Who is a ‘Cash and Carry’ wholesaler?

Since, present government policies on Foreign Direct Investment (FDI) in India do not allow majority investment in front-end retail operations for multi brand retail retail store chains, big retailers like Wal-Mart, Carrefour and Tesco are exploring feasibility of entering the retail sector through what are known as ‘Cash and Carry wholesale’ and other back-end operations like supply chain and logistics management. While Metro AG of Germany is already in this business in India having opened its office in Hyderabad, Wal-Mart has just signed an agreement with Bharati Enterprises to enter this segment.

There is hardly any clarity, however, on what is ‘cash and carry’ wholesale trade? Is it same as good old wholesale business or it has finer nuances? Since this term is now being freely tossed around in media reports and business discussions, here is a quick take on: what is cash and carry wholesale?

Discount Retailers draw plans to meet Bharati-Wal challange

Even before the ink on Bharati-Wal-Mart joint venture agreement has dried up, business houses have started working overtime to draw plans to meet the imminent challenge.

Yesterday, we had talked about Kishore Biyani owned Future group scaling up its plans to open 100 Big Bazaars even before the first Bharati-Wal-Mart store became operational in the country in 2007. Big Bazaar, as is well known, is a highly successful hypermarket format of the country’s biggest listed retailer Pantaloon Retail. Interestingly, Big Bazaars (Nobody sells cheaper and better!) have also been modelled after the same business philosophy as that of the Wal-Mart (Always Low Prices)

Now comes the news of Subhiksha, another major discount player from Chennai, ramping up its operations to 600 plus stores by March, 2007 and to 1,200 stores by March, 2008. Subhiksha would, as planned earlier, will not only be doubling its strength during the current year, but it will again double its ramped up strength within just one year. The new expansion will entail additional investment of Rs. 300 crore. Presently, 26% of the company’s equity is owned by ICICI Venture Capital.

R. Subramanian promoted Subhiksha began its retailing journey a decade ago with the opening of its first retail store in Thiruvanmiyur, Chennai, in 1997. R. Subramanian, an IIMA alumnus, believes that “When we do more volumes we get a better deal from the suppliers and if you have to stand out in the crowd and draw customers, you need to give value to the customer.”

Subhiksha, which reported a turnover of Rs 334 crore in 2005-06, hopes to more than double its turnover (between Rs 750-800 crore) during the current year with plans to double it further in the next fiscal (2007-08), as well.

Koutons to double outlets, turnover in one year

The Rs 425 crore Men’s wear specialist Koutons, which is slated to more than double their previous year’s turn over of Rs. 158 crore this year, is planning to repeat the feat by again doubling the turnover to around Rs. 1,000 crore in the next finanacial year (2007-08). To achieve this, Kouton, which currently has about 500 outlets, will expand the same to 1,000 outlets. “Koutons is, therefore, roughly adding about 1.25 stores per day to achieve our target,” said H S Sidhu, excutive vice-president of Koutons, at a press meet on Wednesday. The company has also stopped exports to concentrate on the domestic market.

In an image make over exercise, Koutons- the men’s-only brand has launched ladies wear and in the near future it would be launching shoes and accessories. Moreover, to give a filiip to the expansion plans, Koutons will spend Rs 27 crore on advertisingthis year, which would further be almost doubled Rs 50 crore in the next year, added Sidhu.

Koutons, which has already garnered Rs 112.60 crore through private equity, will raise additional Rs 140 crore from the capital market next year, reports PTI.

Pantaloon rejigs plans post Wal-Mart Bharati alliance; to open 100 Big Bazaars by 2007

As entry of the US$ 416 billion, global retail behemoth Wal-Mart in 2007 has become certain, after it recently tied up with the country’s biggest private telecom player Bharti Enterprises, it will not only change dynamics of the retail industry but it will also put the same on a stronger footing as it will spur growth at higher rates than envisaged before.

Responding to these developments, Pantaloon Retail, the Future group flagship, has announced scaling up of its retail plans to increase the number of highly successful “Big Bazaar” hypermarket format stores to 100, by end 2007, reports PTI.

