IndiaRetailBiz

Indiabulls group, which began its business foray first as a capital market intermediary, delving into real estate business thereafter, entered the booming retail sector, by acquiring entire retail business of Piramal group being conducted under ‘Pyramid’ brand, has completed the process of rechristening Pyramid retail formats as Indiabulls Megastore and Indiabulls Mart.

The name of the group’s retail business has also been rechristened from Piramyd Retail Ltd to Indiabulls Retail Services Ltd. This is now now a wholly owned subsidiary of the group company, Indiabulls Real Estate (IBREL).

Indiabulls retail chains currently operating with retail space of 6.7 lakh sq ft of space has opened six Indiabulls Mart and two Indiabulls Megastores during the last quarter ended March, 2008. The two new Indiabulls Megastores have been opened at New Delhi and Ahmedabad.

Indibulls is now talking with leading international single product retailers who are looking for a pan-India presence for their brands in one of the most sought after emerging retail market in the world.

“The company is in early stages of negotiations with some leading international single-product retailers who wish to establish a pan India presence,” said Indiabulls Real Estate (IBREL), while presenting financial results for the quarter.

IBREL is currently constructing around 14 million square feet of leasable space in 17 malls across 16 cities that among others include Mumbai, Ahmedabad, Gurgaon, Chandigarh, Hyderabad, and Visakhapattnam. Most of this is likely to be completed by the end of 2009 as the land for 13 of these malls is already in possesion of the company. These malls are likely to have Hypermarket and Department stores of Indiabulls as their anchor tenants.

ENJO, the Austria-based, the cleaning products company that believes in protecting environment by reducing use of chemicals, is joining hands with Mumbai-based Sadhrta Retail Private Limited, to set up a joint venture that will bring Austrian company’s cleaning products in India.

ENJO, founded in Austria in 1990 by Johannes Engl, who together with his father pioneered the concept of fibre technology, operates across 28 countries with the message of “Clean the World.” ENJO tries to find ways that would minimise the daily use of harmful chemicals and make a positive contribution towards reducing land and waste pollution. ENJO produces cleaning results that are not only better but save time and money.

Sadhrta on the other hand is a rapidly growing e-Commerce company that claims to offers premium quality products at competitive prices through a one stop shopping website. Products offered by Sadhrta include Aroma Therapy products, Cosmetics, Ethnic Handicrafts, Books, and expensive Jewellery to Shoes, Clothes, Paintings, and Fashion Accessories.

Depending on the kind of response it gets in the next three to five years, the company according to Engl Johannes its President and CEO could consider setting up a manufacturing facility in India.

“We do have plans to set-up our manufacturing unit in India but it depends on the kind of response we get here,” said Johannes.

Enjo, which has a global portfolio of around 50 products, would initially launch only 20 products in India. It would also roll out balance products in the portfolio gradually.

In the next one year, the new joint venture company is aiming a turnover of around Rs 70 crore according to Kaustubh Chokshi, Director, Sadharta Retail.

Sadharta according to Agency reports plans to open around 25 Enjo retail outlets pan India. It will also appoint first 100 consultants in Mumbai, while over 1,000 consultants will be appointed across the country by July 2009.

“In Reebok I see a perfect fit. They embody the spirit of fulfilling potential, they have the passion to nurture talent and the aggression to take sports to the next level. I am excited that Reebok has created a benchmark by opening an exclusive Reebok Kolkata Knight Riders store for the fans. Launching a Knight Riders special fan gear is an initiative to inspire the fans to wear their emotions on their sleeves thereby taking the “Real Knight” into their homes.” — Shahrukh Khan, Actor and Owner Kolkata Knight Riders

“It’s pure passion and zeal which drives Reebok as a brand and we see a parallel in Shahrukh’s Knight Riders with their courage, captivating spirit and endearing attitude coming in to play. As a sports brand we believe in fulfilling potential and we strive hard to provide the best to our athletes and our consumers. With this store which embodies the spirit of Knight Riders we invite everyone to be a part of this astonishing fervor and be the 12th man.”– Subhinder Singh, Managing Director, Reebok India Company.

