Stay abreast of the fast moving economic super-power — India!
|
Stay abreast of the fast moving economic super-power — India!
|
|
Retail News August 2007 |
Wal-Mart is in; partnership pact signed with Bharti
Aug 7, 2007
Wal-Mart today formally marked its entry into India by signing two agreements with Bharti Enterprises. The first is a franchisee arrangement between the two companies. Bharti will handle the front end, while Wal-Mart will take care of the back-end supply chain management and logistics, under the Indian firm’s wholly owned subsidiary, Bharti Retail Ltd.
The second is a 50:50 joint venture agreement for the wholesale cash-and-carry business and back-end supply chain management. The cash-and-carry operation is a business-to-business proposition that will service small retailers, kirana stores, small restaurants, hotels, farmers, artisans and craftsmen. The first cash-and-carry outlet will be set up by the end of 2008.
In Tier-II and Tier-III cities, a total of 15 stores each with area of 50,000-2,00,000 sq ft will be rolled out over 5-7 years, initially in the northern part of the country. A total of 5,000 people will be employed by the venture.
On plans for sourcing from India, Mr Raj Jain, Indian CEO of Wal-Mart, said: “We currently source $600 million worth of goods from small manufacturers and craftsmen in the country. Now our sourcing will increase by several multiples.” The plan not only includes sourcing from small-scale manufacturers but also use these manufacturers to export products to other geographies through the Wal-Mart route. The firm also intends to help small manufacturers with technical support to upgrade the quality of produced goods.
Emphasising that the partnership would bring “inclusive growth to the country,” Mr Mittal said that they would not hesitate to approach the Government if the need arises for any clearances.
Source: Hindu Businessline
Fitness and retail industry
August 3, 2007
This is a first-of-it’s kind initiative in the fitness and retail industry. The Future Group in partnership with Talwalkars, the leading chain of health centers has launched ‘Talwalkars Fit & Active’, which offers health, fitness and gym services within shopping malls and consumption centers.
It boasts of state-of-the-art gymnasiums, weight-loss centers and health spa along with personalised counselling services of dieticians, nutritionists, physiotherapists, weight-loss trainers and personal fitness trainers. Along with these facilities, Talwalkars Fit & Active will retail best-in-class fitness equipment and accessories to its customers.
The first center has been launched at Future Group’s Orchid City Center mall in Central Mumbai and has received a good response from customers. On an average, a thousand customers have been accessing the facility for the past two months.
Talwalkars Pantaloon Fitness now plans to launch 50 such centres over the next three years in shopping malls alone across the country. The company plans to spend around Rs 2 crore as initial investment in each of these centers.
Source: The Economic Times
Reliance Mart set to open this month
August 3, 2007
Reliance Mart, the company’s first hypermarket, and what could be the country’s largest single store, sprawling over 1.65 lakh sq ft over three floors, is all set to open its doors by the middle of this month in Ahmedabad’s S.G. Highway locality, according to sources in the company.
The hypermarket, with 80,000 stock keeping units across a variety of goods ranging from fruits and vegetables, grocery, apparel, durables and even scooters, stationery, toys and music, would well be the “mother of all stores” in the country.
The hypermarket would have large sections for apparel, stocking a range of private labels as well as mid-priced brands. There would also be a large section devoted to consumer durables and IT products. However, the mart will not stock the more expensive brands of men’s apparel as the hypermarket is modelled on a discount format.
Reliance plans to have 25 hypers by December and has sewed up properties in sizes of 40,000 to 50,000 sq ft in the cities of Delhi and Bangalore and in States such as Punjab and Gujarat.
Source: Hindu Businessline
In-house oomph to Reliance retail ramp
July 26, 2007
The Mukesh Ambani-led Reliance Retail will soon have around 100 private labels across product categories at its soon-to-be launched Reliance Hyper Marts. The first one is finally coming up in Ahmedabad next month and the second at Jamnagar in October.
Its own denim brand DNX is likely to be priced between Rs 199 and Rs 249 while some shirts—again its own label—may come at Rs 149. Its formal wear range Network is likely to be more expensive while Pitter Patter will be cheaper than mainstream brands. Jewellery will have many sub-brands under the umbrella brand Reliance Jewels.
A source said that about 35-40% of the total merchandise at Reliance Hyper Marts is likely to be Reliance’s own brands. For the past 18 months or so, the company has been working on its brands across categories like staples, beverages, cosmetics, snack food, footwear, electronics, auto products, financial products, jewellery, personal care, pharmaceuticals, and others.
Source: The Economic Times
Walt Disney to prance into personal care space
July 22, 2007
Unilever and Procter & Gamble might soon get competition from unexpected quarters. Walt Disney, the $30 billion entertainment giant, is looking at grabbing a share of the personal care products business.
The company will soon launch its range of shampoos and shower gels targeted at children in the age group of 4 to 14 years. The products have been test-marketed in markets like Mumbai, Delhi and Kolkata and have been well-received.
This time round, Disney is not looking at tying up with a large consumer products giant, and extending the goodwill of its characters to an established product. Instead, the products will be made by a smaller, relatively unknown, third-party manufacturer whose name Disney did not divulge. Disney would be providing marketing inputs to the manufacturer, without getting directly involved in the marketing of the products.
