cool retail

dineshk · Nov 22, 2006

Sending coal to Newcastle

It may be the fittest example of the expression, 'sending coal to Newcastle': Tata's take over of UK national icon 'Corus' is much more than just that. India's amazing progress appears to continue unchecked. Every list of nations that will lead the world now includes India. The business pages of western newspapers and magazines have been full of Indian success stories. And now this deal
happens.

While India Inc. keeps producing these empowering conquests; I am reminded of Anand Mahindra's speech in a British University. He mentioned that as a school going child he used to take pride in the fact that his exam papers were set and corrected in England. Now he takes pride in the fact that many distinguished professors in British Universities are Indians.

I am also reminded of an article published in 'Observer' which stated, "The jobs we stole from India 300 years ago are now going back to India." This was a reference to our ever-expanding BPO Industry. It had quoted from authentic historical documents how the Indian Textile Industry and Irish Woolen Industry was consigned to oblivion by an Official English Decree to discriminate against the
worthy imports from these two countries.

I am reminded of the following official report to the Parliament in 1835, by British historian and politician, Lord McCauley. "I have traveled across the length and breadth of India and I have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values, and people of such caliber the very backbone of this nation, which is her spiritual and cultural
heritage.."

I also read the statement of James Leng, Charirman of Corus: "The only place we want to fly the flag is on the cricket field. Not in our steel plants...... We belong to the Tatas.... We have an international board, so now Tata Steel will also have an
international board."

The clock seems to have turned full circle, yet with a big difference:

Once upon a time the 'business of the world' was 'war'. All the roads would lead to wars between Nations or Societies, and all solutions would be attempted through wars.

Now the business of the world is 'serving the King- Consumer for a profit'. Mankind has decided to enjoy the fruits of the labour of our previous generations. It seems the old order is giving way to this new order. The agenda of an enterprise that can deliver this objective is painfully huge and hurting for many. It is such that many existing organizations are trying the merger and acquisition
route, to form new version, rather than to make a fresh start. Nationality of an organization as an issue has gone into background and requisite knowledge, competence, processes, brands, people, and customers are in the foreground.

Therefore there are compelling reasons for Indian Trade & Industry to explore its options with an open mind for-
"An open mind is LAXMI'S WORKSHOP"

dineshk · Nov 22, 2006

Rule 9: Control your expenses better than your competition.

This is where you can always find the competitive advantage. For 25 years running - long before Wal-Mart was known as the nation's largest retailer - we ranked No. 1 in our industry for the lowest ratio of expenses to sales. You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you're too inefficient.

dineshk · Nov 22, 2006

The UK IPOD generation: insecure, pressured, over-taxed, debt-ridden
By Graeme Wilson, Political Correspondent

Young people are facing a bleak financial future in which the state will take almost 50p in every £1 they earn, a report claims today.
Millions of taxpayers under the age of 35 have been hit by a debilitating ombination of rising debts, extra costs and low earnings growth, says the study by Reform, the centre-Right think-tank.
Making ends meet: the average student is expected to leave university owing nearly £15,000 It warns that those under 35 are fast becoming the IPOD generation – Insecure, Pressured, Over-taxed and Debt-ridden. The financial
pressures on them have become so acute, the report claims, that the average 20- to 35-year-old graduate will face an effective tax burden of around 48 per cent.
Once deductions have been made for tax, pension contributions and student loan repayments, they will take home only 52 per cent of their gross incomes.
Andrew Haldenby, the director of Reform, said: "Young people are in danger of drowning under a sea of rising taxes and new compulsory payments. They are in desperate need of a lifebelt, in the form of a long-term commitment to public spending, discipline and tax reductions."
The report, The Class of 2006: a lifebelt for the IPOD generation, says young people are facing financial difficulties on almost every front. Average earnings for people aged 22 to 29 have risen by less than 23 per cent over the last eight years, the smallest increase of any age group.
The young are also the most likely to be in debt, with the average student expected to leave university owing nearly £15,000. Between 2001-05, there was a 62 per cent rise in personal bankruptcies, but for those under the age of 30 there was a 288 per cent rise.
At the same time, sharp house price rises have made it impossible for many to get a foot on the property ladder.
The report warns that the pressures on young people were bad news for the country as a whole. "This will impose a considerable hindrance on enterprise and wealth creation for young people and the whole economy," it says.
It stresses that young people are in a "unique position" because few have benefited from Labour's flagship tax credits scheme.
Parents, pensioners and those out of work have all seen their tax bills reduced as a result of the policy, but young workers without children are largely excluded from the scheme.
The report estimates that the net income of a two-income couple with no children has decreased by 3.4 per cent since 1997. By contrast, the income of a non-working couple with children has grown by 15 per cent.
In addition, young people do not enjoy the housing or equity wealth that many older workers have accumulated. "They have no wealth but are taxed as if they did," the report warns.
While many young people have relatively low incomes, the under- 30s spend more on housing and utilities than any other age group. They also spend substantial amounts on transport, intensifying pressure on their budgets.
The report says their situation has been made worse by the Government's proposals to reform the pension system, including a more generous basic state pension and later pension age.
"Older people will gain enormously from a rising state pension linked to earnings. But they will face little of the costs of financing it. Nor will they have to work longer – people over 47 today will still be able to retire at 65," the report says.
Young people will have to fund the increase in the basic state pension through their taxes, as well as having to work until they are 68.
The report was released as figures revealed that last month's rise in interest rates had put off many would-be first-time buyers.
Propertyfinder, the internet property site, said first-time buyers now made up 30 per cent of householders, against a high of 38 per cent in February.
The Alliance & Leicester said that first-time buyers were twice as likely as other buyers to have put their buying plans on hold following the rise.
"The decision of a first-time buyer to take the plunge is much more sensitive to the level of interest rates than the decision of a home owner to move up the ladder," said Chris Rhodes, the managing director of retail banking at Alliance & Leicester.According to Rightmove, the estate agents, the average asking price
for a home is now £214,566, a 9.8 per cent rise in a year.

dineshk · Nov 22, 2006

"Retail chains circle over Indian airports with outlet plans..."
THE ECONOMIC TIMES
Anuradha Himatsingka & Writankar Mukherjee
KOLKATA

Modernisation and privatisation of Indian airports appear to have opened up new vistas for Indian retailers. Most of them, if not all, are working on their business strategies to grab a slice of this emerging business, either independently or through partnership with foreign specialised airport retailers.

While players like the Future Group and Shoppers' Stop have already entered into JV agreements, others like Trent's Landmark and Ebony are believed to be exploring options. The agreements come in the wake of expressions of interest being sought from retailers for opening up outlets within Mumbai, Delhi and Bangalore airports. Modernisation of Hyderabad airport is also on the cards.

Citing examples, sources said gifts-book-entertainment retail chain Landmark, in which the Tatas hold some 76% stake through their retail arm Trent, is also studying the market. It has initiated talks with the airports to finalise its foray.

