business-standard.com/compindustry/storypage.php?tab=r&autono=269313&subLeft=1&leftnm=1)

Unravelling the details of its retail foray for the first time, the Bharti group said it planned to set up 200 hypermarkets and large format stores across the country and invest around $7 billion by 2010.

In addition, the group also expects to earn a revenue of over $1-2 billion from its retail business, which would constitute over 10-20 per cent of the group’s targeted turnover of $10 billion by 2010.

Bharti has entered into a joint venture with Wal-Mart, which will get into the cash and carry business, while the front end business of running the stores will be undertaken by Bharti.

Bharti is also tying up with Axa, its financial services and insurance service partner, to float a realty fund. The group will undertake a mixed strategy in acquiring real estate for its retail foray by leasing space in metros and by buying it in Tier II and Tier III cities.

The group will also launch a programme in which it hopes to rope in existing small retailers to join in as franchisees of Bharti’s retail chain.

The group’s realty company, Bharti Realty, is expected to be a key mover in identifying real estate for its proposed foray.

Though the front end stores will bear the Bharti name, discussions are on about the inclusion of the Wal-Mart brand as well.

Speaking to Business Standard, Sunil Bharti Mittal, chairman of the Bharti group said: “We should have 200 large stores and hundreds of small stores in the first phase. Depending on what we do in real estate and logistics, we will invest around $7 billion by 2010. Our expectation is a topline of $1-2 billion from retail by the same period.”

Mittal also said discussions were on whether the new venture would get into logistics, which included trucking, cold chain trucks, or whether these would be outsourced.

$7 billion!! This is MAJOR investment by Bharti-Walmart. It surpasses Reliance Retail's investment of $5 billion. Oh boy, the agricultural sector will indeed witness another (much bigger) green revolution.

Heritage Foods opens `Fresh@'

Special Correspondent

Source: The Hindu (http://www.hindu.com/2006/12/31/stories/2006123119770200.htm)
HYDERABAD: Heritage Foods (India) Limited, a leading dairy products company has announced a foray into retail business with the launch of `Fresh@', a unique line of retail stores in the city on Saturday.

The stores will provide complete range of daily home needs with focus on fresh fruits, vegetables and grocery. The division has taken a holistic approach by building relationships with farmers and encouraging them to adopt advanced agronomy services to ensure that the products reach consumers with freshness and vitality intact.

Speaking to reporters during the launch, Heritage Foods head (operations & marketing) Santosh Unni said the company has plans to open a hundred `Fresh@' outlets in all major Indian cities. The company is opening eight outlets in Hyderabad on Sunday and is expecting to net a revenue to the tune of Rs. 300 crores by the end of next financial year. It will also start free home delivery for its customers who make a billing of over Rs. 200. The customers can call the stores or place their order through Internet .

deleteeeeeeeee

Select retail may get 100% FDI (http://business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=BO&autono=269311&chkFlg=)

Its all hotting .FDI in retail IS coming.

Heritage Foods opens `Fresh@'

Special Correspondent

Source: The Hindu (http://www.hindu.com/2006/12/31/stories/2006123119770200.htm)

The Fresh@ name will confuse people with Reliance Fresh?

Meanwhile for those who are unaware of this company check this out:

http://www.heritagefoods.co.in/aboutus/founder.htm

Calcutta will soon boast of a Costa Coffee outlet
For the rising count of coffee buffs in the city, there’s more steaming news brewing, and for the retail revolution, another significant signpost.

Costa Coffee, UK’s “largest and best-known” coffee brand, is set for a Calcutta foray with its finest flavours of roasted coffee including the special blend of Mocha Italia and its signature Frescato range of semi-frozen drinks by the third quarter of this year.

“We plan to have six stores operating by the end of the year. Calcutta is a high-potential market for Costa and we are confident the city’s refined taste buds will appreciate our product basket,” says Rocky Kalra, chief operating officer.

Devyani International, exclusive master franchisee of Yum! International for Pizza Hut, KFC and Costa Coffee in the east, has signed up for the first Costa Coffee outlet at The Terminus Mall in Rajarhat being developed by Bengal Greenfields.

The mall will also house Pizza Hut and KFC.

City Centre II in Rajarhat and Mani Square on the EM Bypass are the other properties likely to house Costa Coffee.

Owned by Whitbread Inc, the £1.8-billion UK-based leisure company, Costa today has close to 500 stores in the UK and over 650 outlets worldwide, with an annual turnover of £150 million. It plans to open 2,000 outlets globally by 2010.

The chain was started in 1971 by the Costa brothers, Sergio and Bruno, who drew on their Italian lineage to establish Costa’s unique roasting style.

Since the launch of its first outlet in September 2005 in Delhi, Costa Coffee has opened 18 more stores and is expected to have around 45 Indian outlets in place by end-2007.

With outlets being plotted in Bangalore and Mumbai, the long-term plan is to open 300 coffee shops in the next three-four years.

“Costa Coffee is a very exciting brand and we are happy to facilitate their arrival in Calcutta, which can look forward to a clutch of other international F&B brands,” says Abhijit Das, associate director of property consultants Trammell Crow Meghraj.

The design concept, following an international template, aims to bring the “brand value and personality to life” with the warm, deep red leitmotif.

“We believe in a hospitable, genuine, full-of-life Italian coffee experience, wherever the outlet is located,” stressed Kalra.

Bharti-Walmart to open shop in Hyderabad


Source: Moneycontrol.com (http://news.moneycontrol.com/india/news/business/relianceretailmaxlifestyle/bhartiwalmarttoopenshophyderabad/market/stocks/article/259661)

After Reliance Retail and Max Lifestyle, Hyderabad could be gearing up for Bharti-Walmart. CNBC-TV18 reports Bharti-Walmart is scouting for land for two hypermarkets in the city.

Bharti-Walmart is scouting for real estate in Hyderabad to set up two of its hypermarkets here. According to sources, the hypermarkets will have 80,000 sq ft of retail space each and will be located in the outskirts of the city . The company is looking at acquiring a total of 3 acres of property.

Sources say the company has already done a preliminary analysis of the city's demographics and the competition that retailers present in Hyderabad will offer them. When contacted the official spokenperson at Bharti refused to comment.

After Landmark's Max Retail stores and Reliance, Bharti joins the list of retailers who will make an entry into Hyderabad. Experts say Hyderabad offers real estate at a price that is more affordable than big cites like Mumbai or even Bangalore and its population is happy shopping at supermarkets.

Birla group may pump in Rs 6,000 cr in retail initially

Source: Economic Times (http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Birla_group_may_pump_in_Rs_6000_cr_in_retail_initially/articleshow/1028223.cms)
MUMBAI/ NEW DELHI: The AV Birla group has kicked off its retail plans by acquiring Hyderabad-based supermarket chain Trinethra Super Retail and its fast-growing online shopping outfit, Fabmall.

Sources said the Birla group’s retail plans could see funding come from unlisted units. Although the financial details of the Birlas’ retail business isn’t clear, it has been reliably learnt that the group would pump in Rs 5,000-Rs 6,000 crore at least in the initial phase, which could be subsequently ramped up once the business grows.

Birla TMT Holdings, an unlisted company, is likely to part finance the investment, while some debt could also be raised. The Birla group, via Birla TMT, has raised close to $980 million through the sale of about 33% of its equity stake in telecom unit Idea Cellular, to about six private equity firms.

The Indian retail space has recently seen hectic action with Bharti’s Sunil Mittal joining hands with US-based world No 1 Wal-Mart. The $300-billion Indian retail sector is attracting foreign retail giants and local majors such as the Reliance group and the Tatas.

The group will also leverage on the retail reach gained through Birla Sun Life Insurance and Idea Cellular, the telecom business which has 11 million users and a 11.5% share of the GSM market. The telecom unit is present in 11 circles and is roping in 0.6m users every month.

When International Council of Shopping Centers (ICSC) announced the results of its 30th International Design and Development Awards winners recently, an Indian company made it to the list of merit award winners - Pune's Nucleus Mall, from Vascon Engineers Pvt Ltd. "In a location where shopping is merely an activity, shopping has been elevated to a platform of a memorable experience at Nucleus Mall," said ICSC. "Designed on international standards, Nucleus is defined by its soaring atriums, enhanced circulation that allows easy access to retailers, integrated traffic planning, and contemporary interiors that allowed the retailers to stand out. Nucleus is a one stop for work, eat and shop thus bringing in dynamism, culture and profitability under one roof." The project has been designed by KIPA Architects/ Planners and Interior Designers.

ICSC's International Design and Development Awards Program was established in 1977 to recognise outstanding retail projects that have successfully solved many different problems. The awards, says ICSC, honour shopping centre owners, development associates, managers, architects and designers who are the very best at what they do, who design and develop projects that can truly be held up as examples of what can be accomplished with a lot of hard work and creativity. The idea is to provide global recognition of outstanding projects, which "set the standards for the development of retail projects around the world”, in ICSC's words. The submissions for the 2006 awards were judged on criteria that ranged from land use, design, development goals, productivity and innovation.
Here's a look at some of the other award winners


http://economictimes.indiatimes.com/articleshow/1053350.cms

Nucleus Mall
http://img443.imageshack.us/img443/5972/1rc1.png (http://imageshack.us)

http://img443.imageshack.us/img443/8589/2ok4.png (http://imageshack.us)

40 retail players to spend $25 bn in four years (http://business-standard.com/compindustry/storypage.php?tab=r&autono=270714&subLeft=1&leftnm=1)

In the next four years, organised retail in India will receive investments in excess of $25 billion from 40 players, taking the size of modern retail to $75 billion by 2011, according to estimates provided by Technopak.

The investments include the supply chain, but exclude real estate component.

"The big players include Reliance Retail, Bharti-Wal-Mart, AV Birla Group, Future group and the money that will be pumped in by Tesco's and Carrefour when they enter India. While ITC and Godrej have not formally announced any new retail plans, we are speculating that in the next five years these two companies will be investing heavily into retail," said Arvind Singhal, chairman, Technopak.

These investments imply that share of organised retail will grow from the present 3 per cent to approximately 15-18 per cent in 2011-12.

"India is attempting to do what in 10 years what took 25-30 years in other major markets in world," said Singhal in a presentation.

Of the $25 billion investment, approximately 60-65 per cent is expected to be from the domestic retailers.

The organised and unorganised retail market is presently worth $300 billion and is projected to grow to 427$ by 2010 and $637 by 2015.

Food and grocery, which makes up about 55 per cent of the entire retail market is expected to receive almost 60-65 per cent of the investments.

This will probably do more to change Indian lifestyle than any other development.

More than anything i think the employment generated from organized retail would be massive. Any one have any numbers regarding employment generation from this retail. Importantly, the employment generated after taking into account the loss of jobs in the unorganized retail sector.

Reliance Retail spends Rs 1000 cr on Delhi realty (http://www.business-standard.com/compindustry/storypage.php?tab=r&autono=271629&subLeft=1&leftnm=1)

Putting its mega retail plans on full throttle, Mukesh Ambani-promoted Reliance Retail has spent close to Rs 1,000 crore in two days acquiring commercial properties in the national capital.