Incidentally, Big Bazaars with tagline “is se sasta aur accha aur kahin nahi,” follows the same marketing philosophy as that of Wal-Mart, which exhorts its customers with “Always Low Prices, Always”

“It needs to be seen how the partnership of Bharti with Wal-Mart unfolds,” said Kishore Biyani. “Wal-Mart will have an effect which will be a challenge for us. However, since the international counterparts have a different mindset, the partnership and strategy needs to be understood,” added Biyani.

Wal-Mart is more poweful than any other retailer

Wal-Mart, the $416 billion, “Always Low Prices” behemoth, is not only the world’s largest retailer but also the world’s largest company; bigger than ExxonMobil, General Motors, and General Electric. The scale is unbelievable. Wal-Mart in one quarter sells more than what its nearest retailing competitor the No.2 US retailer, Home Depot, sells in one year.

And, Wal-Mart has no real rivals in its own category of general merchandise and groceries. Wal-Mart does more business than Target, Sears, Kmart, J.C. Penney, Safeway, and Kroger put together. “Clearly, Wal-Mart is more powerful than any retailer has ever been,” says Edward Fox, head of Southern Methodist University’s J.C. Penney Center for Retailing Excellence.

Wal-Mart, thus, is, so big and so furtively powerful as to have become an entirely different order of corporate being.

Source: The Fast Company

Wal-Mart: Quick Facts

• Wal-Mart operates more than 6,500 stores in 15 countries.
• Wal-Mart serve more than 25 million customers around the globe every day.
• Wal-Mart saves an average American household around $200 every year.
• Wal-Mart health-plans insure more than 1 million people. This makes Wal-Mart to be among the largest providers of health insurance in the U.S.
• Wal-Mart employs 1.8 million associates worldwide, including 1.3 million in the United States. More than 240,000 of these are senior citizens, who are 55 years or older in age.
• Wal-Mart has created more than 240,000 new jobs over the past three years in the U.S.
• At a recent store opening in the U.S., more than 25,000 people applied for 325 available jobs!
• More than three-quarters of Wal-Mart store managers began their careers with Wal-Mart as hourly associates.
• Wal-Mart is the largest private employer in the U.S.

The retailing success mantra of Wal-Mart

The secret of successful retailing is to give your customers what they want.

And really, if you think about it from your point of view as a customer, you want everything:

• a wide assortment of good-quality merchandise;
• the lowest possible prices;
• guaranteed satisfaction with what you buy;
• friendly, knowledgeable service;
• convenient hours; free parking;
• a pleasant shopping experience.

— Sam Walton, Founder Chairman, Wal-Mart (1918-1992)

Momentous day for Indian retail industry

Today’s announcement of the joint venture between telecom giant Bharati Enterprises and the world’s biggest retailer Wal-Mart, which was in the making for several months, can be marked as one of the momentous days for the retailing industry of India.

Not only, Bharati and Wal-Mart have found a smart way to get around the existing statutory policy provisions, it has also paved the way for other retailing majors, like Carrefour of France and Tesco of the UK,  to enter the world’s second most populous as well as the world’s fastest growing retail market.

While, most retail players have wecomed the alliance, some have greeted it with cautious optimism.

Initial details of the joint venture agreement, though, sketchy, kept trickling in throughout the day.The key take aways emerging from various media briefings, reports and interviews, include:

• MoU has been signed to understand Indian market.
• Joint venture is looking at large Indian retail opportunity.
• This is a partnership of equals.
• Although, Brand Name of the front store is yet to be finalised, perhaps, it would carry names of both the partners.
• JV will be a part of the Bharati Enterprises.
• JV will be funded from Bharati’s internal resources.
• Roll out will begin from August, 2006.
• Discussions are going on for legal and financial details.
• Front stores will be operated by 100% Indian arm of Bharati to satisfy existing Indian laws.
• Front stores will be set up on the lines of Wal-Mart.
• Back end operations like cash and carry, logistics, cold chain and supply chain will be managed by joint venture companies.
• Plan for total roll out, which will eventually be in hundreds of stores across the country, will be decided in January, 2007.
• 20 persons are presently employed, however, few persons from Wal-Mart will join soon, which will be followed by a massive recruitment drive.
• Real Estate and infrastructure, depending on requirements, will be owned, rented or leased.
• JV wihave pan-India presence.
• Another of Bharati’s 50:50 joint venture ‘FieldFresh’ with Rothschild family, which aims to link Indian fields to the world, will not be impacted by this agreement.

Reliance welcomes Bharti-Wal-Mart alliance

“There is a tremendous scope for India’s retail growth.”

“There is enough space for six to eight big retail players in India.”

“Sunil is a dear friend. I will work with him to transform Indian retail industry.”

— Mukesh Ambani, Chairman, Reliance Industries Limited.

Wal-Mart’s entry will change market dynamics

“This is a historical moment. This is a challenging moment. The market dynamics of the retail business is bound to change.”

— Kishore Biyani, CEO Future Group and Managing Director, Pantaloon Retail India Ltd.

“There are no surprises. It is imminent that the likes of Wal-Mart, Carrefour and Tesco will make entry in India. Next five years will generate additional retail spend of $127 billion and (besides large players) there will be room for all including traditional kirana stores.”

— Arvind Singhal, Chairman, KSA Technopak.
“Foreign retailers need Indian retailers more than the Indian retailers needing the foreign retailers.”

— R. Subramanian, Managing Director, Subhiksha.

Bharati Wal-Mart JV will be a partnership of equals; asserts Sunil Mittal

The cat is finally out of the bag. Sunil Mittal, the CEO of India’s telecom behemoth Bharati, which provides telephone connections to 24 million users, confirmed that his group has tied up with the world’s biggest, the US based, $ 416 billion retailer Wal-Mart. He was speaking to the financial media, today.

He said the retail chain ”will probably carry both brand names.”

“Bharati will have a comprehensive joint venture with Wal-Mart and given India’s size and potential, investments will run into billions of dollars,” said Mittal.

On being asked about ownership pattern of the joint venture, Mittal emphasised “it will be a partnership of the equals.”

Mittal said that the deal complies with existing Government rules. Since, India does not allow majority investments from multi brand overseas retail companies, like Wal-Mart, Bharati will own 100% of the front-end retail operations.

Mittal said it would take several months before the first of the stores opened their doors, but added, ”We are talking here about several hundred stores eventually.” The first Bharati-Wal-Mart store, however, is likely to roll out on 15th August, 2007, the 61st independence day of the country.

On being asked about Tesco, the UK’s biggest retailer, with whom Bharati was in also negotiations for several months for a possible tie up, Mittal said “While both Tesco and Wal-Mart are great companies, Bharati found Wal-Mart to be a better fit for its retail strategy.”

Is Tesco’s loss, Walmart’s gain?

 

Although, India’s communications czar Sunil Mittal continues to insist that talks for an alliance with the world’s third biggest retailer, the UK based, $ 75 billion, Tesco are still on, the local and foreign media is convinced about the Mittal owned Bharati Enterprises’ imminent tie-up with the world’s biggest, the US based, $416 billion, retailer Walmart.

Since, the Indian government policy does not permit majority FDI in front end retail for multi brand retail chains like Walmart, a franchise agreement between the two partners appears to have been worked out as a way around. Although, final contours of the deal will emerge only after the formal announcement, Walmart is likely to allow the use of its brand name through a franchisee agreement. Bharati Alliance would, thus, be required to pay a pre-determined royalty fee for the use of Walmart brand name. It is also believed that the required investment in the real estate and infra structure would be made by an outsider, perhaps, a private equity fund.

The Bharati-Walmart alliance, like its counterpart Reliance Retail is likely to roll out multi format hypermarkets, super markets and grocery stores, with an initial investment of Rs. 500 crore, which eventually may go up to Rs. 7,5000 crore.

