RRN-December 09 by chenmeixiu


									www.ramms.co.in   1   DECEMBER 2009
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www.ramms.co.in                                2                         DECEMBER 2009
    The news items, articles, and opinion are collated from various news websites
                     and individual publications found online.
    RAMMS India Pvt. Ltd is not responsible for the veracity or accuracy of any
                     information contained in this publication.

RAMMS RETAIL NEWS -December 2009

(For Detailed News Please Refer To Page 20)

Retail: The wonder decade

31 Dec 2009
The transformation of retail in the post-liberalisation decade was dramatic. It not only forever
changed our consumption habits and patterns, but also left indelible imprints on the landscape of
our cities in the form of monstrous malls and superstores.

Organised retail grew at a blistering pace. In 2000, it was so small that formal estimates of the
industry’s size are unavailable. But in 2002, it grew to a $2-billion industry. Today, according to
consultant KPMG, the sector has an annual turnover of $37 billion, while the retail industry is at
about $350 billion. This year, consultant AT Kearney ranked India as the most attractive emerging
retail destination in the world

In 2000, today’s marquee retail chains were fledgling operations, with one or two stores. Piramal
Group’s Crossroads, considered India’s first mall, started operations in 1999. For retail chains
such as Pantaloons, Big Bazaar, Shoppers’ Stop, Spencers and FoodWorld, it was a decade of
scorching growth Big profits spawned ambitious expansion plans, many of which ran into
roadblocks when real estate prices zoomed ahead of the economy. Retailers started hurting
further when consumer confidence levels took a hit following a nasty economic downturn in major
Western economies in September 2008. Some retailers, who did not recast plans in time or
weren’t nimble enough, went out of business, or are teetering on the verge of insolvency The
decade that created a major new industry is ending with many of the players in the sector in

The rise of organised retail and the thorny issue of foreign direct investment made headlines as
small ‘kirana’ store owners’ concern that organised retail would put them out of business became
a political issue. Violent protests erupted across the country; Uttar Pradesh even banned the
operations of Reliance Retail Global majors such as Wal-Mart and Carrefour, facing slowing
growth in home markets, forged partnerships in India, where foreign capital is allowed only in
cash and carry stores, or stores catering to other businesses and not the end consumer

www.ramms.co.in                                  3                         DECEMBER 2009
FDI in retail a distant dream
Foreign Direct investment in multi brand outlets will continue to be a political hot potato even as
domestic retailers shed their animosity towards their foreign counterparts and say they can
benefit from the transfer of technology, superior supply chain management and logistics
expertise, apart from capital, of foreign retail groups. The next two years will see consolidation in
the Indian market. Chains with less than 100 stores will either merge with large players or shut
shop. Furthermore, shoppers are unlikely to see the mindless expansion of the past two years.

Gitanjali acquires Salasar as part of expansion strategy

30 Dec 2009
As a commencement of a major retail expansion strategy, Gitanjali Group acquired a 76% stake
in Salasar Retail Ltd, a chain of mid-sized department stores across India. Gitanjali plans to
relaunch the Salasar chain as “Maya by Gitanjali Lifestyle” and offer jewellery and different
lifestyle products.Salasar has ten stores in northern India, with 200,000 sq ft of the area under
operation. With this move, Gitanjali will gain access to prime catchment areas of cities like Delhi,
Cuttack, Kanpur, Gwalior, Guwahati, Indore and others through stores with an area of 20,000 sq
ft each. Maya stores will also be opened in other parts of the country. The company expects an
additional turnover of about Rs. 1,000 crores from “Maya” stores over the next three years, with
major component of about 60-70% coming from jewellery sales. Elaborating on the Group’s
overall expansion strategy, Mehul Choksi, CMD, Gitanjali Group, said, “This acquisition is a part
of the company’s plans to greatly increase its retail footprint and firmly position its jewellery retail
operations within the larger luxury-lifestyle space.” The company plans to increase the retail
footprint by an additional 1.25 to 1.50 mn sq feet of retail space by FY 2010-11 with the focus on
revenue sharing model and prime catchment areas. Gitanjali has already partnered with various
leading mall developers under the revenue sharing model. Retail expansion will be in EBO, MBO
and Large Multi Format Store categories. Gitanjali has brands such as ‘D'Damas’, ‘Asmi’,
‘Sangini’, ‘Nakshatra’, ‘Gili’, etc and sells its products in India through its vast network of 1,250
outlets including outlets in host stores. The company has more than 5,00,000 sq.ft of retail space
and is planning to increase it up to 1.5 mn sq. ft within the next three years. Additionally, the
company operates 143 retail jewellery stores located across the United States through the
acquisitions of Samuels Jewelers and Roger Jewelers.

Latent plans three more NowGadget stores

29 Dec 2009
Hyderabad-based Latent Images Private Limited, which operates the 'IIIrd i’ multi-speciality digital
store chain, has recently announced the opening of its three new gadget retail concept stores
under the brand name ‘NowGadget’. One store each will be opened in Chennai, Bangalore and
Kochi, in the next six months.The average size of these stores covers a carpet area of 5,000 sq ft
with an investment of close to Rs 10 crore, 70 per cent of which will be funded through internal
accruals.Launching the company’s first NowGadget store in Hyderabad last week, Latent Images
chief executive officer Sanjay Bajaj said that the company was in talks with multiple venture
capital companies to fund the expansion and expected to close the deal by January
2010.Speaking to Indiaretailing.com, Bajaj revealed, “We are also planning to deploy Microsoft
Surface, a multi-touch multi-user surface computing platform that provides information about the
products on sale through natural hand gestures, for the NowGadget stores by
February,".Currently, Latent Images operates five ‘IIIrd i’ digital camera retail stores in

www.ramms.co.in                                    4                           DECEMBER 2009
Rosebys in SIS tie-up with Style Spa

29 Dec 2009
Rosebys Interiors India Ltd, the home furnishing and lifestyle retail chain, has announced an
exclusive tie-up with Style Spa to expand its base by opening more then 100 Shop-in-Shop (SIS)
outlets across the country.With this exclusive tie-up, Rosebys will be the only brand to sell its
home furnishing and lifestyle accessories with Rosebys signature ambience while Style Spa
would continue to focus on its core furniture products. Both the companies have agreed to enter
into a partnership on a revenue sharing basis based on monthly sales. The launch will be in two
phases: to begin with, Rosebys will launch around 50 SIS units, which will be followed by 50 more
stores across the country in different cities.Nikhil Sen, director, Rosebys India Interior Limited
said, “With organised home décor and lifestyle p     roducts retailing growing at more than 30%
annually, there is a huge untapped market for the home décor and lifestyle market in India which
is pegged around Rs.14,000 crores. This tie-up is in line with our growth strategy and will give us
a huge opportunity to reach our target group. This partnership will help our brand in the process
of building a powerful brand and to have a dominant presence in the country's retail
arena.”Rosebys rolled out its Indian retail operations in October 2008; in a year's time, the
company has opened around 100 stores pan-India. Rosebys has four basic thematic product
ranges: Indulgence, Eco Chic, Geo Retro, and Peony Garden. Each has a different concept and
together offer a wide product range from bed covers, bed sheets, towels, cushions, and
adornments like photo frames, vases, candles, contemporary stainless steel ware and personal
care products.

Magneto Mall launch pushed ahead to January

29 Dec 2009
Magneto Mall, Raipur, which is under construction, is set to open it doors at a revised date of
January 20, 2010. The 10.35 lakh square feet property is being constructed by Avinash
Developers Pvt. Ltd. (ADPL), a part of the Raipur-based Avinash Group.Magneto is a multi-
faceted development coming up on NH 6, Labhandi G.E. Road, Raipur. 'Magneto Haat', one of its
salient features, will provide a huge space for local and regional retail players to display their
merchandise. The mall will be located at a distance of 4.5 km from the heart of the city and its
visitors will have a mixed experience of world-class shopping arcade, a 12,292 square feet food
court, entertainment zones, etc. Referring to Magneto Mall discarding the conventional rental
format and entering into the revenue sharing agreements with the retailers, Sanjay Prabhu, COO,
ADPL said, “All the retailers are willing to share their store sales figure with us, which is a win-win
situation for mutual growth.”The stores that are scheduled to begin trading in January include
Westside, Bikano Chat Cafe, Ten Downing Street, Time zone, Lee/Wrangler, Cafe Coffee Day,
Maruti Suzuki, Candy Treat, Ali Bhai-Confectioneries and PVR, confirmed Prabhu. “Westside and
PVR will be the anchor tenants of this mall,” Prabhu confirmed.

No KB's Fair Price store closures: Damodar Mall

23 Dec 2009
Future Agrovet Ltd, part of the Future Group, has not confirmed rumours pertaining to the closure
of some KB's Fair Price stores. Responding to a recent media report, which quoted Narendra
Baheti, managing director, Future Agrovet as saying that the company's losses from the KB Fair
Price shops are around Rs 75 crore, Damodar Mall, group customer director, Future Group told
IndiaRetailing that no stores from the 160-outlet chain are to down shutters. “We are not closing
any of the KB's outlets, but will in fact open some additional stores,” he stated, in response to
queries if, as reported, 60 KB's Fair Price outlets are indeed to shut down.Earlier in the year,
Future Agrovet was reported as saying that the company is planning to increase the number of
KB's Fair Price Shops to 140 by March 2010.

www.ramms.co.in                                    5                          DECEMBER 2009
Reliance Retail to open 85 jewellery stores over next 3 yrs

20 Dec 2009
MUMBAI: Mukesh Ambani-led Reliance Retail plans to open 85 stores of its jewellery retailing
business Reliance Jewels across the country over the next three years.The multi-format retailer,
which operates 15 Reliance Jewels outlets, has charted a road-map to give greater focus on
metros and large towns."We have a five-year plan for expansion, which drills down to
(penetration at) the town level. In the next three- years, we want to have a total of 100 Reliance
Jewels stores across the country," Reliance Retail Ltd (RRL) Business Head and Vice-President
Jewellery Ashok Kaul told PTI here.He said the company is planning to set up stores in cities
where it already has a presence."We are expanding through saturation, so we will open stores in
cities where we already have a presence. We will be adding another eight to ten stores by March
2010 in Mumbai, Bangalore and Hyderabad among other places, for which construction has
already begun," Kaul said.RRL operates jewellery stores in Ahmedabad, Bangalore, Dhanbad,
Gurgaon, Hyderabad, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Ludhiana, Mumbai, New
Delhi and Vizag.While he did not specify capital expenditure for the roll-out, Kaul said funding
requirements are met from internal accruals.

S Africa's News Cafe makes India foray, to invest Rs 100 cr

20 Dec 2009
NEW DELHI: South African premium cocktail- bar chain News Cafe plans to invest up to Rs 100
crore over the next five years to expand operations in India.The company, which ventured into
India last week under a master franchise agreement with Hyderabad-based Numbersonly
Hospitality, said it plans to open 20 outlets across India in the next five years."We have just
opened our first Indian restaurant at Delhi, which also marks our first foray outside the African
continent. We will open four more cafes in India in 2010 and our plan is to have a total of 20
restaurants within five years," News Cafe General Manager (Restaurant Division) Alan van der
Westhuizen said.On investment plans for the Indian market, he said: "Our expansion will entail an
investment of up to Rs 100 crore over next five years. The first restaurant in Delhi has cost us
around Rs 3.6 crore."Westhuizen said the investment will mostly come from the franchise
operator, Numbersonly Hospitality, adding franchise arrangement could be extended for other
South Asian countries and Mauritius in the future.Bullish on the Indian market, he said News Cafe
expects a revenue of around Rs 50 lakh per month from each of its cafes."Our idea is to promote
the cocktail culture in India. However, to suit the Indian market we have indigenised about 30 per
cent of our menu," he said.

