Indian Talent, Global Content
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Indian Talent, Global Content |
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March 2010: 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 19th March - 25th March 2006 For other weekly updates click: Weekly Retail Update
March 19th – 25th India Retail News: Bombay Dyeing, Retail boom, Bharti Enterprises and More1. Monday, March 20, 2006 Cinemax is planning to invest Rs 4 billion to set up 500 screens over the next five years across the country. The company plans to include smaller markets such as Indore, Nagpur, Vijaywada and Guwahati in the expansion along with the metros. Source: Hindu Business Line 2. Monday, March 20, 2006 Ninu Khanna, former MD of Bombay Dyeing is likely to join Reliance Retail as its head of the FMCG division. Other prominent inductees have been Rajeev Karwal, Raghu Pillai and Bijou Kurien, who are likely to head the consumer durables, home furnishings and lifestyle divisions respectively. The company which will be operating mostly in hypermarket outlets is still to name heads for 10 verticals as yet. Source: Economic Times 3. Monday, March 20, 2006 Bombay Dyeing will be setting up a new manufacturing facility in Ranjangaon near Pune. The company has been expanding its stores to smaller cities and changing the look of its stores for the launch of its new bed and bath collections. Once this facility becomes operational by May 2007, the company’s facility in Worli, Mumbai will be phased out. The new facility will produce 150,000 meters of fabric as compared to 100,000 meters at the Worli plant. Source: Hindu Business Line 4. Monday, March 20, 2006 In the first incident of FDI in single brand retailing, UK based Lee Cooper plans to form a JV with one of the subsidiaries of the Pantaloon Group. Lee Cooper is already in India through a licensing agreement with Indus Clothing and has issued a termination notice to them. Pantaloon and Lee Cooper will hold 50% share each in the JV which will set up stores to retail the entire range of Lee Cooper apparel, footwear and accessories. Source: Economic Times 5. Tuesday, March 21, 2006 According to a report released by Images and CII titled “Retailing in Punjab: 2020 and Beyond”, the northern state of Punjab is heading for a retail boom. The state currently has only 2 malls with a total area of 270,000 sq ft of leasable space and is going to see 9 new malls come up by the end of this year increasing total mall space to 3.18million sq ft. By 2010, there will an estimated 40 malls. The consumption level in Punjab is significantly higher than the all-India average in retailing categories of food and beverage, clothing, footwear and education. The state has the highest per capita income in the country with an infrastructure set to promote new industries, making all major retailers head to Punjab. According to the Images-KSA Technopak India Retail Report 2005, Punjab’s average per person monthly consumption expenditure for 2004-2005 was Rs 1182.9, higher than the national average of Rs 1149.5. The average monthly consumption expenditure in rural Punjab is Rs 1022.05, significantly higher than the national average of Rs 635.72. Major Punjab like the Piramals, Rahejas, Godrej, DLF, ITC, RPG, Arenas, Ansals, THI and Omaxe are showing interest and planning to enter the region. Source: Business Standard 6. Tuesday, March 21, 2006 The denim-wear company Numero Uno plans to increase its stores in north India by opening new stores. The company plans to open 10 stores in Punjab alone by end 2006 in Patiala, Jalandhar, Ludhiana, Amritsar, Mohali and Panchkula. Numero Uno is also looking to the north-east and south India to expand and will soon be opening stores in Chennai, Cochin and Coimbatore. Source: Business Standard 7. Tuesday, March 21, 2006 Mukesh Ambani is planning to make Punjab the retail nerve centre for agricultural products for its retail venture. Fruits and vegetables from Himachal Pradesh and other states will be collected at these centers. Reliance will also set up 24 centers to support milk marketing outfit, similar to one in Gujarat. Reliance Retail is also collaborating with Punjab Agro Food Corporation for supply from the local communities and has purchased 2,000 acres of land in Chandigarh, Ludhiana, Amritsar and Sangrur. The company plans to offer technical assistance and equipment to farmers are these centers. Source: Business Standard 8. Tuesday, March 21, 2006 Telecom major Bharti Enterprises announced that the company was in talks with Tesco and Wal-Mart for entering the food and grocery retail sector. Chairman and Managing Director of Bharti Enterprises, Sunil Mittal said talks were at early stages and will take months before anything would be finalized due to restrictive FDI rules. Bharti and Tesco already have business dealings as Bharti supplies fresh products through its company, FieldFresh Foods to Tesco. Source: Business Standard 9. Wednesday, March 22, 2006 Heritage Foods India Ltd might be choosing Bangalore to launch its first retail store and is hunting for suitable real estate for its stores. According to sources, the company’s first store will be opening in August. Heritage Foods has tied up with farmers to supply its stores with dairy products and is planning to use the same network to source fresh fruits and vegetables. The company is establishing a cold chain that utilizes high tech software to transport perishable products. The retail venture will be headed by Lokesh N, son of the former Andhra Pradesh Chief Minister, Chandrababu Naidu. Source: Hindu Business Line 10. Thursday, March 23, 2006 Reliance’s retail venture is changing the way the Indian industry gives salaries by luring top names like Raghu Pillai, Rajeev Karwal and Bijou Kurien, who soon might pull ex-colleagues and business associates. HR personnel are worried about this new trend which will put tremendous pressure on talent. Source: Economic Times 11. Friday, March 24, 2006 North India is to play a significant role in Wills Lifestyle expansion. The company plans to open stores in Tier III towns where there is a huge untapped market. ITC’s other brand John Players, already in larger cities, will also soon be available in smaller towns. Source: Business Standard 12. Friday, March 24, 2006 There is a retail revolution going on in India, driven by its young, urban middle class, who are thronging to western formats of hypermarkets, department stores, specialty chains and dollar stores. An estimated 250 malls are expected to open in the next two years, a significant increase from the 60 malls currently. The next phase of growth will occur once global majors such as Wal-Mart are permitted once the government eases restrictions on foreign investment. In a recent interview, Mike Duke, vice-chairman and head of international operations for Wal-Mart, said that India was “becoming a consumer economy”. While small, locally owned stores still dominate India’s retail sector and account for 97% of trade, the larger domestic retailers are upgrading and modernizing to be prepared for the eventual entry of Wal-Mart and other large international retailers. Consumers are reveling in this new format of stores and the enormous rush at Pantaloon’s recent clearance sale where the police had to be called in for crowd control and the store closed early proves that the time is right for shopping in India. Source: Reuters
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