It may be recalled that Reliance has already begun the roll out of its Rs. 25,000 crore retail initiative, earlier this month, with the unveiling of the first cluster of 11 neighbourhood convenience stores in Hyderabad. Another, cluster of 28 such stores is said to be ready for an eary opening. Among India’s other industrial majors, while Tatas are already present in the retail business through group companies, Trent and Tata Infiniti, which are operating highly succesful Westside, Star Bazaar, Landmark and Croma stores, Birlas are preparing for a Rs. 10,000 crore retail roll out in the coming months.

Wal-Mart already sources goods worth $1.5 billion from India. This is expected to rise to $10 billion over the next few years.

While, the win win deal will give Wal-Mart access to Bharti’s domestic communications network and an understanding of India customer, Bharti will get access to Wal-Mart’s cutting edge logistics prowess, management systems and overseas network.

Tesco calls off alliance parleys with Bharati

Tesco, the U.K.’s biggest and the world’s third biggest retailer, has announced ending of parleys with Sunil Mittal owned Bharati group about setting up a retail joint venture in India. Sunil Mittal, however, continues to maintain that the talks are still on with the UK retail major.

The talks, according to the prestigious Financial Times, appears to have broken over differences on the pace at which the joint venture should expand. Tesco was, perhaps, not prepared to go as aggressively as Mittal was proposing.

The $ 75 billion strong Tesco, which controls 30% of the UK’s grocery market and 13% of the overall retail market, is mulling over alternative strategies to enter the world’s fastest growing, second most populous, retail market.

Wal-Mart, Carrefour and Tesco, the world’s three biggest retailers, are all working overtime on strategies to enter a market that, according to Retail Consultancy Technopak Advisors, is likely to expand from the present $300 billion to $ 427 billion in 2010 and to $637 billion in 2015.

Retail Voices at IIMA Confluence 2006

“Indian industry has come a long way from austerity to liberal spending, consumption would be the mantra for future growth.”

—Kishore Biyani, CEO, Future Group and Managing Director, Pantaloon Retail India Ltd.

“With 30% of the population under 30 years, malls have emerged as the temples of today.”

—Kishore Biyani, CEO, Future Group and Managing Director, Pantaloon Retail India Ltd.

“In short, we want your wallet. If you want to buy things come to our malls and spend. If you have more money, invest in our capital market.”

—Kishore Biyani, CEO, Future Group and Managing Director, Pantaloon Retail India Ltd.

“The chances of increase in lifestyle related diseases increase with an increase in the customers of luxury items, the number of Kishore Biyani’s customers and our patients are almost the same.”

— Dr Ramakant Panda, Vice Chancellor, Asian Heart Institute.

“International reports say a third of world’s children dying of diarrhoea are Indians. If soaps are used, this can be reduced by 50 percent. Here is the need for social innovation in business.”

—Douglas Baillie, CEO, Hindustan Levers Limited, speaking on concept of social innovation in formulating business strategies.

Technorati : India, Retail, Retail-India

FDI opposed by lawyers’ group

A group of Supreme Court lawyers, led by Sonia Sood, has asked the central government to reconsider its policy of allowing 51% foreign direct (FDI) investment in the retail sector, saying this would infringe on the nation’s sovereignty.

‘The government’s move to permit 51% FDI in retail is anti-national as it would deprive a majority of Indian businessmen and traders of their means of livelihood,’ Sood said.

The current policy on FDI in retail permits 51% in FDI for single branded foreign entities. Accordingly, while, single brand companies like Levi’s can open exclusive company stores in India, multi brand retail chains like Wal-Mart would not be able to do so without partnering a majority holding local partner.

Course in Professional Retailing Skills

A certificate course in Professional Retailing Skills (PRS) conducted by the Kochi-based SB Global in collaboration in association with the Retailers’ Association of India (RAI) was inaugurated in Kochi on 15th November, 2006.