According to sources, Reliance Retail today acquired a property at Vikaspuri in West Delhi valued at around Rs 280 crore.

Yesterday, it had acquired seven properties valued at around Rs 700 crore. Of these, six were at Dwarka near the Indira Gandhi International Airport and one at Rohini in West Delhi.

“The overall space size of the acquisition is over five lakh square feet,” the sources said, adding the company would be taking part in another bid tomorrow for two properties at Vasant Kunj in South Delhi.

These two properties at Vasant Kunj are together expected to be valued around Rs 25 crore, the sources added.

The properties acquired by Reliance Retail were a part of auctions by the Delhi Development Authority, through which it had collected about Rs 900 crore against a reserve price of about Rs 400 crore.

Yesterday, DDA had auctioned 16 commercial plots totalling around 40,000 square metre.

This will probably do more to change Indian lifestyle than any other development.

It will be huge but.How about massive reforms of the legal system? Just a thought...Or you mean developement as in in physical developement?
BTW whats happened to the shopping mall thread?

More than anything i think the employment generated from organized retail would be massive. Any one have any numbers regarding employment generation from this retail. Importantly, the employment generated after taking into account the loss of jobs in the unorganized retail sector.

I went to a Big Bazaar store in Ahmedabad last month. I bumped into the store manager and I asked him out of curiosity as to how many people were employed in the store. In came an answer - 'close to 300'. Add to that employment in the back end operations. Number of skilled and unskilled jobs organized retail can create is staggering.

Reliance scoops up 150000 sq ft
http://www.telegraphindia.com/1070118/asp/bengal/story_7277074.asp

Reliance Industries Ltd, which recently announced its arrival on the retail racks with its Fresh format, has taken 150,000 sq ft for its hypermart in Batanagar. The township, around 30 kms from Calcutta, is undergoing a Rs 2,000-crore makeover to re-emerge as the sprawling Calcutta Riverside.

The Reliance real estate deal was sealed at Rs 50 crore, said Sumit Dabriwal, the managing director of Riverbank Holdings. The company, a joint venture between Bata India Ltd and Calcutta Metropolitan Group, is building Calcutta Riverside.

The giant retail outlet is expected to open by January 2010, around the time 262-acre township project would be nearing completion. “We will hand over the space to Reliance for fit-outs by October 2009 and it will take another four months to get rolling. By that time, the first phase of our residential component comprising 357 units should be ready,” said Dabriwal.

Although Ambani’s ambitious agri-retail plan has hit a political roadblock, Reliance is booking space across the state. Last October, it acquired around 80 acres in Asansol for its agri initiative and in December it scooped up 62,000 sq ft in Axis, an upcoming mall in New Town Kolkata.

It’s Ranger Farm before Reliance Fresh
http://www.dnaindia.com/report.asp?NewsID=1075331

Here’s a little-known secret: Mukesh Ambani’s Reliance Retail push had actually kicked off much before the official launch on October 30, 2006, in Hyderabad — with the Ranger Farm.

The cash & carry format, which pitches it in direct competition with German major Metro AG, had started operations, with no fanfaronade, at least a month before the launch of its first official format Reliance Fresh.

Ranger Farm wholesells fresh fruits and vegetables to push-cart vendors and other bulk customers. These outlets open at an unearthly 2 a.m. and shut shop at 11 a.m. everyday.

The Ranger Farm in Hyderabad was soon followed by another in Jaipur. Many more are in the pipeline.

At least three more will open later this month in Vijayawada, Guntur and Visakhapatnam where at least a dozen Reliance Fresh stores are slated to kick off early February, a company source said.

“Ranger Farm will be the precursor to Reliance Fresh in every city,” the source said. “Neither will we brand the format nor will we publicise it much.”

The initial response to the format in Hyderabad has been very encouraging with upwards of 4,000 push cart vendors and small shopkeepers picking up food and vegetables in bulk.

While the group is gearing up to launch specialty stores and hypermarkets over the next two months, Ranger Farm, which is in the same mould as ITC’s Choupal Sagar, is already being seen as a success.

It will be huge but.How about massive reforms of the legal system? Just a thought...Or you mean developement as in in physical developement?
BTW whats happened to the shopping mall thread?

The idea of top-down development is that wealth trickles down - the orginised retail sector would perhaps be the largest new sourch of employment, and trickle-down wealth in my eyes. It would not only employ millions, but the millions that service these new millions, and the millions of farmers who provide the stores with efficient food.

via HT Del

http://img179.imageshack.us/img179/7889/itc6xk.jpg

11 retailers readying Rs 2000 crore IPOs (http://business-standard.com/common/storypage.php?autono=272234&leftnm=1&subLeft=0&chkFlg=)

As many as 11 retail companies are gearing up to hit the primary market to raise an estimated Rs 2,000 crore in 2007.

According to Prime Database, a market-monitoring firm, the list includes Vishal Retail, Ebony Retail, Great Wholesale Club, Hidesign, Hotspot, Koutons, Landmark, Maheshwari Mega Ventures, Multiple Zones, Radhakrishna Foodland and Talwalkars.

Domestic retail story is so attractive that companies cannot give it a miss. The country’s organised retail is estimated to be $7 billion and this, according to Ernst & Young, is growing at a whopping 400 per cent a year and is expected to touch the $30-billion mark by 2010. The sector contributes 40 per cent to GDP of the country.

In 2006, there were no significant IPOs barring Gitanjali Gems and Kewal Kiran Clothing which raised capital in the first half of the year. Many domestic corporates and global retailers have already announced or are planning sector forays. Year 2005 had witnessed a series of IPOs from the retail sector, with Shoppers Stop, Provogue, Piramyd Retail, Bombay Rayon Fashions and Celebrity Fashions raising money from the market.

Some analysts, however, caution that the new entrants to the stock market must take care of their performance as well as the accountability on capital to be raised from the market.

“Most of these firms are either family-promoted or venture capital/ private equity funded and in the second and third stages of their growth. Most of them do not focus on the quarterly performance and lack accountability on capital. People with good performance will succeed and other will get struck,” said Pankaj Joshi, assistant vice-president, Singhi & Associates.

Joshi said the performance of a retail company in the stock market without having a well-structured retailing record in place may not attract investors’ intention.

On the other hand, a retail company with a sound production background as well as having venture capital or private equity funding may do wonders on the bourses, he says.

Local firms in rural retail thrust (http://www.business-standard.com/compindustry/storypage.php?tab=r&autono=272379&subLeft=1&leftnm=1)

At a time when Indian retail has caught the fancy of global players such as Wal-Mart and Tesco, domestic companies have lined up investments of over Rs 5,000 crore for setting up rural retail chains.

With more than 60 per cent of the country’s 109 crore population concentrated in rural areas, companies do not want to miss the growing business opportunity.

Most of them made their rural foray in 2002-03 and, enthused by the initial success, have drawn up expansion plans. DSCL, for instance, opened its first Hariyali Kisaan Bazaar (HKB) store in 2002 and the annual revenue per store has jumped from Rs 1.5-2 crore to Rs 5-6 crore.

These stores are offering the same kind of goods and services to rural consumers as available to their urban counterparts, and that too at competitive pricing. They sell everything, from pesticides and fertilisers to loans and radio sets to TV sets.

ITC’s Choupal Saagar has 12 stores in rural areas of Madhya Pradesh, Uttar Pradesh and Maharashtra.

“Larger investments in infrastructure – physical, social and institutional – leading to higher rural income will drive the growth of rural retail,” said S Sivakumar, chief executive of ITC’s agribusiness.

“Our unique selling proposition (USP) is that Choupal Saagars are an integral part of the unique two-tier hub-and-spoke architecture where the village level eChoupals operate as spokes while the Choupal Saagars operate as hubs for a cluster of eChoupals. As a result, our interaction with the rural customers is year-round. Together eChoupals and Choupal Saagars improve incomes and bring quality products and services to rural consumers,” he added.

DSCL has plans to go national with HKB, even as it aims to transform them into complete rural malls, “a one-stop shop for farmers as well as their family”, as Ajay S Shriram, chairman and managing director of DSCL, puts it. At present, DSCL has 50 HKBs in Rajasthan, Punjab, Haryana, Uttar Pradesh, and Uttaranchal.

Triveni Engineering & Industries’ Khushali Bazaar has 33 stores spread across UP and Uttaranchal.

On competition in the sector, Vaidya said, “There is no question of competition. India has 6 lakh villages. Even if one store caters to 20 villages, the country still needs 30,000 such stores.”

Apart from these players, rural retail has also attracted Tatas who are present with their Kisan Sansar stores and Mahindras who have opened Shubh Labh stores.

Reliance Fresh stores launched in Chennai
http://www.hindu.com/thehindu/holnus/401200701241523.htm

Mukesh Ambani-spearheaded Reliance Retail Ltd today launched 12 neighbourhood vegetable and grocery stores in this metropolis, taking the total number of such stores under its pilot retail initiative to 40.

Each of the 12 Reliance Fresh stores will sell vegetables, fruits, dairy products and Reliance's own brand of groceries.

These outlets were owned by Reliance and would be operated by a franchisee, who would be given adequate training by the company, Gunender Kapoor, President, Agri Business, Reliance Retail Ltd, told reporters here.

He said that each of these stores would employ around 15 to 20 people to cater to the customer's needs depending on the shop area and the locality.

Reliance Retail plans to open its larger format stores -- like supermarkets and speciality stores -- by February-end.

Reliance Fresh also opened seven stores in Jaipur some time back.

Bharti hopes to start retail business by Aug 15 (http://hindustantimes.com/news/181_1910848,00050003.htm)

A newly formed realty firm for the Bharti group has started scouting for land and commercial property across India to kick-start its foray into the retail trade and cash-and-carry trade business, a top company official said.

"Our desire is to start the retail trade and cash-and-carry business by August 15, but it will definitely be done before the end of this year," said Bharti group's chairman and managing director Sunil Bharti Mittal.

"For this, Bharti Realty Ltd has been formed, which will identify properties for us to start our retail trade and cash-and-carry business," Mittal said on the margins of the annual meeting of the World Economic Forum (WEF) in Davos.

Bharti will set up a retail trade chain under a franchise from the US giant Wal-Mart, with which it signed an agreement recently.

For its cash-and-carry business - which will include transportation, cold chain and back-end work for the retail trade business - a new 50:50 company has been set up with the US giant, Mittal explained.

Mittal, who is the co-chair of this year's annual meeting and vice president of the Confederation of Indian Industry (CII), said he had no figures to offer in terms of intended investments in retail but added: "Money will not be a constraint."

He said his senior team, along with Wal-Mart officials, was working on various aspects that will determine the amount of money needed for the retail and cash-and-carry operations.

"We have to see whether to rent commercial space or own them. What will be our target areas? Do we hire commercial trucks? All these will determine the investments we will need," Mittal said.