Elaborating, Landmark's chief operating officer Himanshu Chakrawarti said, "We are currently finalising our business plan. Spread over some 1,000-5,000 square feet, the stores will have a merchandise mix like travel-related books, maps, light fiction, self-help books as well as management books."

Since it is still early days, retailers or even industry analysts could not put a number on the size of the airport retailing business but they felt it will be big business. Sources attribute this rush amongst retailers for grabbing a slice of this emerging business to the 25-30% growth in air traffic and the Union government's move to modernise Indian airports.

Owners of the Pantaloons and Big Bazaar chain - the Future Group toohas entered into a 50:50 JV with UK's Alpha Airports Group with plans to set up duty free shops and enter into in-flight and airport catering. Though it is still early days, the group's think-tank is toying with a merchandise mix ranging from liquor to cosmetics, apparel, chocolates and even gift items.

When contacted by ET on the merchandise mix, Future Group CEO Kishore Biyani said: "Why not? We are retailers and would like to be present at centres where consumption is maximum." Ebony Retail Holdings is contemplating options for an entry into airports of Tier II cities which too will be modernised.

"We are exploring options, but not in partnership since we already have the domain expertise," Ebony Retail Holdings' CEO Lalit Kumar said. Incidentally, Ebony was part of DS Construction-Munich Airport consortium bidding for privatisation of both Mumbai and Delhi airports with the sole intention of setting shop within airports, the source said.
The re-modelled and privatised airports will require retail and F&B (food and beverages) partners to make themselves viable and a refreshing experience for travellers, BS Nagesh, customer care associate and managing director, Shoppers' Stop, added.
Shoppers' Stop has teamed up with the Nuance group, a specialtyairport retailer operating more than 330 outlets across the globe, for its proposed entry into the Indian airport retail market. What is obvious is that both domestic and foreign airport retailers are excited about the business.
Apart from the ones who have already formed JVs, multinationals like DFS Group, Dufry Group and Gebr Heinemann too are keen to offer retail services including duty free shops at the existing as well as newairports being built across the country.

dineshk · Nov 22, 2006

Retail Destinations
Following business houses have expressed potion in Organised Retail.

General list: Ambanis, Godrej, Tatas, Birlas, Bhartis, Modis, Wadias, Ruias, Piramals, Adanis, Mafatlals, Singhanias, Rahejas, Kamaths, Lalbhais, Kasliwals, Mahindras, Oswals, Burmas, Biyanis etc.
Rural formats: ITC, DCM Sriram, Godrej, Escorts, Tata Chemicals.

dineshk · Nov 22, 2006

Meet India's king of retail [Information is dated, yet useful for those who have Pantaloon in their sight.]

Surajeet Das Gupta | January 15, 2005

Pantaloon's Kishore Biyani has become India's largest retailer, but still has several aces up his John Miller shirtsleeves. In India's chaotic markets, Kishore Biyani is the unchallenged king of retail. He has the knack of catching rivals off-guard and striking where it hurts most.

And now that he's set himself the task of retaining control of the largest retail space in the country, he won't let anyone - suppliers or international promoters included - catch him slacking.

The latest to face the wrath of the 43-year-old is South African hypermarket Shoprite, which opened shop in Mumbai last month through a franchise agreement with local company Nirmal Lifestyle.

The hypermarket began retailing products from big boys Nestle, Unilever and Procter & Gamble at consumer discounts of 20-30 per cent, lower than even Biyani's purchase prices in his Big Bazaar and Food Bazaar stores.

Instead of chewing his nails, Biyani turned confrontationist, asking why the multinationals were offering Shoprite better prices, even withdrawing Nestle products from his stores when the company did not respond.

Two days later the Nestle products were back, but not before the company had clarified its stance. Says Biyani, "Shoprite is involved in predatory pricing. There are rules against this in every part of the world."

But as a result of his tough stance, the three MNCs have asked Shoprite to roll back the offers or face withdrawal of supplies, he says.