Course Highlights:

• 100 hours of application based classroom training.
• 050 hours paid internship.
• Job placement assistance to all the candidates on successful completion with leading retailers in the country.
• Fees : Rs. 10,000/- plus service tax.
• Prospectus & application form : Rs. 300/-
• Eligibility : 10 Plus 2 and above.

Those interested, in further details, may contact:

The School of Retail Management
SB Global Educational Resources Pvt Ltd
G-129, Shopping Complex Road, Panampilly Nagar,
Kochi – 682 036.
e-mail retail@sbglobal.in URL: http://www.sbglobal.in/
Phones: Admissions : 98955 29221 Dean : 98950 16232
Other Nos: 0484-2315617 Fax: 0484-2313783

Consumer boom; 116 million households to have earnings exceeding a lakh

India, with rapid increase in the purchasing power of middle class population, will experience a consumer boom supported by a sudden growth in demand for household products in the next few years, according to a study made by the Jersey-based investment managers Ashburton.

The number of people earning more than US$ 3,000 (about Rupees 1,35,000) a year is set to explode. The household income threshold of rupee one hundred thousand is widely viewed by economists as a trigger for the creation of a consumer society.

The number of households enjoying that level of income is expected to more than double from the last year’s 47 million to116 million, by 2010. Only 12 million Indian families had earned as much, in 1995.

This translates into more than 800 million middle class consumers, next only to China, where almost 80% of fast growing urban population would step into the consuming middle class by 2015 as against as low as 2% of population having such spending power in 1995. This growth will be primarily driven by demographics as the working population of both countries is expected to increase by 250m by 2020.

“The growth is staggering,” said Ashburton

(Reuters).

Traders, NGOs protest against FDI in retail

The Confederation of All India Traders (CAIT), which is spearheading protests against the sealing drive in the capital, linked the drive to seal the shops to FDI in retail, saying that the sealing drive in Delhi is part of a bigger game plan to pave way for FDI in retail.” CAIT would oppose any move to “displace traders from their livelihood.”

“Local traders will not tolerate any injustice on this issue,” a statement from the organisers said.

The protestors, who were supported by NGOs said allowing FDI in retail would affect the livelihood of 40 million people dependent on the retail trade. PTI

Domino’s to add 65 outlets, take market share to 45%

Domino’s Pizza, the pizza delivery company, which currently operates 125 store outlets across the country is planning to add 15 more stores by March 2007 and another 40 to 50 stores during 2007-2008. Domino’s will make an investment of Rs 50 crore to take their count of store outlets to 190 by 2007-08, reports the Hindu Business Line.

Domino’s Pizza is targetting to gain a dominant position in the domestic pizza market by increasing its present market share from 35% to 45% by 2007-08. The present domestic Pizza market, estimated at Rs 500-crore, is growing at 30% annually. Currently, a million pizzas are consumed every month and Domino’s see it’s potential increasing to about 10 million pizzas per month in the next 5 years.

The company has recently appointed Bollywood star Arshad Warsi as its new brand ambassador to reach out to its target audience between the age group of 25-35 years. Domino’s is spending around Rs. 6 crore to push its new product offering ”Cheese Burst Pizza.”

Spinach to roll out 60 outlets by year end

Spinach, the food and grocery retail chain, which launched its first retail outlet in Bandra Kurla Complex of Mumbai in March, 2006 and which presently operates 10 retail stores, is expected to roll out 60 stores by this year end. These stores will be located in the Mumbai-Pune region. By the year end, Spinach would have shopping space in excess of 1.5 lakh sq ft. Overall, Spinach will have around 60 stores in Mumbai and 10 to 12 stores in Pune. Spinach stores will be located within one km distance of each other.

Spinach plans to move to the eastern region of India in the next financial year. It hopes to open as many as 10 stores in Kolkata.

Spinach is the retail brand of Wadhawan Food Retail Pvt Ltd (WFRPL), which is owned by Delhi based Dewan Housing Finance Corporation, having interests in real estate and housing finance..