He also spoke about the proposal by the global mobile phone giant Vodafone to acquire Hong Kong-based Hutchinson's Whampoa's stake in Bharti group's mobile telephony rival Essar-Hutch.

He said there had been no specific talks as yet with Vodafone's Indian-born chief executive Arun Sarin in terms of Vodafone wanting to sell its 10-percent equity in Bharti's telecom business.

"But we have no problems with that. Vodaphone has aspirations of running telecom business in India and having some management say. But that is not available in the Bharti group. So we have no problems if they look elsewhere," he added.

Reliance Fresh stores launched in Chennai
http://www.hindu.com/thehindu/holnus/401200701241523.htm



Reliance Fresh also opened seven stores in Jaipur some time back.

The current count in Hyderabad has gone upto 21 with the final figure fixed at 50

The idea of top-down development is that wealth trickles down - the orginised retail sector would perhaps be the largest new sourch of employment, and trickle-down wealth in my eyes. It would not only employ millions, but the millions that service these new millions, and the millions of farmers who provide the stores with efficient food.

Eeeeye im witya

Seven Reliance Fresh stores open in Andhra

BS Reporter / Vijayawada January 28, 2007

Source: Business Standard (http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=20068)
Reliance Retail on Sunday launched seven Reliance Fresh pilot stores, four in Vijayawada and three in Guntur, thus making its entry into coastal Andhra Pradesh.

In Reliance style, the first customers who entered the stores inaugurated them. Every customer who made purchases at these stores was presented half-a-kilo of sugar free.

K Venugopal, chief executive, customer operations, Reliance Industries (retail business), said the company was planning to open 25 more Fresh stores in coastal Andhra Pradesh this year as part of its strategy to have a pan-India presence.

He said the stores, beginning with 250 categories of commodities, would increase the number phase-wise to 1,250 categories. Stores in Vijayawada and Guntur would be expanded in two months basing on customer feedback.

Before opening the stores, the Reliance executives had made frequent visits to a number villages around Vijayawada and Guntur and came to an understanding with farmers on supply of vegetables and other products. Reliance would pay market rates to farmers and lift products directly from them. According to their study, 40% of vegetables and fruits harvested by the villagers were being wasted.

With the stores in Vijayawada and Guntur, the number of Reliance Fresh stores has reached 47 in the country. While Hyderabad has 21 stores, there are 12 in Chennai and seven in Jaipur, according to Venugopal.

The stores were opened at Suryaraopet, One Town, Machavaram and Gandhinagar in Vijayawada and at Arundelpet, Brodipet and Kothapet in Guntur. Each store has on an average 2,300 square feet of space.

it is really encouraging to see the way things are shaping up in the indian retail scene. Though most of us were very critical of left opposition to retail by foriegn firms, i think the left opposition has played out well. Few indian firms have made or making grounds in the indian market.So we would not have just the walmarts and tescos dominating the entire market. There is room for tough competition and good value for customers and manufacturers.

:cheers:

Reliance Retail eyes Rs 1 lakh cr revenue (http://timesofindia.indiatimes.com/Reliance_Retail_eyes_Rs_1_lakh_cr_revenue/articleshow/1525112.cms)

Reliance Industries, which opened nine retail outlets in the NCR on Monday, is aiming at opening 6,000 outlets in 784 cities and towns by 2010-11. CEO of Reliance Retail Raghu Pillai said, by 2010-11, company's revenue would be Rs one lakh crore.

The company has earmarked an investment of Rs 25,000 crore to create a pan India retail network that would connect farmers to end consumers without involving any middle man. As per the plan, the company will have 6,400 procurement centres all over the country. Each centre will have a cold storage to store the vegetables and dairy products.

At the district level towns, the procurement centres will have food processing facilities where seasonal fruit and vegetable will be processed to enhance their self-life. For example, surplus tomato produced in a region will be aggregated at one point and would be processed. The vegetable and fruits collected at the procurement centre would be aggregated at the district level to supply them to the big cities as per the requirements and process the rest. This will push up farmers' income as they would get better price of their seasonal products.

Reliance Retail's mentor Kamal Nanawati said," The venture would not only help the end customers in getting fresh products at affordable price but would also help farmers to earn more."

The company is developing a huge logistic network to maintain supply chain. President of agri and food business, Sanjiv Asthana said, a part of the logistic network would be developed in house and the rest would be outsourced. In fact, to make optimum use of the network, the company is planning to sell the products not only to the end customers but also to the corner stores. "In Hyderabad, the company has already started selling farm products to vendors and the experiment is working well," said Pillai.

In the large cities and towns, the products would be sold through Reliance retail outlets. At present, the company
has opened 49 outlets in cities like Hyderabad and NCR. Nanavati said by December 2007, the company will have 1000 stores in 35 cities. In fact, by April 2007, he said in the NCR, the company will have 100 retail outlets — 50 in Delhi and 50 in the NCR. By the year end, the number will go up to 250 stores in NCR.

^^

Delhi gets first western-style stores
http://www.ft.com/cms/s/447fd92a-afce-11db-94ab-0000779e2340.html

India’s national capital region will enter the modern retailing era on Tuesday, with the opening of the first recognisably western-style supermarkets in this sprawling conurbation of 15m people.

At Monday’s preview of one of three bright, air-conditioned and relatively spacious stores to open in Noida, a satellite city of Delhi, prices of key vegetables were around half those of other grocers, a big draw in what is perhaps the world’s most cost-sensitive market.

In the latest phase of its breakneck roll-out before the arrival of foreign-backed rivals, Reliance will on Tuesday open nine pilot supermarkets in Noida, Gurgaon, Faridabad and Ghaziabad – four booming suburbs in the national capital region.


BTW is Reliance really Delhi's first "western" style stores?

^^
I am not to sure about other vegetable retail stores but there exists a store called 'namdhari fresh and blah blah' right in Green Park Market (South Del). It wasn't that big though but was pretty modern and sleek.

http://www.ibnlive.com/videos/32335/reliance-retail-overcomes-land-woes.html

http://www.ibnlive.com/videos/32335/reliance-retail-overcomes-land-woes.html

I'm sure that's not correct. There are many modern and sleek retail stores in delhi where you can do shopping with carts. They sell grocery and vegetables both. But these may not be related to some big brand name. so in that sense Reliance may be first.

http://www.ibnlive.com/videos/32335/reliance-retail-overcomes-land-woes.html

Thanks for the link. I got to see how the stores look from inside. Well they are quite similar to the convenience stores and grocery section on Wal-Mart. But there is one major difference. Number of Reliance representatives in the store to help the customers. You don't see that many people in US.

That is a positive thing about retail stores in India because you can find people to help you. You go to Wal-Mart and you will spend half an hour looking for - say a toaster oven or a costumer rep to help. In most cases you will find the toaster oven before you find a costumer rep.

The Metro Cash and Carry, Hyderabad
photo copyright abhiomkar

http://img66.imageshack.us/img66/1636/metroabhiomkarwh0.jpg

http://img465.imageshack.us/img465/8136/metrocassh2abhiomkarpm0.jpg

Big Bazaar, Bangalore
photo copyright SudheeshNairs

http://img230.imageshack.us/img230/1192/dsc02424lu7.jpg

when did metro setup a mall in Hyderabad???

Thanks for the link. I got to see how the stores look from inside. Well they are quite similar to the convenience stores and grocery section on Wal-Mart. But there is one major difference. Number of Reliance representatives in the store to help the customers. You don't see that many people in US.

That is a positive thing about retail stores in India because you can find people to help you. You go to Wal-Mart and you will spend half an hour looking for - say a toaster oven or a costumer rep to help. In most cases you will find the toaster oven before you find a costumer rep.

Well definitely there are a lot more "representatives" then there are here in the U.S. which is really good. But didn't it seem that there were a bit too many? They were crowding up the aisles. Moreover, they were doing basic tasks such as picking and packing fruits/vegetables for the customers. Don't you think that we in India need to learn to be a little more self sufficient? You know..long gone the British..but..

The Metro Cash and Carry, Hyderabad
photo copyright abhiomkar

i think it's probably in Bangalore - there isn't a metro in HYD afaik..

metro in hyderabad started a month or two ago. by the end of the year they will also be operational in calcutta, madras, pune and bombay

Hindustan Times - Delhi - February 6, 2007.

http://img522.imageshack.us/img522/3527/soniawalmartwl8.jpg

super pm wants to appear holier-than-thou again. one would have thought she is in the opposition

A very interesting article...

Reliance vs retailers: Customers win
http://ia.rediff.com/money/2007/feb/08shop.htm

This is a business strategy definitely not taught at Harvard, but Reliance retail could just find itself being subjected to the innate shrewdness of the mom-and-pop store owners.

Among the 3,000-odd customers who have been shopping at the Reliance Fresh store at Noida, since its inauguration on January 29, are some neighbourhood Kirana shop owners. They buy flour, edible oil rice and other groceries to replenish their inventories, to be resold later.

"When I found Reliance Fresh was offering one pack free with every two packs of edible oil, I wanted to buy the entire stock. Since I was allowed to buy only one, I sent my staff to buy more packs," Vinay Kumar, who owns a Kirana store close to Reliance Fresh, says nonchalantly.

But initial indications suggest that the smaller stores are in for a tough time, the tactics not withstanding.

Ever since Reliance Retail set up its grocery and vegetable store in New Delhi's buzzing suburb, Kirana shops as well as greengrocers have found a new challenge to grapple with.

Reliance Fresh is offering vegetable at prices that are up to 50 per cent below the mandi rates. Deals offered on groceries too are unmatched. Several shops close to the store have put up banners announcing discount sales in the last few days.

Within less than ten days of its inauguration, the store has over 3,000 customers every day and a day's sales amount to over Rs 4 lakh. Reliance scores heavily over local fruits and vegetable vendors on account of its strong backward integration.

"Collection centres for various commodities (potato in Uttar Pradesh and West Bengal, onion in Nasik and so on) are being set up across the country, where we procure directly from the farmers. Cold storage facilities are in place for grading and sorting. Thus, the farmer's produce, which is local, reaches to national consumers. While ensuring better price to farmers, this also offers value to consumers in terms of quality and price," said a Reliance Retail executive.

The sourcing of the Fast Moving Consumer Goods is being done in bulk by Reliance and thus here too it is able to sell it at a price marginally lower than the Kirana stores.

Big Bazaar, Ahmedabad
photo copyright Kaipullai

http://img212.imageshack.us/img212/1242/bigbazaarahmedbadkaipulzp2.jpg

The style of reporting by NDTV is getting the BBC itis.. - the BBC style of negatve reporting of India (and other third world countries).

Goodbye family stores in India's brave new retail?
http://www.ndtvprofit.com/homepage/news.asp?id=288573



In this boomtown area outside New Delhi, new malls with slogans like "Pure Shopping Ecstasy" tower over donkeys, a sewage-filled river and fly-invested street sellers.

The trouble is that old India is right next door.