Cricket and Bollywood make a heady mix for most Indians, specially the young ones. And to cash in on the current euphoria being created by IPL, two of the IPL sponsors (Reebok for sports and King Khan for one of the teams) joined hands to bring ‘Knight Rider’ merchandise and memorabilia through the launch of a special Knight Rider store in Kolkata.

The first of its kind store in India, is offering specially designed Knight Riders gear including a line of apparel, footwear, caps, head bands, wristbands, and bag packs, among others. These are priced between Rs 149 and 1899.

Not to leave out the fans outside Kolkata, Reebok has made arrangements to make the entire fan gear available at other Reebok stores across the country as well.

Reliance Industries Ltd (RIL), the Mukesh Ambani-led owner of Reliance Retail Limited, which incurred a loss of about Rs 800 crore on operations of its 1,432 fuel stations during 2007-08 is looking at converting about 700 to 800 of them into shopping malls and multiplex halls. This will mean an investment of about Rs. 5,000 crore from the group, says a Business-Standard report.

The company which already owns about 500 fuel station properties may even look at buying properties from its dealers, who have lost out heavily on fuel dispensing operations due to heavy subsidy being offered by the government to customers through fuel pumps owned by PSU oilcos.

While, the company may offer Rs 2 to 4 crore for the property, it may invest additional 4 to 6 crore on setting up malls/ multiplexes. Reliance Infrastructure Limited, a group company, is likely to be entrusted with development of these properties.

Besides, general merchandise formats like Reliance Fresh and Reliance Super, the retailing company may also include speciality formats like TimeOut, FootPrnit, Jewels, and Wellness, among others, at these outlets.

As far as multiplexes are concerned, the group as reported earlier, is already in talks with Yash Raj Films and Adlabs founder Manmohan Shetty to develop a mega entertainment retail joint venture which besides developing content will distribute and exhibit the same through Reliance communication infrastructure and retail malls.

“We have signed up regional franchises in Rajasthan and Gujarat with a business model comprising 60 per cent equity and 40 per cent franchise. These will then open chains in these states. We are also scouting for a location to open a Nirula’s in Mumbai on our own.” — Samir Kuckreja, Managing Director, Nirula’s.

Nirula’s, the Delhi-based 54 years old well-known hospitality chain, which currently operates restaurants and hotels at over 50 locations, most of which are situated in the North Zone, is embarking on a major expansion drive.

Nirula’s, according to a Business Standard report, have decided to set up 35 new restaurants across the country at an investment of Rs 200 crore. For this, they have already signed regional franchises in Rajasthan and Gujarat.

Nirula’s operates its restaurants under various formats that include Express, FCU (Food Court Units), FSU (Fuel Station Units), and Ice Cream Kiosks. Nirula has also opened a stand alone casual dining restaurant called ‘Nirula’s Potpourri’ at Connaugh Place. Apart from restaurants, Nirula’s also operate two hotels; one each in Noida and Panipat.

Happy with the performance of its transit location outlet at New Delhi Airport, the company is looking at setting up new express counters and ice cream kiosks at airports, railways, and bus stations. It will also set up new express outlets at IOC petrol stations under an agreement signed earlier in 2005 by the company.

While Nirula’s, who are under pressure on account of rising real estate prices, have an association with Pasarvanath are also exploring opportunities with other real estate developers.

Nirula’s hospitality business, originally set up in 1934 at Connaught Place as HOTEL INDIA by Narula Brothers, has in 2006 been acquired by a group of private investors comprising Navis Capital Partners and its present Managing Director Samir Kuckreja.

Apart from new graphics, logos, menu panels and packaging, in a massive brand revamp exercise, the new management, while retaining the brand name and logo of “Nirula’s”, has created new sub-brand logos for Nirula’s ice-creams, Pastry Shop, delivery business and others.

Pantaloon Retail (India), the flagship listed company of the Future group promoter Kishore Biyani, is expanding its retail chain ‘Central’ by setting up new mall format stores in metro cities like Mumbai and Bangalore and tier-II and tier-III cities like Ahmedabad, Nashik, and Vashi, according to a news report in DNA Money.