dineshk · Nov 22, 2006

Pantaloon Man

Unlike most people, Kishore Biyani makes no bones about his simplicity. He's the man you're most likely to ignore at the Pantaloon or Big Bazaar store, as he stands in a corner observing the way you shop. But make no mistake, what he may lack in sartorial style, he more than makes up through his observation powers.
You'll never catch him in a tie and jacket. He isn't a stickler for large cars, and has just graduated from driving a Honda City to a Honda Accord, though he's just as content driving around in a junior manager's Maruti 800.
He is a strict vegetarian, and is currently off cheese and fried foods, but will otherwise eat anything that is green.
According to him, golf is a waste of time. Instead, he's addicted to a daily half-hour walk and does yoga twice a week.
He used to be a lawn tennis regular but gave it up citing lack of time. He can't understand the fuss about gyms and hasn't visited any.
Biyani loves films and has even produced some, but was never part of that industry. His personal preference is films by Guru Dutt, Yash Chopra and Sanjay Leela Bhansali.
He believes in taking quick decisions. The deal with Bennett, Coleman & Co was done in seven days flat. He has never met V Banga of Unilever in his life, and leaves the task of relationship building to his managers.
Instead he spends time with property developers - Sanjay Chandra of Unitech is a pal - merchant bankers and investment bankers.
Biyani's victory isn't unexpected. India's own Sam Walton (the legendary promoter of Walmart) is quick to seize any advantage. Which is why the denim manufacturer who quit the trade because "it wasn't creative enough" commands over 1.3 million sq ft of retail space.
But even size hasn't made a difference to Biyani's vaulting ambitions and he's on an even faster trajectory of growth. He's booked over 4.5 million sq ft of space across the country, and will utilise 3 million sq ft by this year's end in 23 Indian cities.
He will invest over Rs 200 crore (Rs 2 billion) to make this dream a reality. Says R S Roy, editorial director of the magazine Retail, which tracks the industry closely: "Mall developers have him in mind before they start constructing. His presence ensures footfalls and a premium for the mall."
Even Biyani concedes, "We have a store opening virtually every fortnight; I have lost count now of how many I have opened."
But don't let Biyani fool you. He keeps a close watch over his empire with the assistance of his two brothers, who are directors in the company.
He might have over 6,000 employees and 300 managers, but the buck stops only with him. Every time a store opens, managers have to rush daily reports for the first 45 days, and it isn't unusual for Biyani to be fixing any lacunae either over the phone or personally in the store.
Weekly targets are fixed and reviewed every Monday. The badshah of the bazaar jets between his stores across the country to "spend at least six or seven hours every week in the stores", he says. Even when he's in inspection mode, Biyani takes time off to cut more deals.
Last week he snapped up Indus League Clothing, a garments company in which he picked up 68 per cent equity for Rs 24 crore (Rs 240 million). The following day, he sold 4.98 per cent equity in flagship Pantaloon Retail to Bennett, Coleman & Co for Rs 70 crore (Rs 700 million)- a substantial premium on the prevailing price of the shares in the market.
Biyani hasn't always played in the big league. Having quit the family business, which supplied denim to Arvind Mills, in 1987, he collected Rs 7 lakh and set up a small plant that produced 200 trousers a day.
In the crowded market of readymades, Biyani learned his first lesson - to be heard, you need to shout louder than the rest. As a result, though the turnover for his Bare brand was only Rs 7 lakh in the first year, he spent Rs 16 lakh advertising it.
He also added John Miller shirts to his portfolio. This year, Pantaloon will spend Rs 85 crore (Rs 850 million) advertising its various store formats.
The shift from manufacturing to retail was the critical point in Biyani's career. Distribution costs were the reason brands were snuffed out in the market, so Biyani decided to rewrite the rules of the game.
In 1993, he experimented with a small store format, and Pantaloon Shoppe was launched in Panjim, Goa, "where we could make mistakes without anyone noticing them".
From the shoppe to the large store format in 1998 - this time in Kolkata ("If you can conquer Kolkata, you can conquer other markets too. Calcuttans, contrary to perception, have money and are loyal customers. They are emotional people and get emotionally attached to a brand.") - was a carefully crafted plot.
And he was proved right when the Kolkata Pantaloon store became a raging success and Biyani stepped on to the turf as a super retailer.
Other professionals have wondered where Biyani picked up the tricks of the retailing trade. Some he learned from his own mistakes, he admits. Others he picked up from the big boys of international retail.
"I read every book on Sam Walton, Macy's, Marks & Spencer and management gurus like Tom Peters whose book 'Reimagine' impressed me." Even now he reads a management book every fortnight - Stephen Covey, Robert Kaplan or James Collins.
But unusual as it might seem, he also made it a point to stay away from these stores. The reason: "By going to a Walmart or a Macy's, you could get overwhelmed into thinking that was the best model and stop learning," he says.
That might sound like stunted logic, but Biyani already knew from Sam Walton that you needed to be merchandise driven (to concentrate on the product and the price) so operational efficiencies could follow.
Macy's was useful for understanding the importance of size and large store formats. Marks & Spencer reinforced the importance of building in-house labels and the obsession with quality. He picked up the idea of "mind to market" (see box) from Spanish retail giant Zara.
To translate theory into practice, Biyani took a leaf out of Walmart's book and appointed category managers. "We have over 150 product categories and each is looked after by a manager who is responsible for its growth and profit," says Biyani.
In-house labels constitute 8 per cent of the turnover of food items in his stores, something he wants to up to 20 per cent by end-2005.
Similarly, Pantaloon also has its own manufacturing facility for garments, and 15 per cent of his fashion and garments turnover comes from there.
But the underlying message in books on retail strategy was the one thing India had been wary of - big is beautiful.
Biyani wasn't above picking up the gauntlet and launched Big Bazaar, a hypermarket in Mumbai as a gamble, financing it mostly through a loan (the share price was so low he could not have raised equity). To India's surprise, the format worked and the rest is history.
Detractors now attack him and say he is growing too fast. "He is leveraging his balance sheet to expand, and that could be a problem if some formats fail, and his margins are under pressure - his net profit as a percentage of sales is only 3 per cent," says a competitor.
Points out another Biyani watcher: "You cannot have two or three Big Bazaars or Pantaloons in one area, which is why he is desperate about getting new brands like Indus League."
Others rise to his defence. Says retail equity analyst Sanjay Dam: "He now has a size where some failures of format will not make a difference. That explains why Bennett, Coleman & Co was ready to pay a premium on his shares."
Biyani remains unperturbed by most comments. He points out that he does not negotiate less than 60,000 sq ft of space, using it to leverage rentals that are 60-70 per cent lower than what others pay in the same mall.
The volumes, he says, have ensured that, as in Walmart, 50 per cent of the store products are bought directly from the manufacturers, passing on the middlemen's margins to the customer. Other rules have been learned through a process of trial and error.
He will not increase the share of food and groceries to more than 25 per cent of the turnover because "that is the percentage of their salary that families spend on food. And margins in food can be as low as 5-8 per cent compared to 40 per cent in fashion wear."
The larger challenge has been to understand the diversity in customer behaviour where even Hyderabad and Bangalore are as different as chalk and cheese.
Hyderabad is conservative, male dominated, where customers like loud colours and shop in groups," he says.
"Bangalore is modern, where customers want subtle shades and shop on their own." In fact, Biyani has turned the study of community behaviour into a fine science through a specialised regional diversity tracking system.
He goes personally to people's homes, talks to local community leaders and spends weeks walking streets of bazaars to get a feel of what products should be stacked in a new store.
Biyani's current project is improving inventory management - though he replenishes entire stocks for grocery 30 times a year, and garments six times annually, he is not satisfied.
Explains Biyani: "This will be the key differentiator between the winners and losers because it reduces working capital requirement and improves return on capital." And if Biyani gets it right, his retail juggernaut could well be unstoppable.
Kishore Biyani is on to another idea, and he isn't letting go of it because it could change the face of the retail business. The goal is simple: to dramatically scrunch the time it takes from when a product is conceived to the time it takes to get to the stores. His target: 45 days flat.
In the world of fashion, it takes four-six months for an approved idea to make it to the stores. Biyani says that forecasting trends has too many variables and the chances of getting customer needs wrong are high. In such cases stores are stuck with huge unsold inventories.
"The aim of 'mind to market' is to respond to the demand of the market rather than try to forecast it months in advance," he says.
Pantaloon has already started pilot projects. In October 2004, the company detected a demand for trendier trousers. The company launched Fashion "F" Trousers based on this tip-off in December.
To cater to the demand, all departments - design (he has hired fresh design graduates to work with him), production, category managers, marketing and fabrication - came together on the project plan.
The team created a range of fashion styles and jointly agreed upon the fabrics that would be used, and the various price points at which the products would be launched.
Says Biyani: "We were able to put these trousers on the shelves of our stores all over India in 40 days."
At margins of 65 per cent, the pick-up offered great returns. No wonder Biyani's already on to the next project - he won't tell us the product though - where the lead time will be a meagre 22 days. Only Spanish retailer Zara's 15-day lead time is faster.

dineshk · Nov 22, 2006

IT in Retail

If you are interestred in information on how IT is providing important link between the various functions of organised retail have a look at the following link-
http://www.networkmagazineindia.com/200505/focus01.shtml

dineshk · Nov 23, 2006

The share of the country's organised retail segment has now grown
beyond the oft-quoted `3 per cent'. It is estimated to be about 9 per cent
of the current Rs 100,000-crore industry.
Confirming this, Mr Gibson Vedamani, CEO, Retailers' Association of
India, said, "Organised retail is about 8-9 per cent of the industry
across the country. In some cities such as Chennai, it touches about 14-15
per cent."
He also said that about 65 per cent of the organised retail is taken
up by food retail players while the rest is divided among apparel and
lifestyle segments.
Mr Gibson
told Business Line that the RAI was in the process of updating these
statistics and would release the figures soon.
Though luxury and premium malls have mushroomed across the country,
the real growth for the retail sector in the country area is in value
retailing, he said. "It's only in this area that retailers are getting a
national footprint," he said. Commenting on the impending entry of
foreign players in the industry, Mr Gibson felt that MNCs would find it
difficult to make inroads into hypermarkets and value retailing because of
the complexities of the Indian customer profile shopping habits. "To
cater to the Indian consumers' demand, they have to necessarily tie up
with an Indian company," he pointed out.
He also said that Indian retailers have strengthened their supply
chain in the last two years, thus leading to reduced wastage levels in the
industry. "Wastages, which was hovering around 35-40 per cent is now
around 8 per cent," he said. Companies are working on strong and
efficient back-end operations and better co-ordination with suppliers, he
added.
The Indian retailing industry is expected to employ about two million
people in the next two years, with 80 per cent comprising frontline
staff.
RAI is working with several institutions in imparting professional
retailing skills to students across the country, Mr Gibson said.

dineshk · Nov 23, 2006

Sudha Murthy & JRD: **
*

*
It was probably the April of 1974.