"In a month, I've lost between five and 10 customers from 50 regulars," said 35 year-old Laxman, who owns a family-run grocery store down a garbage-strewn street nearby.

India may soon see a retail revolution that could replace many "mom-and-pop" grocery stores with a multi-billion dollar industry of centralised supermarkets offering booming middle classes convenience buying.

But huge opportunities, especially for foreign retailers, have sparked unease among small store owners who fear they could lose their livelihoods. And there has been increased opposition from politicians fearing for their electoral future.

The controversy has been highlighted by a planned visit from Wal-Mart executives this week which has drawn front page headlines in newspapers and led to calls for street protests.

"Wal-Mart is fast becoming a lightning rod for wider concerns about foreign investment, and especially foreign retail, in India," said C.P. Chandrasekhar, professor of economics at New Delhi's Jawaharlal Nehru University.

Access to foreign retailers is hampered by laws restricting multibrand retailers to cash-and-carry and franchise operations.

But the world's top retailer Wal-Mart Inc, has gained a foothold through a wholesale joint venture with Bharti Enterprises in what critics say is a backdoor entrance.

Tesco and Carrefour are looking at a $300 billion market that could double by 2015. India's own Reliance Industries is investing $5.6 billion in some 700 stores.

By the Reliance stores in Noida, some street sellers buy food from the supermarket to sell to traditional clients at tiny margins. Queues to the new store can run out into the cramped street on weekends and holidays.

Laxman said he survives on credit and home delivery to customers, a niche not covered by supermarkets.
Sonia Gandhi, head of the ruling Congress party and one of India's most powerful politicians, signalled her concern for the roughly 15 million small businessmen like Laxman in a letter leaked to media about the "Wal-Mart" effect on retailers.

The BJP, traditionally supported by traders and small shopkeepers, could join the fray.

"The BJP will pick it up because it's their constituency," said political analyst Prem Shankar Jha.

"Within the Congress party it is still not big enough for them to put a stop to foreign retail. But it's early days. I'd bet something will happen."

Supermarket owners say their entry will modernise India and make goods cheaper.

Currently about 3 percent of India's market is organised retail, tiny compared with other large economies. Small stores will not be wiped out overnight, especially in smaller towns and rural areas where most Indians live.

Reliance, India's top private firm, has entered the market without as much controversy as Wal-Mart. It has taken pains to say it could work in tandem with local shops.

Bharti also says it could do the same.

But foreign firms, pressuring for more market access, could see expansion plans hampered.

"What you see in India is a leftist government that is following economic liberalisation," said Jha. "What you may now see is a backlash, like in Latin America.

"Mom-and-pop stores are the most vigorous part of India's economy. An invasion by an Indian company may still be a pace of change locals can adapt to. But can India cope with the pace that comes with Wal-Mart?"

Some Indians were optimistic.

"There will always be a customer. India is such a populous country. They will come back to us because of our quality products," said Kallu, a 25-year-old selling apples and grapes in a fly-infested stall on a busy road.

I have yet to see quality journalism on the part of Indian media in every-day news reporting. there are many good writers of op-eds and columns but very few good news report writers.

According to the article, Indian retail market currently is $300 billion. Currently, organized retail accounts for 3% of total market only. So organized retail is $9 billion and unorganized retail is $291 billion.

Indian retail industry is supposed to double by 2015. That means it will grow to about $600 billion. Even if we were to assume that the percentage of organized v/s unorganized retail will be round about 30% / 70%, there will still be scope for unorganized retail to not only survive but grow tremendously. So by above numbers by 2015 unorganized retail will be about $420 billion, which is almost 45% increase in 8 years. I understand that it is slower growth rate, if you compare with overall GDP growth and growth of organized retails. However, to say that 'Mom-and-Pop' stores will vanish is politically expedient and nothing else.

Retail giants not good news for all
http://www.ibnlive.com/news/retail-giants-not-good-news-for-all/34219-7.html

Mumbai: Global retail giants like Walmart are knocking at India's door to cash in on the huge retail opportunities. But how will their emergence affect the small general stores?

Fifteen years back, Gajanan Narkar started a kirana shop near Lower Parel station with the hope of having a long term business option. And the news of global retail giants entering India's markets does not make the 48-year-old too happy.

Business was fine till malls started springing up in this upcoming business district. Now, Narkar has removed his two employees and inducted his wife and son to run the shop.

"Malls are able to buy directly from the manufacturer and therefore able to give good discounts. We have three to four layers of distributors," says Narkar.

Gajanan's problem is not isolated. A study conducted by retailers at four places in Mumbai shows that 71 per cent of small businesses sampled reported falling sales.

Grocery stores fared the worst with 87 per cent reporting lower sales while 92 per cent said their children will not continue the business. Retailers say the biggest reason for their downfall are the huge discounts given by malls.

"We have to buy from wholesaler and masjid bunder. We cannot sell below MRP and so, our business is going down," says Secretary, Mumbai Vyapari Mahasangh, Ashok Vaykul.

But big retail outfits say given the size and population of India, there is a big enough market for all players—be it big or small. "We have to look at customers ideally. They have to be given proper bargains and good service," says CEO-Retailers Association of India, Gibson Vedamani.

But small retailers are not giving up so easily. They plan to gang up and deal directly with the manufacturers so that they can squeeze out bigger discounts and become attractive to consumers.

I have yet to see quality journalism on the part of Indian media in every-day news reporting. there are many good writers of op-eds and columns but very few good news report writers.

Oops my bad. I discovered that it was a Reuter's news article which featured in NDTV. That explains the style of writing.

Can’t stop Reliance in Kerala, so comrades plan to do a Reliance (http://www.indianexpress.com/story/24033.html)

The Left government in Kerala has decided to do a Reliance to Reliance and back it up with a major subsidy splurge, to meet the retail behemoth’s “threat” to the state. “Reliance is a big challenge. It’s large enough to control the market and decide prices. We will take it head on,” Agriculture minister Mullakkara Ratnakaran told The Indian Express.

Reliance Retail is preparing for a big entry into Kerala, topping the country in consumer spend. It will begin with farm produce collection centres in Kochi, Kottayam, Idukki, Palakkad and Malappuram districts this April, before spreading out. The group aims to have a retail chain strategically in places across the state, including supermarkets in all major districts — four in Kochi alone.

“We are only into procurement now, cutting out middlemen to offer better prices, together with expert technical inputs and real-time market intelligence to guide local farmers on what, how and when to produce according to the market trends and needs,” says S S Salumon, Reliance’s procurement head for Kerala.

Fruits and vegetables figure high on Reliance’s priorities. Reliance offered prices almost two to three times more than the local rates for an initial procurement of mango-ginger and tender jackfruit from Wayanad — the hill district that continues to have debt-ridden farmers killing themselves every other day. Over 500 farmers had hanged or poisoned themselves in just the last four years, overcome by price crashes and bad crops.

“It’s simple. We procured mango-ginger which is not locally consumed much in Kerala and is, therefore, cheaper, took it to Karnataka where it is in demand and has a far higher price, and passed on a fair part of the margin to the local farmers here,” the Reliance official said.

But minister Ratnakaran insists the government is far from convinced: “Kerala imports most of its fruits and vegetables, not much is produced here. They will buy out our available produce and also swamp the market here with imports. They will eventually decide the prices to their advantage.”

So the Left government will now mimic Reliance itself, and have its own Kerala Horticulture Development Corporation (Horticorp) set up procurement centres all over the state, cutting off middlemen the way Reliance does. And to take on the Reliance Retail outlets, vends across the state. This is while very few of the over 900 set up by the then Left regime in the 1990s have survived. Besides, to cope with the expected brand pull of Reliance’s sophisticated supermarkets, the government will mimic those too. “We have decided to set up our own state-of-the-art, world-class supermarkets in Thiruvananthapuram, Kochi and Kozhikode,” says Ratnakaran.

For good measure, the comrades will also go for large-scale contract farming — something Reliance officials say they are not considering yet. The government model distinctly mirrors what yet another Left bete noire, Pepsi, had been successfully doing in Punjab and elsewhere — Pepsi had to shelve tentative plans for contract-farming ginger in Kerala in the 1990s, during the Left government of E K Nayanar.

“Horticorp will now sign price contracts with the farmers, provide them the inputs, buy out their entire produce and sell through its own outlets,” the minister said. Since Kerala doesn’t produce even 15 per cent of the fruits or vegetables it consumes, the government — already in the red for about Rs 50,000 crore and slipping in and out of overdraft — will now dole out big subsidies to get farmers on the job.

“We have already finalised a pilot fruit and vegetable project in Idukki district, involving one lakh farmers. We will give them Rs 10,000 to Rs 15,000 as subsidy for each hectare, and we will spread it out to other districts by early next year. Horticorp will buy and sell their produce at contracted rates,” the minister said.

Meanwhile, his colleague, state Cooperatives Minister G Sudhakaran has kicked off an “experimental project” to take on Reliance and Bharti-Walmart. His department intends to open about 5,700 retail centres — subsidised, of course, to the tune of Rs 30 crore — to sell basic provision items. Sources within his department said this was an “experiment” initially lasting a couple of months but likely to be extended, “taking the fight to the MNCs.”

poor poor commies. It has been a busy decade with the opposition to India's growing capitalism and all.

LOL. Those Kerala Commies alwayes make me laugh. I can't wait to see these commies get crushed.

^^

They can learn from what happened in West Bengal. Almost none of the grandiose "people friendly", "mass oriented" companies survived (they were not all set up by the Left though).

Manjusha, Tantuja, Tantushree - good concepts but bad implementation. The employees were all unionized and did almost no work. You asked to be shown a product (which were usually good quality) and it seemed you were asking them for a favour. The Samabayika (like Apna Bazaar) introduced by the Congress is almost dead. Under Buddhadeb's regime, most of these companies are being shut down and all employees getting VRS or absorbed in some other government dept (where they will anyway not have to work).

I cannot say much about Kerala where things may be much better than WB.
However the Left parties need to wake up from their dogmas and blaming everyone else (imperialist forces, MNCs) for every little thing except themselves. They need to do some soul searching as to why after three decades of so called "pro people social welfare rule? in WB, they have not been able to even run one hospital properly. Why drop out rates in WB are so high? Why girls get married below 18? Why there is bonded labour in the backyards of every communist leader even in a 'progressive' city like Kolkata? Yes these problems are nationwide but aren't the Leftsists supposed to be "different"? And these people expect to run companies to take on MNCs? Hell, almost every company that they took in West Bengal hasn't survived or run just crores and crores and crores of losses. All for protecting a few thousand unionized employees (non party sympathizers never got jobs)! And to subsidize outdated dogmas and hollow slogans!