Shareholders approve acquisition of DT Cinemas: PVR

18 Dec 2009
Multiplex major PVR said it has received approval from its shareholders to acquire the cinema
exhibition business of DLF, DT Cinemas.The members at the extra ordinary general meeting
have approved the acquisition of DT Cinemas, PVR said in a filing to the Bombay Stock
Exchange.The shareholders have also approved issuance of 25.57 lakh shares each, on a
preferential basis, to DT Cinema and the Thailand-based entertainment firm Major Cineplex
Group.Last month, in two separate deals, PVR had agreed to acquire DT Cinemas, besides
offloading its 10 per cent equity to Major Cineplex Group for Rs 42 crore to fund its expansion
plans.The DT deal would take PVR's total screens to 137, from 108 at present, taking its market
share in Delhi and Gurgaon to 60-70 per cent.

www.ramms.co.in                                  6                         DECEMBER 2009
Cinépolis opens first multiplex in India

18 Dec 2009
Cinépolis India, a wholly owned subsidiary of Mexico-based mutliplex chain Cinépolis, launched
its first screen multiplex in India at Advance India Project Ltd. (AIPL’s) Celebration Mall, Amritsar.
The cinemas would feature state of the art technology including the first fully digital and Digital 3-
D enabled auditoriums.Speaking on the occasion, Milan Saini, managing director and country
head, Cinépolis India said, “We are excited to open our first multiplex in the country in this great
city of Amritsar. With a world class product and a promise to win the hearts and minds of our
patrons, we would like to become the number one entertainment option of the city.”The all digital
screening format will enable crystal clear picture and sound quality. In addition, digital technology
will make possible to screen alternate content such as music concerts, T       -20 cricket and other
sporting events.Apart from creating a compelling movie going experience, Cinépolis popular
services would also include advanced technology enabled mobile & internet ticketing with
‘Cineticket’, gourmet food and beverage offerings with ‘Coffee Tree’, and its internet portal that
has won numerous awards as being the industry’s best. The Cinepolis experience comes at an
affordable price spectrum that ranges from Rs.80-160.Cinepolis plans to open 500 screens by
2016. It has already till date signed 160 screens in 10 cities with more than 10 developers. The
company plans to open at least 40 screens in 2010 across the country.

Retail consumption upbeat despite soaring prices

18 Dec 2009
MUMBAI: Retail consumption trends in both rural and urban households remain upbeat despite
soaring food prices, signalling the Indian consumer’s confidence in the economy, top industry
officials have said.Value retail formats such as Big Bazaar, Food Bazaar, More and D’Mart are
trying to cushion the impact of inflation on demand by stepping up bargains and discount offers
across product categories that have been hit hard by spiralling prices.Experts are of the view that
since demand for food items is price inelastic their consumption in both urban and rural
households will not be affected by rising prices. However, some economists believe that savings
of both constituents are likely to come down because of the increase in food inflation.“Bank
deposits grew by 9.4% in the fiscal year through November compared with 10.8% in the
corresponding period of the previous fiscal,” said Madan Sabnavis, chief economist at agri futures
bourse NCDEX. “This shows that though people will continue spending on essentials such as
food, a further rise in prices could impact savings of rural and urban households. Of course, the
modest pay hike in urban centres will cushion the demand for consumer goods and autos over
the next three to four months, but the same can’t be said for rural households. Non-food demand
is likely to reduce as a greater portion of rural incomes gets diverted for food.”Wholesale price
inflation in November rose to 4.78% from a year ago, fuelled by an almost 25% jump in prices of
food products (under the manufactured product basket with a 63.74% weightage in WPI) which
has an 11.53% weightage in the wholesale price index. For instance, sugar, which has a weight
of 3.61% in WPI, witnessed a rise of 53.8% in its price from last November. Food articles (15.4%
weight), which include cereals and pulses, fruits and vegetables, milk, eggs, meat and fish,
condiments and spices, and tea and coffee, saw an almost 17% rise in prices year-on-year.
“We have not seen any negative impact on consumption ever since Diwali. In fact, consumers are
shopping more at modern formats which offer better prices than the traditional trade. The
economy is g   rowing fast and the overall confidence is reflected in the purchasing trends,” said
Thomas Varghese, CEO of Aditya Birla Retail which operates the `More’ brand of super- and
hypermarkets.Value formats are growing at around 14% while lifestyle formats are g      rowing at a
more subdued single digit numbers. Industry experts also point out that while spends on the
same amount of basic consumption items have gone up, inflation has not impacted prices of
discretionary items. Competition-led factors have kept prices in telephone, durables and branded
FMCG under control.Consumers are stretching their buying power by buying larger quantities of
food and grocery products from value and wholesale formats.Discount formats usually record

www.ramms.co.in                                   7                           DECEMBER 2009
higher footfalls in a challenging consumer environment while the higher-priced lifestyle formats
note a significant dip in sales.“In an atmosphere of high inflation, customers tend to put in extra
effort to seek value. That translates into higher footfalls at value retail stores like Big Bazaar. We
tend to work harder on daily necessities and highlight them more in our communication too. Being
market leaders, we need to work harder, because the customer expects it from us.In recent
months, there has been marked reduction in edible oil prices. That is a silver lining and to some
extent helps families manage their budgets. In categories with high price rise, we notice some
cautious behaviour by customers, but being full range retailers, our overall category sales
continue to grow” said Damodar Mall, Group customer director, Future group.

Major Brands to take its store count to 100

16 Dec 2009
Major Brands India Pvt. Ltd, which is one of the franchisees for bringing in various international
brands to India, has signed in with different real estate developers for opening new stores of
existing nine international brands – Mango, Aldo, Nine West, Promod, Charles & Keith, La Senza,
Okaidi, Aldo Accessories and Inglot – in premier malls across India and will reach a target of 100
stores by March 2011.Currently, Major Brands is present in different Indian cities like Mumbai,
New Delhi/NCR, Bangalore, Hyderabad and Pune. The names of the mall, in which the Major
Brands plans to open new stores, are Forum Courtyard, Kolkata by March 2010, Venus Square,
Ahmedabad by April 2010, Silver Arch, and Ludhiana by Aug 2010. They have also planned to
open the stores in Chandigarh by August 2010 but did not disclose the name of the mall. “Total
investment in opening new stores in the above cities would be approximately 30 crores,” said
Kamal Kotak, director, Major Brands India Pvt Ltd to IndiaRetailing.At present, Major Brands has
total 38 stores in India with the store's size between 1,000 to 2,500 square feet. It has 18 stores
in Select City Walk, DLF Promenade and Ambience Mall, New Delhi/NCR, 13 in Mumbai's Atria
Mall, Linking Road and Inorbit Mall, One each in Bangalore's Garuda Mall and Pune's Jewel
Square Mall. “The total retail space we are currently occupying across India is 57,000 square
feet,” said Kotak. I the year 2001 Major Brands commenced its operations in India with the
launch of the Spanish brand Mango in Mumbai's Crossroads Mall (which has been relaunched in
March 2006 as Sobo Central by The Future Group).

Pizza Hut to revamp its outlet, add 30 items in menu

15 Dec 2009
Casual dining chain Pizza Hut, one of the flagships of Yum Brands Inc is looking at a complete
overhaul of its outlet formats, apart from menu expansion, in India. From being a pizza restaurant
joint for around 15 years in the country, it will now operate in the affordable causal dining
segment serving 30 new items in its menu such as pastas, soups, salads, starters, beverages
and desserts in addition to pizzas."Our format has always been the casual dining segment. We
do not focus much on the business of delivering pizzas in boxes because 70 per cent of our
business in India is through dining. So, expanding our menu works better for our business. We
already have about 30-35 per cent share in the casual dining market," Anup Jain, director,
marketing, Pizza Hut, Indian subcontinent at Yum Restaurants International, said in a media
report.The chain started off by doing a pilot of the new rollout at its Juhu, Mumbai outlet a year
ago with new interiors, cutlery and staff uniform. "We noticed a 25 per cent jump in sales during
the test drive. We are expecting an overall same-store-sales (SSS) growth of 25 per cent this
year," Jain said.Next week onwards all Pizza Hut restaurant outlets will roll out the new menu.
Pizza Hut India is looking at marketing spends of Rs 3-4 crore on the change, with commercials
starting in ten days. Meanwhile, Yum Brands is looking to launch its first Taco Bell outlet in India
next year. It also plans to have 500 KFC outlets by 2015. India is one of the future high growth
potential markets for Yum Brands internationally.Pizza Hut is estimating that after the new menu
rollout, only about 50 per cent of sales will come from pizzas while pasta, soups and salads, and

www.ramms.co.in                                    8                          DECEMBER 2009
beverages will contribute 10 per cent, 5 per cent and 10 per cent to sales, respectively. The
global restaurant company is expecting to earn about $100 million profit from India in five years.

Maishaa enters Kolkata

15 Dec 2009
Maishaa, the luxury home fashion brand, enters Kolkata through franchise operated store. This is
the third store launch of Maishaa after opening one store each in Delhi and Gujarat. This
exclusive store will be a one-stop solution for all furnishing needs ranging from lavish bed linen to
cushion covers to various fabrics for curtains and upholstery.On the launch Arun Garg, president,
A K Retail Inc. said, “We ventured into exclusive retail format in December last year with our first
franchise operated store in Delhi. We are now looking at a total of 25 such outlets across India by
the end of the fiscal in March next year." He said the company would continue with the franchise-
operated model and its next three stores will be operational by Dec. 09 in Bangalore, Hyderabad
and Mumbai.In the multi-brand format, “Maishaa has a presence in 50 outlets of various retail
players like Home Stop and Debenhams, our aim is now to double our points of sale to 100 multi-
brand outlets by March 2010," Garg further added.On the same occasion Ravi Giani, franchisee
of the store said, “We are thrilled to bring Maishaa to our city. We always try to give some thing
new to our customer, that’s our USP, this time we will be giving a little more to them, in the form
of a truly international and luxury brand - Maishaa.”

Lifestyle appoints new managing director

15 Dec 2009
Lifestyle International (P) Ltd., part of the Dubai-based Landmark Group, has announced the
appointment of Kabir Lumba as managing director which is effective from 1st December 2009.
As MD, Lifestyle International (P) Ltd, Lumba would be heading Indian businesses of Lifestyle,
Home Centre, Bossini and Splash brands.He has been associated with the group for over 5 years
and was appointed as executive director - Lifestyle in April 2006. He joined the group as
president - Buying and Merchandising in May 2004. Prior to that, he was working as chief
operating officer with Proline India Limited and Pantaloon Fashions (India) Private Limited. He
started his career in retail industry with Little Woods International Private Limited in 1993.

Gloria Jean's Coffees to have 41 Indian outlets by 2011

15 Dec 2009
The Australian coffee retail brand – Gloria Jean's Coffees – plans to have a total number of 41
outlets by end of 2011. In an exclusive interview with IndiaRetailing, Pankaj K Neeraj, head of
operations at Citymax Hospitality (the master franchisee for the brand in India), confirmed that the
chain is expanding and expects to have 41 outlets in India by 2011.“In addition to Mumbai,
Bangalore, Hyderabad and Chennai, we will expand to the new cities of Pune, Delhi, Mysore,
Coimbatore, Cochin, Thiruvananthapuram and Kolkata,” he further elaborated.At present, Gloria
Jean's Coffees has 10 outlets in the cities of Mumbai, Bangalore, Chennai and Hyderabad. The
average size of a typical Gloria Jean's Coffees outlet is between 1,000-1,200 square feet.The
brand entered India in 2007 with a master franchisee agreement with Citymax Hospitality.

www.ramms.co.in                                   9                          DECEMBER 2009
Future Capital Holdings plans to consolidate retail fin biz

14 Dec 2009
MUMBAI: Future Capital Holdings, a part of Kishore Biyani-led Future group, today said it is
planning to consolidate the Group's retail financial services, undertaken through its joint-venture
business associates.The board of directors at its meeting held on December 11 has approved to
constitute a committee of directors to look into consolidation/re-align of retail financial services of
Future Group, Future Capital Holdings said in a filing to the Bombay Stock Exchange.The board
approved to look at areas of consolidation in operations of all financial businesses, including
credit, insurance and investments, of the Future Group undertaken by the group including through
its joint venture associates.The company would enter into an agreement with Everstone
Investment Advisors to re-align investment advisory activities of the company and other group

Marks & Spencer to scale up India operations

14 Dec 2009
NEW DELHI: British retail major Marks & Spencer is looking at scaling up its India operations and
plans to open at least 50 more outlets in the country over the next few years.The company, which
is present in India through a joint venture (JV) with Reliance Retail, is also looking at increasing
its product range in the country."We currently have 14 stores across seven cities in India and
further plans to open at least 50 new stores in India over the next few years," Marks & Spencer
Reliance India Pvt Ltd Head of Marketing Nandini Sethuraman said in an e-mailed response to
PTI."Marks & Spencer believes India offers significant expansion o     pportunities and the potential
is huge with a wider range of products, bigger M&S stores and a better brand experience overall,"
she added.Sethuraman said the initial investment in the JV was of 29 million pound (around Rs
220 crore) and both the partners may put in more money in future."The total value of the initial
investment into the JV will be up to 29 million pound sterling, wherein M&S invested up to 14.79
pound sterling and Reliance Retail invested up to 14.21 pound sterling. Both parties will provi de
further funding in the near future," she said, without giving more details.