Bangalore was getting warm and gulmohars were blooming at the

IISc campus. I was the only girl in my postgraduate department

and was staying at the ladies' hostel.

Other girls were pursuing research in different departments of

Science. I was looking forward to going abroad to complete a

doctorate in computer science.

I had been offered scholarships from Universities in the US . I had

not thought of taking up a job in India .

One day, while on the way to my hostel from our lecture-hall

complex, I saw an advertisement on the notice board. It was a

standard job-requirement notice from the famous automobile

company Telco (now Tata Motors). It stated that the company

required young, bright engineers, hardworking and with an

excellent academic background, etc.

At the bottom was a small line: "Lady Candidates need not apply."

I read it and was very upset. For the first time in my life I was up

against gender discrimination.

Though I was not keen on taking up the job, I saw it as a

challenge.

I had done extremely well in academics, better than most of my

male peers. Little did I know then that in real life academic

excellence is not enough to be successful.

After reading the notice I went fuming to my room. I decided to

inform the topmost person in Telco's management about the

injustice the company was perpetrating.

I got a postcard and started to write, but there was a problem: I did

not know who headed Telco. I thought it must be one

of the Tatas. I knew JRD Tata was the head of the Tata Group;

I had seen his pictures in newspapers (actually, Sumant

Moolgaokar was the company's chairman then).

dineshk · Nov 23, 2006

Page 2

I took the card, addressed it to JRD and started writing. To this day

I remember clearly what I wrote.

"The great Tatas have always been pioneers.

They are the people who started the basic infrastructure

industries in India , such as iron and steel, chemicals,

textiles and locomotives.

They have cared for higher education in India since

1900 and they were responsible for the establishment of

the Indian Institute of Science.

Fortunately, I study there.

But I am surprised how a company such as Telco is

discriminating on the basis of gender."

I posted the letter and forgot about it.

Less than 10 days later, I received a telegram stating that I had to

appear for an interview at Telco's Pune facility at the company's

expense.

I was taken aback by the telegram. My hostel mates told me

I should use the opportunity to go to Pune free of cost and buy

them the famous Pune saris for cheap!

I collected Rs 30 each from everyone who wanted a sari.

When I look back, I feel like laughing at the reasons for my going,

but back then they seemed good enough to make the trip.

It was my first visit to Pune and I immediately fell in love with the

city.

To this day it remains dear to me. I feel as much at home in Pune

as I do in Hubli, my hometown. The place changed my life in so

many ways.

As directed, I went to Telco's Pimpri office for the interview.

dineshk · Nov 23, 2006

Page 3

There were six people on the panel and I realized then that this

was serious business.

"This is the girl who wrote to JRD," I heard somebody whisper as

soon as I entered the room.

By then I knew for sure that I would not get the job. The realization

abolished all fear from my mind, so I was rather cool while the

interview was being conducted.

Even before the interview started, I reckoned the panel was

biased, so I told them, rather impolitely, "I hope this is only a

technical interview."

They were taken aback by my rudeness, and even today I am

ashamed about my attitude.

The panel asked me technical questions and I answered all of

them.

Then an elderly gentleman with an affectionate voice told me,

"Do you know why we said lady candidates need not apply?

The reason is that we have never employed any ladies on the

shop floor. This is not a co-ed college; this is a factory. When it

comes to academics, you are a first ranker throughout. We

appreciate that, but people like you should work in research

laboratories."

I was a young girl from small-town Hubli. My world had been a

limited place. I did not know the ways of large corporate houses

and their difficulties, so I answered, "But you must start

somewhere, otherwise no woman will ever be able to work in your

factories."

Finally, after a long interview, I was told I had been successful.

So this was what the future had in store for me. Never had I

thought I would take up a job in Pune. I met a shy young man from

Karnataka there, we became good friends and we got married.

dineshk · Nov 23, 2006

Page 4

It was only after joining Telco that I realized who JRD was: the

uncrowned king of Indian industry.

Now I was scared, but I did not get to meet him till I was

transferred to Bombay .

One day I had to show some reports to Mr. Moolgaokar, our

Chairman, who we all knew as SM.

I was in his office on the first floor of Bombay House (the Tata

headquarters) when, suddenly JRD walked in.

That was the first time I saw "appro JRD". Appro means "our" in

Gujarati. This was the affectionate term by which people at

Bombay House called him.

I was feeling very nervous, remembering my postcard episode. SM

introduced me nicely, "Jeh (that's what his close associates called

him), this young woman is an engineer and that too a

postgraduate. She is the first woman to work on the Telco shop

floor." JRD looked at me.

I was praying he would not ask me any questions about my

interview (or the postcard that preceded it).

Thankfully, he didn't.

Instead, he remarked. "It is nice that girls are getting into

engineering in our country. By the way, what is your name?"

"When I joined Telco I was Sudha Kulkarni, Sir," I replied. "Now I

am Sudha Murthy." He smiled and started a discussion with SM.

As for me, I almost ran out of the room.

After that I used to see JRD on and off. He was the Tata Group

chairman and I was merely an engineer. There was nothing that

we had in common. I was in awe of him.

One day I was waiting for Murthy, my husband, to pick me up after

office hours.

dineshk · Nov 23, 2006

Page 5

To my surprise I saw JRD standing next to me. I did not know how

to react. Yet again I started worrying about that postcard. Looking

back, I realize JRD had forgotten about it. It must have been a

small incident for him, but not so for me.

"Young lady, why are you here?" he asked. "Office time is over."

I said, "Sir, I'm waiting for my husband to come and pick me up."

JRD said, "It is getting dark and there's no one in the corridor. I'll

wait with you till your husband comes."

I was quite used to waiting for Murthy, but having JRD waiting

alongside made me extremely uncomfortable.

I was nervous. Out of the corner of my eye I looked at him. He

wore a simple white pant and shirt. He was old, yet his face was

glowing.

There wasn't any air of superiority about him. I was thinking, "Look

at this person. He is a chairman, a well-respected man in our

country and he is waiting for the sake of an ordinary employee."

Then I saw Murthy and I rushed out. JRD called and said, "Young

lady, tell your husband never to make his wife wait again."