Achuthanandan blames Reliance for rise in prices

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=130986&version=1&template_id=40&parent_id=22

Kerala chief minister V S Achuthanandan has accused Reliance Retail, which is yet to open its outlets in the state, of causing price rise.
He urged the lawmakers from Kerala to put pressure on the minority federal government, to which the Left parties lend the crucial support, to rein in the retail major that is planning to open 100 outlets in the southern state to begin with.
“There is a scarcity for essential goods in the market and prices are going through the roof as a big monopoly called Reliance has come and started controlling the market. They claim that they would sell essential commodities at low prices,” Achuthanandan told reporters after a meeting of the group of ministers and officials that discussed the price rise.
Reliance has announced opening of 6,000 outlets in 784 cities and towns within four years targeting Rs1tn in revenues by 2010-11 with an investment of Rs250bn.
After creating a rage in Hyderabad and Jaipur last year, it extended its reach to cities like Chennai, Vijayawada and Vishakpatnam with pilot Reliance Fresh stores. The Kerala outlets are to open this month with each store stocking about 150 products targeting 3,000 households in a 1-2 km radius.
Promoted under the ‘neighbourhood store’ concept, each Reliance Fresh store stocks fresh fruits and vegetables, staples, top-up grocery and dairy products in 2,000sq ft to 4,000sq ft of space.
The company takes retail space on lease while leaving the role of managing the outlets on a day-to-day basis with employees to franchisees. Each store is expected to have 20 trained sales associates to attend to customers.
The company plans to open 6,400 procurement centres that will have a cold storage to store the vegetables and dairy products that will be processed to enhance shelf-life.
The Marxist hardliner alleged that monopolies like Reliance were out to wipe out some 40mn smalltime traders in India. These companies are at a procurement spree across India and Kerala feels the pinch the most since it depends its southern neighbors for almost all its food and vegetable needs.
“They say they would bring down the prices. This is a marketing gimmick. Once the market comes under their absolute control after ensuring that there is no competition, they would change tack and start profiteering,” the chief minister warned.
Alleging that the federal government was promoting the monopolies by doling out sops, he urged the Left parties to take a tough stand and force the Congress-led government to change such policies.
The pro-government traders’ body has already chalked out a series of agitation against the opening up of the sector with other retail majors also announcing their plans for Kerala.
After opening its outlet in the port city of Kochi, Food and retail chain Trinetra Super Retail Limited announced its plans for other locations in the State last month “to become the largest retail chain in Kerala”.

West Bengal: Forward Bloc's threats to Reliance - this two bit party (originally set up by the Great Netaji) now thinks it can call the shots. Mad Mamata's violent activities seem to be catching on with other parties as well.

Reliance scouts for retail locations, Bloc cries war
http://cities.expressindia.com/fullstory.php?newsid=223517

Kolkata, February 21: Mukesh Ambani’s Reliance Industries Ltd. began scouting for locations for its “retail revolution” in West Bengal today, despite the opposition of the Left coalition partners, especially Forward Bloc, which controls the agriculture marketing department.

Reliance, which had discussed its plans for the state with Chief Minister Buddhadeb Bhattacharjee on June 21 last year, is looking for retail locations with carpet area of 500-20,000 sq ft across 11 locations in eastern India, which will be part of Rs 25,000-crore national retail initiative.

Mukesh Ambani plans to invest Rs 1,500-2,000 crore in the agro-retail initiative in the state, which, the company claims, will “transform” the lives of both farmers and consumers.

But the Forward Bloc is set against any such “transformation”.

Hafiz Alam Sairani, a farm front leader of the Bloc and former agriculture marketing minister, told Newsline that the Reliance Industries’ entry will be resisted at all costs.

“We shall resist Reliance’s entry strongly. We will ransack any such outlet,” Sairani told Newsline two days after an inconclusive meeting between the Bloc and the CPI(M) over the Chief Minister’s attempt to change the 1955 Land Reforms Act to allow for easier land acquisition by the industry.

At Tuesday’s meeting, Bhattacharjee had told Sairani and other Bloc leaders that the government has no role to play in Reliance’s retail entry. The land reforms minister, Abdur Rezzak Mollah, who was also present, had later told Newsline that Reliance will not be breaking any law by opening retail outlets.”Is it the government’s job to stop somebody from carrying out a perfectly legal operation?” Mollah had asked.

Today, Sairani said the Bloc has nothing to discuss with the Chief Minister regarding the Reliance retail entry.

“But the government should not promote Reliance. And if it is not promoting Reliance, why can’t we resist its entry?” he asked.

Reacting to this statement, a CPI(M) leader told Newsline that launching a movement is one thing, and ransacking property is another.

“Ransacking property is an offence and will be dealt with under the law,” the CPI(M) leader said. “It should not be a form of democratic protest.”

In the east, Reliance’s biggest plans are for West Bengal where Reliance wants space in Kolkata, Asansol, Durgapur, Darjeeling, Siliguri and Kharagpur. The company also plans to set up hubs for collecting the produce and distributing it through its chain.

Nice . The forces of market-economy aRe making india more competitive , wrecking havoc for those who have been medicore all this while
Capitalism is finally coming to its fruition in india

Small retailers fear that they will lose business
A visit to India by Wal-Mart executives has sparked protests by small shopkeepers worried about its plans for a tie-up with Bharti Enterprises.
Communist protesters were briefly arrested after they marched on government buildings in Delhi, waving placards saying "Save small retailers".

Wal-Mart vice-chairman Michael Duke is in Mumbai for talks with Bharti bosses and government representatives.

Wal-Mart and Bharti are planning a joint venture for cash-and-carry.

Foreign interest

A statement from Wal-Mart says Mr Duke is visiting India "to learn more about the market first-hand and to further explore the wholesale cash-and-carry business".

The protestors burned an effigy representing Wal-Mart near the office of Kamal Nath, the Indian commerce and trade minister.

India's retail industry is worth about $300bn (£150bn) a year and has attracted the interest of international retailers such as Metro, Carrefour and Tesco.

A spokesman for India FDI Watch, which tries to limit the growth of foreign retailers in India, says Wal-Mart's entry threatens large numbers of jobs.

"Around 40 million people depend on the retail sector and these people's livelihoods will be ruined if Wal-Mart is permitted to enter India's retail market," he said.

Indian law currently allows foreign multi-brand retailers to run only cash-and-carry or franchise businesses.

Source: http://news.bbc.co.uk/2/hi/business/6385267.stm

The Argos retail name is to be taken to India through a franchise deal with two of the country's leading store chains.
Argos will license its brand and product catalogue for use in retail outlets in India, with the first due to open in Mumbai later this year.

Argos, which is part of the Home Retail Group, said the deal would give it a "foothold" in a fast-expanding market.

Several other British retailers including Mothercare have used the franchise model to enter India.

Growing market

Existing regulations prevent most foreign retailers from opening their own stores in India and franchising is seen as a cost-effective way for firms to build a presence there.

Argos is teaming up with Indian firms Shopper's Stop and Hypercity Retail India to launch the Hypercity Argos retail concept.

As well as providing its own catalogue, Argos will offer IT support and advice on developing sales through the internet.

Home Retail Group said it was excited by the opportunities in India but emphasised that its main focus remained on developing the Argos and Homebase businesses in Europe.

"The heads of terms with Shoppers Stop and Hypercity, both pioneers in the Indian retail market, gives Argos an initial foothold in what is a rapidly expanding market," said Terry Duddy, Home Retail Group's chief executive.

Shopper's Stop operates 22 department stores in 11 Indian cities while Hypercity Retail opened its first food and general merchandise store last year.

Many of the UK's top retailers are casting an eye over India, as its rapid economic growth and rising income levels boost consumer spending levels.

Tesco ended talks about a joint venture with Indian firm Bharti Enterprises late last year, while Mothercare has teamed up with Shoppers Stop to open 11 franchise outlets.

Source: http://news.bbc.co.uk/2/hi/business/6389971.stm

Indian conglomerate Bharti Enterprises is to pump $2.5bn (£1.28bn) into expanding its retail business.
Bharti, which recently tied up with US group Wal-Mart to launch Indian-based stores, said retail would be its "big focus" for the next eight years.

The group plans to open stores in all Indian cities with a population of one million or more.

More disposable income from the middle classes has boosted India's economy, though small firms dominate retailing.

Retail boom

"After revolutionising the Indian telecom sector, retail will be the next big focus area for Bharti," said the firm.

Under its deal with Wal-Mart, Bharti will focus on running the stores while Wal-Mart will handle the supply side of the operation.

The Indian conglomerate operates in a range of areas, from commercial agriculture, insurance and software to telecoms, in which it control's the nation's leading mobile operator - Bharti Airtel.

Organised retailing represents only 3% to 5% of Indian retailers while family-run enterprises represent the vast majority of the market.

Various industry estimates put Indian retail spending at $300bn each year, with the figure set to double by 2015.

Other firms have also seen the potential for retailing growth in India, such as the private company Reliance which is launching a supermarket chain called Reliance Fresh as part of its wider growth plans.

Source: http://news.bbc.co.uk/2/hi/business/6375041.stm

Very interesting!

Pushcarts to get a brand name soon
http://www.hindu.com/2007/02/07/stories/2007020723180100.htm

HYDERABAD: If big time companies like Reliance, Spencer's and Heritage have entered the retail business and multi-national giants like Tesco and Wal-Mart waiting to occupy vast spaces, ITC Ltd. has decided to chart out a different course.

Though the Kolkata-based company has been one of the first big time companies to enter into procuring and selling various fruits and vegetables under its brand name `Choupal Fresh', it now wants to enter into pushcart vending! And the national launch would be from the city!

ITC Ltd. has sought permission from the Municipal Corporation of Hyderabad to deploy up to 300 pushcarts in the streets of Hyderabad and Secunderabad. These pushcarts are to sell quality fruits and vegetables at competitive prices to consumers.

The firm's International Business Division is to source the produce directly from farmers in adjoining districts.

Unemployed youth


A senior official of ITC said the prospective vendors would be selected from among the poor unemployed youth. Existing pushcarts would be used initially and later specially designed carts with the company's insignia would be deployed.

The vendors will be trained by the company in `customer relations' -- how to talk to the customers and also on the nutritive value of the goods. In fact, they will be carrying a booklet on the nutrition aspects. "Fixed and uniform pricing, fresh quality fruits and vegetables and electronic tamperproof weighing are going to be our unique selling propositions. The prices will be on a par or even below any existing outlet," said an official.

that is very unique. but isn't that the total opposite of having organised retail to build up an efficient and advanced retail distribution infrastructure??????

that is very unique. but isn't that the total opposite of having organised retail to build up an efficient and advanced retail distribution infrastructure??????

they are talking about the front end , and pushcarts does'nt seem to be the only option for itc

A Reliance Fresh store in Koramangala, Bangalore
photo cc rights kkalyan

http://img405.imageshack.us/img405/8306/reliancefreshkoracckkkaec8.jpg

lot of talk about Reliance acquiring a stake in Carrefour. Seems like Mukheshbhai is going all out in his plans.

i wonder what the commies are gonna say once an Indian company acquires stake in a huge foreign retail company??? i think they'll change their strategy. for all these decades, it used to be, "imperialist US/Capitalist forces, MNCs, greedy capitalism invasion, etc etc." now, it will be "imperialist corporates and upper class rich ppl." they're gonna put Indian corporates who are trying to modernise our infra and MNCs on the same line.

it could be an interesting analysis of how the commies are gonna deal with this, but anyways, i'll refrain.