Palladium Mall is 100 per cent leased out

14 Dec 2009
Mumbai's newest upscale shopping centre, Palladium Mall, has has been completely leased out,
according to its developer The Phoenix Mills Ltd. The property is spread over an area of 300,000
square feet with occupiers including major power brands such as The Collective, Zara, Landmark
Books, and Bo Concept. “We are now completely full. In fact, because the demand for space was
greater than the supply and based on the superior brand mix we have selected, we have had to
turn some retailers away,” Tony Ward, COO – Leasing, The Phoenix Mills Ltd., told
IndiaRetailing.Ward further said, “There has been an overwhelming response from the market
and currently we are 100% signed. Most units are operational with the last few in the the final
stages of fitouts. The total number of stores and Food and Beverage (F&B) outlets is nearly
100.”In addition to the important brands mentioned above, Palladium also houses stores of other
upper crust lifestyle brands, including Burberry, Emporio Armani, Canali, Etro, Hugo Boss, Diesel,
Rohit Bal, Suneet Varma, Anita Dongre, Mac/Estee Lauder/Clinique, FCUK, Calvin Klein, Tommy
Hilfiger, Giordano, Daniel Hechter and the such. “F&B formats take centrestage with The Comedy
Store, Veda, Manchester United Café, and Indigo Deli, to name a few. In addition, the Shangri La
Hotel is an integral part of this space and will be opening its doors in late 2010,” informed Ward.
Last week, T S Ashwin, MD, Odyssey India Ltd, told IndiaRetailing that in ensuing four months
'Editions' (the diversified retail business of Odyssey into luxury international pens) is set to open
one of its stores in Palladium. “We are happy to have Odyssey's 'Editions' to join our family of
power brands. As mentioned above, we are now completely signed with the best mix of power

www.ramms.co.in                                    10                          DECEMBER 2009
brands available,” responded Ward on being asked about the recent retailers (apart from
Odyssey) that have signed up.'Editions' has been signed up with an approximately 600 square
feet of area in a high traffic location near the F&B zone to add a unique offering to its
customer.Sharing the current turnover figures of the mall, Ward said, “While I cannot share
specific turnover figures, but I can say that the response from our customers has been very
positive. Our retail partners have also reported they are happy with the results. As the final stores
become operational in the near future, things will only get better.”

Fastrack on fast track

11 Dec 2009
Fastrack, the leading eye-wear and time-wear brand from Titan Industries, is on a rapid
expansion spree. Targeting urban youths since its launch, Fastrack at present has 14 operational
stores across India.December 2009 has been very eventful for Fastrack stores; the brand
launched four new stores across India during the month -- one each in Begumpet and
Himayatnagar in Hyderabad, one on BYK College Road in Nashik and one at Satya Niketan in
New Delhi.On being asked about the total number of operational stores of Fastrack in India,
Simeran Bhasin, marketing head, Fastrack, told IndiaRetailing, “At present we have 11 formally
operated stores across country, excluding a store in New Delhi and two in Hyderabad, which
have not been formally announced, but are up and running.”Sharing the expansion plans of
Fastrack, Bhasin revealed, “Apart from the 14 operational stores, we are about to open 36 more
outlets by April 2010 across India, to take our store count to 50.”Fastrack has three stores in
Bangalore (Koramangala – 500 square feet, Jayanagar – 600 square feet, & New BEL Road –
800 square feet), two stores each in Chennai (Anna Nagar – 500 square feet & Velachery – 461
square feet), Hyderabad (Begumpet – 600 square feet & Himayatnagar – 650 square feet) and
Pune (FC Road – 620 square feet & Kothrud – 554 square feet), one store each in
Visakhapatnam (Dwarkanagar – 578 square feet), Bhubaneswar (Kharvelanagar – 465 square
feet), Thane (435 square feet), Nasik (Opposite BYK College – 700 square feet), and New Delhi
(Satya Niketan – 400 square feet).

Odyssey to open 9th express kiosk at Barakhambha Metro

11 Dec 2009
Targeting over 300 million passengers annually, Odyssey India Ltd, a 100 per cent subsidiary of
Deccan Chronicle Holdings Ltd., is opening its 9th express kiosk at Barakhambha today (11
December, 2009). The size of this store is about 100 square feet.Talking exclusively with
IndiaRetailing, before the launch of the kiosk at Barakhambha Delhi Metro, T S Ashwin,
managing director, Odyssey India Ltd says, “Odyssey already has eight operational express
kiosks at Delhi Metro Rail Corporation (DMRC) Ltd.'s Rajiv Chowk, Kashmere Gate, New Delhi,
Central Secretariat, Chandni Chowk, Netaji Subhash Place, Pitampura and Vishwa Vidyalaya
stations. And we are about to roll out our 9th Odyssey Express Kiosk at Barakhambha Station
today.”The size of these kiosks varies between 100 to 250 square feet. These express kiosks
stock books, music, toys, stationery, gifts, souvenirs and convenience items focusing mainly on
travelers, students and office goers. On being asked about further expansion plans, Ashwin says,
“Odyssey will soon be adding 10 more kiosks at operational DMRC stations.”Talking of the
investment cost in opening such kiosk, Ashwin says, “It varies between four to seven lakh
excluding merchandise.”The total store count of Odyssey will be 47 with the opening of this kiosk
at Barakhambha Metro station.

www.ramms.co.in                                   11                         DECEMBER 2009
iStore expands in Mumbai

11 Dec 2009
iStore, India’s Apple Premium Reseller Chain and the high-end consumer durable and
information technology arm of Reliance Retail today (Dec. 11) expanded its footprint in Mumbai
with the opening of two iStores. The two iStores – opened in Palladium, Mumbai with an area of
1022 square feet, and Korum Mall, Thane with an area of 978 square feet – are to house the
complete range of Apple products, Apple accessories and software and easy access to genuine
and latest Apple products.Announcing the launch of the two iStores in the city, Ajay Baijal,
president and chief executive, Reliance Digital, said, “iStore by Reliance Digital is now
established as an Apple destination store in India with its unique offering in consumer experience
and range of products. The positive response received from Apple lovers in the city has
encouraged us to expand our presence in the city and we are delighted to bring two more stores
to the city and extend the Apple experience to our consumers.”“Our customers in Mumbai and
Thane will have access to the latest iconic products from Apple in a world-class ambience with
excellent end-to-end customer support,” concludes Baijal.

Bharti Retail launches third 'Easyday Market' in India

10 Dec 2009
Bharti Retail, a wholly owned subsidiary of Bharti Enterprises, today (Dec 10) launched its third
compact-hypermarket store 'Easyday Market' in Patiala. Located at Omaxe Mall, Patiala, the new
store offers customers a great shopping experience, high in-stock levels and a wide range of
quality products at the best prices under one roof.The Easyday Market in Patiala is a 30,000
square feet store offering over 16,000 quality products, including trendy fashion wear such as
George (international brand) and Astitva (Indian Ethnic Wear), home ware, a range of electronics
& electrical appliances, mobile phones, toys, bakery products, food & grocery and fresh fruits &
vegetables. Other categories include health & beauty products, basic home furnishings, food &
grocery, hygienic meat and fish & chicken all at unbelievably low prices.Easyday Market has
provided quality employment opportunities to the people of Patiala that include housewives,
differently-abled people, meat cutters, fruits and vegetable sellers, school and college
dropouts.Since its launch in April 2008, Easyday has successfully offered products at lowest
prices every day, so that the customers can save money. Easyday stores are a one stop shop,
catering to every family's daily and monthly needs. They bring together relevant and a wide range
of quality products along with great in-store experience and service, at lowest prices.

Planet M set to open three stores

10 Dec 2009
One of India's largest entertainment and lifestyle retail chains, Planet M Retail Ltd., is set to open
three new stores. Each of the stores is expected to be over 1,000 square feet in size as per the
retailer's 'superstore format'.Speaking exclusively to IndiaRetailing Subir Ghosh, CEO, Planet M
Retail Ltd., said, “We are about to open three superstore format stores in a couple of months'
time -- one each at Mantri Mall, GVK One and Korum Mall in Bangalore, Hyderabad and Thane
respectively.”Ghosh, however, declined from sharing details on total investment in the upcoming
stores.At present Planet M has 275 stores with total retail space of 1.75 lakh square feet speread
across Pune, Bangalore, Mangalore, Hyderabad, Chennai, Mumbai, Thane, Vashi, Nerul,
Nagpur, Nashik, Indore, Aurangabad, Ahmedabad, New Delhi, Ghaziabad, Noida, Gurgaon,
Lucknow, Allahabad, Varanasi, Dehradun, Kanpur, Jaipur, Jamshedpur, Chandigarh, Mohali,
Patiala, Ludhiana, Jalandhar, Jammu, Kolkata, Tinsukia, Shillong, Bhubaneswar, Guwahati,
Patna, Kochi, etc.

www.ramms.co.in                                    12                         DECEMBER 2009
Madame's 60th store opens in Chandigarh

10 Dec 2009
Womenswear brand Madame is opening an exclusive retail store in Chandigarh today (Dec. 10).
The company-owned outlet has an area of 1,300 square feet and is set to offer a wide range of
latest collections in women's western wear.Talking exclusively with IndiaRetailing, before the
launch of the store in the Chandigarh high-street of Sector-17, Akhil Duggar, creative director,
Madame, said, “We are eyeing a mix of both high streets and malls for future store locations, but
high streets are a sure priority.” Referring to investments, Duggar disclosed that the new outlet
has entailed an expenditure in the region of 35-40 lakh rupees.At present Madame has 60
exclusive stores (including the new Chandigarh outlet) and also retails through more than 600
multi-brand outlets across India.

Rosebys set to expand in India

09 Dec 2009
UK's renowned specialist textiles and home furnishings retailer, Rosebys London is set to take its
store count to 300 in India. Rosebys entered India in October 2008 and at present it runs 80
stores across the country.After celebrating its first anniversary in India, Rosebys is set to invest
Rs 170 crore to increase its retail presence and also to launch over 100 spa products. In an
exclusive talk with IndiaRetailing about the location of its expected stores, Alok Banerjee, chief
executive officer, Rosebys said, “We will be opening our stores where customers like to shop.
Depending upon their choice, it can be in malls or high streets. An important element in ensuring
store sustenance is store traffic and this needs to be based on the right location, which again is
dictated by where customers want to shop.”About the area and format of these expected stores,
Banerjee said, “These will be small format stores with an area of 800 to 1,200 square feet. The
roll out plan will be phased over a period of two years.”

