Monday, June 13, 2011

RETAIL IN INDIA

Some Facts and Figures about Retail in India :

RETAIL SALES in India will grow from the US$395.96 Billion ( Rs 17818.20 Billion) in 2011 to US$ 785.12 Billion ( Rs 35330.40 Billion) by 2015. (Source : Business Monitor International)

Sales through MGR outlets ( Mass Grocery Retail) is expected to increase by 218% by 2015 to reach a level of US$ 27.67 billion ( Rs 1245.15 Billion)

Organised retail in India is expected to increase from 5 per cent of the total market in 2008 to 14-18 per cent and reach US$ 450 billion by 2015, according to a McKinsey & Company report titled 'The Great Indian Bazaar: Organised Retail Comes of Age in India'.

By 2012, around 55 million square feet of retail space will be ready in the national capital region ( NCR), Kolkata, Mumbai, Chennai, Bengalaru, Hyderabad and Pune. The organised retail real estate stock will therefore grow from the existing 41 million sq ft to 95 million square feet. ( Source : India Organised Retail Market 2010 by Knight Frank India)

According to the report ‘Strong and Steady 2011’ released by global consultancy and research firm PricewaterhouseCoopers (PwC), India's retail sector, which is currently estimated at about US$ 500 billion, is expected to grow to about US$ 900 billion by 2014.

According to a report by KPMG, food retail sector in India is set to more than double to by 2025 to US$ 150 Billion ( Rs 6750 Billion). This would be driven by growth of organised report coupled with changing consumer habits.

AT Kearney in its 9th annual Global Retail Development Index (GRDI) 2010 has ranked India as the 3rd most attractive nation for retail investment among 30 emerging markets.

Foreign direct investment (FDI) inflows between April 2000 and January 2011, in single-brand retail trading, stood at US$ 128.34 million, according to the Department of Industrial Policy and Promotion (DIPP).

Source : IBEF

Tuesday, June 7, 2011

RAM CHANDRA AGARWAL PLANS RETURN TO ORGANISED RETAIL

Ram Chandra Agarwal, the founder of Vishal Retail Ltd, is planing a return to organized retail in two to three months with the brandname V2.

Agarwal, who started out as an entrepreneur selling readymade garments in a 50 sq. ft store at Lal Bazaar in Kolkata, will focus on garment retailing, aiming to eventually get among the top five retailers in India.

“I believe as a business, retail has got big potential as 10 out of top 50 businessmen around the world are from retail business. In our earlier innings, due to some unavoidable circumstances we could not succeed. V2’s USP will be branded-type quality in 50% to 70% less than the branded price, (thus) delivering huge value to customers,” Agarwal said in an e-mailed reply.

In March, the assets and liabilities of debt-strapped Vishal Retail were sold to TPG Wholesale Pvt. Ltd, a subsidiary of TPG VW Ltd, and Airplaza Retail Holdings Pvt. Ltd, owned by the Shriram Group. The TPG-Shriram combine paid Rs.70 crore to Agarwal and could use the brand names Vishal, Vishal Megamart and Vishal Fashion Mart for a period of five months.

The founders will hold about 55% stake in V2, while the remaining 45% will be held by small shareholders, Agarwal said. The initial investment will be in the region of Rs.15-20 crore. The brand will launch eight to 10 stores with a total showroom area of 100,000 sq. ft in the national capital region and Himachal Pradesh. It will be headquartered out of New Delhi with 60-70 retail professionals managing its operations. The target customer is the middle class Indian who earns between Rs.15,000 and Rs.100,000 a month.

A McKinsey report had predicted that by 2025, India’s middle class would have swelled from 50 million to 583 million—about 41% of the population. These households will see their incomes balloon to Rs.51.5 trillion —11 times the level of 2007 and 58% of total Indian income.

Source : Mint News - May 2011. Author Shraddha Nair

Related Posts Plugin for WordPress, Blogger...