Has it been confirmed anywhere? From what I hear, its simply unsubstantiated rumors still.

ICRIER kicks off retail survey (http://business-standard.com/economy/storypage.php?tab=r&autono=278123&subLeft=1&leftnm=3)

Economic think-tank ICRIER, which has been tasked by the commerce ministry to study the impact of organised retail on mom-n-pop stores, has kicked off the exercise with a plan to focus on 20 Indian cities which have seen a mushrooming of malls.

“We are carrying out survey among consumers, retailers, and malls across India in two phases. In the first phase, the study will be conducted in 20 cities that already have malls,” said Rajiv Kumar, director, ICRIER.

The second phase of the study will focus on those cities where organised retail is at a nascent stage. “We will study the response of small shops and consumers in these cities,” he added.

The study will also talk to organised retailers about their investment and employment generation plans.

“We will study the net employment effect. We have been given five months to complete the report, starting this month,” Kumar added.

ICRIER has roped in research organisations — Development and Research Services and Technopak — for conducting the studies. The latter will have an advisory role.

“Given our understanding of the Indian retail sector, we have been roped in to provide advisory service for the study. We will design the whole survey that is being conducted,” Technopak Vice-President Preeti Reddy said.

The retail study was commissioned following UPA Chairperson Sonia Gandhi’s much-publicised letter to the Prime Minister’s Office. That letter had expressed concern over the impact of transnational retail chains on small retailers.

The Indian organised retail market accounts for around 3 per cent of the total retail market and is valued at $6 billion.

Technopack data states that the organised retail market is growing at 35 per cent per annum, as against 6 per cent growth of un-organised retail. Share of organised retail is estimated to be at 20 per cent of total retail trade by 2010 with a 15-fold increase from 2002 to 2010.

If the main aim of this report is to study the "net employment effect", then organized retail should have nothing to worry about. Organized retail will definitely create more jobs, better jobs and provide more opportunities.

Being a highly political subject, I am sure the main aim is probably to check if organized retail creates more jobs, but we must keep in mind that the netas will probably not want to hear that organized retail is good, given the mood of the threatened, and most vocal small retailers.

Besides, Her Majesty would not want to look like an idiot if she has been opposing something that will benefit the economy!

Turnover tax to rein in Kerala ‘MNC retailers’ (http://www.indianexpress.com/printerFriendly/26133.html)

The Left government in Kerala will now hit the “MNC retailers” with a stiff turnover tax, while it will lobby for a Central legislation along the lines of the erstwhile MRTP Act to contain them.

Finance Minister Thomas Isaac told the Assembly today that he was seriously considering imposing a turnover tax linked to the floor area ratio of retail outlets, which he claimed had the backing of the traders’ lobbies in the state.

Later, Isaac said this disincentive would directly target the big retail groups — like Reliance and Bharti Walmart — about to come in. This was since they operate out of hypermarkets and supermarkets that are significantly larger than the home grown ones. “I will take a final decision after taking a closer look at other fallouts. Especially to ascertain that fixing the floor area criterion would not affect local trade,” he said.

The government, he added, was also favourably inclined to support other counter measures suggester by local traders like small local retail outlet chains designed to be as convenient and attractive as the big MNC supermarkets.

These would be in addition to ongoing efforts by the Kerala Horticulture Development Corporation (Horticorp) to set up procurement centres all over the state for farm produce and set up hundreds of government-supported vends across the state, besides going for large scale contract farming involving signing price contracts with the farmers, providing the inputs, and then buying out their entire produce.

In addition, the government is also planning to help open up some 5,000-odd small retail outlets to sell basic provisions, at subsidised establishment costs.

these retards and others like them would be well advised to sweat their stuff on more important priorities than on how to stop an imagined "Western/Capitalist/US invasion force into India."

now, the Kerala Commies realise it will take 10 lifetimes to do anything that looks even somewhat similar to what Reliance and others like them can do. so, they are imposing draconian taxes. imo, Kerala is a 100% literate state. can't believe ppl fall for this kind of stuff.

^^ lol - how true..

these retards and others like them would be well advised to sweat their stuff on more important priorities than on how to stop an imagined "Western/Capitalist/US invasion force into India."

now, the Kerala Commies realise it will take 10 lifetimes to do anything that looks even somewhat similar to what Reliance and others like them can do. so, they are imposing draconian taxes. imo, Kerala is a 100% literate state. can't believe ppl fall for this kind of stuff.

Don't be surprised. There is a party in TN for the same set of issues. There was a news in March 23rd edition of Dinakaran tamil daily that a stir is being planned if reliance fresh stores in chennai are not closed in another 10days.
Their claim is that these organized retailers spoil the game for the local small time retailers.
This may be true in some sense, but in a democratic country how can you prevent somebody from setting up a business.
Tamil readers follow this link.
http://www.dinakaran.co.in/epaperdinakaran/firstpage.aspx#

Luxury retail space to debut in India this year

This year will see international luxury brands like Gucci, Armani, Versace, Dolce & Gabbana etc set shop in India, inside malls that will be exclusively catering to upscale, premium lifestyle brands. With 4-5 luxury malls coming up in India, a deluge of international lifestyle brands is set to descend upon the country this year.

According to a recent survey, high net worth individual households in India stand at 1.6 million, growing at around 14-15% annually. And with the luxury market pegged at Rs 64,000 crore, the going is only getting better.

There are at least 5-7 urban micro markets in India for luxury retail, namely, South Mumbai, North Mumbai, South Delhi, Central/South Western Delhi, Chennai and Bangalore, and possibly one in Punjab (Ludhiana or Chandigarh).

Cities like Mumbai and Delhi can absorb multiple centres for luxury retail, in order for the brands to be conveniently accessible to the large expanse of the populace.

In another 4-6 years, Bangalore and Chennai are expected to follow the trend.

Says Pranay Sinha, president & CEO, Select Infrastructure Pvt Ltd, which is developing the Select Citywalk mall in Delhi, that will have luxury brands, “Mumbai’s decay is far more visible in buildings built after independence, than before it. In these conditions, much as wealth may have grown, luxury high streets are unable to emerge there. Hence, a need has emerged for enclosed or private luxury or premium shopping precincts, such as Santushti in Delhi, the Courtyard in Mumbai etc in the past, and projects like the New Delhi Dome (part of Select Citywalk), two malls from DLF, one in Delhi (Emporio in Vasant Kunj) and one in Mumbai and UB City, Bangalore which are being developed now. With more such projects, India will well be able to take a position in the global luxury retail market.” Uptill now, all the international luxury brands like Louis Vuitton, Bvlgari and Chanel etc were located inside five-star hotels.

“However, the texture is bound to change as there is a saturation point as far as space in hotels is concerned. Hotels are not meant for retail and once such malls develop, luxury brands are bound to come out of the confines of hotels,” says luxury brand advisor Ruchita Sharma Bharadwaj

http://www.financialexpress.com/fe_full_story.php?content_id=157817

Red alert

The city’s got some serious reasons to chill out with Coca-Cola choosing Pune to launch its first Red Lounge in the country

Express Features Service

IT is hot and happening, but has a chilled out atmosphere. Coca-Cola’s first lounge in India will be launched in Pune in the first week of next month. Having had a soft launch in February, the lounge is located at the Mariplex Mall in Kalyani Nagar. Pune, of course, was picked to pilot this chain of Red Lounges because of its status as a youth city. “Our target market is that of the youngsters,” says a spokesperson from Coca-Cola.

‘A one-stop destination for youngsters to hangout’ is how the place is being positioned. “But what is different about this lounge, is it’s alcohol-free status,” says Amit Bora, CEO, Mariplex. From blends of Coke and Limca to a mix of Coca-Cola’s fruit juices and sodas, the brand is hoping to reach out to the youngsters with a message. “With the list of umpteen mocktails on Red Lounge’s menu card, all we want to say is that you can party and have fun without alcohol!” says Bora.


Besides the drinks, which are all a range of the company’s products from the world over, the lounge will also offer a variety of gadget-based interactive activities, to make it a typical one-stop entertainment destination. So they have an Internet surfing facility, a television with an LCD screen and a gaming zone too. “An innovative SMS-blogging system has also been introduced at the lounge,” says Bora. “Once you are registered with the system, all you need to do is type in the message on your personal mobile and it will appear on the message board in the lounge — this way you can send across a message to anyone at the place,” he adds. The Lounge is also looking at lucky draws, giving away free movie tickets and a choice of anything from their menu for free, as a promotional venture. A bottle reader screen at the venue will read the invisible message off your bottle and prove you a lucky-guy/gal for the day.

The plush couches, fancy lighting and combination of soft rock and hip-hop music only add to the eased out ambience of the place. A craze in the US followed by packed evenings at their Singapore outlets; Coca-Cola is hoping to make the Red Lounge a rage in India too, starting with Pune of course.




http://cities.expressindia.com/fullstory.php?newsid=228982

Has anyone heard about this? It already has 65 stores.

Hariyali Kisaan Bazaar

http://dscl.com/Business_Agree_HarKisBzr.aspx?PID=27

______________________

DCM Shriram to invest Rs 1.8 bn in rural retail
http://www.myiris.com/newsCentre/newsPopup.php?fileR=20070402072022126&dir=2007/04/02&secID=livenews

DCM Shriram Consolidated, is planning to increase the number of its retail outlets by more than three times this fiscal, aspiring to invest up to Rs 1.8 billion for this venture.

The company, will invest Rs 1.5-18 billion in the rural retail venture ‘Hariyali Kisaan Bazaar’, to increase the number of stores from 65 to 200-250 in the next 12-15 months, said DSCL Vice-Chairman and Managing Director Vikram Shriram.

DSCL, engaged in fertiliser, sugar, plastics and chemicals business, is planning to expand its rural retail outlets in three new states over the next year.

It will enter Andhra Pradesh, Maharashtra and Karnataka, besides strengthening presence in states like Punjab, Haryana, Rajasthan, Madhya Pradesh, Uttar Pradesh and Uttarakhand during the next one year.

DSCL, is working towards hiving off its `Hariyali Kisaan Bazzar`, division into a separate company. Shriram said that, the planned investment in the retail venture would mainly be funded through internal accruals.

DSCL, plans to procure and supply agricultural products to big retail chains. The agri-output service in its early stage, is currently supplying to Big Bazaar and Spencer.

http://cities.expressindia.com/fullstory.php?newsid=228982

Oh india boycot coke or you shall all end up like those obese americans.
god damn i hate america today.Maan they are fat.yeuch.

Estimates peg Tamil Nadu’s retail requirement in the next two years to cross one lakh trained manpower. Fearing that their trained personnel would be poached by the big brands, regional retailers are strategising to minimise the blow.