The MobileStore acquires X-Cite retail chain of India

09 Dec 2009
The MobileStore, which is being promoted by The Essar Group, has announced the signing of an
agreement for the acquisition of Impact Retail Private Ltd.'s consumer durables and IT (CDIT)
operations which runs under the brand name X-Cite.With the completion of this acquisition, TMS
would offer end to end CDIT products and services to Indian consumers. TMS will take over all
the seven stores of X  -Cite – spanning 95,000 square feet of retail space covering key cities like
Delhi, Gurgaon, Bangalore, Hyderabad, Pune & Ahmedabad.Now, the TMS is looking at
leveraging its existing scale of operations that spans 1300 stores across 200 cities to tap the
CDIT market potential. TMS’s strategy is to penetrate the CDIT market on 4 key legs: providing a
superior in-store customer service, offering differentiated service products, better consumer offers
and leveraging existing customer base.Commenting on the initiative, Rajiv Agarwal, CEO and
director, The MobileStore, said, "This acquisition represents a major milestone in our journey. Our
intention is to quickly jump start and launch the retail venture into the consumer durable & IT
business and provide a more comprehensive offering to our customers. Further we wanted a
player who has a good understanding of the CDIT business and X-Cite has emerged as a serious
player. Our plan is to continue the business from the current 7 stores and plug in gaps in key
markets like Mumbai, Kolkata and Chennai.”X-Cite, a franchisee of Kuwait-based Alghanim
Industries, became operational in 2008 in India, and was promoted by Tony Jashanmal.

www.ramms.co.in                                   13                        DECEMBER 2009
Essar’s telco retail arm acquires X-Cite

9 Dec 2009
MUMBAI: Diversified Essar group has entered into the Rs 80,000-crore consumer durables and
IT products business through the acquisition of X-Cite, the chain of large format electronics stores
of Impact Retail, a franchisee of Kuwait's Alghanim Industries . Essar-promoted cellular retail
chain The MobileStore (TMS) on Tuesday announced the acquisition of X-Cite for an undisclosed
sum and said it would scale up the number of retail outlets to 2,500 by fiscal 2011 from the
existing 1,300 stores."We find it logical to extend our presence in the consumer durables and IT
market, which is growing by 15 per cent. The acquisition is a good start. We are aiming around 10
per cent of market share in the next five years," TMS CEO & director Rajiv Agarwal said at a
press conference.TMS will also retain focus on the telecom retailing space. It aims at increasing
market share in this business to 15 per cent in next two years from six per cent now. ET was the
first to report about Essar's possible acquisition of X-Cite in its Tuesday edition.TMS will take over
the seven stores of Impact Retail's X   -Cite across Delhi, Gurgaon, Bangalore, Hyderabad, Pune
and Ahmedabad, spanning over 95,000 sq ft.Impact Retail, a franchisee of Kuwait-based
Alghanim Industries, entered India last year. "Our plan is to continue the business from the
current stores and plug in gaps in key markets like Mumbai, Kolkata and Chennai," said Mr

Subway plans 100 more outlets by end 2010

08 Dec 2009
Subway Systems India Pvt Ltd, the QSR chain that specialises in sandwiches and salads, plans
to take its total store count to 250 in the year 2010. In an exclusive interview with IndiaRetailing,
Manpreet Gulri, development agent, Subway Systems India Pvt Ltd. stated, “We plan to have a
total number of 250 Subway restaurants in India in the year 2010.”“With the expansion, our reach
will increase to 29 cities of India,” Gulri further informed. At present, Subway operates 150
restaurants in 25 cities in the country. The total retail space occupied by the brand is 75,000
square feet.Subway entered India in the year 2001 with its first restaurant opened in New Delhi.
Subway restaurants, in India, have customised their offerings taking into account the sentiments
of the vegetarian population of the country. The restaurants do not serve any beef or pork
products and have an expanded selection of vegetarian choices along with international

Cadbury to respond to Kraft's offer by next week

08 Dec 2009
Dairy products manufacturer Cadbury recently said it will post formal response to US -based Kraft
Foods' offer of 10.1 billion pounds for British confectionery on December 14. Cadbury in a
statement said it would post on December 14, 2009, to shareholders its formal response to Kraft's
offer."Under US securities law, Cadbury is prohibited from publishing any further information, or
making any further statement, until it has issued its formal response," the statement added.The
company further said its offer also include its regular pre-close trading update. Last week, Kraft
Foods has disclosed the details of its hostile bid for Cadbury, valuing the British company at 10.1
billion pounds.In November, the board of Cadbury rejected the takeover bid from Kraft Foods and
said that the bid undervalues the company. The offer values each Cadbury share at 713 pence.
The bid values the entire issued and to be issued share capital of Cadbury at about 10.1 billion
pounds.For each Cadbury share, the US entity would offer 300 pence in cash and 0.2589 new
Kraft Foods shares. For the Cadbury's American Depository Share (ADS), it would offer 1,200
pence in cash and 1.0356 new Kraft Foods stocks.

www.ramms.co.in                                    14                         DECEMBER 2009
Retail sector to grow to $410 billion by 2010: Assocham

7 Dec 2009
NEW DELHI: The Indian retail sector is expected to grow at a rate of 5.5 per cent to $410 billion
(around Rs 19,03,844 crore) by 2010 from the present about $300 billion, Assocham said
today.The chamber said that organized retail, which at present accounts for nearly 5 per cent of
the overall retail market, is likely to touch $13 billion (around Rs 60,375 crore) by 2010 from $9.23
billion (around Rs 42,000 crore) currently."The size of Indian retail sector is estimated to grow by
a compound annual growth rate of 5.5 per cent, to become $410 billion market by 2010," it
said.India has one of the largest number of retail outlets in the world. The sector is witnessing
exponential growth with retail developments taking place not only in major cities but even in tier-II
and III cities, Assocham President Swati Piramal said.Over 100 malls of over 30 million square
feet are projected to open in India by 2010 end, it added.DLF has cleared its intentions to come
up in retail segment with 500 luxury lifestyle stores across India within five years, while Tata Sons
are expanding their business activities with 100 new Croma stores under their retail head Infiniti
retail within three years, it said.It also said that the retail sector income may grow by 22.7 per cent
and 30.25 per cent in the third and fourth quarter of 2009-10 respectively.

Odyssey set to expand its store format

07 Dec 2009
Odyssey India Ltd, a wholly owned subsidiary of Deccan Chronicle Holdings Ltd, is looking to
expand its stores in malls namely Express Avenue (Chennai), Brookefields Plaza (Coimbatore)
and Prozone Mall (Aurangabad) by 2010-11. The leisure retailer is set to take its store count to 60
soon.“In 2010-11, there will be a lot of Odyssey Express format outlets coming up at Delhi Airport
Terminal 3, Delhi Metro stations and some prominent IT Parks in India,” says T S Ashwin,
managing director, Odyssey India Ltd.In addition to its exclusive eye-wear stores, the Odyssey is
poised to diversify its retailing business with the launch of 'Editions' – an exclusive store for
premium international and luxury pen brands.“Brands that we represent as exclusive licensees in
India are Visconti (Italy), Curtis (Australia), Kynsey (Italy), Krone (Italy), Franklin-Christoph (USA),
David Oscarson (USA), Diplomat (UK), Waldmann (Germany), Think (Italy), Stipula (Italy), etc.
We will also stock some international accessories from Naldi (Italy). We are on the verge of
signing up more pen brands,” reveals Ashwin.“Confirmed projects for 'Editions', over the next four
months, will be Inorbit (Hyderbad), Ampa Mall (Chennai) and Palladium (Mumbai),” adds Ashwin.
Expansion and Investment
Talking of the expansion plan of Editions, Ashwin says, “We are trying to make our presence in at
least 10 mall stores over the next 12 months in Mumbai, Chennai, Delhi, Bangalore, and
Hyderabad.Investment in this venture will be approximately Rs 9.0 crores over the next 12
months.”“All these are confirmed projects. Apart from this, feasibility and review is happening on
a lot of other malls and standalone properties in Mumbai, Delhi and Chennai for all concepts,”
concludes Ashwin.

Croma to open 5 zip stores, 8 mega stores in India

07 Dec 2009
Croma, the consumer durables and electronic products retail chain, is planning to open 13 new
stores across India, of which five will be zip stores and eight will be mega stores with the store
size between 10,000 square feet to 12,000 square feet.On being asked about the expansion plan
of the retail chain, Ajit Joshi, CEO and managing director, Infiniti Retail Ltd says, “We are going to
open 13 new stores in the cities where we currently have stores. We will open five zip stores and
balance will be mega stores (     10,000 - 12,000 square feet).”Croma is promoted by Infiniti Retail
Ltd, a 100 per cent subsidiary of Tata Sons. At present, it has 39 stores in Mumbai, Delhi/NCR,
Ahmedabad, Surat, Vadodara, Bangalore, Hyderabad, Pune, Rajkot and Chennai.

www.ramms.co.in                                     15                         DECEMBER 2009
Crossword expands in Hyderabad

07 Dec 2009
Crossword Bookstores Ltd, a wholly owned subsidiary of Shopper's Stop Ltd, has launched its
fifth store in Inorbit Mall, Hyderabad. The store is spread over an area of 3000 square feet and
marks the opening of its third store within twelve months in the city."The opening of our third store
within twelve months shows the extent of reading culture present in Hyderabad. This store being
located in the IT hub of Hyberabad we hope to provide reading pleasure to the working
professionals present there," said Mohit Gadia, national operations manager, Crossword
Bookstores. The new store as all other Crossword outlets will stock a wide variety of books,
movies, music, CD-ROMs and stationery, and other lifestyle products. With the launch of this
store, the total number of Crossword store has raised to 55 in India.

Odyssey to take store count to 60

04 Dec 2009
One of India's leading leisure retailers, Odyssey India Ltd., a wholly owned subsidiary of Deccan
Chronicle Holdings Limited, is now trying to tie-up with premium international and luxury pen
brands. Commenting on this development, T S Ashwin, managing director, Odyssey India Ltd.
told IndiaRetailing, “This year we are launching our foray into premium writing instruments. We
are tying up with many international premium and luxury pen brands exclusively for India. One
store each in Mumbai, Hyderabad and Chennai is what will come up by Jan 2010 and another 6-7
stores will open over the next year.”At present Odyssey India Ltd has 46 stores in different
formats, and it is planning to increase the store count to 60. “We will be expanding our footprint in
select malls and high street locations apart from increasing our presence at airports. railway
stations, IT parks and residential townships. Our 46 operational stores occupy about 2.6 lakh
square feet of area,” Ashwin said.“The next few stores are coming up in Mumbai, Chennai,
Hyderabad and Delhi. We are working on a mix of large and express stores across these cities,
with 10 locations spanning across 1 lakh square feet of confirmed projects and an equal number
of more stores over the next year. We plan to take our store count to approx 60 stores spread
across 4.5 lakh square feet area,” he further revealed.In August 2008, the leisure retailer
diversified its retailing business by opening two The Eyewear Store outlets in Hyderabad and
Mumbai. “We have scheduled expansion of our speciality eyewear stores in Delhi, Chennai, and
Bangalore this year and additional stores in Hyderabad and Mumbai over the next year, taking
the total to 10 outlets,” Ashwin informed.