As reported earlier, Spinach is working towards opening 1,500 retail outlets, throgh organic and inorganic routes, within the next three to five years.

Depending on the size and location, each Spinach outlet costs between Rs 75 lakh and Rs 1.50 crore.

Besides stocking a variety of FMCG products, fruit and vegetables, stationery, OTC medicines, etc, each of the Spinach store, modelled after the best international neighbourhood stores will have a separate refrigerated space for meat and fish products. Spinach also has a centralised bakery to supply bakery products to the stores. Plans also envisage adding prescription medicines and alcoholic beverages over a period of time. The company plans to have its own private labels as well as well-known brands.

“The motive behind Spinach store is to provide fresh and quality products at the right price, in the neighbourhood, in an environment that’s international and which will eventually become meeting ground for the community of that particular locality,” said an Spinach official.

Depending on the size, Spinach stores are divided in three categories, namely,Spinach Express (less than 2,500 sq.ft.), Spinach Local (2,500 to 5,000 sq. ft.) and Spinach Super (5,000 to 7,000 sq. ft.).

How do we justify, when we spend?

Our reader Rajeev came across an interesting piece about what goes through our mind before we buy something? How do we make peace with ourselves before we purchase something, we really don’t need?

Here’s what goes on in our heads before we spend money on stuff we probably don’t need. Certainly, there would be more, but some of the more common ones are:

• I deserve it. I work all day. I’m going to use what little money I have to bring myself a little bit of happiness.
• I got paid today. It’s Friday. I have a little bit of cushion to spend money and buy myself a little something. Friday nights are for having fun and going out.
• I “need” to buy it. I need a new laptop. I need a new mp3 player. I need new jeans.
• Buying this is more like an investment. This thing will pay for itself. Once I buy a new bread maker, I’ll never have to buy one again for the rest of my life.
• It’s been a while since I bought something new. My television is getting old. It still works but it’s time to buy a new one.
• I only live once. I want to spend my money while I’m still young. I’m not going to enjoy it as much when I’m older. I’ll invest my money when I’m a little older.

India has eight million ‘very’ affluent consumers

India now boasts of 1.6 million (16 lakh) very affluent homes, roughly comprising 8 million (80 lakh) consumers, which have annual earning of US$ 1,00,000 (Rs. 4.5 million) or more, according to a study recently conducted by internationally renowned retail consultancy firm Technopak. What is even more interesting is the whopping annual rate of 14% at which they are growing.

These homes annually spend at least Rs 400,000 on premium and luxury products and services, most of which goes in housing, travel and education. Although, apparel and accessories are the two luxury categories that are ready to takeoff, significant growth for them is likely to come within the next 2 to 3 years.

While, this information augurs well for retailers of super luxury brands, they will have to do a lot of hard work to educate the affluent consumers about their brands as knowledge for the same, among these really affluent consumers, barring a few, is either absent or sketchy at best.

According to Saloni Nagia, Associate Vice President, Technopak, “One of the biggest hurdles is lack of a retail environment and the required infrastructure. Secondly, only 10 per cent of the consumers who can afford luxury are oriented towards luxury goods,” reports Money Control.

Cellphone or ‘Sell’phone?

Cellphones, or more appropriately ’sell’phones, are becoming quite versatile and may soon turn out to be the retailers’ best friends. This may soon become true in case of India as well, where millions of cellphones are getting added every month. Only last month, in October 2006, more than six million new cellphones were sold in India.

Presently, Japan is truly a leader in usage of cellphones for retailing purposes, where as reported earlier, cellphones are extensively used by consumers to purchase soft drinks, train tickets and similar stuff from vending machines. Many well known international retailers like McDonalds, Subway, Barnes & Noble, etc. are also trying out cell phones to retail their products.

Cellphones, to begin with, can be used to make payments. They can beam a signal to the sales terminal and can make purchases like contactless credit cards or they can use their phone numbers as an identification code for a short period, which can then link the sales transaction to a credit card information stored in a file elsewhere.

