cool retail

Piramyd Retail eyes 'global' JVs to take on rivals

Stunned by a fierce competition, the Piramyd Retail, owned by the
Ashok Piramal group, is revamping its business operations, and has
initiated joint venture talks with foreign retailers to set up new
formats like speciality stores or hypermarkets.

Unlike in the past, its core brands, Piramyd and Trumart will now be
handled as separate business units (SBUs). The company is also
ramping up the number of stores under both outlets and has set up a
team to identify new business opportunities.

"We have realised that there is a lot of catching up to do and are
in a hurry to do that. We have tied up additional space in the last
one year. There is a complete change across functions in the way we
look at business and a lot of dynamism is being brought in. Our team
is in place and the growth focus is clear," said Nandan Piramal,
executive vice-chairman. While Bipin Gurnani will head Piramyd, ex-
Lever hand, Upamanyu Bhattacharya will head Trumart. The expansion
may be funded either through internal accruals or private equity.

Trumart is being positioned as an upscale kirana outlet with a focus
on local catchment areas. "Instead of setting up single stores
across cities, we are planning to progressively exhaust each city by
ramping up Trumart outlets in residential areas and building up
scale in each market. Grocery, home and personal care products are
high-volume-low-margin-business and it makes better business sense
to focus on scales to be competitive," said Mr Bhattacharya.

Currently, there are 7 Piramyd outlets and around 14 Trumart outlets
across the country. "We are also identifying differentiators for the
malls, from a first-mover advantage to the service aspect. We are
looking at personalising loyalty benefits targeting individual
consumer needs based on their previous buying patterns," said Bipin

Piramyd Retail, which was listed on the bourses in '05 was one of
the first few retail outlets to open shop in the country. A few
years back it was seen as a strong competitor to players like
Shopper's Stop and Pantaloon.

However, lack of strong management focus and an unclear growth
vision saw the brand slipping at a time as competition picked up
steam in the last two years. Analysts say the company may seek
foreign equity partnership at a later point to keep pace with fierce
competition. "It is not something we are looking at immediately. For
now, our focus is to tone up the current core businesses, identify
new growth formats and ensure that support systems are in place to
gear up for the change in approach," Mr Piramal said.

The Piramal Group sold Crossroads to the Pantaloon Group and put all
future retail expansions under Crossroads on hold. Following the
merger of Piramal Holdings with Morarjee Realties, Crossroads had
been left out of the group's retail plans. All future retail forays
were to be done only through Piramyd, the retail arm of the Piramal


New member
Organised retail is on the threshold of a boom in India. But as companies line up to grab a bigger and bigger slice of the retail pie, another battle is likely to change the face of the industry -- the one between the manufacturer brands and the retail chains’ private label brands, which are far from being just cheap generics. Worldwide experience shows that as retailers become more powerful, they have increasingly focused on their own brands at the expense of manufacturer brands. Retailing in India is still very primitive. At the moment, private labels almost do not exist in the country. They are less than 5 per cent of the retail business and still have a long way to go. But Indian retail is extremely hot and it offers a proposition that can’t be seen anywhere else in the world. Only in China and India can retail chains have as many stores as they have in the US. In no other country can one imagine companies having 5,000-6,000 stores of their own.
Private labels will have a huge role to play in this. As much as 50 per cent of Indian retail will be occupied by private labels. Private labels are products that are manufactured by the retailer itself, rather than a manufacturer who generally markets them through separate retailers. As is evident, private labels are mostly prevalent in organised retail. Europe is the largest market for private label products globally. Within Europe, the United Kingdom is the largest private label market by size, followed by Germany. Private label penetration in the United Kingdom is close to 37 per cent currently, and is forecast to exceed 40 per cent by 2011.
Major factors affecting Private labels brands in India
• Structure of Indian retail is intrinsically not amenable to private labels
• Lack of retailer sophistication could hamper private label growth
• Rural areas unlikely to be tapped by private labels in the near future
• Psyche of the urban Indian consumer is both a hurdle and an opportunity
• Intense competition in Indian retail could provide impetus to private labels
• Private labels likely to exhibit maximum penetration in ‘food and groceries', ‘clothing' and ‘consumer durables' segments
thanx alot


New member
hi , the other project were useful to me , and i hope this will also be of great help to me , this website is of great help to the students of mba


New member
Without the knowledge of their previous job profiles, it is rather
unwise to offer "titular promotions". We say titular, because it has
been observed often that managers end up doing these same jobs even
after promotion. The rise is basically in the designation but the
and responsibilities are duplicated often, knowingly or unknowingly.