Reliance Digital opens two iStores in Pune

04 Dec 2009
iStore, India’s Apple Premium Reseller Chain and the high-end consumer durable and
information technology arm of Reliance Retail today opens two stores in Pune. These two stores,
Jewels Square Mall, 1113 square feet and FC Road, 1225 square feet., will house complete
range of Apple products, Apple accessories and software and easy access to genuine and latest
Apple products. Announcing the launch of the iStores, Ajay Baijal, president and chief executive,
Reliance Digital, said, "iStore is now established as an Apple destination store in India with its
unique offering in consumer experience and range of products. We at Reliancedigital are
delighted to extend the Apple experience to our consumers in Pune. Our customers in Pune will
have access to the latest iconic products from Apple in a world-class ambience with excellent
end-to-end customer support."Apart from these two new stores in Pune, iStore has made its
presence in Hyderabad, Bangalore, Chennai, Ahmedabad, Vadodara, Ludhiana, Jaipur and

www.ramms.co.in                                   16                         DECEMBER 2009
Gucci set for single-brand India foray

4 Dec 2009
NEW DELHI: Italian designer goods maker Gucci can now go ahead with its plans to enter the
Indian retail market through single brand stores with the government allowing it to pick up a
majority stake in its Indian franchisee Luxury Goods Retail.The government has cleared a
proposal by Luxury Goods Retail for foreign equity participation o 51% by Gucci Group NV,
Netherlands with an investment of Rs 1.04 crore for retailing Gucci brands in the country.Luxury
Goods Retail currently sells products under the Gucci brand in India under a franchise
agreement. Gucci India had in 2006 entered into a franchise agreement with Murjani Retail for
selling its products in the country. The pact was terminated in July 2009 and replaced with a new
franchise.In India, the company has two stores located in Delhi and Mumbai. It had last year
announced plans to expand to other metros, including Bangalore, and expand its product range in
the country to house its men's and women's collections of ready-to-wear, handbags, shoes,
watches and other accessories. Gucci product are sold in over 50 countries through stores owned
by Gucci Group and also through franchisee agreements.

Ebony Gautier opens in Bangalore

03 Dec 2009
Ebony Gautier, the home improvement retailer, has opened its third flagship store of the country
at Bangalore. Spread over an area of 21,500 square feet, the showroom exhibits a wide range of
furniture for living rooms, dining rooms, adult bedrooms, kids' rooms and home
offices.Commenting on the inauguration, Dominique Soulard, chairman, Gautier worldwide said,
“Through our partnership with Ebony in India, the entire range of authentic Gautier products are
made available to the Indian consumer in an internationally benchmarked retail
environment.”“After the success of our two showrooms in the NCR, we take pride in bringing our
concept to our valued customers in Bangalore. We are confident that this partnership will go a
long way and provide consumers across India access to world class contemporary styled
furniture,” commented Manhad Narula, director, Ebony Gautier.At present Ebony Gautier has two
more showrooms in Noida and Gurgaon, and plans to open 20 more such outlets by the end of
2012 under this speciality retail vertical.

Blue Foods launches new restaurant Purple Rain

03 Dec 2009
Restaurant chain Blue Foods, which manage brands like Copper Chimney, Noodle Bar, Bombay
Blues, has added a new restaurant brand in its portfolio. Blue Foods has formulated a
contemporary cuisine restaurant brand Purple Rain — Kitchen and Lounge and has launched its
first outlet, a 130-cover restaurant at Sobo Central Mall in Mumbai.The three in-house master
Chefs namely Chef Sanjay Malkani, Chef Max Orlati and Chef Bill Marchetti have been
fundamental to create the menu of the restaurant. The menu consists of starters like Char -
Grilled Chicken Pesto, Mini Kheema Brioche, Trioflati Shells and Corn Nazza and Murgh Reve
D’or, Chicken Joneel, Caribbean Prawns Tamarindo, Four Grain Vegetable Risotto and Taglierini
Marco Polo for the main course.Chef Orlati, head manager, Purple Rain said, “This is not a fusion
cuisine. We have tried to create the menu with a combination of flavours and global influences
wherein each dish has a flavour of its own and no dishes have the common sauces.”Chef Malkani
stated, “We have refrained from presenting any traditional European, Indian or any other cuisine
as it always gives rise to the conflict of authenticity. There is a market of well travelled Indians
today between the age group of 25-50 years. This segment has experimented with various
international cuisines and they consist of our core target market.” The restaurant consists of an
extensive bar area and Blue Foods plans to conduct theme night promotions to drive footfalls into
the restaurant.

www.ramms.co.in                                  17                         DECEMBER 2009
India's WPI continues to rise

03 Dec 2009
The country's annual food price index increased to 17.47 per cent as on November 21 from 15.58
per cent growth as on the week ended November 14, the Ministry of Commerce & Industry said
today. The food price index was up 10.75 per cent in the corresponding period of the previous
year.The annual rate of inflation for Primary Articles, calculated on point to point basis, stood at
12.53 percent (Provisional) for the week ended 21/11/2009 over (22/11/2008) as compared to
11.04 percent (Provisional) for the previous week (ended 14/11/2009) and 11.98 per cent during
the corresponding week (ended 22/11/2008 of the previous year),The index for 'Food Articles'
group rose by 1 per cent to 289.2 (Provisional) from 286.3 (Provisional) for the previous week due
to higher prices of fish-inland (11 per cent), pork (5 per cent), fish-marine (4 per cent), urad,
masur, eggs and moong (2 per cent each) and maize, tea, fruits & vegetables, arhar and gram (1
per cent each). However, the price of jowar (2 per cent) declined.The index for 'Non-Food
Articles' group rose by 0.3 percent to 239.5 (Provisional) from 238.9 (Provisional) for the previous
week due to higher prices of raw rubber, copra and cotton seed (2 per cent each) and groundnut
seed, raw silk and gingelly seed (1 per cent each). However, the prices of fodder (7 per cent) and
castor seed (3 per cent) declined.The next release of the food price index (for the week ending
28/11/2009) will be December 10th.

Pantaloon to spend Rs 360-cr this fiscal, to add 2.4-mn sq ft

2 Dec 2009
MUMBAI: Pantaloon Retail India Ltd (PRIL), the country's largest listed supermarket operator,
plans to spend Rs 360-crore in the remainder of this fiscal, to add up to 2.4-million sq ft of retail
space to existing operations."We have a capex plan of Rs 360-crore to add up 2.4- million sq ft of
retail space...that is in the Pantaloon Retail balance-sheet and not the subsidiaries. That's the
plan for the balance 7 months (of this financial year)," Pantaloon Retail India Ltd's Managing
Director, Kishore Biyani, told reporters after the company's 22nd AGM here.The company, a part
of the diversified Future Group, begins its financial year in July.While the Future Group operates
15-million sq ft of reatil space across India, Pantaloon Retail with its multiple lifestyle and value
chains runs around 13-million sq ft.Pantaloon Retail is also looking to hive-off its value retail
chain--Big Bazaar--into a separate subsidiary, which may eventually go for an initial public offer
(IPO)."We are looking at subsidarisation of Big Bazaar into a separate company... if we need
capital, probably we can raise capital (through a public issue)," Biyani said.Biyani said the
company will open 155 Big Bazaar stores by 2014, increasing its total network to 275 stores.PRIL
also plans to deploy a part of the Rs 500-crore, raised through a QIP issue last week, into
expansion and for debt reduction.

Nestle to mull acquiring nutri biz of Speciality Foods

01 Dec 2009
FMCG major Nestle today said its board of directors, in a meeting scheduled to be held on
December 9, would consider the acquisition of nutrition business of Speciality Foods India.A
meeting of board of directors will be held on December 9 to consider the proposal of Speciality
Foods India for a possible acquisition of its healthcare nutrition business by Nestle," the company
said in a filing to Bombay Stock Exchange.Speciality Foods India, which sells its nutritional and
healthcare products under brands such as Resource, Optifast, Spert etc has reported a revenue
of Rs 28.8 crore for the fiscal ended March 31, 2009.

www.ramms.co.in                                   18                         DECEMBER 2009
Big Cinemas opens multiplex in Malaysia, hits 500-screen milestone

01 Dec 2009
Big Cinemas, domestic and international cinema chain, a division of Reliance MediaWorks Ltd.
and a member of Reliance ADA Group, has hit its 500-screen milestone with the opening of its
newest multiplex at Kedah, Malaysia.Since April 2006, Big Cinemas has established a dominant
presence in the Indian domestic market with 240 screens across 75 Indian cities. Big Cinemas
has made huge strides internationally, with more than half of its screens located in 40 cities
outside India covering the USA, Malaysia and the Netherlands.Commenting on the development,
Anil Arjun, CEO, Reliance MediaWorks Ltd says, “Hitting the historic milestone of 500 Big
Cinemas screens worldwide is hugely significant. This expansion underscores our attempts to
build scale, quality, innovation and pioneering formats which improve the movie going experience
for audiences the world over.”“We are fully committed to expanding our global footprint,” adds
Arjun.Big Cinemas has also developed brand new premium cinemas across the globe including
Big Cinemas-Golf Glen, which is a five-screen multiplex in Chicago housins a premium bar and
lounge. It has aggregated 24 city cinema network across East Coast, Midwest and West coast in
US.The company plans to scale up Big Cinemas’ network with plans to add a further 100 screens
over the next year.

www.ramms.co.in                                 19                       DECEMBER 2009

The Celebration Mall is 79 per cent leased out

29 Dec 2009
Advance India Projects Limited's (AIPL) flagship retail project, The Celebration Mall, has been up
and running in Amritsar from December 17th. At present, 79 per cent of the retail space has been
leased out, confirms Sanjay Sachdeva, president, Corp. Strategy and Business Development,
AIPL. This shopping centre features Cinepolis' maiden Indian multiplex, and the first McDonald's
of the city. The Celebration Mall has a built up area of 2,04,000 square feet with a total of nine
levels including three levels of basement parking (approx 1,28,000 square feet). A blend of
international brands like the multiplex Cinepolis, UK retail giant Marks & Spencer, fashion brands
like UCB, Levi's, Adidas, Reebok, Van Heusen, Allen Solly, Peter England, foodservice majors
McDonald's and Cafe Coffe Day and a significant number of prominent local retailers like Bille Di
hatti, Mohini Woolens, Xclusive Boutique, Kazo can be seen at the property. The other power
brands of the mall are SRS Value Bazaar, 1469, Lilliput, and GKB Opticals. The distinguishing
feature of the property is the 'Amritsar Haat', housing local retailers with smaller formats and
products intrinsic to the Amritsari way of life. Soon-to-open retailers in the mall include UCB, Nike,
Catmoss, Koutons, Reliance Footprints, Mohni Woolens and Penny Lane, confirms Sachdeva.
He further informs that fixed rent and revenue share with minimum guarantee are the rental
models of this property. Commenting on the retail mix in the property, Sachdeva notes, "The
Celebration Mall will aim at enhancing the shopping experience of the people of Amritsar as it
offers a perfect mix of local, national and international brands under one roof. We have also
planned events through out the year to make sure that people of Amritsar come to celebrate life
at the mall." The centre also boasts of a multi cuisine food court named The Melting Pot with a
seating capacity of 300 people. In addition to this, Delhi's famous restaurant Pind Balluchi is also
set to open at the mall, which would offer the best options for the Amritsari's palate latest by
December 30th. AIPL has partnered with CapitaLand Retail, one of the largest real estate
companies in Asia, to develop shopping centres pan India, including in cities like Udaipur, Nagpur
and Jalandhar.

Reliance TimeOut concentrating on expansion in west, south India

29 Dec 2009
Reliance TimeOut, the specialty leisure retail format of Reliance Retail, forayed into Mumbai last
week with its first store at Hill Road, Bandra. After store openings in Bangalore, Gurgaon, Kochi
and Ahmedabad, this is Reliance TimeOut’s seventh store in the country. This store in Bandra is
the first of multiple stores planned across Mumbai, Thane and Navi Mumbai. The next couple of
months will see stores being opened in Santacruz, Thane, Vashi, Kandivali and Borivali. This is
part of an overall aggressive expansion strategy by the format which will also be seen entering
Pune, Nagpur, Hyderabad, Mysore and Mangalore. The next year will see wide-spread expansion
in terms of cities and number of stores in existing cities with a focus on Western and Southern
India. Speaking at the Mumbai launch, Deepinder Kapany, Business Head, Reliance TimeOut
said, “We are proud to complete two successful years of Reliance TimeOut in the country. We
have received overwhelming response from customers for our innovative and unique concept and
the exciting range of interactive activities that enables customers to meet and interact with their
favourite authors. With the thought of extending the unique Reliance TimeOut experience further,
on our second anniversary we bring the Reliance TimeOut experience to customers in Mumbai.
We are sure that books and music enthusiasts in the city will enjoy the experience that we have
especially designed for them.” Spread over 10,000 sq. ft. Reliance TimeOut extends to its
customers in Mumbai a host of books, music and stationery. It offers a huge range of choice with
25,000 Books of every genre including Indian Languages and Academic books, over 15,000
movie and music titles, 4,000 stationery items, and a wide variety Gifts and Toys. The store will

www.ramms.co.in                                    20                         DECEMBER 2009
periodically offer book enthusiasts with the opportunity of interacting with their favourite authors
through book reading sessions designed specially for them. The store will also see a lot of
performances from up-coming bands and will host tons of activities for children. “Reliance
TimeOut launched its stores in Bangalore, Gurgaon, Kochi and Ahmedabad and has received an
overwhelming response from books, music and stationery enthusiasts in all the cities. Numerous
interactive events with well known Indian and International authors, musicians, dramatists and
other celebrities are organized at Reliance TimeOut for books and music lovers. The stores have
also become a destination for children due to the numerous events held especially for them,”
Kapany added.