Internationally, Disney offers a range of personal care products, including deodorants and colour cosmetics. The personal care range to be launched in India, like all Disney merchandise, is expected to “add a twist to the product and engage the consumer.”
Source: The Economic Times
Landmark plans more stores
July 24, 2007
The Landmark Group (LMG) plans to expand its retail network through exclusive stores for its brands Kappa, Bossini and Springfield. “We will expand the retail network of Kappa (an Italian sportswear brand) from 15 stores to 25 by the end of this financial year. We will also have 45 Bossini (a casual wear brand) stores from 25 now, while the first Springfield (a Spanish men’s wear brand) flagship store will come up in September in Bangalore. We are looking to ha ve 10 stores by the end of this financial year,” said Mr Fazle Naqvi, Executive Director, LMG Brands India, Landmark International.
Mr Naqvi was present at the launch of Kappa’s rugby collection in the city. Incidentally, Kappa is the official apparel partner of the Indian rugby team. It has a three- year partnership with the team.
Source: Hindu Businessline
Bharti, Wal-Mart's India Partner, to Start Next Year
July 23, 2007
Bharti Group, Wal-Mart Stores Inc.'s partner in India, plans to open its first retail store in India by the middle of next year, more than six months after its initial target. Bharti will have 200 large stores in the next seven years, group Chairman Sunil Mittal said in an interview in New Delhi.
The delay will make it tougher for Bharti to find the best sites to set up its shops as it competes with Reliance Industries Ltd. and Aditya Birla Group to grab a slice of the country's organized retail market.
Sales through store chains may grow by more than eightfold to $97 billion by 2012, according to consultant Technopak Advisors Pvt. "We are hiring people, looking at real estate and the back-end supply chain is being organized,'' Mittal said. "A lot of work is going on in that area.'' Rising property rentals and availability of good sites are the biggest challenge the company is facing, Mittal said.
Source: The Economic Times
Vishal Retail sets up shop in Mumbai
July 21, 2007
Vishal Retail has introduced its first mega mall in Mumbai. Built in an area of 21,700 sq ft it is the fourth mall by the firm in the western part of the country. After gaining a strong foothold in North India, the company is now expanding its presence to other parts of the country.
Its first store opened in Calcutta's Esplanade area under the banner of Vishal Garments. Today, in addition to garments, the Vishal Mega Mart provides a range of household products, FMCG and electronic goods.
Vishal's prices are roughly 15 to 20% less than other mass market garment labels. Vishal Mega Mart promises to deliver all the shopping needs of the customers in Mumbai. The store has been designed and planned to give a unique shopping experience to all its customers. The company aims at offering the customers a portfolio of products at bargain prices.
Vishal Retail was started in 1986 from a small shop of 50 sq ft in Kolkata and later opened its stores in Delhi, Agra, Hyderabad and many more Indian cities.
Source: The Times of India
RPG to launch 365 stores in 1 year
July 12, 2007
RPG Group, which owns the Spencer's brand of retail stores, will invest Rs 1,000 crore (Rs 10 billion) for opening nearly 365 supermarkets in the next one year. Ruling out any tie-up with global retail chains, RPG Enterprises chairman, Harsh Goenka said the group had the necessary wherewithal to conduct the business on its own.
Spencer’s has 200 stores presently and is expanding fast. The plan is to open a store everyday in the next one year.
Source: Rediff.com
Reliance re-launching Vimal brand; setting up retail chains
July 17, 2007
Mr Mukesh Ambani’s Reliance Industries is to re-launch its textile brand Vimal, famous for its ‘Only Vimal’ tagline. Reliance has been hiring key people for designing and plans to make Vimal a ‘complete family brand’ introducing dresses for women and later for children.
It is to set up retail chains in fabric and garments across India starting August-September. Mr Chetan Desai, Vice-President, Marketing, Vimal Textiles, said that the company has tied up with an English architect with expertise in retail concepts.
The company will first make available its fabric at the existing Vimal outlets in Bangalore, Chennai, Kochi, Hyderabad, Mumbai and a flagship store in Ahmedabad and will expand across the country starting from the high streets.
Source: The Hindu Businessline
Reliance Retail enters dairy sector with liquid milk
July 17, 2007
After fresh vegetables & fruits and FMCG products, Reliance Retail has stepped into the dairy products sector with a national ‘pilot’ launch of its liquid milk (family milk segment) in Hyderabad, its favourite testing market.
Available across 43 Reliance Fresh stores in Andhra Pradesh, the liquid milk branded Reliance Dairy Pure has a launch price of Rs 9 for a half-a-litre packet, according to a Reliance Industries (RIL) official.
Reliance Retail is at present procuring 10,000 litres per day at its procurement centre in Atmakur in Nellore district. The packaging, which is outsourced, is being done at Vikarabad in Ranga Reddy district.
The national plans of Reliance Retail include launching 3 variants of liquid milk — family milk, low fat and whole milk. It would also diversify into a range of value-added dairy products. Reliance is planning to roll-out the liquid milk brands across the country in a phased manner. It is also firming up plans to enter the cheese-making sector.