In 1982 I had to resign from my job at Telco. I was reluctant to go,

but I really did not have a choice. I was coming down the steps of

Bombay House after wrapping up my final settlement when I saw

JRD coming up. He was absorbed in thought. I wanted to say

goodbye to him, so I stopped. He saw me and paused.

Gently, he said, "So what are you doing, Mrs. Kulkarni?" (That was

the way he always addressed me.) "Sir, I am leaving Telco."

"Where are you going?" he asked. "Pune, Sir. My husband is

starting a company called Infosys and I'm shifting to Pune."

"Oh! And what will you do when you are successful."

"Sir, I don't know whether we will be successful."

"Never start with diffidence," he advised me.

dineshk · Nov 23, 2006

Page 6

"Always start with confidence. When you are successful you must

give back to society. Society gives us so much; we must

reciprocate. I wish you all the best."

Then JRD continued walking up the stairs. I stood there for what

seemed like a millennium. That was the last time I saw him alive.

Many years later I met Ratan Tata in the same Bombay House,

occupying the chair JRD once did. I told him of my many sweet

memories of working with Telco.

Later, he wrote to me, "It was nice hearing about Jeh from you.

The sad part is that he's not alive to see you today."

I consider JRD a great man because, despite being an extremely

busy person, he valued one postcard written by a young girl

seeking justice.

He must have received thousands of letters everyday. He could

have thrown mine away, but he didn't do that. He respected the

intentions of that unknown girl, who had neither influence nor

money, and gave her an opportunity in his company. He did not

merely give her a job; he changed her life and mindset forever.

Close to 50 per cent of the students in today's engineering

colleges are girls. And there are women on the shop floor in many

industry segments.

I see these changes and I think of JRD.

If at all time stops and asks me what I want from life, I would say I

wish JRD were alive today to see how the company we started has

grown. He would have enjoyed it wholeheartedly.

My love and respect for the House of Tata remains undiminished

by the passage of time. I always looked up to JRD. I saw him as a

role model for his simplicity, his generosity, his kindness and the

care he took of his employees.

Those blue eyes always reminded me of the sky; they had the

same vastness and magnificence.

Sudha Murthy

--------------------------------------------------------------------------------

Page 7

[Sudha Murthy is a widely published writer and chairperson of the

Infosys Foundation and is involved in a number of social

development initiatives. Infosys chairman Narayana Murthy is her

husband.]

Article sourced from:

Lasting Legacies (Tata Review- Special Commemorative Issue

2004), brought out by the house of Tatas to commemorate the

100th birth anniversary of JRD Tata on July 29, 2004.) **
*

dineshk · Nov 23, 2006

1. Old economy sectors such as retail, mining and power transmission
to cross IT sector
Old economy sectors such as retail, mining and power transmission are
showing faster growth than software service in the past three years.
Software companies have been growing at a three year compound rate of
33% and retail, mining and power transmission are growing at a much
faster pace.
Of the three, retail is the fastest growing sector, growing at a three
year compound rate of 46.64%, mining sector at 44.8% and power
transmission at 36.6%. Pantaloon Retail has an impressive growth rate
of 57%.
Tuesday, October 31, 2006
Source: Business Standard
2. Rumors of Bombay Rayon entering retail ups share prices
Rumors of Bombay Rayon entering the retail segment are increasing the
company's stock, which has gone up 31% month on month and 11% week on
week. According to industry sources, the company is likely to tie up
with a real estate development company.
Thursday, November 02, 2006
Source: The Hindu Business Line
3. India's retail revolution gets started
The Economist writes about India's retail revolution that has started
with 11 Reliance Fresh stores opening in Hyderabad. Domestic operators
are speeding up expansion plans and foreign retailers are figuring out
a way to get in the market. At present, FDI is permitted only in
single brand retail with 51% ownership, so several foreign retailers
are coming in the back door, selling to the wholesale market or tying
up with an Indian partner.
Australia's Woolworths recently tied up with Tata, India's second
largest firm to set up Croma, selling electronic goods. Tesco,
Wal-Mart and Carrefour are all reportedly working out their strategies
on how to enter this profitable market.
Thursday, November 02, 2006
Source: The Economist
4. Some quick facts on the Indian retail industry
India's retail sector is estimated to be worth $350 billion, of which
organized retail accounts for only $8 billion. This organized part of
the retail industry is growing at 30% annually.
Market Data:
• New entrants: Reliance Retail and Bharti Enterprises
• Established retailers: Pantaloon Retail, Shoppers' Stop, Spencers,
HyperCITY, Lifestyle, Trent.
• An estimated $412 billion is likely to be investing in the retail
sector over the next five years.
• Food, beverages and tobacco make up 40% of the retail sector.
• The organized food retail sector is estimated to be worth $666
million and likely to reach $33.3 billion by 2015.
• Branded apparel segment is estimated to be worth $422 million and is
growing strongly at 20% annually.
• Major metro's such as Mumbai, Delhi, Chennai, Kolkata, Bangalore and
Hyderabad is where 68% of organized retail is located.
• There will be an estimated 220 malls by 2007, a significant rise
from 30 in 2003. Current lease rates in major cites vary from Rs. 88 –
120 per sq ft per month.
• India's retail industry is the 2nd largest employer, after the
agriculture sector, employing 21 million people, roughly 6% of the
country's total workforce and contributes 13% of the GDP.
Foreign Investment:
• Foreign companies are permitted to hold only 51% of equity in a
single brand format only, whose products are sold under the same brand
internationally.

