Retail insight as on 28th July 2010

July 28, 2010

News for the Retail industry

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At a Glance  Vishal Retail: Bankers had blocked TPG's plan to rush through a deal Biyani sweetens deal for Vishal Retail India's Arvind plans to double revenue from domestic retail UK-based Kenwood enters Indian market DLF to mull selling majority stake in DLF Brands tomorrow MRPL to open 103 retail outlets by March 2013 CCD plans supply chain model to cut cost Red Ginger to add 50 new outlets Cinnabon opens second outlet in Mumbai Our aim is to have profitable growth: Vinita Bali Beyond Squarefeet bags luxury mall project Living in Chennai is cheaper than in other metros India's Unilever gears up for competition It's the way Monte Carlo knits success Retail 2020: Going Beyond Retail   News: Apparel, Specialty, CDIT ...  Vishal Retail: Bankers had blocked TPG's plan to rush through a deal American Chronicle Lenders involved in restructuring Vishal Retail Ltd's debt will meet on Wednesday to evaluate proposals from TPG Capital Lp and rival bidder Kishore Biyani of Future Group. TPG's plans to rush through a deal to take over the beleaguered retailer in a bid to pre-empt a bid by Biyani were blocked by the bankers involved in the corporate debt restructuring (CDR) exercise as they wanted time to consider both offers, a person familiar with the deal said. Biyani sweetens deal for Vishal Retail Business Standard The entry of Future Group's Kishore Biyani in the race to take over the assets of cash-strapped Vishal Retail Ltd (VRL) has queered the pitch for buyout private equity fund Texas Pacific Group (TPG), with whom the debtors had earlier signed a non-exclusive agreement. Biyani's proven record, his offer to retain the Vishal brand, and issue redeemable preference shares worth Rs 176 crore has found favour with both the key banks and VRL's current promoter. India's Arvind plans to double revenue from domestic retail Trading Markets Indian textile conglomerate and leading denim manufacturer, Arvind Limited (BSE:500101) aims to double revenue from its fabric retail business in domestic market to Rs 800 crore (US$170 million) by fiscal 2013-14, the company's Chief Manager (Retail) Kulin S. Lalbhai said. Arvind runs six textile plants in Bangalore and Ahmedabad and the fabric retail business is central to Arvind's strategy of rapid expansion of its domestic market share. UK-based Kenwood enters Indian market Business Standard UK-based kitchen appliances maker Kenwood announced its entry into the Indian market, with plans to garner sales of over Rs 55 crore in the next 12 months. The company said it plans to reach out to around 1000 premium outlets across 120 cities before the Diwali season. It has tied up with all the leading retailers in the country, including Big Bazaar, Reliance Retail, Hypercity and Tata Croma. DLF to mull selling majority stake in DLF Brands tomorrow Economic Times The board of realty major DLF will today consider plans to dilute the majority stake in wholly-owned retail management subsidiary DLF Brands, probably to a promoter group firm. According to sources, DLF Brands would issue preferential shares worth about Rs 100 crore. In a filing to the Bombay Stock Exchange last week, DLF had said its board "at its meeting on July 28, may consider review and recommend the proposal for further issue of equity shares by its wholly-owned subsidiary DLF Brands Ltd (DBL)." MRPL to open 103 retail outlets by March 2013 Mangalorean.com Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of state-run explorer Oil and Natural Gas Corporation, today announced that it would open 103 retail outlets by March 2013. The company chairman, R S Sharma said the board has given in-principle approval to go ahead for opening more fuel stations.   News: Food & Grocery, QSR ...  CCD plans supply chain model to cut cost Economic Times Cafe Coffee Day (CCD), India's largest coffee retail chain, is working on a new supply model to cut cost by assembling food at its outlets. As a part of the strategy, the Bangalore-headquartered coffee chain will invest in food handling, storage, assembling equipment and training of personnel across its 13 outlets. Red Ginger to add 50 new outlets Franchiseindia.com Red Ginger Hospitality, a chain of restaurants and the owner of three brands - Mad about China, Madras Mail and Indian Tadka - is all set to add 50 new outlets in the next two years. The expansion will be done through both company owned and franchised outlets. The company is targeting the tier I and II cities for expansion. Presently, the company is operating through 15 outlets, out of which seven are franchised. Cinnabon opens second outlet in Mumbai indiaretailing.com Cinnabon, a US-based chain of baked goods, has opened its second Mumbai outlet, at Juhu. Zayed Kazi, Manager, Marketing and Communications, Cinnabon, said, "Cinnabon currently has two outlets each in Mumbai and Delhi. By the year-end, we plan to open six more outlets, taking the count to 10."   Retail Trends  Our aim is to have profitable growth: Vinita Bali Livemint The Rs10,000 crore organized biscuit market in India is witnessing an intense battle for market leadership, with a recent Nielsen report indicating that the privately-held Parle Products Pvt. Ltd (which does not disclose its numbers) may have pipped the Nusli Wadia-led Britannia Industries Ltd in revenues. However, a combative Vinita Bali, Managing Director of Britannia, disputes the report. In an interview, Bali spoke on what Britannia is doing to improve margins and take on the competition. Edited excerpts: Beyond Squarefeet bags luxury mall project Franchiseindia.com Beyond Squarefeet, which is a boutique mall advisory company, clinched the only luxury mall project in Chennai, being developed by KKA Builders Pvt. Ltd. Bergamo, being the first and probably the only luxury mall in Chennai, is spread over 40,000 sq.ft. and is located on the popular Khader Nawaz Khan Road. Living in Chennai is cheaper than in other metros Deccan Chronicle Though the price inflation graph steadily goes up every day, Chennaiites can breathe relatively easy, compared to their brethren in other metros in the southern part of the country. According to the price monitoring cell (PMC) of the Union consumer affairs ministry, the prices of moong dhal, sugar and urad dhal are low in Chennai. The month-end price report shows that retail prices of various essential commodities are lower in Chennai city than the other metros. India's Unilever gears up for competition Reuters Hindustan Unilever (HLL.BO) saw its quarterly net profit dip 1.8 percent on slow volume growth from a year earlier and higher advertising and promotional expenses aimed at battling competition and protecting its market share. Competition is heating up in the Indian consumable products sector estimated at $76 billion. It's the way Monte Carlo knits success Economic Times It has been adjudged one of the best consumer brands in India, along with Airtel and Reliance. It is present in 850 multibrand outlets and 110 exclusive brand outlets across India. And it symbolises Oswal Woollen Mills' transition from a small company with 800 spindles to a garment major with 30,000 spindles. It's Monte Carlo - the way it makes you feel.   Retail Insight  Retail 2020: Going Beyond Retail Jones Lang LaSalle Forward wind to 2010 and the retail industry is still talking about the need to achieve the Holy Grail of sensational customer experiences and inspired in-store service. Does this talk to 25 years of laziness and lost opportunity or to an extreme difficulty in delivering these aspirations? Again, what can be said is that these last 10 years have been very favourable for occupiers and owners and the real need to invest in 'the icing on the cake' has not been there. By and large, products have sold themselves and in-store environments and customer care has just had to be par with benchmark, no better.