‘Central’ is a first of its kind showcase, seamless mall in India. This pioneering concept was created with a view to give an unobstructed and a pure shopping experience to urban, discerning, aspiring, customers in India. These stores offer  products of over 500 well known domestic and international brands. Besides, housing supermarkets and food courts, Central malls to create an experience of ‘celebration’ could even offer facilities for night club. The new ‘Central’ mall complexes, according to company officials, would also house multiplex theater facilities  from Inox or PVR groups.

In short, ‘Central’ mall format stores are one stop destinations for Shopping, Eating, and Celebrating.

The premium chain, which began operating four years ago from Bangalore in May 2004, is currently running five stores at Bangalore, Pune, Vadodara, Gurgaon, and Hyderabad. The number of these mall format stores after expansion will go up to 12 stores in 2008.
‘Central’ stores are housed in big-format mall complexes that occupy around a lakh (0.1 million) of square feet area set up at an average cost of about Rs 2,500 per square feet.

“We expect to touch Rs 1400-crore revenues by June 2009. This format has worked extremely well for us,” said Rakesh Biyani, Chief Executive Officer (Retail), Future Group.

Reliance Retail (RRL), the retailing arm of Mukesh Ambani-led Reliance group, which in a tie up with the US-based Steve Jobs-led Apple Inc. has set up exclusive Apple premium reseller stores called ‘iStores,’ to offer genuine iconic Apple consumer and professional electronic products like iMac desktop computers, MacBook notebooks, Mac Air notebooks (world’s thinnest), Mac pro, iPods, and iPhones to Indian consumers, has decided to set up 60 i Store across the country by 2011. These stores will also offer over 500 accessories and peripherals that complement Apple products.

The company, which so far had set up three iStores at Bangalore, Hyderabad and Mumbai, launched its fourth iStore in Jaipur (Rajasthan). This, incidentally, is the company’s first iStore in North Zone of the country. The new “iStore” at Jaipur spread over 800 sq. ft. space offers customers the opportunity to learn and experience Apple’s innovative products and solutions in a modern and welcoming environment.

“We at Reliance Digital are delighted to bring Apple products to Jaipur through “iStore.” Customers in Jaipur shall now have access to the latest, iconic products from Apple in a world-class ambiance with excellent end-to-end customer support,” said Ajay Baijal, CEO Reliance Digital, in a statement.

Reliance Retail is also selling a wide variety of consumer durables and IT related products under its speciality format called Reliance Digital.

Reliance Digital, which initially was launched from Gaziabad (NCR), now has five stores operating across the country. Reliance Retail is planning to set up 150 stores of ‘Reliance Digital’ over the next two years across the country.

Reliance Digital is competing with Tatas promoted ‘Croma’ and Videocon promoted ‘Next’ retail chains, which are active organised sector players, in the field of durables and IT products.

Reliance Retail Limited (RRL), is a wholly owned subsidiary of Reliance Industries Limited, which in 18 months since beginning its front-end retail operations in November, 2006, has set up over 600 multi format retail stores across 57 cities, in 13 states across the country.

Poor capital market conditions combined with comfortable funds position has prompted Subhiksha– the largest, small format, convenience stores, retail chain, to defer its much awaited entry into capital markets. It had plans to raise capital from public through maiden IPO, soon after crossing the milestone of 1,000 retail stores, which it had achieved by the end of 2007.

Founded 11 years ago in March 1997 at Thiruvanmiyur in Chennai by R. Subramanian, a banker turned retailer, this Chennai-based no-frills, discount retail chain, which sells food, grocery, fruits & vegetables, pharmaceuticals, and mobile products, is currently 24% owned by venture capital firm ICICI Ventures Limited.

Subhiksha, which while entering a new market believes in adopting cluster bombing strategy, is already over 1,300 stores strong with over 600 outlets also selling telecom products. Subhiksha is looking at investing Rs 300 crore with a view to scale up the number of its retail network to around 2,200 stores by the end of this year. No other Indian retailer would be any where near this number. Among the convenience retailers, while Reliance has so far set up around 700 Reliance ‘Fresh’ stores, Aditya Birla Retail’s ‘More.’ and RPG ’s Spencer’s have set up around 500 and 400 stores respectively. It must, however, be mentioned here that Subhiksha store, though, are much smaller in size than its counterparts like ‘Fresh,’ ‘Spencer’s,’ and ‘More.,’ among others.