Source: The Hindu Businessline
Wheat rush: Retail war reaches farm lands
Aug 6, 2007
Kellogg’s is slugging it out with Reliance Retail to procure wheat at the fag end of the wheat procurement season. And the clear winner is the farmer.
While Reliance Retail has already initiated a price war in direct sourcing of wheat from farmers in Madhya Pradesh, it is expected to start the process in 2-3 more states later this month. Haryana and Uttar Pradesh are reported to be on its radar for wheat.
Though the price being offered by the company could not be confirmed, sources say that to counter Reliance’s bid, Kellogg’s has doubled the offer to farmers to an incredible Rs 2,700 per quintal in Madhya Pradesh. This is more than three times the official minimum support price of Rs 850 per quintal.
Western Madhya Pradesh is a major producer of wheat. Kellogg’s had a clear first-mover advantage in the area, as it has been purchasing more than 95% of the wheat produced in the area. While 3-4% has been going to the Agriculture Produce Marketing Committee (APMC) mandi, the rest is acquired by local buyers. Farmers preferred Kellogg’s as it paid a significant 35-40% above the mandi rates.
However, this season, it is learnt, Reliance Retail was able to make a significant dent in Kellogg’s sourcing abilities by offering about 50% more than the MNC.
Source: Hindu Businessline
India may delay opening up retail sector – paper
August 3, 2007
India could delay moves to ease restrictions on foreign retailers such as Wal-Mart even though a study showed organized retailing was not hurting small shopkeepers, the Business Standard reported on Friday, citing government sources.
The paper said a study commissioned by the commerce ministry had shown organized retail was not a threat to small shopkeepers and farmers, but the ministry had asked for the sample size of the survey to be expanded and then resubmitted. This indicated that plans to open up the retail sector would be delayed, the newspaper quoted government sources as saying.
While western firms like Tesco and Carrefour are keen to enter the retail market in India, and local firms like Reliance Industries and the Tata Group are rapidly expanding their operations, Indian shopkeepers, threatened by the entry of large companies, and left-wing parties that support the federal coalition are strongly opposed to moves to open up the sector.
In May, street vendors armed with iron rods and sticks attacked three stores owned by Reliance Industries in eastern India and damaged vehicles of customers.
Next week, an organization of traders, hawkers, farmers and trade unions has called for protests against what it calls the "corporate hijack of retail and backdoor entry of Wal-Mart".
Source: Reuters
'High realty prices could deter growth of retail'
July 30, 2007
Bharti Enterprises, which has announced join ventures with US giant Wal-Mart for its retail foray, said that the rising real estate prices could hamper the growth of the organised retail industry in the country. Bharti Enterprises has also floated a real estate outfit of its own which would largely meet the requirements of its retail business.
Source: The Economic Times
Private labels likely to dominate shelf space
July 26, 2007
As organised retail gains strength, private labels are likely to dominate shelf space. This will also change the manufacturer-retailer dynamics and put retailers in a commanding position vis-à-vis manufacturers and brands. It will also see a lot of retail chains entering contract manufacturing.
Almost all large global retailers like Tesco, Sainsbury and Wal-Mart have their own private labels as they give better margins than selling other manufacturers’ products. Also, retailers price their brands below competitors. And as the stores are retailer-owned, they can give their own brands ample display thus saving on marketing and other intermediary costs.
According to an AC Nielsen’s global study, The Power of Private Label 2005: A Review of Growth Trends, private label sales accounted for 17% of value sales, chalking up a 5% annual growth rate fuelled by emerging market velocity. Europe is the worldwide private label leader, boasting an aggregate value sales share of 23%, with Switzerland (45%) and Germany (30%) leading the way. North America, second overall in regional private label sales, registered a 16% share for a 7% year-to-year gain.
In terms of growth rates, emerging markets emerged as the fastest-growing region, where private label sales expanded by 11%; it was also the only region to post double-digit growth. Underlying factors fueling private label growth in this sector are the increasing strength of modern trade and penetration into new categories.
In India’s case, private labels are no new phenomenon. Industry experts while chains like Big Bazaar, Food Bazaar and Vishal Mega Mart have already had a successful stint with private labels, other players with ambitions in the retail sector (Dabur and Bharti being prominent ones) are likely to join the bandwagon in the next 6-12 months.
Source: The Economic Times
Starbucks may take 2 yrs to enter India
August 3, 2007
Coffee lovers in India may have to wait up to two years to savour the Starbucks brand, with the Nasdaq-listed world's biggest coffee retail chain revising its plan to open its first store in the country.
Starbucks, which was earlier eyeing its India foray by the end of 2007, withdrew its application on July 19 to operate single brand retail stores and said it was postponing its India plans without giving a time-frame for future plans. However, the company's COO and international business head Martin Coles said Starbucks now planned to open its India stores in "the next year or two".
"We recently withdrew our application to enter India as we refocus our efforts in Asia Pacific, which is a key region for our company, but we remain excited about the potential of this country (India) and plan to open that market in the next year or two," Coles said.