dineshk · Nov 23, 2006

1. Mothercare expansion may exceed targets
The UK based Mothercare brand was founded in the 1960s and has come to
be known as trusted and reputable. The company is now in 36 countries
and is keen to push further into the Indian retail market with its tie
up with Shoppers' Stop. In the UK, growth has been barely 1.5-2%,
while in international markets the company is growing at a rate of 28%.
In an interview with The Economic Times, Ben Gordon, Global CEO of
Mothercare, said that the main drivers for the company are the Middle
East, Russia and Greece. India and Indonesia feature as probable
growth markets after the current ones. Products in Indian Mothercare
stores were priced lower than in the UK but now they are priced at a
similar value.
The company currently has 8 stores in the past five months that it has
been in India and although it had originally planned 40 stores in five
years; Mothercare is keen on opening up to 100 stores. At present,
there are 4 Mothercare stores in Mumbai and one store each in Pune,
Hyderabad, Bangalore and Chennai.
Tuesday, October 31, 2006
Source: The Economic Times
2. Shoppers' Stop profit up
Shoppers' Stop has reported an 81% rise in net profit, a rise from Rs.
40.8 million to Rs. 73.9 million for the quarter that ended September
30. Its sales have increased 39% from Rs. 1405 million to Rs. 1956
million.
Wednesday, November 01, 2006
Source: The Hindu Business Line
Reliance Fresh
1. Reliance Fresh to open on November 03, 2006
Reliance Retail's much anticipated foray into the retail sector will
finally see its fist store opening on Friday, November 03, 2006 in
Hyderabad's posh neighborhood Banjara Hills. The store is a food and
grocery small format store and will be followed by 15 more stores in
other cities in Andhra Pradesh. Besides fresh fruits and vegetables,
the store will also stock packed tapes such as lentils and flour and
general merchandise products.
At the unveiling of the store for the press on Sunday, October 29,
2006, Mukesh Ambani CMD RIL said that, "This is the first small step
in our attempt to build and forge strong and enduring bonds with the
millions of farmers and transform our relationship with the consumers
to a new level. We are starting on a pilot journey of listening to
customers and learning from them. We still strive to continuously
delight them." The Hyderabad store is one of 11 pilot stores that will
"listen and learn from consumers" according to Mukesh Ambani.
Other cities that Reliance Fresh stores will be opening in are
Vijaywada, Vishakapatnam, Chitoor, Tirupathi, Adilabad and Karimnagar.
In other states, the stores will open in Ahemdabad, Mumbai and Delhi.
The company plans to open stores in 1,500 cities to generate around $2
billion by the year 2010. Reliance will follow three price points,
based on the quality of the product: premium, middle and lower. The
company's in-house brand Reliance Select for grocery items was also
launched.
Reliance hopes to change one of the major problems of retail in India,
having a smooth supply chain in place. By linking farms and stores
with a high-tech cold storage and transport system, both farmers and
consumers will gain. A senior Reliance official said that the company
hopes to "reach out to more than 60% of the population in four years
time".
Monday, October 30, 2006
Source: The Economic Times, The Hindu Business Line, Yahoo News
2. Reliance opens its first retail store
Reliance Retail's first store, a food and grocery format store called
Reliance Fresh open its doors today and now that the company's first
store is off the ground, Reliance will be rapidly expanding. The
company will be investing $5.6 billion to establish a chain of
hypermarkets, supermarkets, discount stores, department stores,
convenience and specialty stores across the country.
Raghu Pillai, President (operations) of Reliance Retail, said that
there will be lots of action in the second quarter of next year, when
stores will open in several formats across the country. He added that
the company was likely to post a turnover of $22 billion by the end of
the 2010/2011 financial year. Reliance plans to be in 784 cities and
towns in India by the year 2010/2011.
Friday, November 03, 2006
Source: Reuters
3. Reliance Retail's Fresh start
The launch of Reliance Fresh in Hyderabad marks the beginning of the
company's in house brand Reliance Select, under which the company will
sell staples such as pulses and rice. The stores, product selection
and the prices have been designed keeping the average Indian housewife
in mind and appropriately, the store will be inaugurated by them too.
Nita Ambani, wife of RIL's CEO Mukesh Ambani, has been deeply involved
in store design, branding, customer experience and staff selection for
the company. Reliance plans to have close to 1,000 stores in 10 states
operational by March 2007. Most stores will be in the 2,000-5,000 sq
ft range.
The company wants Reliance Fresh to be the neighborhood store, with a
store for every 3,000 families or approximately a store for every 2 km.
Friday, November 03, 2006
Source: Business Standard
4. Reliance Fresh not to be a threat to small vendors
The opening of 11 Reliance Fresh stores in Hyderabad marked the formal
entry of Reliance in the retail industry. Officials assured small
traders that Reliance Fresh stores would not be a threat to them.
Raghu Pillai, President and CEO (operations and strategy) said that
kirana store owners and small vendors can benefit by purchasing their
stocks from the company's wholesale stores, Ranger Farms at lower
prices.
He added that Reliance was "…not harming small retail players... the
market is growing by 8 per cent which is 24-25 billion dollars (nearly
Rs. 1125 billion) every year... we are aiming at revenues of only 25
billion dollars in four years... even if the market grows by 100
billion dollars by 2015, organized retail would be still less than
10-12 per cent of retail trade."
Friday, November 03, 2006
Source: The Economic Times
5. Reliance Retail aims to link farm to fork
As the first Reliance Fresh opened in Hyderabad, the company is keen
to use its resources to create a profitable link from farm to fork.
Raghu Pillai, President and CEO (operations and strategy), emphasized
that the company will be opening stores in the 70 top cities in
several formats, including hypermarkets, music and entertainment,
pharmacy, specialty stores and lifestyle products.
Reliance hopes to utilize its investment in its supply chain and will
be starting Ranger Farms, a wholesale format store to cater to fresh
fruits and vegetables to small vendors and stores. Ranger Farms will
open earlier in the mornings and will have different prices than the
Reliance Fresh stores. Reliance is also utilizing its supply chain to
source fruits and vegetables from specific crop belts in the country.
For example, the apples come from Himachal Pradesh, onions come from
Karnataka and green leaves come from close by districts of Andhra
Pradesh.
Saturday, November 04, 2006
Source: The Economic Times
International
1. Raj Jain to be Wal-Mart President and CEO designate for India
Wal-Mart has appointed Raj Jain as its President and CEO designate for
its India operations. Wal-Mart already has an office in Delhi from
where it is deciding its entry strategy. Raj Jain is the former
regional director of marketing and product delivery for Whirlpool Asia
and was selected earlier this year to be the president for the
company's emerging markets in Asia, excluding China and Japan.
Raj Jain is currently in Shanghai undergoing training and when
contacted by ET, only said that he was the president and CEO of
Wal-Mart's emerging markets, refusing to comment on any position
related to the company's India operations.
Wednesday, November 01, 2006
Source: The Economic Times
2. Wal-Mart stepping up efforts to start operations in India
US retail giant is reportedly stepping up efforts to gain entry to the
Indian retail market. Raj Jain president (emerging markets, excluding
China and Japan) is currently in India to hire senior managers for its
India operations. The company is also looking for a legal head and
operations head for its India operations.
Arvind Singhal of Technopak said that although Wal-Mart is keen to
enter the market soon, the process would take at least 15 months since
its business policy was not clear. Wal-Mart is reportedly looking for
an Indian partner to set up its business here, and its wholesale model
of operations, Sam's Club is one of the likely access routes to enter
the market.
Friday, November 03, 2006
Source: Daily News & Analysis
3. Benetton to increase outlets
Benetton plans to double its outlets in India in the next three years.
At present the company has 80 outlets in 40 cities and plans to have
100 stores operating by early 2007. The company expects its sales to
increase by 30-35% in the next few years.