The IPO earlier expected around July this year is now expected to hit the markets by the end of this year. Vallabh Bhansali-led Enam Securities, which very successfully managed Vishal Retail’s IPO in 2007 is also advising Subhiksha on its entry into the markets.

SRS Group, among the country’s leading real estate developer with business interests in real estate, township development, multiplex cinemas, retail, hospitality and aviation sectors, according to press release issued by the company, has forayed into branded apparel retailing by launching its first exclusive retail store under the brand name of Fashion Wear, at Faridabad (Haryana), in the National Capital Region.

“We are proud to expand our retail repertoire with our first exclusive apparel retail store - FASHION WEAR. As a sub-brand of SRS Value Bazaar, FASION WEAR will imbibe all the inherent values of the mother brand while offering our customers the value added benefits, quality, variety of products, fresh stock and an international shopping experience,” said Sunil Jindal, Managing Director of the SRS Group.

The Faridabad-based SRS group, which has achieved a turnover of around Rs. 700 crore, is growing at 30% every year.

Fashion Wear, which proposes to offer over 30 Indian and International premium apparel brands like Lee, Levi’s, Wrangler, Van Heusen, Louis Philippe, Lilliput will operate as a sub-brand of SRS Value Bazaar.

“Our knowledgeable customer sales professionals as well as warm and friendly ambience will only add to our customers’ shopping experience,” added Gourav Sain, Head of Marketing & Sales.

The group, which already operates 29 stores in the North Zone, has drawn plans to expand the retail chain with 16 new stores every month, and has already signed leasing agreements for over 50 locations with developers like Omaxe, and Chadha Group.

The group is also looking at building and operating 15 hyper markets with an area of 50-80,000 square feet each in metro cities. The group hopes to have around 1.5 million sq ft of retail area under operation by the end of the year 2009.

Reliance Retail, the retailing arm of Mukesh Ambani controlled Reliance Industries Limited, which for about a year has been in talks with Yash Chopra of Yash Raj Films Limited, to form a Rs. 200 crore ($50 million) joint venture, has now initiated discussions with Manmohan Shetty, the founder of Adlabs Films Limited (currently owned by Mukesh Ambani’s younger sibling Anil Ambani), to form a retail entertainment joint venture.

This joint venture, according to reports, will set up an integrated entertainment retail business by pooling resources and expertise of all the three partners together. While, Yash Raj Films will bring its film and TV content creation prowess on the table, Manmohan Shetty will chip in with installation of 500-odd cinema screens. These screens will be set up in the retail malls being operated by Mukesh Ambani.

While, Yashraj Films, which for some time has been at loggerheads with multiplex owners over revenue sharing formula for the films produced by his production house, including the recently released Karina Kapoor starrer ‘Tashan,’ Shetty has detached himself from Adlabs, which has been bought over by Anil Ambani. Adlabs has been known for its expertise in film processing and film exhibition.They are believed to be joining hands to create a joint venture that will produce movies, gaming, interviews, and other digital content. To deliver this content while Mukesh Ambani’s retail Malls could come handy, he is also expected to contribute his strength in setting up communication infrastructure to deliver different facets of this creative content into customer homes. Reliance Industries, the flagship of Reliance group, is believed to be talking to energy distribution companies like GAIL, Power Grid, and Petronet for leasing a part of optic fiber backbone set up by them to carry digital content across the country.

While, contours of the alliance are still under wraps, as potential partners in the JV have either denied or refused to comment on the subject, the new business if it fructifies will compete directly with Anil Ambani’s multi-media, mega-entertainment, business, being unveiled under BIG Entertainment brand.

In fact, all erstwhile Adlab facilities including theaters, originally promoted by Manmohan Shetty under Adlabs brand (now acquired by Anil Ambani), as well as other multimedia activities like music, radio, internet, and DTH are being brought under the BIG Entertainment banner.

Although Ambani brothers, while splitting their industrial empire in 2005 have signed a five years no-compete agreement, there should be no conflict of interest as far as this business is concerned, since, entertainment business was, perhaps, not a part of Reliance portfolio at the time of split.

Source: Economic Times 1 and 2