Source: The Times of India
Hamleys set for India foray
August 3, 2007
Hamleys, one of the world’s largest toy shops owned by Iceland-based investment company the Baugur Group, plans to set up its first store in India over the next 12-18 months. According to sources, the company plans a 50:50 joint venture with an Indian partner and plans to have its first store in Delhi.
Hamleys plans to invest nearly Rs 500 crore in India, the source added. “Hamleys is looking at overseas expansion as a key business growth driver. The company plans a joint venture to set up their first store in India,” an industry analyst said on condition of anonymity.
According to the source, the company is in talks with “big Indian companies” including the Wadia Group. However, he could not confirm if the deal was already through. Officials of Wadia Group were not available for comment. Hamleys is also looking at other countries including China, Kuwait, Dubai and Saudi Arabia.
Source: Hindu Businessline
Wal-Mart plans dairy processing in India
August 3, 2007
Wal-Mart plans to set up a dairy processing unit in India. A representative of the company recently held talks with officials in the ministry of food processing to explore various possibilities in the dairy sector.
“We have been told that the company plans to start sourcing milk directly from farmers in some north Indian states at a price significantly higher than what is being offered to them by existing channels. Once the sourcing mechanism is in place, it would work towards setting up a dairy processing unit,” an official in the food processing ministry told ET.
Up to 100% FDI is allowed in food processing. Therefore, regulatory issues should not be a problem as far as Wal-Mart’s plans are concerned. Alternatively, it is learnt, the company is also looking at direct sourcing of processed dairy products.
In recent times, the dairy sector in India has attracted interest of many multinational as well as domestic companies.
Source: The Economic Times
Diageo signs pact with Reliance Fresh
July 28, 2007
Aiming to cash in on the retail boom in India, the world’s largest spirits firm Diageo on Friday said it was in talks with three big players in the segment while it has already sealed a pact with Mukesh Ambani-promoted Reliance Fresh to sell its international wines portfolio. “Currently talks are on with three more players in the organised retail segment to distribute our wine products,” Diageo India managing director Asif Adil said.
He, however, declined to disclose the name of the retailers Diageo was in talks with, citing confidentiality. Mr Adil said the company has already tied up with Reliance Fresh and expects to start distribution by August.
Source: The Economic Times
Café Coffee Day plans 50 outlets in Pak, Austria
July 6, 2007
The Amalgamated Bean Coffee Trading Company, popularly known as Café Coffee Day, will open 50 outlets in Pakistan and Austria in the next 15 months. With an investment requirement of Rs 25-30 lakh per outlet, the coffee house is expected to pump in Rs 15 crore for the expansion.
Along with operating four formats of businesses — Café Coffee Day outlets, Café Express, takeaways and vending machines — the coffee maker is experimenting with different formats. It runs 10 highway outlets; 40 outlets in offices like Wipro, Accenture and Infosys which contribute to high revenues due to less capital requirements; colleges, airports, and service apartments.
Besides, Café Coffee Day is within the top three exporters of coffee beans, with exports of up to 10-12,000 tonnes every year. Café Coffee Day’s turnover last year was Rs 400 crore, which is expected to grow by 40-50 per cent.
Source: The Hindu Businessline
Shop for diamonds at petrol bunks!
July 25, 2007
Spectrum Jewellery, a joint venture between multi-brand Gitanjali Group and Sanghvi Exports, has partnered with Hindustan Petroleum Corporation Ltd., to set up exclusive Sangini diamond jewellery store in fuel bunks.
The idea is to provide a unique shopping experience in a petrol filling station where a visitor can enjoy the bunk hospitality while also having access to C-store concept, an initiative of Sangini and HPCL.
Source: Business Standard
Khadi kiosks at railway stations
July 27, 2007
After the introduction of kulhars and khadi-made bed rolls (linen) in reserved compartments, Indian Railways plans to unveil khadi kiosks at major stations across the country.
To begin with, 80 railway stations have been identified and the kiosks are likely to be opened on October 2, Mahatma Gandhi’s birthday, sources close to the Khadi and Village Industries Commission (KVIC) said.
Rajasthan, which has the largest number of khadi production centres, will be the first state in the country to have at least five khadi kiosks - one each at Jaipur, Kota, Jodhpur, Udaipur and Bikaner, in the first phase. These kiosks will sell khadi products like towels, napkins and toothpaste. They will also distribute pamphlets on products available at the other khadi centres.
The KVIC also plans to open such kiosks at the airports all across the country. At present, KVIC is engaged in R&D activities to make products more customer-friendly by bringing innovative designs, colour and shapes. All khadi shops in the country are being modernised and employees are trained in operation of modern equipment and computers. An exclusive Khadi Plaza has also been planned at Panipat in Haryana.
Source: The Economic Times
UTV entering retail space
July 19, 2007
Mumbai-based UTV Software Communications is stretching its new channel brand — Bindass — to retail cafes.
Branded as Bindaas Café, these outlets with a 1,500-2,000 sq ft area would provide the touch-and-feel element for the channel targeting youth in the 15-35 age group. UTV is currently seeking a partner in the retail business and this would be treated as business, independent of its 50:50 broadcasting joint venture signed with Malaysia-based media company, Astro Measat.