Although Cellphones presently are hardly used in India for retail, we will continue to cover their usage, in future, as in times to come we see their great potential for retail in India.

Reliance stitching agreements with Timex, Sanyo and Dabur?

Having already launched first cluster of 11 neghbourhood convenience stores in Hyderabad less than three weeks ago, Reliance Retail is moving fast on stitching tie-ups with national and international brands in the fast moving and durables’ segments as it gears up to soon unveil multi-brand outlets and large format stores as a part of its Rs. 25,000 crore retail ambitions.

Markets are rife with the speculation that after recently having signed deals with swiss sports watch major Timex and Japanese consumer durables major Sanyo of Japan, Reliance has tied up with FMCG major Dabur for selling various pharmaceutical, personal care and food products through its retail outlets across the country.

Although Reliance officials are tight lipped about the deal, according to market sources, Reliance has entered into an agreement with Dabur to sell ayurvedic specialities like chyawanprash, personal care products like tooth pastes, shampoos and hair oil, and food products like honey and juices through Reliance Retail outlets.
Dabur also has a range range of home care products from Balsara stable, which it had acquired earlier. Reliance and Dabur, initially in a one year agreement, are likely to share margins and generate annual revenues of around Rs.one billion.

Tomoyo Nonaka, Sanyo Executive Director and Chairman, who recently visited India, is believed to have met top Reliance Retail officials earlier to tie-up for selling Sanyo’s range of airconditioning and other consumer electronic products.

Source: PTI/ ET

Hunter Douglas to open 50 galleries; targets residential widows segment

Hunter Douglas, the US$ 2.2 billion dutch window fashions major, through its 100% Indian subsidiary, will open 15 galleries, targetting the residential segment with its range of blinds and shades, in Hyderabad, Chennai, Ahmedabad, Pune, Kolkata, Chandigarh, and Lucknow this fiscal . In the next financial year, it ramp up to 50 galleries. The Rs. 45 crore indian subsidiary currently has galleries in Bangalore, Delhi and Mumbai.

With increasing incomes in India and exposure to other cultures, people are spending money on life style products. Hunter Douglas, which entered the Indian market with industrial products, decided to introduce some of its consumer products in India because these products were already coming to the country reports the Hindu Business Line.

One of the new trends in window covering is that people were going in for skylights and glassed-in balconies, which brought natural light into the room. Hunter Douglas has come out with blinds for the skylight, which are both manual and automatic.

The window covering market in India is estimated to be about Rs 150 crore, 40% of which is in the organised sector.

Pantaloon plans Mega stores, targets 30,000 crore turnover in 5 years

Kishore Biyani owned Future Group, which currently has 31 formats under India’s biggest public traded company Pantaloon Retail, will set up an all-formats-included mega-store in Kolkata. Such mega-stores, which could have a floor space of around two lakh sq ft, are currently operational in Mumbai and Ahmedabad. These stores could be part of a mall or a stand-alone store. These stores would be developed by Future Group’s realty development arm, Kshitij reports Business Standard.

Only some of these 31 formats are presently deployed, which clubbed into groups, are featured either at the group’s lifestyle offering Pantaloons or value offering Big Bazaars. Some of these formats like Food Bazaar and Fashion Station are also deployed independantly.

The Rs. 1,868 crore, Biyani flagship Pantaloon, has about 140 stores in operations today. It is planning to open 4,000 new stores by 2010 and achieve an annual turnover of Rs.30,000 crore rupees ($6.6 billion) by 2011.

Megna plans 40 stores in AP in one year; increase floor space to 8 lakh sq. ft.

Mr Anjaneyulu Kakkera, the original founder of Trinethra retail chain, who is credited with bringing organised retailing to Andhra Pradesh a few years ago, is preparing to extend the foot print of his new retai chain Megna to whole of Andhra Pradesh. Siri Mahamart owned Megna, presently comprising seven hypermarkets and 13 supermarkets, will invest Rs 100-crore to spread the chain to whole of Andhra Pradesh by opening 40 stores within six to 12 months.