If customer service executives are paid a monthly compensation of Rs 6,000 by regional brands, Reliance and other biggies are luring them by offering to double and triple the wage packages.

Consider this: India, rated as the world’s fifth-most attractive emerging retail market, is perceived as a potential goldmine for global and domestic players. Tamil Nadu, being a front-runner for jewellery and saree retailing, is facing an acute crunch of trained retail specialists.

According to Retail Association of India CEO Gibson G Vedmani, the total retail market in the southern states is worth around $ 94 billion, of which organised retail is estimated to be $ 8.5 billion. The share of organised retail is around 9% of total retailing in South India.

“Though Chennai has always been home to speciality retailing, the momentum is picking up. About 12% of Chennai’s retail market is estimated to be organised, compared to 7% in Hyderabad and 3-4 % in Kerala,” he added.

HR is the focus for regional brands. A decade ago, jewellery retail major GRT, employing about 1,000 people, did not have a HR department in place. But the boom in retail and the growth prospects, has led the retail chain to professionalise and set up a full-fledged one about three years ago. “We take it very seriously and our practices are based on the lessons obtained from other industries,” its managing director G R Ananthapadmanabhan told ET.

“The entry of retail giants gives us yet another opportunity to enhance our staff welfare measures,” he said adding GRT has brought in professionals to impart speciality training to its middle level and supervisory staff, who provide on the job training to other workers.

Chennai-based textile specialist Pothys has engaged the Academy of Retail Management to conduct workshops to improve the productivity of its 1,500 strong workforce. Academy of Retail Management executive director, D Sugan Chinna Maran told ET that Pothys has spent close to Rs 12 lakh on its workforce for a total makeover.

http://economictimes.indiatimes.com/TN_brands_focus_on_HR_to_fight_retail_biggies/articleshow/1853468.cms

A very interesting report...

Jharkhand: Rapid retail therapy for farmers
- Croppers and middlemen seem equally excited over Reliance store chain

http://www.telegraphindia.com/1070403/asp/jamshedpur/story_7599962.asp

Pay 10 per cent more to farmers. Charge 10 per cent less from consumers. What is retailing coming to? The economies of scale, of course. Organised retailing, backed by deep pockets, is set to change the way people have shopped in the state.

These are early days yet. But Reliance foray into agriculture retail marketing in the state has already stirred up the market.

Will the humble subjiwali round the corner disappear in the face of the marauding Ambani venture? Marketing gimmicks like “buy one get one free” or “half-a-kilo of sugar for purchasing vegetables worth Rs 100” have already got the citizens in the state capital hooked to buying their vegetables and grocery from the air-conditioned comfort of the retail showroom. While the four Reliance retail showrooms in Ranchi continue to make waves, the company is busy finalising plans to expand its activity elsewhere, with stores planned in Jamshedpur and Dhanbad next. Reliance has set up two collection centres, one at Brambe, approximately 26 kilometres from the state capital, and the other at Kanke. Christened the “Rangers Farm”, the collection centre promises to revolutionise ways in which the farmers earlier sold vegetables to the middlemen.

At least for the time being, Reliance is paying the farmers 10 per cent higher price than the prevailing wholesale price in the mandi. But more important, the collection centres is designed to double up as an outlet, where the farmer can get quality inputs, and as a “community store”, which will offer a complete solution to all his needs. Little wonder then that since March 14, farmers of 20 villages within a radius of 6 km of Brambe, situated beyond Ratu on the national highway to Daltonganj, are celebrating their new found economic muscle.

The Collection Centre has been purchasing the bulk of the vegetable produced by 165 farmers enrolled in the programme. The selection of farmers enrolled is made on objective criteria. As many as 25 varieties of vegetables are available in the villages on any given day. Care has been taken to ensure that not more than 10 per cent of the total produce coming to the market is bought by the Collection Centre.

This is to ensure that price fluctuations do not take place and even the arhatiyas (middlemen) do not view the Rangers Farm as a threat, at least in the beginning. “With major industrial players like Reliance making inroads in the retail market, we should soon have our own village super market, complete with all the facilities and consumer items for our families,” says Sadhu Sahu, a progressive farmer of Sevadih.

A one stop shop from where the farmers can get quality inputs, where he can sell his produce, get all his requirements by way of consumption needs of his family, it will be a dream come true.

They can also provide the families with entertainment facilities for all age groups including movie theatres and children’s parks along with reasonably priced eating joints.

The first Rangers Farm and the Collection Centre (CC) at Brambe has vegetable growers in the area dreaming big.

And why not? They hope to be out of the clutches of the vyaparis/dalals, who brought the prices down at their whims, which often forced farmers to abandon vegetables in the haat itself.

A visit to the Rangers Farm was an eye opener. They have electronic weighing machines along with equipment for sorting vegetables. The centre is organised in a mid size shed where farmers bring their produce which are then sorted out ,weighed and packed in airy plastic trays. They get a fixed price which is better than the mandi of the day. Prices are fixed after monitoring the mandis at Daily market and Pandra market, informs an officer in-charge of fruits and vegetables procurement and processing in the state.

Mandal, who has an expertise in mushrooms, onions and gherkins, has done his MBA from IRMA, is quite enthusiastic about the response he has been getting from the villagers. In fact it was he who surveyed the entire area and found that the 25 vegetables available in the area included beet, bitter gourd, bottle gourd, brinjal, cabbage, capsicum, carrot, cauliflower, chillies, coriander, French beans, ginger, green peas, potato and tomato.

To start with the farmers were very disappointed because in the process of sorting, vegetables which were not of high quality were rejected. But within days, the farm has started accepting even what is left after grading the vegetables at prices (40-50 per cent less) , which most of the time is better than what they get in the market. Sikandar Prasad from Tigra had got garden fresh green peas for the residents of Ranchi and he was happy paying Rs 11 per kg and that too on the spot.

It is definitely better than going to the mandi, he emphasises. “Dalal aur mahajan se to chutenge. Yeh log sahi vajan kar sahi daam detein hain, dandi nahin marte ( We will at least be rid of brokers; at least these people record correct weight and pay reasonable prices),” added Kripal Gope of Jaher. He had brought his cauliflowers after picking them very carefully; because the centre, he admits, is particular about quality.

The first Reliance opened in Ranchi on 19th March . But three more stores were added to the list by the 22nd March 2007. And it is expected that as procurement and processing stabilise, this number will go up to 10 in the next six months.

The survey done by Reliance is learnt to have indicated an organised retail market of 300 metric tons per day in the cities of Ranchi and Jamshedpur and 200 MTs in Dhanbad. These will be the other two cities where Reliance will start their stores in the next 3-6 months.

While they have already opened another collection centre at Pithoria, the company plan to set up similar centres at Gola, Barka gaon, Madhupur and Patamda.

A beaming Prabhat Sinha of Reliance Retail has good reasons to gush, “It’s going to be a win-win situation for the farmers and the consumers”. “Many vegetables that are not available in the state is sourced from outside. These items have also been doing well,” said officials.

Reliance Fresh debuts in Maharashtra with 4 outlets
http://www.financialexpress.com/fe_full_story.php?content_id=160882

Reliance Retail launched operations in Maharashtra with four Reliance Fresh outlets in Pune, on Wednesday. Another four outlets are slated to open in different parts of the city in May.

Reliance Fresh will be going to 18 cities in the state with a network of 125 stores, which will become operational in the next six months, said Guninder Kapur, CEO, Reliance Retail said. The four outlets in Pune currently occupy 19,000 sq ft.

In the first phase, the company will be going to five cities including Pune, Nashik, Nagpur, Aurangabad and Solapur, followed by Kolhapur and Akola.

Currently, the stores will vend fresh fruits and vegetables, groceries, dairy products and staple foods. Kapur said the company was looking out for stores with separate entrances, so that they could begin to sell non-vegetarian food items in three months’ time. A separate counter will be set up for selling Reliance branded products under the label ‘Reliance Select’.

Reliance will be sourcing produce from the Agriculture Produce Market Committee (APMC) and has obtained a Grade A licence for the purpose.

This would enable them to source directly from the farmers. A cash-and-carry format store which is slated to be launched in Bangalore soon, would be set up in Pune soon. Reliance has so far acquired 2,75,000 sq feet of space across 109 Reliance Fresh stores. Kapur said that they were planning to launch different types of stores in Pune, including hyper marts and specialty stores. Pune will have 25 Reliance Fresh stores in the next six months out of the total rollout plan for 40 stores.

Reliance has 109 stores in Andhra Pradesh, Rajasthan, Tamil Nadu, Delhi, Jharkhand, Karnataka and Gujarat.

Reliance is expanding with great pace. but why are they not going for supermarkets like Wal-Mart in the US. many other retailers like Target, etc have huge floor space in their stores. maybe Reliance is only entering into the fressh food and eatables sector first.

Reliance is expanding with great pace. but why are they not going for supermarkets like Wal-Mart in the US. many other retailers like Target, etc have huge floor space in their stores. maybe Reliance is only entering into the fressh food and eatables sector first.

Reliance is planning to open hypermarkets later this year. Problem with opening hypermarkets is that it requires a lot more planning than say a convenient grocery store. It has 1000s of more products than just food items - so extensive negotiations with manufacturers / suppliers. Also it requires a lot more complicated distribution / supply system. Add to that finding that huge area in India is very difficult. But I think first two hypermarkets are scheduled to open in August this year...

It has 1000s of more products than just food items - so extensive negotiations with manufacturers / suppliers. Also it requires a lot more complicated distribution / supply system.



this is where the expertise of Wal Mart and other western retailers can help. btw, what is Bharti doing? they made a deal and seems like they're gonna sign it this month. when are they actually gonna start operating a nice big store.

this is where the expertise of Wal Mart and other western retailers can help. btw, what is Bharti doing? they made a deal and seems like they're gonna sign it this month. when are they actually gonna start operating a nice big store.

Let me tell you where Wal-Mart trumps others. I am in Construction and I have built 2 Wal-Mart supercenters in last 3 years. They have mastered even the construction aspect of the store. Nowhere else have I seen that kind of efficiency.

Mittal recently said that the deal with Wal-Mart will be signed this month and they are looking at opening first set of stores early 2008. Bharti has already started procuring land/retail area on war footing. Wal-Mart has already started establishing back end operations.

And yeah, Mittal said in a recent interview with IE that the stores will most probably carry the name 'Bharti' or something related. They won't be named 'Wal-Mart'!

RIL to have 1,600 rural hubs


AHMEDABAD: Reliance Retail has chalked out plans to set up 1,600 business hubs to cater to rural areas across the country.

“These business hubs will act as shop-stops for villagers and will act as procurement centres, besides facilitation retail and technical and health assistance to farmers,” said Sanjeev Asthana, president, agri & food supply chain, Reliance Retail.

The hubs will come up in large complexes and the exact number to be set up in Gujarat is still being worked out. The execution of Rural Business Hubs (RBHs) will start by the end of 2007, he said.

