RETAIL SECTOR
September 27, 2006
Coffee retail markets to invest Rs. 350 crores
Source: Economic Times , September: 25, 2006
Domestic and international coffee chains are planning for big expansions worth Rs.350 crores in the next 3-5 years. Barista, Costa Coffee, Café Coffee Day and Barnie’s are some of the major players who are planning or the expansions. Costa Coffee chain’s master franchisee Ravi Jaipuria group company, Devyani International Ltd.(DIL) is planning to invest Rs.150 crores to set up 300 outlets in next 5 years.
Reliance to adopt retail as well as supply model
Source: Economic Times , September: 25, 2006
Reliance is strengthening its supply chain efficiencies by rolling out its first stores- 5 large- format stores (5000-10,000 sq. ft.) in size in Hyderabad in the 3rd week of October. The company is importing electronics, apparel, stationery and also FMCG from China. It is also planning to set up rural business hubs within 6 months or so in Punjab, Haryana, H.P, Uttaranchal and W.B.
Bharti’s retail model to be finalized by October
Source: Economic Times , September: 23, 2006
Bharti Enterprises chairman Sunil Mittal is planning to finalise its retail business model this October. Bharti is exploring the various business possibilities with all large multinational retail chains keen to enter the Indian market including Tesco. Mr. Mittal also said that $ 2 billion will be invested in various projects in 2006-2007 especially in telecom.
Organised retail changing FMCG Cos. Revenue model
Source: Economic Times , September: 25, 2006
The fast moving consumer goods(FMCG) is witnessing a change in the revenue model with the growth in the organized retailing.
The Rs 3,700-crore co-operative dairy giant Gujarat Co-operative Milk Marketing Federation (GCMMF), which sells Amul and Sagar brands of dairy products through 5,00,000 unorganised retailers, is now generating 3% of its total revenues from organised retailers.
The revenues of the Vadodara-based Rs 200-crore Ashwin Vanaspati India, which sells the corn oil brand Korndrop, has seen its revenues from the organised retail stores go up to 5% from 2% of total sales in the last two years. GCMMF has joined hands with Pantaloon, Adanis and Shubhiksha for the supply of bulk quantity of its products.