Retailers in X'mas spirit as shoppers binge

23 Dec 2009
In the run-up to Christmas, retailers across the country are seeing an uptick in sales as shoppers,
buoyed by the festive sentiment and risingconfidence levels in a fast-recovering economy, feel
emboldened to loosen their purse strings.Several major retailers are seeing significantly higher
sales year-on-year, with the increase more pronounced in categories such as perfumes and
jewellery, garments and apparel, toys and gifts, Christmas decorations and items such as
confectionery, wine, liquor, cookies and imported foods.In December, large retailers are on an
average experiencing overall sales growth of around 22% year-on-year, with some categories
seeing up to 60% higher sales, flattered by the so-called “base effect”. Christmas sales were
subdued last year after consumer sentiment took a hit in the wake of the economic slowdown
triggered by the recession in the developed West and the terror attacks on Mumbai.Reliable data
on retail sales are hard to come by in India, unlike developed markets. Organised retailers enjoy
a tiny market share and even in that sector, there are no industry-wide data sources. Figures in
this story are averages from respondents to a dipstick survey by ET.Retailers say sales figures
this year are likely to be around 15% on average, higher than even the boom levels of December
2007, further proof of momentum returning to the economy. India’s GDP growth slowed to 6.7%
last fiscal after averaging more than 9% in three straight years, although for the quarter to end-
September, the growth figure recovered to a respectable 7.9%. The results are showing, and
retailers expect the upward momentum in sales, which started during the Diwali season, to last
through early January.“We are expecting a 35% rise in demand for diamond jewellery during the
year-end festivity,” said Mehul Choksi, group MD of Gitanjali Group, which owns diamond brands
such as Nakshatra, Gili and D’Damas. For Gitanjali, it’s not all about Christmas. The company is
a beneficiary of the high price of gold, which has dimmed its allure among shoppers and
encouraged them to buy diamonds instead.In Kolkata, Starmark, the Emami group’s books-
music-gifts retail venture, has seen a 30-35% jump in sales since last Friday and the retailer
expects this to pick up further on Christmas Eve.“This year, sales have been extremely good after
near flat sales last Christmas. Products like Christmas trees and decor, toys and gifts are moving
off the shelves fast,” said Starmark CEO Gautam Jatia. Starmark, which has four stores in
Kolkata, has seen sales in the past two weeks grow more than 15%, with lifestyle products such
as apparel, gifts, jewellery and perfumes recording more than 20% growth.Jatia has noticed a
changing pattern in Christmas shopping. “Earlier we used to see Christmas shopping picking up
at least two weeks in advance. Now, it typically starts from the weekend before,” he said.Unlike in
the West, Christmas is not a big sales season across much of India compared with festivals such
as Diwali. However, together with the wedding season in north India and the rising spending over
New Year celebrations, retailers are ending well what has otherwise been a muted year.Some
parts of the country are seeing more activity around Christmas than others, say retailers. “In cities
such as Bangalore, Kochi and Delhi,where people are more upbeat about Christmas, we have
witnessed good footfalls,” said Bijou Kurien, president, lifestyle, Reliance Retail. He forecasts a
15% sales growth this season, particularly in categories such as apparel, footwear, electronics,
books and music.RPG Group’s flagship, Spencer’s Retail, expects the bulk of its Christmas sales
to come from bakery products followed by confectionery, wine, liquor, cookies and imported foods
from its gourmet section. “We expect to clock additional business of about Rs 1.5-2 crore from the

www.ramms.co.in                                   21                         DECEMBER 2009
Christmas range of food and bakery products,” a senior executive at Spencer’s Retail said,
adding that this represented a 50-60% jump in average sales for these categories.Retailers
including Marks & Spencer, Lifestyle and Shopper’s Stop say fragrances and jewellery are most
popular with Christmas shoppers, with bags and garments also jumping off the shelves.Women
are driving consumption in categories such as women’s western wear, cosmetics and bags, said
Shoppers’ Stop CEO Govind Shrikhande. “The sales in the past two weeks... has been growing in
double-digits,” he said, adding that the wedding season has added to the momentum.Kabir
Lumba, MD at Lifestyle International, which runs Lifestyle and Home Centre stores, says his
company has seen double-digit growth across formats, on a like-to-like basis and across apparel,
footwear as well as beauty products.

2009: Organised retail feels recession pangs

18 Dec 2009
NEW DELHI: India's retail industry boom gave way to despair in 2009 as consumers held back
big spending, forcing some companies to restructure finances, while recession-battered western
retail chains would have felt glad they were not allowed to set shop.Although the UPA
government returned to power, minus the push and pulls of Left parties, it decided to keep
western multi-brand retail chains off from the country's USD 450 -billion retail market. But nobody
was complaining, as the recession-battered global majors were busy securing existing operations
elsewhere.One estimate suggests that nearly 5,700 retail stores would close down this year in the
US alone.That slowdown had got to the domestic retail trade became evident when one of the
earliest players, budget-retail chain Subhiksha, went bust. Not long after, north Indian chain
Vishal Retail went for corporate debt restructuring. Others such as Mukesh Ambani-run Reliance
Retail and Kishore Biyani- led Pantaloon went slow on expansion or even downsized operations.

Though the last quarter saw a bit of marketplace confidence returning, overall, the year remained
challenging. There were no estimates, however, of how mom & pop stores fared through the
year.While Indian companies tread cautiously, the world's largest furniture maker Ikea scrapped
plans to enter the country, citing government's restrictions on FDI.The Swedish retailer was
planning to enter the single- brand retail segment, where 51 per cent FDI is allowed but it wanted
further relaxation of the rules.The last quarter, around the festive season, saw a bit of consumer
confidence returning, with some retailers player announcing expansion plans for the coming year.
The year started with Chennai-based retailer Subhiksha Trading Services Ltd going bankrupt and
downing the shutters of all its 1,600 odd stores across the country due to severe liquidity crunch.
With its lenders running for the company's skin and over 5,000 employees on the street,
Subhiksha sought a corporate debt restructuring (CDR) exercise.But, that remains inconclusive
and the firm now faces a slew of cases by its suppliers in the Madras High Court on winding up
petitions.Reeling under Rs 730-crore debt, Delhi-based supermarket chain Vishal Retail also
went in for a CDR in November. Earlier in the year, it had already halted all expansion.Even the
country's largest retailer, Kishore Biyani- promoted Future Group, faced crunch and went in for
restructuring of its operations and merging them under six verticals.A few months ago it
announced plans to hive off its supermarket chain Big Bazaar as a separate entity and list it on
the market by end of the current fiscal.Biyani said the company will open 155 Big Bazaar stores
by 2014, increasing its total network to 275 stores.Besides, its subsidiary, Pantaloon Retail will
invest Rs 360 crore this fiscal to add up to 2.4 million sq ft of retail space. The company had
raised Rs 500 crore in November through Qualified Institutional Placement and is looking to raise
some of the money for expansion.But as the confidence began to return in the last quarter, with
the economy showing signs of growth, retail players started unveiling expansion plans for the
coming months and years.Biyani hopes to make Future Group a Rs 25,000-crore entity with a
total retail space of 30 million sq ft.Bharti's single-brand retail chain 'Easy Day' continued
expansion across North India. It plans to have 200 outlets by end of next year, from 70
currently.Koutons Retail, a leading apparel chain, said it will amalgamate various formats under
the brand of 'Koutons Family Store' and plans to add another 100 outlets by March.Shoppers

www.ramms.co.in                                  22                        DECEMBER 2009
Stop will invest Rs 250 crore in opening 15 new supermarkets in next three years.The Franchise
India 2009 Summit in November saw participation of over 200 Indian and foreign retail players,
with many of them unveiling plans to invest big in India.During the summit, Australia's largest
retail chain, Retail Food Group, and Thailand-based restaurant-chain Minor Food Group
announced plans for India foray by 2010.Meanwhile, in wholesale cash-and-carry -- where 100
per cent FDI is allowed -- foreign players like Wal-Mart saw fruition of their much-awaited
plans.Wal-Mart, the world's largest retailer which has a joint venture with Bharti Retail, opened its
first 'Best Price Modern Wholesale' store in May this year at Amritsar. The JV plans to open 10-15
hypermarkets by 2015.However, French supermarket chain Carrefour, which earlier planned to
start its wholesale cash-and-carry business by mid-2009, postponed the foray till 2010. The
company is yet to announce details of Indian operations.

Inorbit says no daily rental on the cards

17 Dec 2009
Inorbit Malls says it is not considering employing a pay-per-day rental model at its properties.
Responding to a query on the optimum rental equation at Inorbit properties, Kishore Bhatija,
CEO, Inorbit Malls, said exclusively to IndiaRetailing, “Across Inorbit we are now following a mix
of minimum license fee and revenue share, whichever is higher. Both the retailers and we are
comfortable with this model.""At the moment we are not looking at the pay-per-day model. The
pay-per-day model would have to be studied in detail and the practicality of implementation needs
to be established. And the rent model for everyone (retailers) is the same,” he added.Talking
about the leasing of the property and anchor tenants of the mall, which opened on October 14,
2009, Bhatija said, “The leasing for Cyberabad is close to being completed now. We have around
30 stores open as of today (Dec. 17) with over 40 stores in advanced stages of fitouts. All our
retail anchors -- HyperCity, Shoppers Stop and Lifestyle -- are operational. Additionally, we have
brands like Marks & Spencer, Max, McDonald’s and a number of India’s and Cyberabad's leading
brands.”Talking about the developer's next property, Bhatija said, “After Vashi and Cyberabad,
we are now looking at opening Inorbit, Pune in the last quarter of 2010 and Inorbit, Whitefield by
first quarter of 2011. After these, Vadodara is on the cards. We are on an active lookout for new
properties at this moment."

