Retail Insight on February 8th 2010

February 8, 2010

News for the Retail industry

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News: Apparel, Specialty, CDIT ...

TPG eyes stake in Vishal for Rs 250 cr Business Standard Global private investment firm, TPG has evinced interest in acquiring a majority stake in crisis-hit Vishal Retail, which has gone in for corporate debt restructuring (CDR). Investment banking sources said TPG has made a Rs 250-crore offer for the stake held by Vishal Promoter and Chairman Ram Chandra Agarwal, before the CDR cell.

Gini & Jony to raise Rs 125 cr through IPO Hindu Business Line Kidswear brand Gini & Jony plans to raise up to Rs 125 crore through an Initial Public Offer (IPO) by October this year, a senior company official said here. "We have already filed our draft red herring prospectus with the Securities and Exchange Board of India (Sebi) and expect to raise Rs 100-125 crore by September-October through the IPO," Gini & Jony Vice-President (Sales) Mr Vikash Sharma said.

Vishal Retail founder ready to quit to save firm Livemint Ram Chandra Agarwal, founder and managing director of Vishal Retail Ltd, says he is prepared to step down as the head of the company, if it helps the beleaguered retailer.

HSRIL launches county's largest home-making store Fibre2fashion.com Home Solutions Retail (India) Ltd. (HSRIL), a part of the Future Group, has launched 'HomeTown', India's most comprehensive home making and home improvement store, at LBS Marg, Vikhroli. Spread over an area of about 2 lakh sq.ft. it is Future Group's 10th HomeTown.

BPCL to convert 60 In & Out stores into food courts by FY11 Business Standard PSU oil firm Bharat Petroleum Corporation (BPCL) plans to convert 60 'In & Out' outlets into profit making ventures such as food courts and coffee shops, by the next fiscal, a senior company official said. "The company has tied-up with leading food chains like McDonalds in the West, Subway in the South and Nirula's in the Delhi-NCR, to revamp the stores, and has earmarked an investment of Rs. 20 crore for the purpose," BPCL General Manager (Brand and Allied Business) George Paul said.

Emami wants more of Disney Business Standard One year after tying up with Walt Disney to produce and market Disney's school and fashion bags in India, the Emami Group is moving to grab a bigger share of the pie with more licences. Emami has the exclusive rights to distribute school bags in India of Disney characters like 'Hannah Montana', 'Princess' and 'Jungle Book'. For Emami's retail venture, Disney is its strongest property, says Gautam Jatia, Director, Emami Frank Ross.

We can make luxury pay, says Genesis Colors Business Standard Genesis Colors, which imports and retails international luxury brands such as Jimmy Choo, Bottega Veneta and Just Cavalli, is expecting a five-fold growth in its revenues, by 2014. The company has a licensing agreement with luxury brands such as Canali, Kenzo and Paul Smith, apart from its own premium brands such as Satya Paul, Tie Rack and Shobhaa De, among others.

News: Food & Grocery, QSR ...

Biyani eyes bigger play in FMCG Times of India The Kishore Biyani-led Future group is changing gears. In line with its vision to straddle the entire range of fast moving consumer goods (FMCG), the firm is focussing on three different touch points. From an acquisition aimed at securing a larger berth in the FMCG category to setting up two specialised food parks and increasing FMCG penetration by launching new products in tie-ups with Sachin Tendulkar and Sanjeev Kapoor, Biyani is going the whole hog.

Reliance Dairy Foods eyes larger slice of life Economic Times Reliance Dairy Foods, a subsidiary of Reliance Retail, is muscling into the country's branded milk product market with a new brand that will take on established players such as Amul, Mother Dairy, Nestle and Gowardhan by offering higher margins to retailers and 10% extra milk to customers. The company will sell its new milk brand, Life, through general milk distributors, while its existing Dairy Pure brand will be sold only through Reliance Retail stores.

Jubilant Foodworks opens 16 new stores in Q3 Equity Bulls Jubilant FoodWorks Limited (JFL), a leading food service company and Master Franchisee of Domino's International, opened 16 new stores in Q3 FY2010. The company opened 55 new stores in nine months for FY2010.

Cadbury's silk route Business Standard Even as Kraft Food's recent acquisition of its UK parent made headlines globally, Cadbury India has just made its latest strategic move. The new initiative is in the premium segment, with the launch of Cadbury Dairy Milk Silk, a brand available in Milk chocolate, Roast Almond, and Fruit & Nut variants.

Retail Trends

Malls witness surge in footfalls Daily News & Analysis If you had visited any retail mall last month, you could not have failed to notice the crush of customers enticed by special discounts and clearance sales. Whether it is home furniture or entertainment electronics, laptops and cameras or even apparel, retailers are seeing a surge in footfalls, erasing memories of consumer diffidence around this time last year.

Retail biggies hail Prime Minister statement on FDI Press Trust of India Major retail players today welcomed Prime Minister Manmohan Singh's statement favouring opening up of the sector, saying foreign investment will boost competition and provide more choice to consumers. "Foreign direct investment (FDI) will increase competition and we believe the government should take some decision during this budget itself," Future Group chief executive Kishore Biyani said, when contacted.

Retail Insight

Optimism Reigns: Technology takes center stage at NRF Show Chain Store Age Hopeful that the economy is finally beginning to turn around, retailers hit the the National Retail Federation's 99th Annual Convention & EXPO, in New York City, in search of new ideas and solutions to support business decisions and future operations and improve the customer experience.