Source: The Hindu Businessline
Concor to buy 12,000 t apples for retail supply
August 3, 2007
Container Corporation of India (Concor) plans to procure 12,000 tonnes of apple from Himachal Pradesh in the current financial year, through its cold chain subsidiary Fresh and Healthy. Concor is also in talks with Jammu and Kashmir and Uttaranchal Governments to procure fruits including pears, mangoes and cherries.
It would supply these apples, branded by Fresh and Healthy Enterprises, to retailers such as Reliance Fresh, Bharti-Walmart, ITC, Big Apple and Mother Diary.
Fresh and Healthy Enterprises Ltdis a wholly owned subsidiary of Concor set up with an aim to have controlled atmosphere stores and provide facilities and services for cold supply chain operations. It would procure, import, transport, handle, store, grade and pack including branding, distribution, marketing, export and selling of fresh fruits, vegetables, and frozen foods.
Source: Hindu Businessline
Sky is the limit for rent in Sector 17
August 1, 2007
With retail scene hotting up across the country and cities like Chandigarh emerging as investment options, commercial property is fetching rents one could only dream of earlier.
A retailing brand would be expected to shell out rents that can now vary from Rs 300 to Rs 500 per square feet (depending on who takes it) in the commercial hub of the city, Sector 17.
Esprit, brought to India by Arvind Mills, went for above Rs 500 per square feet, say the property consultants, Manohar Singh and Sons, who clinched the deal for the UK brand. The most recent retail major to open shop here is the Lee-Dockers combine, marketed by Sports Station, which is paying about Rs 24.8 lakh as monthly rental for a four-floor store, say sources. This is three to five times more than what other commercial hubs of the city could dream of.
Many property owners in Sector 17 are rumoured to be keeping their buildings idle expecting a further leap in the rentals. But most showroom owners feel that the upcoming malls would scale down Sector 17 rentals.
As of now all the three upcoming malls of the city, DLF, City Emporio and Centra Mall, are vying for the best names in retail, though the per square feet rental in them is said to be a deterrent for many not-so-big brands willing to occupy their retail space.
Source: cities.expressindia.com
Retail boom to trigger more multiplexes, says report
July 28, 2007
The number of multiplexes in the country is expected to more than double over the next three years from 135 multiplexes with 478 screens and 1,33,000 seats due the retail boom.
According to a report of Angel Broking, a retail stock broking house, India is expected to have over 1,100 screens and 3,20,000 seats by 2010. The proposed expansion is likely to attract a minimum investment of Rs 1,000 crore. "On an average, a multiplex screen in a metro would cost Rs 2 crore while in a tier-II city the average investment per screen would be about Rs 1.5 crore," said Mr Hitesh Agarwal, Vice-President - Research, Angel Broking.
The report said the rise in disposable income and growth of organised retail sector as major growth drivers for the multiplex industry.
Of around 50 cities which have at least one multiplex by the end of 2006, nearly 50 per cent (with about 235 screens) are in Mumbai, Ghaziabad, Delhi, Pune and Ahmedabad. The multiplexes now account for 3.7 per cent of the total 13,000 screens in the country, but contribute 25-30 per cent of the box office collections in India.
Source: Hindu Businessline
Retail boom fuels parking insurance biz
July 13, 2007
An increasing number of contractors managing parking lots at malls, multiplexes and five-star hotels are buying parking insurance covers.
Insurance for parking lots is a novel concept in India and is likely to gain ground with parking getting more organised. Brokers, who customise covers for contractors, said the retail boom had led to a demand for such covers over the last one year. For instance, Hyatt Hotel in Delhi has outsourced parking management to Jupiter Security Services, which in turn has bought a cover from National Insurance Company. In cities, large hotels and multiplexes outsource car parking management to contractors.
Several foreign contractors such as Intertoll of South Africa, Tenaka of Malyasia, Tramell Crow and Knight Frank have entered India. These contractors specializing in managing buildings, multiplexes, roads, and parkings lots have made standalone parking insurance popular.
Third-party liability insurance so far would take care of any liabilities arising from damage to cars parked in the premises of malls and multiplexes.
Source: rediff.com
Avaya GlobalConnect in talks with retailers for its niche solutions
July 10, 2007
Software company Avaya GlobalConnect is in talks with 4-5 medium- to large-sized retailers to launch its niche solutions over the next 3-6 months. Currently, trials involving inventory management and customer services solutions are on at certain retail outlets. Avaya’s solutions are tailored to address issues such as customer acquisition, employee attrition and training, pilferage in stores, loyalty programmes and automating supply chain and inventory. Avaya GlobalConnect has also developed applications for RFID technology.
Source: The Hindu Businessline
Big Bazaar outlet in Udupi
August 3, 2007
Pantaloon Retail (India) Ltd launched its hypermarket store – Big Bazaar – in Udupi on Friday. A press release said here that Big Bazaar now has 10 stores in Karnataka with this launch.