Pay per day: New rental plan for retailers

15 Dec 2009
MUMBAI: While retailers are still working with the option of cutting costs and negotiating rentals
to gear up for expansion, mall owners, who are vital for the organised retail sector, are
experimenting with a new method - rent on a daily basis. Atul Ruia-owned Phoenix Mills Market
City mall has already implemented the system at a few of its locations, while others such as
Inorbit and Nirmal Lifestyle, are actively considering it as an innovative option for their
forthcoming malls.Currently, the fixed rental or revenue share scheme is widely practiced with
minimum gurantee money, depending on the brand, product and location of the space. Fixed
rental was much preferred till the liquidity crisis spread and the global demand slump hit both
retailers and mall owners.“We are receiving quite positive response and have planned to
implement it (the daily rental model) across the country,” says Phoenix Market City managing
director Atul Ruia. “It is a viable option in an industry that is just recovering from a period of
uncertainity.” India’s organised retail market, roughly estimated at Rs 20,000 crore, and which is
closely connected with malls, was among the first sectors in India to be affected by the crisis as
consumers postponed purchases. As a result, many retailers and mall owners started looking at
various options including revenue sharing and a minimum guarantee amount.Under the new
process, the retailer will have a joint account with the mall owner and at the end of each day, the
share of mall owner is debited to his account.In the previous method - the revenue sharing model
- percentage rents were payable annually, quarterly, monthly, or upon achieving breakpoint

www.ramms.co.in                                   23                         DECEMBER 2009
sales.“We believe any innovative method that could streamline the system and synergy between
the owner and the retailer is welcome,” says Inorbit CEO Kishore Bhatija. “We are looking at
implementing first at our Hyderabad mall.”Like Phoenix, Inorbit too has been in favour of the new
model for its malls at Hyderabad, Pune and Bangalore. Inorbit’s mall at Hyderabad, which opened
in October this year, has seen 66% occupancy on the revenue sharing model, while the
remaining would be on daily basis, Mr Bhatija added.Phoenix was first off the blocks,
implementing it at its new malls in cities such as Mumbai, Pune, Bangalore and Chennai. Phoenix
has three malls operational and plans to open seven in next three years, where this method will
be applicable. It is now implementing in Tier-I cities and latter will be in other cities too. Phoenix
also plans to open malls in smaller cities like Lucknow, Agra and Indore.Nirmal Lifestyle, which is
all set to launch its second phase of expansion next year, has planned for 30% remaining space
at its new mall at Mulund, a Mumbai suburb. Chairman Dharmesh Jain says this model will evolve
as a realistic method of revenue collection. “It would be beneficial with much transparent
transaction between the two,” Mr Jain added.However, the industry sees this practice at a very
nascent stage. Jones Lang Lasalle Meghraj managing director (retail) Shubhranshu Pani says,
“Though this method would derisk the retailer from the pain of high rentals, it will take another two
three years to be widely used. “Retailers are pressing for better options before signing revenue
sharing agreements rather than going for pure rental arrangements with mall owners,” Mr Pani

Bharti Retail aims for 40% revenues from private labels

12 Dec 2009
KOLKATA: Bharti Retail, the wholly-owned retail arm of Sunil Mittal’s Bharti Enterprises, is
planning to shore up revenue from private labels at its stores to match the global industry
benchmark.While private labels now account for about 16 per cent of revenue, the company
plans to ramp this up to near 40 per cent over the next three years. This was indicated by Bharti
Enterprises vice-chairman & managing director Rajan Bharti Mittal.He was talking to reporters on
the sidelines of a Ficci meeting in Kolkata on Friday. Iconic US retailer Wal-Mart Stores—Bharti
Retail’s JV partner for the cash & carry venture—is also exploring opportunities to source and sell
Bharti’s private label brands across Wal-Mart retail outlets globally.Incidentally, Bharti Retail has
already introduced two of Wal-Mart’s top-selling private labels, George (apparel) and Great Value
(staples), in its stores.Bharti Retail operates some 70 outlets across two formats—neighbourhood
stores called ‘Easyday’ and compact hypermarket outlets called “Easyday Market’. The joint
venture—Bharti Wal-Mart Pvt Ltd—runs a wholesale cash and carry outlet, ‘Best Price Modern
Wholesale’, at Amritsar.Mr Mittal said all private labels sold in Easyday stores and Best Price
Modern Wholesale is sourced out of India.“As we develop our retail business and partnership with
Wal-Mart, there are opportunities to increase the number of Wal-Mart private labels in our stores
and sell some of our private labels to Wal-Mart for their global operations. We are looking at such
cross-pollination of business,” he said.Mr Mittal said Wal-Mart sources products from India worth
nearly $1 billion for its global operations. “However, more than 90 per cent of the products which
will be sold through the Best Price Modern Wholesale outlets will be sourced from India,” he
said.Bharti Retail is also in track with its expansion plans to set up 200 Easyday stores by
December 2010. Next year, it plans to roll out stores in Rajasthan, the National Capital Region,
Uttar Pradesh and Madhya Pradesh.“We plan to enter expand into either south or west India in
2010 in line with our plan to generate Rs 1,000-crore revenue from the retail business by fiscal
2011,” said Mr Mittal.

www.ramms.co.in                                    24                         DECEMBER 2009
Haagen-Dazs enters India with Select Citywalk store

11 Dec 2009
General Mills India Pvt. Ltd opened the first flagship outlet of iconic ice cream brand Haagen-
Dazs in India at Select CityWalk Mall, New Delhi on 10th December.Speaking exclusively to
IndiaRetailing, Arindam Haldar, director, Haagen-Dazs & Business Processes, said, “The area of
this outlet is 1,400 square feet and we are delighted to serve a wide range of tempting ice-creams
from Haagen Dazs -- Belgian Chocolate, Choc-choc-chip, Coffee, Vanilla, Chocolate, Mango
Sorbet, Cappuccino truffee, Raspberry sorbet, Strawberries cheese cake, Summer Berries &
Cream, Mango & Passion fruit, Vanilla Caramel Brownie, Cookies & Cream, Strawberry, etc.
along with different cookies and brownies.”Speaking about the price range, Haldar said, “The
price range of these ice creams is between Rs 390 to Rs 450.”Anindo Mukherji, managing
director, General Mills India, said, “Our first flagship outlet in India will provide consumers with the
opportunity to enjoy Haagen-Dazs in a cosmopolitan yet relaxed setting, the perfect reflection of
Haagen-Dazs' commitment to innovation, natural goodness and sophistication.”Haagen-Dazs
joins General Mills India's repertoire of food brands in the Indian market -- Pillsbury, Betty
Crocker Mixes, Green Giant and Nature Valley Crunchy Granola bars.Haagen-Dazs, which
created the super-premium ice-cream category in 1961, is today sold in more than 50 countries
across the globe. The brand has over 900 shops worldwide. General Mills, headquartered in US,
had a fiscal 2008 net sales of USD 14.9 bn including the company's $ 1.2 bn proportionate share
of net sales from JVs.Häagen-Dazs was bought by Pillsbury in 1983, which had earlier been
bought by General Mills in 2001. However, in the United States and Canada, Häagen-Dazs
products are produced by Nestlé.

Nestlé India Board approves proposal of Speciality Foods

08 Dec 2009
Packaged food maker, Nestle India ina recent announcement declared that it will acquire
healthcare nutrition business of Speciality Foods limited as a step towards formal entry in the
specialised health nutrition space. Following this, the Board of Nestlé India approved the
acquisition of the healthcare nutrition business of unlisted Speciality Food India, effective from
January 1, 2010.Commenting on the development, Antonio Helio Waszyk, chairman and
managing director, Nestle India said, “We are leaders in nutrition and have been leveraging the
Nestlé Group’s R&D capability and expertise in nutrition science and technology to develop
superior nutritional products for everyday use. I am pleased with the proposed acquisition.
Healthcare Nutrition plays a vital role in satisfying the needs of consumers with special nutritional
requirements so they can enjoy a Good Life. This new business will further strengthen our
leadership as a Nutrition, Health and Wellness company.”The product portfolio under the
Healthcare Nutrition Business is meant to satisfy the needs of consumers with special nutritional
requirements and sold in India under brands like Resource, Optifast and Spert. Resource is
specially formulated for the management of malnutrition and other medical conditions associated
with increased nutritional needs. It has a range of formulations including, amongst others,
Resource Diabetic, a ready to use, fibre rich diet for better nutritional management of diabetics
and Resource High Protein that provides easily digestible whey protein. Optifast is a nutrition
supplement in overweight condition and Spert is a protein supplement to address the increased
protein needs of the family.

www.ramms.co.in                                     25                         DECEMBER 2009
Runaway retail prices dent domestic budgets

4 Dec 2009
NEW DELHI: The government on Thursday announced that the average wholesale price of food
items had increased by a whopping 17.5% in the past one year. A representative of the Azadpur
mandi says that some vegetables were affected due to unseasonal rain in Maharashtra recently,
but most food items are reasonably priced right now. ‘‘ Okra, bottlegourd, arbi and tinda are
vegetables that are nonseasonal and hence they would be slightly expensive. Onions, the best
variety of which comes from Nasik, were affected due to rains but we are getting a good quantity
from other places. In fact, the rate has actually come down in the past week. Potatoes were
expensive due to floods in Kosi, and in West Bengal there was a problem with the seed. But now
with the Punjab produce coming in, its prices are also down,’’ he said. The only problem is tomato
, again ruined by the Maharashtra rain. ‘‘ It will take another two weeks or so for tomato from
Rajasthan to start coming and make up for the shortfall. The prices will start falling then,’’ he
added. Delhi tends to suffer high prices because most of its vegetables are procured from other
states. ‘‘ Vegetables are highly perishable and even the slightest change in weather can ruin
them in transit,’’ said another mandi official. That is an excuse often given by retailers who have
been having a field day ever since food inflation started making headlines. ‘‘ We are investing so
much in getting a good quality of produce and storage is a huge hassle for us. Unless we make
up for it with consumers, there is no way we can survive,’’ said Atma Ram, a vegetable vendor in
Kaka Nagar. Curiously, prices vary a lot from locality to locality in Delhi — a phenomenon which
may have been controlled had the city government’s two year old plans of starting a price
monitoring cell taken off. Most south Delhi vendors charge almost double of what their
counterparts in east or north Delhi do. One important factor that affects such costing decisions is
how much the vendor needs to dole out to the police to ensure that his set-up is permitted. ‘‘ If we
want good business we have to pay the policeman his cut from what we earn. The more posh the
area where we set up our stalls, the more money we need to pay. Also, in certain areas it is
evident that spending on good quality vegetables is not an issue with residents, specially if their
are buying vegetables like baby corn and bell pepper ,’’ said a vendor in Greater Kailash-I in
south Delhi..

Trent beats slowdown blues; stock gives whopping returns of 224% in one year

4 Dec 2009
Mumbai-based retailer Trent is one of the few retailers to have beaten the broader market. The
stock has given whopping returns of 224% in the past one year as compared to 96% returns
posted by the benchmark index. In the same period, ET Retail index was up 75%. It managed to
beat the slowdown blues because of its focus on private labels.Started in 1998, Trent runs a
lifestyle chain Westside, Star Bazaar, a hypermarket chain, Landmark, a books and music chain
and Fashion Yatra, a complete family fashion store. Additionally, Trent has cemented
partnerships with proven players such as Tesco, the British retailing giant, Spain’s Inditex Group
(Zara) and Benetton of Italy to expand its portfolio. The only organised retailer with close to 90%
private labels, Westside has 41 stores in 23 cities across India, selling clothes, footwear, fashion
accessories and home products.The company’s Westside stores caters to the mid-segment of
consumers in tier-1 and tier-2 cities while Star India Bazaar is present in the value segment.
Going ahead, Trent hopes to have 50 hypermarkets in five years, which should generate a
turnover of Rs 3,000 crore.With 3.8% net profit margins, Trent plans to increase the share of its
private label products. It reported a 5.9% growth in revenue for the quarter ended September 30,
2009 to Rs 136.4 crore as compared to Rs 128.9 crore in the same quarter last year. Net profit for
the same period registered a 49% growth at Rs 5.3 crore compared to Rs 3.5 crore a year
ago.Currently, at 0.19 debt-t o-equity ratio, Trent is the least leveraged amongst listed retailers.
The stock is currently trading at a P/E multiple of 63x and valued at less than one time its sales
(market capitalisation to sales) compared to Pantaloons (0.9x) and Koutons (1.3x). At a price-to-
book value (P/BV) of 1.08x, Trent is much cheaper than its peers Pantaloon’s (1.1x) and Koutons

www.ramms.co.in                                   26                        DECEMBER 2009
(3.7x).At the annualised EPS of Rs 27.1, its one-year forward P/E will be 30x. Though the
business model is right, it is the speed of scalability that needs to be improved. With an improved
growth, the company will be able to justify its high earnings multiple.