In the process, Megna will increase floor space from the present 3.5-4 lakh sq ft to eight lakh sq ft by the year-end. Megna plans to achieve a turn over of Rs. 120 crore during the financial year.

Besides offering a range of 50,000 products at the hypermarket, Magna also houses an eatery reports the Hindu Business Line.

Mr Anjaneyulu who had realised the retail potential of Hyderabad eight years ago, believes that the spending patterns of people in Andhra Pradesh is very well suited for the retailers.

After Ambanis and Tatas, Birlas ready to join the party

After Ambanis and Tatas, it is now the turn of Birlas to join the retail rush with a big bang. If the sources are to be believed, Rs 15,000 crore Aditya Birla group would invest more than US$ 3 billion (around Rs. 15,000 crore) against more than US$ 5 billion (Rs. 25,000) being invested by Reliance Retail to set up 10,000 outlets by 2011. This, investment would catapult Birlas to the second biggest retailer’s position in the country.

Reliance has recently unveiled its retail story with the opening of a cluster of 11 neighbourhood Reliance ‘Fresh’ convenience stores in Hyderabad, while Tatas are already in the fray with their retail story unfolded a few years ago with Trent (Westside, Landmark and Star Bazaar) and now Tata Infiniti (Croma).

Birla group, it may be recalled, already has some retail presence through its apparel brands Van Heusen, Allen Solly and Peter England, which have been selling for over 15 years. Another of Birla’s well known premium fabrics brands being retailed for many decades has been Grasim (earlier known as Gwalior Suitings).

Like Reliance, Birlas are not seeking participation of any global retail major as a partner. Like Reliance, Birlas are also likely to follow multi format retail strategy, which would include a judicious mix of neighbourhood convenience stores, speciality stores, super markets and hypermarkets. And, finally, like Reliance, Birlas will also initially focus on Grocery and lifestyle.

Sumant Sinha, the Birla group CFO is likely to shape retail ambitions of the Birla group. According to a report in the Financial Express, grocery would contribute as much as 50% of total Birla retail revenue, while the balace is likely to be almost equally divided between lifestyle and other segments.

Piramyd to cash in on retail boom; to invest Rs 500 cr on expansion

Piramyd Retail, the Rs. 110 crore retail arm of the Urvi Piramal chaired, Rs. 3000 crore Ashok Piramal group, is gearing up to set up a Piramyd Megastore each in the country’s top 25 cities in the next three years by investing Rs 500 crore, reports Business Standard.

Pyramid, which currently operates seven megastores at Nagpur (2) and one each at Delhi, Mumbai, Ahmedabad and Ludhiana will set up a megastore each in Chennai, Bangalore, Hyderabad,Gurgaon and many more tier II cities across the country including Surat, Jaipur, Chandigarh, Lucknow and Mysore.

Unlike Ahmedabad, all new megastores will be set up in shopping malls. Each of these Megastores will entail an investment of Rs. 20 crore. The company also plans to have a standalone lifestyle store in Kolkata.

The new forays in retail will lead to doubling of the turnover in the next three years.

Essel to enter ‘high end’ apparel retail with 60 stores

Media moghul, Subhash Chandra owned Essel group is planning to invest US$ 40 million (around Rs. 200 crore), in the coming 3 years. It will set up 60 “Gavel Fashion” stores in the niche apparel and fashion accessories retail segment reports Financial Express. Most of these stores will come up in five star hotels and target niche consumers who appreciate quality in their life.

Delhi, Mumbai, Bangalore and Kolkata are a few of the cities where these stores will be opened. Depending on the city of launch, these stores could either have a single brand or a combination multi-brands.

The company expects to have a turnover of Rs 300 crore from these stores in the next three years.

As the chain does not intend to target mass markets, it will not tie up with foreign players.

The Essel group, which is the largest producer of lami tubes in the world, besides packaging has interests in media and entertainment, amusement parks (Essel World), tele retailing (Asian Sky Shop) and realty.