In Karnataka, Big Bazaar has presence in Bangalore, Mangalore, Hubli and Udupi. Pantaloon Retail (India) Ltd has a total of 64 Big Bazaar and 94 Food Bazaar stores across the country. Spread over an area of 35,000 sq.ft, Big Bazaar is located near Taluk Office in Udupi.
Source: Hindu Businessline
World of Titan now in Surat
August 1, 2007
With a focus on expanding its retail reach across the country, Titan Industries inaugurated its third exclusive World of Titan showroom in the city, the 216th showroom in the country located at 125, Iscon Mall, Opp. Rajhans Cinema, Surat-Dumas Road, Piplod.
This new ‘World of Titan’ showroom also has an attached Service Boutique, making it the 136th Service Boutique in the country. The new store also introduced the all-new Raga Shimmer Collection - a range of studded watches for women.
Like other World of Titan showrooms, this showroom will also offer many innovative value added services. Customers can also enroll for the highly popular and rewarding Signet loyalty programme offered exclusively by the World of Titan chain.
The World of Titan showrooms chain comprises of 215 exclusive showrooms spread across 110 cities, attracting more than 12 lakh customers every year.
Source: fibre2fashion.com
Retail MNCs: Kerala traders threaten 'armed struggle'
July 20, 2007
Pointing to the 'dangers' in the opening up of retail sector to multi-nationals and big Indian companies, traders in Kerala are gearing up to launch an agitation, if necessary an 'armed struggle,' to prevent their entry.
Expressing fears that entry of firms like Wal-Mart and Reliance in the retail sector would shatter the state's economy, besides rendering thousands jobless, the Vyapari Vyavasayi Ekopana Samithi, a leading traders' body, says it will also result in sharp price hike of goods.
The body opposes foreign investment in the retail sector, citing the fact that 20 lakh people were directly employed in the sector in the state with another 60 lakh people dependent on them.
Urging the LDF government not to grant permission to big companies to set up malls in the state, the VVES had held district-level meetings to create awareness among the people. However, the VVES is not opposed to FDI in other sectors, as envisaged by the central government.
Source: Rediff.com
UK-based Veetee plans health food biz foray
August 7, 2007
UK-based firm Veetee Fine Foods today said it is planning to make a foray into the health food segment in India with plans to launch ready-to-eat whole grains and soups.
"We are planning to position whole grains as health food and will launch brown rice garnished with European herbs like parsley, organo and thyme," said Rachita Mittal, marketing manager, Veetee Fine Foods (India).
The company has launched Vetee gold brown basmati rice with zero cholesterol and low glycemic index, which is meant for diabetics. It is retailing the product through leading pharmacies like Apollo Pharmacy, Fortis Healthworld, Guardian Pharmacy and 98.4 degrees.
The company plans to introduce six to seven new dishes every month to its already existing ready-to-eat (RTE) portfolio. Packed in microwavable pouches, the current range comprises 18 Indian curries such as aloo choley, dal makhani and three rice-based dishes (vegetable biriyani, cumin rice and pulao).
These dishes have also been exported to countries such as the UK, Switzerland, US, Australia and Germany.
Source: Business Standard
RIL may decide on making food retail biz veg-only
July 28, 2007
The board of RIL, the country’s most valued firm, will meet tomorrow to discuss, among other things, its retail juggernaut and whether it should continue selling non-vegetarian food items in its outlets.
Sources said the proposal to consider whether to sell non-vegetarian items in retail stores comes in the backdrop of recent protests against Reliance Retail and Aditya Birla Group’s stores by vegetarian activists and investors from the Jain community.
Source: Economic Times
Dominos set to foray into branded ice cream segment
July 22, 2007
Dominos Pizza is planning a foray into the ice cream segment, apart from launching boneless chicken and chicken kickers for the first time at its restaurants in India.
With the move, India becomes one of the first countries among the global base of Dominos Pizza chains to launch ice creams. According to Ajay Kaul, VP (Marketing), Dominos Pizza India, "While 60 per cent of Dominos menu mix is still vegetarian, our non-vegetarian pizzas contribute the remaining 35 per cent to the company's overall sales."
Meanwhile, KFC, a Yum! Restaurants International brand with 13,000 restaurants operational worldwide, is planning to create new platforms in its chicken category by launching chicken popcorn, boneless chicken and chicken nuggets in India.
McDonald's India is also planning to launch new products with international or Indianised flavours.
Source: expresshospitality.com
Unsure Starbucks defers India entry
July 21, 2007
It’s the turn of yet another iconic retail brand to put its India plans on hold. US coffee retailer Starbucks on Friday joined Tesco and Carrefour in postponing its plans to enter India — the world’s so-called most preferred retail destination, thanks to the Indian government’s flip-flop policy on FDI in retail.
The world’s largest coffee retailer on Friday withdrew its application from the Foreign Investment Promotion Board (FIPB), almost a month after the Indian government asked it to revise its entry proposal for the second time. With speculation about the government further tightening franchisee regulations gaining strength — a model under which brands like Pizza Hut, Costa Coffee and Domino’s entered India — foreign players such as Starbucks have become anxious.