Mukesh turns to Team Tesco to revitalise Reliance Retail

4 Dec 2009
NEW DELHI | MUMBAI: Mukesh Ambani has turned to a 47-year old expatriate from Tesco
Thailand to turn around the fortunes of his retail venture as rivals Big Bazaar, More and
Spencer’s undo their past mistakes and prepare to face a promising economy once again.
Reliance Retail, a unit of the petroleum-t o-potatoes conglomerate Reliance Industries, has hired
Gwyn Sundhagul, chief marketing officer and director at Tesco Lotus, Thailand, as chief
executive of its value retail format to ensure that Mr Ambani’s “big dream’’ comes true, “quietly,
but surely”. Value formats sell goods such as soaps, biscuits and vegetables and contributes 70%
to the total sales of Reliance Retail. The company also operates lifestyle formats. Four of Mr
Sundhagul’s colleagues are set to follow him. Of the four, Sansahee Kubena, former head of
human resources at Tesco Lotus, is the first to come on board. The others are expected to join
shortly. Retailers, including Reliance and Aditya Birla Group, were proved wrong in their
strategies as they expanded rapidly in the few years up to the credit crisis, opening many stores
without putting t e vital supplies in place. But when the economy slowed, these companies
shuttered hundreds of stores and sent home thousands of employees. Subhiksha, a once-
promising retail chain, went bankrupt. Now, all these companies are coming back, albeit
cautiously.Mr Sundhagul, a Thai national, who cut his teeth in retailing at Barn Furniture in the
US, will also join Reliance Retail’s board of directors, an industry executive familiar with the
development said. Other directors on the board of Reliance Retail include RIL chairman Mukesh
Ambani and Manoj Modi, widely regarded as Mr Ambani’s right-hand man. Dipak Jain, former
dean of the Kellogg School of Management, is an independent director.The choice of an Asian,
with an exposure to western markets as well, means that chances of success may be higher, said
the above quoted official. Tesco in Thailand faced similar problems as Reliance does here, with
thousands of competing kirana shops, which are versatile in their approach to satisfy customers,
unlike the rigid structure of an organised retail store, he said. Mr Sundhagul is expected to
experiment with strategies that helped Tesco Lotus secure market share in Thailand, said the
official.But his move to India is also expected to see a change in the existing management
structure at RIL’s retail arm.CEOs such as Raghu Pillai, who spearheaded the rollout and
subsequent expansion, will now focus on business development, bringing more global alliances
such as that with UK’s Marks & Spencer. Bijou Kurien will continue to hold independent charge of
lifestyle business. K Radhakrishnan, who used to handle merchandising, left recently.Reliance
Retail’s HR team, led by chief people officer Bijay Sahoo, needed several rounds of meeting to
convince Mr Sundhagul, said the official. “Finally, we made him understand that our each zone in
India is a Thai equivalent market with 60 million population,” the official added.Reliance
Industries, which is committed to the retail operations, declined to comment for the story. “This
short breather that we have taken from breakneck expansion has been time well spent, because
we have gained a robust foundation on which to build a rapid scale-up in the future,’’ Mr Ambani
told shareholders last month.Reliance’s retail business is spread over 86 cities in 14 states with
1,000 stores. Reliance Retail, along with Reliance Fresh, reported a loss of Rs 260.2 crore on a
combined turnover of Rs 2,400 crore last fiscal.

www.ramms.co.in                                  27                        DECEMBER 2009
Bijou Kurien to join jury in global retail competition

02 Dec 2009
Bijou Kurien, president and CEO of Reliance Lifestyle, to join the prestigious line up of leading
retail industry figures responsible for selecting the winners of the Oracle World Retail Awards in
2010.Retail businesses now have just two weeks left to put themselves forward for consideration
by the prestigious judging panel, with the fast approaching deadline for entries set for 11
December 2009.Presented each year during global industry gathering, the World Retail
Congress, the 2010 awards are set to take place for the first time in Berlin. Designed to recognise
the outstanding innovation and creativity delivered by retailers across the globe, the gala awards
ceremony is firmly established as one of the most important dates in the global retail calendar
and continues to act as a benchmark of excellence in the key areas that are import ant to modern

Members of the jury are:
   • Laura Wade-Gery, CEO, Tesco.com
   • Matt Rubel, President & CEO, Collective Brands Inc.
   • Richard Simonin, Group CEO, Etam Group
   • Dr Wu Jianzhong, Chairman, Wumart Group
   • Dow Famulak, European President, Li & Fung USA
   • Bernie Brookes, CEO, Myer
   • Ibrahim Kanburoglu, General Director, Koton
   • Bijou Kurien, President and CEO, Reliance Industries
   • Dr Gordon Campbell, Managing Director, Spar International
   • Mohammed Alshaya, CEO, Alshaya
   • Andrew Jennings, Group MD Retail, Woolworths South Africa
   • Paul Charron, Senior Advisor, Warburg Pincus LLC & Chairman Campbell Soup
   • Mindy Grossman, Global CEO, HSN Inc
   • W. Sean Ford, Vice President, Global Business Unit Marketing, Oracle

“The Oracle World Retail Awards are like the lighthouse in the world retailing industry, shining
with the best practice of retail excellence, business model and innovation. The whole process of
selecting the awards candidates also demonstrates the judgement on the world retail
development trend, which benefits the sustainable growing of retail industry,” comments Dr. Wu
Jianzhong, chairman, Wumart Stores.The Grand Jury will meet in Berlin on 20 April 2010, two
days before the awards ceremony, to discuss the shortlist at length.The twelve category winners
will be revealed at the Oracle World Retail Awards gala dinner, on 22 April 2010 at the German
Historic Museum, Berlin. The awards are a major, and growing, part of the extensive World Retail
Congress programme, which will equally be held at the Intercontinental Berlin from 21 to 23 April

Aditya Birla retail ramps up private label biz

2 Dec 2009
MUMBAI: Aditya Birla Retail which operates the More chain of super markets and hypermarkets
is scaling up its private labels business as an independent strategic b   usiness unit (SBU) and
profit centre which may be spun off as a separate entity. The move is an aggressive attempt by
ABRL to meet a management diktat of ensuring quicker profitability of the long haul retail
business.Usually, the private labels businesses of most retailers operate in an integrated manner
with the rest of its merchandising, supply and operational teams. ABRL has stepped up
investments in a separate R&D and supply chain centres to build the entity as an FMCG business
to build and market the brands to other retailers and the general trade. Already over 19-20%
sales from its More super markets and hypermarkets are from its private labels business. Private

www.ramms.co.in                                  28                        DECEMBER 2009
labels are brands owned and marketed by the modern retailer at 15-20% prices lower than
national brands across categories.“ABRL’s private label model has been created to address it’s
own strategic plan and vision. A dedicated team with varied experience in FMCG & Retail, R&D
creates suitable products with strong revenue potential and higher margin backed with relevant
consumer benefits. Our private label contributes 6% of share of category in super markets and an
18% penetration with our `Club More’ loyal customers. Our brands offer 8            -10% incremental
margin over national brands. We operate in over 40 key categories and many of our brands like
Feasters Noodles,110% Dishwash Bar, Kitchen’s Promise Pickles, Fresh-ODent toothbrushes
operate at higher share of national brands in our stores. We are looking at sales from our private
brands touching 35-40% of total sales within the next two three years “ said Thomas Verghese
CEO of ABRL.ABRL shut over 70 unviable stores across the country and opened new ones in
locations with better catchment areas and currently has 645 supermarket and hypermarket
stores. The company has over 300 private label SKUs with brands such as Feasters Noodles,
Kitchen’s Promise pickles, Fresh-O-Dent toothbrushes present in over 34-35 categories.
Aditya Birla Retail started operations in 2007 and reported a net loss of Rs 534 crore in 2008-09
on a sales turnover of Rs 1,030 crore. The group is currently restructuring its business under the
new CEO, Thomas Varghese who was earlier senior-executive president and head of Grasim’s
pulp division. The group’s retail business has already seen the exit of Andrew Derby, earlier head
of supermarkets, and its CEO Sumant Sinha, who joined Suzlon.It is revamping the format of its
stores, stepping up private label offerings and moving to hypermarts of 30,000-40,000 sq ft. The
retailer has in the last several months renegotiated rentals of every property to bring it down by by
30-40%.Modern trade is just 3-5 % of the total sales, but it is growing at over 10-15 %. Retailers
are hoping to improve their operating margins by 2        -3% by sharing back-end resources. Most
players in the Rs 30,000-crore plus organised retail industry were hit by teething problems and
the economic downturn. Grocery formats recorded huge losses, forcing retailers such as Reliance
Fresh, Birla’s More, Indiabulls and Spencers to shut down unviable outlets and halt
expansion.Focusing on private labels ensures significantly higher margins to retailers who do not
have to invest in advertising the brands. The country’s largest retailer, Future Group and Reliance
Retail are equally ambitious about their private label brands across food and non-food and are
actively advertising it.In recent times, retailer and FMCG companies have been at loggerheads
over sharing business margins. Industry analysts are not too optimistic about private labels
bringing in the big profit numbers for retailers. “Private labels is a game that retailers have to play
to ensure higher business margins. Bu they cannot really match the national and multinational
companies in areas such as R&D investments and advertising and marketing spends. They will
be constrained by funds in their initial growth years. To create a successful private label brand, a
retailer has to first create a strong retail brand” said Abhijeet Kundu, an analyst at Mumbai-based
Antique Stock Broking.

Dubai's financial meltdown

01 Dec 2009
"There are two real estate markets to consider in this situation – the one in India and the another
in Dubai. There are four factors involved in the Indian real estate market – demand, supply,
finance and sentiments. At this stage, sentiments due to the collapse of real estate in Dubai are
the most vulnerable and may get hit, while demand, supply and finance in India will remain
untouched," says Anuj Puri, chairman & country head, Jones Lang LaSalle Meghraj in a
statement isued to the media."What is happening in Dubai is a corporate default situation.
However, the Sovereign has not defaulted, so the condition is presently restricted only to real
estate. This would not have a major direct impact on India’s real estate market, which is largely
locally driven. Nevertheless, it is conceivable that the RBI may take a cautious approach in terms
of liquidity in the real estate sector, which would not be good news in light of the fact that FDI
norms for Indian real estate are on the verge of being relaxed," states Puri."It was evident that
Dubai’s real estate market was not long-term sustainable, since it was not driven by end user
demand. For a long time now, a multitude of apartments there have been standing unsold, held

www.ramms.co.in                                    29                          DECEMBER 2009
largely by speculator / investors who had bought them to sell them at higher prices that never
happened. The big question now is how many of these investors have the ability to service their
mortgages.""There would be real danger on a global scale if the Sovereign defaults, in which
case everyone – India included – would face issues. However, any kind of specific predictions
would be premature at this time. The next few weeks will reveal whether the Dubai situation will
stay at the corporate default level, or whether it will escalate into Sovereign default," informs Puri.

Dubai World announces restructuring plans

01 Dec 2009
The proposed restructuring process of Dubai World will only relate to Dubai World and certain of
its subsidiaries including; Nakheel World and Limitless World. The process will not include Infinity
World Holding, Istithmar World and Ports & Free Zone World (which includes DP World,
Economic Zones World, P&O Ferries and Jebel Ali Free Zone), all of which are on a stable
financial footing, stated a company press release.The total value of debt carried by the
companies subject to the restructuring process amounts to approximately US$26 billion, of which
approximately US$6 billion relates to the Nakheel sukuk.It is envisaged the restructuring process
will be carried out in an equitable way for the overall benefit of all stakeholders and will comprise
several phases including: long term plans and commitment of stakeholders; determination of
maintainable profit and cash generation; assessment of deleveraging options, including asset
sales; assessment of funding requirements and the formulation of restructuring proposals to
financial creditors and their implementation.The release further stated that initial discussions have
commenced with the banks of Dubai World and are proceeding on a constructive basis. In light of
the current operational challenges and the future obligations of the Group, it is anticipated that the
process and any related actions to address strategic alternatives will be conducted on an
expedited basis. As part of this overall process, Nakheel requests its sukuk holders to appoint an
authorised representative with whom discussions can commence.Moelis & Company have been
appointed to advise on the Dubai World restructuring with Rothschild, who will continue their
ongoing role as financial advisor. Dubai World intends to adopt a policy of regular communication
and will provide further updates as this process develops.

www.ramms.co.in                                    30                          DECEMBER 2009

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