dineshk · Nov 23, 2006

HR News
1. Simone Tata steps down
Simone Tata stepped down as Chairman of Trent Ltd., the Tata's retail
division. The new chairman will be Farrokh Kavarana. Simone Tata has
guided Trent right from the start, establishing it in 1998, by
acquiring Littlewoods and expanding the Westside chain.
Monday, October 30, 2006
Source: The Hindu Business Line
Unique formats
1. Shoppers' Stop plans on making `fun centers' for families
Shoppers' Stop is picking up 45% stake in Time Zone Entertainment Pvt.
Ltd.'s India operations to connect with families and young adults via
entertainment. BS Nagesh, CEO of Shoppers' Stop, told DNA Money that,
"The board has just approved of the company's decision to synergize
our existing business with entertainment facility. To this effect, we
will be acquiring 45% stake in this family entertainment centre (FEC)
company operating under the brand `Timezone'."
At present Time Zone Entertainment operates three family entertainment
centers (FECs) in India, Inorbit Mall in Mumbai, Gallops Mall in
Ahmedabad and Salt Lake City Centre in Kolkata. According to industry
sources, the company is planning to increase their operations to have
100 such outlets.
Sunday, October 29, 2006
Source: The Economic Times
2. Aer Rianta and Flemingo tie up for duty-free retailing
Ireland's duty free major Aer Rianta, a subsidiary of Dublin Airport,
is entering the Indian market in a tie up with Flemingo India to bid
for setting up duty-free retail outlets at the Delhi and Mumbai
airports. Flemingo is the only major duty-free company operating at
Indian airports besides the government owned ITDC, whose lease for
space at Delhi airport expires this December.
Tuesday, October 31, 2006
Source: The Economic Times
3. NIFT launches its own rural based fashion label
The National Institute of Fashion Technology has tied up with the
Ministry of Rural Development's Swarnjayanti Gram Swarozgar Yogna
(SGSY) to launch a fashion label, "i.m.". Asha Baxi, senior professor
and dean of academics at NIFT, said, "The attempt is to get our
budding fashion designers to understand and involve Indian craft and
fabric, generate a perpetual employment mode for traditional
craftspeople and, finally, of course, establish a sales point that
will market the end-product."
NIFT will retail i.m. products at the Rajiv Gandhi Hasta Kala Bhawan
in New Delhi. In this regard, 10,000 craftspeople have been already
been identified in 5 states of Madhya Pradesh, Karnataka, Gujarat,
Kerala and West Bengal, which will be handled by NIFT students in
Delhi, Bangalore, Gandhinagar, Chennai and Kolkata.
Students will take artisans on educational trips to places such as Fab
India, Anokhi, Dilli Haat, where they can see the various
interpretations of their craft. This venture will see an investment of
Rs. 30 million, on training, sourcing material, skill upgradaton,
marketing and product development and is likely to change the lives of
the over 2,000 craftspeople.
Thursday, November 02, 2006
Source: Business Standard
Sector specific:
Apparel & Footwear
1. Uzazi Fashions brings out new range of maternity wear
Pune based fashion company Uzazi Fashions Pvt. Ltd has launched a
range of maternity wear. Minal Joshi, managing director of Uzazi
Fashions said that the maternity brand was the result of detailed
research and study over two years to understand consumers' needs and
selecting the right fabrics and patterns. The company hopes to provide
consumers with "stylish, modern and affordable maternity wear"
according to Minal Joshi.
Thursday, November 02, 2006
Source: Business Standard
Consumer Durables
1. Essar Group plans retail launch
The Essar Group will be soon launching its own retail stores selling
mobile phones. According to reports, the Virgin Group is likely to
provide technical support and store design. The probable name for the
venture is Mobile Shop and it is to be a one stop shop for all mobile
phone and accessories needs. The stores will be in the range of
300-600 sq ft in space and will open in the next 4-6 months.
Initially only the major cities in India will have these stores, but
the company hopes to have 2,500 stores by 2008. India is seen as one
of the hot markets and is already the second largest market for mobile
phones. The industry is estimated to reach Rs. 300 billion by 2007.
Tuesday, October 31, 2006
Source: Moneycontrol.com
2. Great Eastern Appliances in Kolkata plans national level launch
Kolkata based Great Eastern Appliances chain of discount stores
announced that it was planning to launch its `Technocity' brand across
India. The company plans to have open format stores so customers can
try products before purchasing them using the `experiential marketing'
retail model.
The company is targeting the aspirational segment and its stores will
be spread over 20,000 sq ft offering home and kitchen appliances,
music systems, gaming and IT products in brands such as Samsung,
Electrolux, Kleche, Dennon, Sanyo, Sony, Pioneer, Yamaha, Hitachi and
Sharp.
Thursday, November 02, 2006
Source: The Economic Times
Food & Grocery
1. Trinethra plans Rs. 1 billion investment
Trinethra Super Retail (TRSL) announced that it will be focusing more
on the supermarket format and plans to grow to 220 outlets by March
2007. At present Trinethra has 150 stores in southern states, Andhra
Pradesh, Tamil Nadu, Karnataka and Kerala. The new stores will also be
located in the same region.
The company launched its new retail format, called the Trinethra Quick
Shop. These Quick Shops will focus on stocking the main 3,000 SKUs
that make up 70-80% of store sales. TRSL is a Rs. 2.4 billion company
that operates stores under the name Trinethra in Andhra Pradesh and
Chennai and under the name Fabmall in Bangalore.
Monday, October 30, 2006
Source: The Economic Times
2. Pizza chains targeting small towns
Multinational pizza chains are all turning towards the potential
market in the smaller towns and cities of India. Menu offerings are
also being localized to suit the palette of the small town customer.
Cities like Vapi, Guwahati, Jamshedpur, Meerut are all on the list of
pizza chains soon to be opening list.
According to Arvind Mediratta of Yum Brands and promoters of Pizza
Hut, "The organized pizza market, which comprises MNC chains and big
brands is worth Rs. 700 crore (Rs. 7 billion) and is growing at a rate
of 30 per cent annually. Innovation and localization are the key to
growth in the pizza industry."
Pizza is not seen only as fast food any more and the demand for pizza
is growing due to consumers changing lifestyles and eating habits. The
major multinational players in the pizza industry in India are Pizza
Hut, Domino's, Papa Johns and Pizza Express. Delhi based Nirula's is
the most well known Indian pizza brand.
Monday, October 30, 2006
Source: The Economic Times
3. Illycafe plans to promote gourmet coffees in India
Due to the rising consumption of coffee in India, illycafe S.p.A. is
planning to promote gourmet coffee culture and open an outlet of its
`University of Coffee' in Bangalore. Illycafe is the producer and
marketer of a single blend Arabica and operates the Universita del
Caffe in Italy at Trieste.
Andrea illy, chairman and CEO of illycafe, said that the University of
Coffee will be functional in January 2007 and will be training Indian
coffee growers and baristas, organize food and beverage courses, train
managers etc.
Monday, October 30, 2006
Source: The Hindu Business Line
4. Heritage Foods to open pilot stores in November
Heritage Foods announced that it will be opening its pilot stores in
Hyderabad in the second fortnight of November. The company's total
income was Rs. 902.5 million for the second quarter against Rs. 773.7
million for the same duration last year.
Monday, October 30, 2006
Source: The Hindu Business Line
5. Pulse Foods to open outlets overseas
The food retail division of Poddar Heritage Group, Pulse Foods India
said that it will be opening outlets in the US, Muscat, Jeddah, Dubai,
Saudi Arabia and other cities in the next three years. The restaurant
chain will be investing Rs. 520 million for these expansions.
For its warehousing and storage requirements the company had tied up
with UK based Iglo. Pulse Foods is also negotiating for opening a food
court outlet in the US and UK.
Wednesday, November 01, 2006
Source: Daily News & Analysis
6. Illycaffe to target high end market for its Espresso blends
Illycaffe is keen on tapping the high end market for its Espresso
coffee blends. The company has seen already great success in its
business in five-star hotels in India. Andrea Illy, Chairman and CEO
of illycaffe, said that the company will be targeting premium homes
for their own brand of Express coffee that is likely to enter the
market in 2007. The company had tied up with Fresh & Honest Café Ltd.
for the five-star segment and now wants to extend that to other
locations such as cafés, restaurants and corporate offices.
Thursday, November 02, 2006
Source: Business Standard
7. Café Ritazza to open at airports
RKHS, formerly known as Radha Krishna Hospitality Services, has tied
up with Select Service Partner (SSP) to set up travel concessions and
eateries at airports and railway stations in India. Under the
agreement, RKHS will be launching Café Ritazza, which is owned by SSP,
at airports in India. At present these cafés are located at 120
airports in 23 countries.
Sunil Nayak, CEO of RKHS said that while this was the company's first
venture into the retail of travel concessions, in the next 2-3 years
this division would be contributing up to 8% of the total turnover of
the company, reaching Rs. 10 billion by 2010. Jude D'Cruz,
vice-president (strategy and new business) for RKHS added,
"Privatization of airports and a rapid growth in air traffic in the
country will increase the demand for food offerings of international
standard and service at airports."
The company already has 2 functional outlets in Mumbai, one at the
international airport's departure terminal and the second at Lilavati
Hospital, more outlets are expected to open in Delhi, Bangalore and
Hyderabad. Sunil Nayak emphasized that concepts would be Indianized to
suit the local palette.
Thursday, November 02, 2006
Source: Business Standard
8. HLL shelves plans for T Place chain of tea parlors
The Hindustan Lever Ltd has for now shelved its plan to promote tea
through its chain of tea parlors to compete with coffee chains,
Barista and Café Coffee Day. The company closed T Place, its first tea
parlor in Bangalore and is now not going to enter the branded tea
chain business. The T Place was located in Koramangala in Bangalore.

