Indian Talent, Global Content
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Indian Talent, Global Content |
August 2008: What's in the breeze |
News Update from the Retail Scene in India
The retail industry could see a sea change with the Government of India considering Foreign Direct Investment. With this in view, Chillibreeze plans to bring you periodical updates on the retail scene in India.The Chillibreeze Business Research Team has writers with interest and experience in the Retail industry, will be populating this page with the updates. Retail News 23th April - 29th April 2006 For other weekly updates click: Weekly Retail Update
April 23rd - 29th India Retail News: Coffee Day, Expansion, Chains, Louis Vuitton, Reid & Taylor, New Stores and Malls1. Tuesday, April 25, 2006 German retail giant Metro AG announced its plans to invest E300 million to open 3 more outlets in India. The new outlets will be in Kolkata, Hyderabad and Chennai. Currently, the company has 2 stores in Bangalore which operate under a cash and carry mode, servicing only business-to-business customers. According to Heinrich OE Birr, vice president of Metro AG, the company plans to “focus on selling to hotels, retailers and institutional buyers”. Source: Kamcity.com 2. Tuesday, April 25, 2006 Convenience store chain, Twenty Four Seven, owned by the KK Modi Group will be opening 20 new stores in the Delhi-NCR region this year. Samir Modi, president of Twenty Four Seven Retail Stores Pvt. Ltd. said that the company’s first store receives a footfall of 1,500 with sales of Rs 100,000 every day. The company is also looking towards Mumbai for further expansion. New stores take six-eight months to break even and the company expects the business to grow to Rs 3-4 billion in the next two to three years. Twenty Four Seven has branded themselves as the “modern provision store” and uses localized marketing tactics such as leaflet distribution and word of mouth to publicize its stores. Source: The Hindu Business Line 3. Wednesday, April 26, 2006 Real estate development firm JMD Promoters Ltd. announced its entry in Punjab with the construction of its first shopping mall in Ludhiana, the JMD Govardhan City Centre. The company plans to work on several other projects in Punjab, with 2 other projects in Ludhiana. Other cities that the company is considering are Mohali, Amritsar, Chandigarh and Zirakpur. Source: Business Standard 4. Thursday, April 27, 2006 Café Coffee Day’s subsidiary Coffee Day Fresh ‘n’ Ground (CDFnG) announced that it is planning to have a store in every major district in south India, a significant increase from its present 10% market share. CDFnG is the company’s filter coffee powder retail outlet and currently has over 370 stores in south India. According to C J Jayant, Market Head, CDFnG, 80% of the company’s coffee consumption had come from south India. The company is now planning to open 100 stores, with a major thrust in Tamil Nadu where 60 new stores will be opened. Source: The Hindu Business Line 5. Thursday, April 27, 2006 Leading Brands of the World, a consultancy for luxury brands, will be bringing two European fashion brands to India within the next 12 months. Thomas Kastgen, chairman of Leading Brands made this announcement at the launch of its India operations. The company plans to offer logistical, developmental and marketing support to luxury brand that will be entering the Indian market. Source: The Hindu Business Line 6. Thursday, April 27, 2006 AT Kearney’s Global Retail Development Index (GRDI) has ranked India at the most attractive destination for mass merchants and food retailers. This is the second year in a row that India has been listed ahead of China, which the company feels has become “increasingly saturated”. The GRDI ranks 30 emerging markets based on 25 variables, ranging from economic and political stability, retail market attractiveness, and saturation levels. According the Fadi Farra, a principal at AT Kearney’s Consumer Industries and Retail Practice, “The Indian retail market is gradually but surely opening up”. Raman Manglorkar, Head of Consumer and Retail Practice in India, added that “India is at the peak of attractiveness for retailers right now, with a $350 billion retail market expected to grow 13% this year”. The scope for growth in India is enormous as organized retailing only accounts for less than 3 % of the total retail market. Source: The Hindu Business Line 7. Thursday, April 27, 2006 Prozone, a division of Provogue has tied up a 50:50 JV with the Omaxe Group to develop shopping malls in townships developed by the Omaxe Group. This joint venture is said to be the largest real estate-retail partnership in India to date. A SPV promoted by the JV will be investing Rs 15 billion to develop malls in several north Indian cities such as Raipur, Ludhiana and Chandigarh. Source: Business Standard 8. Friday, April 28, 2006 Fashion brand SAS International will be opening 5 stores in India to market its Pashmina and cashmere garments, under the brand ‘Pashma’. The product has been available at multi-brand stores in the US, UK and Japan. Source: The Hindu Business Line 9. Friday, April 28, 2006 Global luxury brand Louis Vuitton Malletier (LVM) announced that it will be acquiring LV Trading (LVT India), an Indian company with which it has a distribution agreement to market its products in two stores in India. This will be the first company to take advantage of India’s new rule permitting FDI in single brand retailing. LVM will be buying a 51% stake in LVT India, including its two stores in Mumbai and Delhi. Source: Economic Times 10. Friday, April 28, 2006 Reliance Group is said to be raising a venture capital fund to support its mega entry into the retail and real estate segments. Anand Jain, a business associate and friend of Reliance Industries chairman Mukesh Ambani is believed to be in charge of this fund, which reportedly will be called Skill. Reliance has been working aggressively to creating a back-end support system including sourcing and manufacturing for its retail venture. Source: Economic Times 11. Friday, April 28, 2006 Indian coffee chain Barista plans to invest Rs 500 million to upgrade its stores and open new outlets. According to Partha Dattagupta, CEO Barista, there will be 100 new outlets opened in 15 cities this year itself, including outlets in Surat, Goa, Vishakapatnam, Guwahati, Jallandhar and Jammu. Twenty of the new stores will be lounge restaurants called Barista Cremes. These will offer a larger variety of food and beverages, with a pasta bar opening at a later date, as well as merchandise such as T-shirts, percolators and brewers. Source: The Hindu Business Line 12. Saturday, April 29, 2006 The premium fabric brand of S Kumars Nationwide Ltd. (SKNL), Reid & Taylor announced that it will be launching a line of jeans under the brand name R&T Leisures, in one month. According to Govind Mirchandiani, CEO of the worsted suiting division, this move is to position the company to offer a complete wardrobe to male executives in the 25-45 year age range. The company will also be expanding its retail network by adding 170 outlets to its current 20. Source: Business Standard 13. Saturday, April 29, 2006 Lifetime Healthcare announced its plans of investing Rs 400 million towards expanding its LifeKen pharma chain stores by another 175 stores in south India. The company currently has 25 stores in Bangalore and has 4 stores in Chennai, where it was first launched. Lifetime Healthcare’s CEO, MC Kini said that organized retail in the pharma segment was following other fast growing segments such as apparel, food and grocery and music. According to estimates only 15% of the country’s 5 million retailers are chemists. Source: The Hindu Business Line
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