Source: Economic Times
Manjilas expands food products portfolio
July 13, 2007
Thrissur-based Manjilas Group has expanded its portfolio of food products with the launch of jam and whole-wheat atta.
The company, which markets a range of food products including rice and rice-based products under the popular Double Horse brand, is looking to launch more new products, including a line of ready-to-eat food products like chappatis and Kerala porottas. Manjilas exports its food products to 22 countries and is looking at about 50 countries over the course of the next one year. The company intends to focus on exports to Europe and also to strengthen the Double Horse brand’s presence in the West Asian region.
Source: The Hindu Businessline
Red Tape plans 16 more exclusive outlets
July 27, 2007
Red Tape, part of the Rs 300-crore Mirza International, will open 16 more exclusive outlets by December this year. It now has 34 stores across 20 cities.
The expansion will focus on increasing the brand’s reach within the cities in which it is present now and will not look at new cities, with plans for a 100 more outlets to be set up in these cities in the second phase of expansion at a later stage. Red Tape is also sold in 1,000 multi-brand outlets in various SEC A, B and C cities.
The company’s focus for the near future would be on apparel. The company will expand its apparel range by adding more SKUs (stock-keeping units). Right now, it has shirts, t-shirts and denims as well as accessories such as belts and wallets outsourced from various vendors.
Red Tape is also working on a new marketing campaign with its brand ambassador- actor Salman Khan. Actor Kangana Ranaut is the brand ambassador for the women’s range of footwear. Red Tape shoes fall into the premium segment, priced above Rs 2,000, and so does its apparel, where a pair of jeans or a shirt is priced from Rs 1,000.
Source: Hindu Businessline
VF Arvind for retail thrust in denim-wear
July 24, 2007
VF Arvind Brands is planning a major retail thrust in denim-wear this year. By December 31, it is looking to nearly double the number of Lee and Wrangler stores in the country. The company also plans to open exclusive outlets for its economy jeans brands — Hero and Riders.
As on January 1, there were 48 Lee and 28 Wrangler stores. By the end of the calendar year, VF Arvind Brands will have 98 Lee and 52 Wrangler stores in the country. It will also set up three exclusive Hero and Riders stores each.
The mass market brands from VF Corp — Hero (priced at Rs 500-800) and Riders (Rs 600-1,000) — were launched recently in the country. While Hero is available in Metro, Spencer’s and Big Bazaar, Riders is sold in Spencer’s. Both brands will soon be available in the to-be-launched Reliance hypermarket.
The mass market jeanswear segment, at an average price point of Rs 300, is estimated at $0.5 billion.
Source: Hindu Businessline
Bata opens new flagship store
July 23, 2007
Bata India Ltd has opened a new flagship store at Trans Towers in Thiruvananthapuram’s Vazhuthacaud locality, covering an area of 3,500 square feet.
The store offers customers the company’s entire range of footwear, including over 200 new designs, the release adds. Over the next two years, the company plans to add 200 new stores to its retail network.
These stores will be launched under the company’s new retail model that classifies stores into four formats — flagship stores, city stores, super stores, and family stores.
Source: Hindu Businessline
Specialty stores under Peter England brand soon
July 18, 2007
Aditya Birla Nuvo is looking to open a chain of specialty stores for the family under the Peter England brand. The 12,000-15,000 sq feet stores will sell both apparel and accessories catering to men, women and children in the value category. The first few family stores are expected to be test marketed in the South in April-June. The company will invest around Rs 400 crore in this retail venture.
Currently, Peter England operates as a men’s wear brand in the mid-priced value category.
Recently, Madura Garments (part of Aditya Birla Nuvo) separated its fashion brands (Van Huesen, Allen Solly and Louis Philippe) and its popular brand Peter England. Peter England saw retail revenues of Rs 200 crore in the last financial year. The brand has been growing at 25 per cent year-on-year. Its retail network encompasses around 230 franchise stores, 30 company-owned stores and several wholesale stores across the country.
Source: The Hindu Businessline
Garden Silks losing out to big players
July 18, 2007
Gujarat-based Garden Silk Mills, well-known for its Garden Vareli brand of sarees and dress materials, will restrict production of the same to the current numbers and has no plans of expansion.
This is due to a continuous fall in its revenues from the segment, because of entrance of big retailers, said a senior company official. Of the over Rs 1,200-crore sales of Garden Silks, only Rs 200 crore comes from sarees and dress materials, while the rest is from its yarn and polyester manufacturing.
The company is open to tie-ups with malls for setting shops but will not make further investment in the retail business. It currently has 293 retail outlets in 65 cities with 18 company owned depots.
Source: The Hindu Businessline
Gokaldas has revival plan for Wearhouse chain
July 17, 2007
Gokaldas Exports plans to revive its Wearhouse chain of retail outlets after 6-8 months.
About two years ago, Gokaldas had closed down most of its 36 Wearhouse outlets across India in cities such as Chennai, Ahmedabad, Bhopal and Delhi. Currently, only three outlets are operational in Bangalore.
This was because the returns on an investment of Rs 35 crore (about 10-15 per cent) were not proportionate.