dineshk · Nov 23, 2006

Jewellery & Watches
1. Apranje Jewelers receives IGI certification
Bangalore based Apranje Jewelers announced that it is the first
diamond jewelry store in the city to become certified by the
International Gemological Institute (IGI). The International
Gemological Institute is an independent testing facility for gemstones
and fine jewelry.
Wednesday, November 01, 2006
Source: The Hindu Business Line
2. Tanishq to open in the US
Titan Industries jewelry brand Tanishq announced that it will be
launching in the US market by next Christmas. Initially the company
will be going through a franchisee model, to gauge on how the brand
will be accepted in the US market. Tanishq sees a huge potential in
the US due to the large number of people of Indian origin settled
there.
Besides targeting the Indian customer, Tanishq is considering
attracting the average American consumer also. A company spokesperson
said that, "We can't ignore the general American consumer. We are
figuring out details and the strategy will be firmed up in the next
two months."
Friday, November 03, 2006
Source: Business Standard
3. Timex to diversify to make jewelry, sunglasses and other accessories
Timex announced its plans to diversify to manufacture jewelry,
sunglasses and other accessories, although no timeline of this process
had been set up. The company also wants to expand its retail outlets
in the next 18 months to 120, from its current 32. New stores will
have a multi-brand strategy.
Saturday, November 04, 2006
Source: The Economic Times
Luxury and Lifestyle
1. Blue Clothing Company to retail luxury brands
Increasing demand for luxury brands is leading to brands such as
Versace to relocate from multi brand outlets (MBOs) in five-star
hotels to exclusive boutiques to reach more customers. Blue Clothing
Company authorized licensee of several luxury brands is now retailing
Versace, Corneliani, Cadini and Sisley though exclusive stand alone
stores.
Abhay Gupta, Executive Director of BCC, said that "These exclusive
brands need an exclusive treatment, and MBOs cannot give the consumer
a complete shopping experience when it comes to luxury labels."
Sunday, October 29, 2006
Source: The Economic Times

dineshk · Nov 23, 2006

1. Old economy sectors such as retail, mining and power transmission
to cross IT sector
Old economy sectors such as retail, mining and power transmission are
showing faster growth than software service in the past three years.
Software companies have been growing at a three year compound rate of
33% and retail, mining and power transmission are growing at a much
faster pace.
Of the three, retail is the fastest growing sector, growing at a three
year compound rate of 46.64%, mining sector at 44.8% and power
transmission at 36.6%. Pantaloon Retail has an impressive growth rate
of 57%.
Tuesday, October 31, 2006
Source: Business Standard
2. Rumors of Bombay Rayon entering retail ups share prices
Rumors of Bombay Rayon entering the retail segment are increasing the
company's stock, which has gone up 31% month on month and 11% week on
week. According to industry sources, the company is likely to tie up
with a real estate development company.
Thursday, November 02, 2006
Source: The Hindu Business Line
3. India's retail revolution gets started
The Economist writes about India's retail revolution that has started
with 11 Reliance Fresh stores opening in Hyderabad. Domestic operators
are speeding up expansion plans and foreign retailers are figuring out
a way to get in the market. At present, FDI is permitted only in
single brand retail with 51% ownership, so several foreign retailers
are coming in the back door, selling to the wholesale market or tying
up with an Indian partner.
Australia's Woolworths recently tied up with Tata, India's second
largest firm to set up Croma, selling electronic goods. Tesco,
Wal-Mart and Carrefour are all reportedly working out their strategies
on how to enter this profitable market.
Thursday, November 02, 2006
Source: The Economist
4. Some quick facts on the Indian retail industry
India's retail sector is estimated to be worth $350 billion, of which
organized retail accounts for only $8 billion. This organized part of
the retail industry is growing at 30% annually.
Market Data:
â€¢ New entrants: Reliance Retail and Bharti Enterprises
â€¢ Established retailers: Pantaloon Retail, Shoppers' Stop,
Spencers,
HyperCITY, Lifestyle, Trent.
â€¢ An estimated $412 billion is likely to be investing in the
retail
sector over the next five years.
â€¢ Food, beverages and tobacco make up 40% of the retail sector.
â€¢ The organized food retail sector is estimated to be worth
$666
million and likely to reach $33.3 billion by 2015.
â€¢ Branded apparel segment is estimated to be worth $422 million
and is
growing strongly at 20% annually.
â€¢ Major metro's such as Mumbai, Delhi, Chennai, Kolkata,
Bangalore and
Hyderabad is where 68% of organized retail is located.
â€¢ There will be an estimated 220 malls by 2007, a significant
rise
from 30 in 2003. Current lease rates in major cites vary from Rs. 88
â€“
120 per sq ft per month.
â€¢ India's retail industry is the 2nd largest employer, after
the
agriculture sector, employing 21 million people, roughly 6% of the
country's total workforce and contributes 13% of the GDP.
Foreign Investment:
â€¢ Foreign companies are permitted to hold only 51% of equity in
a
single brand format only, whose products are sold under the same brand
internationally.

cool retail

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar

Dinesh Kumar