Reliance has chalked out plans to set up over 180 Reliance Fresh stores in the next six months, covering various cities — including Rajkot, Bhavnagar, Vadodara, Surat and Jamnagar. The company will pump in Rs 25,000 crore for its overall retail plans across country.

So far, Reliance has set up 100 of its Fresh outlets across the country. Each store is set to target 3000 households in a 2 km catchment area. The Ahmedabad Fresh stores will be spread in a carpet area of 25,000 ft offering about 150-180 items in fruits and vegetables. The company will initially procure vegetables and fruits from APMC. The stores will also offer dairy and bakery products.

Reliance Retail juggernaut will also roll out speciality stores, hypermarkets and convenience stores.


http://www.dnaindia.com/report.asp?NewsID=1089853

^^ Wow..think about this in a bigger way..Earlier most farmers were at the mercy of the government owned "mandis" to buy their vegetables..sometimes the government would buy just to save the farmers from going bankrupt..a lot of the produce would just rot away given the lack of cold storage units...but now with players like Reliance, I'm sure they'll be many more competitors that'll come out and finally the whole process of getting produce from the farms into the home will be much more controlled, efficient and professional. Works for both the farmers and the customers.

where's my reliance toothpaste and reliance pillow...........:lol: !!!!!!!!!!!

Mint. April 14, 2007.

http://img409.imageshack.us/img409/742/mint0414071hm9.jpg

German wholesale giant feels first stop will be ready by Puja:)
http://www.telegraphindia.com/1070418/asp/calcutta/story_7658842.asp

NEW DELHI:Reliance Retail is readying itself to take the online route as it unfurls major plans for its e-commerce business. According to sources, the Mukesh Ambani-owned retail venture, has already set up a separate team to kick-start an online retail channel to go alongside its physical stores. There are plans to set up depots at various locations which will serve as a delivery point once the orders are placed through the internet.

Industry observers say that increasingly, retail bigwigs will strengthen their online presence as they witness real estate pressures and growth in broadband penetration in the country. When contacted, an RIL spokesperson declined to comment. Sources confirming the plan, however, told ET, “In the next 2-3 years, a significant 5-6% of Reliance Retail’s overall revenues will be generated through the e-commerce network.” The company will gradually use the e-commerce platform to link its front-end retail with the back end logistics.

“The e-commerce business will thrive on a two-pronged strategy, B2B as well as B2C. It will also help the company strengthen its logistics network,” a source said.
Industry experts say that with the organised retail pie getting bigger, e-commerce will become an important part of business strategies. “e-commerce will become a significant part of the overall format mix for retailers.

For Reliance Retail it makes a lot of sense to introduce an e-commerce arm as they have the advantage of physical stores already being present. Having physical delivery stores always add to the convenience and success of the online business model for retailers,” says Arvind Singhal, chairman of Technopak Advisors.

Reliance Retail is also looking at having co-branded credit cards and consumer financing schemes, which will enable the company to further strengthen its e-commerce venture. For the same, it has roped in the head of credit card at American Express. Internationally, all the retail giants including Tesco, Wal-Mart and Best Buy have a huge online presence.

http://economictimes.indiatimes.com/Reliance_Retail_readies_for_click/articleshow/1922807.cms

:banana: good news. would reduce the initial capital required for scaling up facilities.

NEW DELHI: The government on Thursday extended concessional import benefits for equipment required in building cold storages, supply chains and front end operations - a move that will benefit companies like Reliance and Bharti which are expanding in the fast-growing retail sector.
The benefit of concessional imports under the Export Promotion Capital Goods Scheme would now be extended to retailers having a minimum area of 1,000 square metres, as per the annual supplement of Foreign Trade Policy announced here.
However, retailers availing the benefit would have to fulfill export obligation, which would be eight times of duty saved in eight years, the policy review said.
Government's move is expected to benefit big organised retailers such as Pantaloon, Hypercity and Reliance and the ones waiting to take off such as Bharti Retail.
Under EPCG, import of capital goods for pre-production, production and post-production, including completely knocked down and semi-knocked down units are allowed at 5 per cent customs duty. This is subject to an export obligation of eight times duty saved on import to be fulfilled in eight years.
Global chains like Wal-Mart and Metro have lined up their plans in India with huge investments in back-end infrastructure like cold storage, refrigerated vans, warehousing and material handling equipments.
Industry bodies have been asking the government to support the retail sector by giving concession of imports of goods such as material handling equipment, and other equipment required for warehousing and distribution facilities besides the capital goods.

http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Boost_for_retail_sector_Reliance_Bharti_others_may_benefit/articleshow/1925578.cms

PUNE: Ever heard of a bank setting up a jazzy branch for Gen Next ? A place where youngsters can walk into a "Yo zone" to watch a movie. They can also choose to surf the net, read a book or relax in the lounge and do some banking as well.
State-owned Bank of Baroda (BoB) has turned trail-blazer opening the first ever Gen Next branch in the country in Pune. Why Pune? No prizes for guessing. The growing student population - estimated at over 5 lakhs-makes the city one of the most attractive destinations for banks trying to tap potential customers.

Special products - Gen Next Life Style, Gen Next Power, Gen Next Suvidha and Gen Next Junior - have been designed for this segment which will only be available at this branch, said Anil K Khandelwal, CMD Bank of Baroda. According to him, Gen Next branch is a concept that the bank is experimenting with.

The he leg work for this was done entirely by four youngsters in the bank. Such branches will be rolled out in cities such as Delhi, Mumbai, LucKnow, Japiur, Ahmedabad, Baroda during the year.
India is reaping the benefits of demographic bulge, with 65% of the country's population below 35 years of age. So there is no reason why banks should not target Gen Next, reckons Khadelwal.

Of course, while targetting the youth, the branch will also be open to other customers be it corporates, salaried workforce or retired people. BoB is looking at a business of atleast Rs 100 crore a year from such branches. Day one saw a total business of around Rs 27 crore.

http://economictimes.indiatimes.com/BoB_unveils_Indias_first_GenNext_bank/articleshow/1935910.cms

Even Banks are doing crazy stuff to make money...i wonder whats next..

http://img241.imageshack.us/img241/4820/23042007007007yp5.jpg

HT mum

HT Delhi - April 25, 2007


FRESH PLANS - Reliance Retail goes digital, eyes consumer finance

RELIANCE INDUSTRIES Limited (RIL) is gearing up to float its own consumer finance arm dovetailed with its retail operations.

Sources who did not wish to be identified said the consumer finance arm would primarily cater to the customers of Reliance Digital, a chain of speciality stores for consumer electronics and associated products. Reliance Digital stores would sell everything from TV sets, home theatre, refrigerator, cooking range, dishwasher to computers and mobile phones from across brands. At the moment, the company has a tie-up with Citi Financial, the non-banking financing arm of global banking major Citigroup.

When contacted, RIL officials declined to comment. Sources, however, indicated that the speciality consumer-financing arm of RIL would be operational within the next six months.

Sources added that the company was also examining the legal and regulatory issues for introducing the American retail mod el of “test, try and return” of goods and items. Under this model, consumers are allowed to take products that they can use for a limited period of time (usually a fortnight) for a nominal price before deciding on its purchase.

The company, which launched its first concept store of Reliance Digital in Indipuram in the national capital region on Tuesday, is also planning to launch its own label of consumer electronics goods, according to sources.

Reliance Retail Ltd President and Chief Executive (Consumer Durables, IT and Tele com) Ajay Baijal said the company would come up with 70 cities across India. The large format stores would be spread across 15,000 to 35,000 square feet. “We would offer a host of valueadded services like software downloads for our IT customers, and airtime and accessories for mobile users,” RIL Group President Shankar Adwal said.

Reliance Retail’s roll out plan, which began from Hyderabad in November 2007, involves a total investment of Rs 25,000 crore over a three-year period. In February this year it launched its first convenience store under the Reliance Fresh banner in the national capital region. The convenience stores offer a host of products, including fresh fruits and vegetables, grocery items and dairy products.

RIL has recently acquired about 5 lakh square feet of commercial space spread over seven locations in Delhi for more than Rs 1,100 crore in a highly competitive auction of properties belonging to the Delhi Development Authority (DDA) and the company is in the process of acquiring more real estate in the NCR.

Almost all top Indian business conglomerations have firmed up retail plans for India. Global retail giant Walmart has entered into a strategic alliance with the Bharti group and is expected to roll out its roadmap shortly .

Financial Express. April 25, 2007.

http://img20.imageshack.us/img20/8674/clipboard02hy4.jpg

so, Reliance is planning a Wal Mart as well as a Best Buy/CompUSA/CircuitCity???

Reliance stores are way smaller than Walmart stores. They are counting on numbers instead of size. I remember reading earlier that Walmart plans to open stores of averaging around 100,000 sq ft in india, which is still smaller than their stores around the world due to the shortage of space available in city's core. But its still big than most other retail ventures opening up in the country

It will be interesting to see the range of products reliance and walmart-Bharti will have in their stores. That could make a difference..

Italian brand Diesel ties up with Arvind Mills

Diesel is in India. The Italian luxury denim and casual fashion brand has entered into a joint venture agreement with Arvind Mills to create a new company called Diesel India Fashion Arvind Pvt Ltd.

It will be a 51:49 joint venture with Diesel having the larger stake. According to Mr Renzo Rosso, President and founder of Diesel: "India is a most incredible country in terms of economic growth and for the fast development of its fashion market."

The joint venture company will set up two flagship stores in New Delhi and Mumbai by the end of this year. It hopes to open 15 stores in three years in cities such as Hyderabad, Chennai and Chandigarh. They will be a combination of large flagship stores (5,000 sq feet) and smaller ones (3,000-3,500 sq ft). The stores will sell all product lines of Diesel — jeans and other casual apparel for men and women, bags, women's lingerie, innerwear for men, watches, jewellery, shoes and glares. The pricing will be the same as in international markets. A pair of jeans will cost about Rs 8,000.

Mr Darshan Mehta, President, Arvind Brands, said: "It is a prestige to be associated with the god of denim fashion. The fact that they signed a joint venture with us shows that they see India as a long-term destination. We want to bring in authentic original Diesel products from wherever it is made in the world — most of it is made in Italy — to Indian consumers in stores that are as attractive and exciting as they are in the world." http://www.thehindubusinessline.com/2007/05/16/stories/2007051604390500.htm

Italian brand Diesel ties up with Arvind Millshttp://www.thehindubusinessline.com/2007/05/16/stories/2007051604390500.htm

Finally it is there in India I hope all Italian Fashion brands comes in India too like Armani Exchange, Emporio Armani, D&G and etc.

Finally it is there in India I hope all Italian Fashion brands comes in India too like Armani Exchange, Emporio Armani, D&G and etc.

Er....why?

^^ and why not?

^^ and why not?

I think I was asking the question. Anyways, if you think it's great for Indian people and economy than sure but if why not is only for the sake of some Italian brand, then "why"? I mean what would be the point?

Oooooooooo touchy touchy tytler!!!!!!!!