Incidentally, Gokaldas has been supplying in bulk its ‘Camel’ brand of products to the German retailer Metro for the last four months.
Source: The Hindu Businessline
Lee opening 25 exclusive outlets
July 11, 2007
Lee, the denim fashion brand, will open 25 new exclusive outlets across India by this year-end.
The company currently had around 75 stores across the country, including nearly 35 exclusive outlets. With more stores in the offing, the total number of Lee outlets in all categories would reach about 125 by the end of the current financial year.
As its marketing strategy, Lee is open to setting up franchisee-based exclusive outlets as well as share the shelf with other brands in a partnership.
Source: The Hindu Businessline
Mothercare plans e-commerce model
July 21, 2007
After breaking even in the baby care business, Mothercare in India is now planning an e-commerce model for its retail operations. The franchisee brand of Shoppers’ Stop expects to target the loyalty card members of the retailer to vend its products on the Net.
Considering nearly 65 per cent of Shoppers’ Stop First Citizen loyalty card members are consumers of the brand, Mothercare intends targeting the same for its Web-based selling option. The First Citizen loyalty card programme of Shoppers’ Stop currently has 7 lakh members, of which nearly 25,000 have shopped from Mothercare.
In the UK markets, nearly 15 per cent of Mothercare’s sales come from the Net.
Source: Business Standard
Cleartrip.com’s offer
July 17, 2007
Cleartrip.com is offering a free round trip flight for the companion of a customer who books for one of the Oberoi properties through the travel portal. The limited offer is valid for bookings from July 16.
Source: The Hindu Businessline
Airtel launches Kannada Web site
July 17, 2007
Continuing its foray into the rural markets, Airtel has launched a Kannada Web site for customers in Karnataka. It currently covers 61.3 per cent of the rural population in the State.
All the prompts on this portal are in Kannada and enable customers to download ringtones, devotional songs, dedicate a song or download and listen to special superstar content easily.
Mobile content in the form of applications such as astrology, news and other services will soon be made available on the portal.
To access these services, an Airtel customer needs to call 51111 at Re 1 per minute, with a monthly rental of Rs 15. If an Airtel customer wishes to access this service without paying the monthly rental, he/she can do so by dialling 51112 at Rs 2 per minute.
Source: The Hindu Businessline
Autojunction.in plans to sell new vehicles online
July 16, 2007
This is for all those buyers who always desired to buy cars or bikes at the drop of a ‘mouse’.
Autojunction.in a Web site, dedicated to selling repossessed cars from finance companies, is now foraying into selling of brand new cars and bikes online. The Web site, part of mjunction services limited, will offer a chance for prospective customers to shop online for their choice of brand new cars and bikes. The company is in talks with leading auto majors of the country and is most likely to have an agreement signed with each one of them at the earliest possible. The new services will commence from a year from now.
The company is targeting the growing number of people who prefer to buy the vehicle on an impromptu basis, without checking out the vehicle. Further, since the firm would not invest in infrastructure like a typical dealership, they can leverage on the margins decided with the auto major. It can turn out to be a lucrative proposition to pass on the costs benefits to the customer if the auto major so decides.
The company is also leveraging its plans to sell used cars online eventually.
Source: The Hindu Businessline
Cleartrip.com turns focus on hotel services
July 7, 2007
If you are a traveller worrying about your accommodation in a good hotel when you travel next, your search could be powered with interactive details of the place you want to stay.
Apart from knowing the prices, the distance from the nearest airport or railway station and other basic data about the hotels, you could see images and videos to get a first hand feel of what the experience is going to be like. What if someone simplifies it further by saving you the pain of visiting individual sites of these hotels? Travel portals are attempting to do just that.
Cleartrip.com, one of the Indian travel portals, is planning a similar initiative.
With its core business in booking airline tickets and hotel accommodations, Cleartrip’s revenues have gone up to Rs 60 crore from a meagre Rs 10 lakh when it started on July 4, 2006.
The travel portal spends around Rs 30 crore on advertisements in print, online and television media. It caters to 80,000 customers, of which 60 per cent are unique and 40 per cent have visited the portal before.
Currently, the portal offers bookings only in the domestic segment (airlines and hotels), however it plans to foray into the international market by the end of this year.
Source: The Hindu Businessline
 |
Customized Research |
 |
If you can’t find what you are looking for or need something more specific. Let us know! We have a dedicated panel of experts and researchers, who would be able to provide you a report tailor made to your needs. |
|
Corporate Listing |
|
|
Want to pay with your Indian Credit Card?
It's easy! Click the Add to Cart button and PayPal will do the conversion for you at checkout.
| Join our Affiliate Program! | Affiliate Information | Privacy Policy | Customer Service Policy | Contact us | Media Kit | Site Map | Research and Writing Services | Article Index | Linking Policy | Inflation Watch | India Blog |
www.india-reports.com: A Chillibreeze Website - Focusing on niche, value added epublications covering Indian business, economy, industries and government policy. The information on this web site is protected by copyright. Users of the web site are not authorized to redistribute, reproduce, republish, store in any medium, modify, or make public or commercial use of the information without the written authorization of |