Arvind Mills unveils retail plan with launch of Megamart
Friday, October 26, 2007
Arvind Mills today announced retail plan to reach sales turnover of a billion dollars by 2012.
“The retail space is buzzing and we think the time is perfect for us to announce our retail plans”, says Mr. Sanjay Lalbhai, Chairman and Managing Director Arvind Mills. Adding further Mr. Lalbhai, said, “Our retail expansion will straddle several formats. We would like to be present across the entire spectrum - value retail, to premium retail to luxury retail. Various options for entry into these sectors are being considered. We are ready with our plans for Megamart. This will be our first leg of retail expansion.”
“We pioneered the value retail space with ‘Megamart’. Megamart currently is a 70 Outlet strong network and is available across 25 cities. Now we plan to aggressively expand this concept through the launch of Megamart Outlet Centre which will be 50,000 to 60,000 sq feet large format value stores”. He further adds, “We have already signed up prime properties in Chennai, Pune and Hyderabad for this expansion. These 3 stores will be operational during the course of this financial year”. The first store in Chennai is expected to open in December 2007. The company has an aggressive expansion plans to sign-up several more properties in the coming months. Megamart plans to have up and running 25 to 30 such Megamart Outlet Centres in top 20 cities over the next 4 years.
The Outlet Centre concept operates with the objective of grouping of a large number of brand outlet stores at the same location. An Outlet store, offers their merchandise to consumers at reduced prices. The model offers a wide range of high-quality brand-name goods in a concentrated space at value prices.
The Megamart Outlet Centres will house a select set of brands. Megamart Outlet Centre will bring in a great combination of international shopping experience at value prices along with ambiences at par with some of the best retail chains of the world.
To achieve this, Megamart engaged the services of reputed design house JHP - London; an award winning design consultancy firm to design their stores. JHP has designed and executed several retail projects throughout the world. JHP are the designers behind Selfridges, ASDA and many of the other leading retail destinations across the world, including the retail space of the upcoming Heathrow Terminals.
To provide best service to the customers, Megamart is investing heavily on training the Fashion Assistants who will man the Outlet Centres. The company is also making sizeable investments to support these plans in information technology.
-MoneyControl
Author: Rakesh Malhotra » Comments:
India emerges second-biggest FDI magnet
Wednesday, October 17, 2007
India has emerged as the second most-attractive location after China, ahead of the US and Russia, for global foreign direct investment (FDI) in 2007. According to Unctad’s world investment report, released here on Tuesday, India’s ranking in inward FDI performance index has also improved to 113 in 2006 from 121 in 2005. China is the most preferred investment location, followed by India, the US, the Russian Federation and Brazil, the report said.
The share of India and China in total global FDI outflows has also risen. While both accounted for 10% of total FDI outflows in 2005 in the Asian region, it increased to 25% in 2007. While China’s outflows increased 32% to $16 billion in 2006, Indian outflows witnessed a four-time rise since 2004.
On the increased flow of FDI into India, the report pointed out that while foreign retailers such as Wal-Mart had started to enter the Indian market, a number of US companies such as General Motors and IBM are rapidly expanding their presence in the country. So are several large Japanese MNCs such as Toyota and Nissan. Global FDI inflows soared in 2006 to reach $1,306 billion, showing a growth of 38%.
Commenting on the rising outflow of FDI from the two countries, the report said both China and India are throwing up competition for countries like Hong Kong (China), the Republic of Korea, Singapore and Taiwan as the main sources of FDI in developing Asia.
Interestingly, while India’s outflows have been dominated by privately-owned corporates such as Tata group (Tata-Corus deal), in China FDI outflows are mainly driven by the international expansion of state-owned enterprises due to progressive government policies. Tata Steel acquired Corus Group in early 2007, creating Tata-Corus — the world’s fifth-largest steel maker.
In terms of locational choice for foreign investors, China polled 52% of the respondents in the Unctad survey, followed by India with 41%. The US received support of 36% and Russia 22%, followed by Brazil with 12%. China’s outward FDI stock reached $73 billion in 2006, the sixth-largest in the developing world, according to the report. China’s major chunk of overseas expansion involves considerable investment in other developing and transition economies, the report says.
The emergence of China and India as important sources of FDI, coupled with active M&A activities by investors based in the Asian newly-industrialising economies (NIE), has led to increased FDI flows from Asia to developed countries as well.
India was the fourth-largest recipient of FDI during 2005-06, with China and Hong Kong (China) remaining on top. Singapore was ahead of India at the third position. “India registered a substantial increase in FDI amounting to $17 billion,” the report said. Due to increased investments in India, FDI inflows to south Asia surged 126%, amounting to $22 billion, in 2006.
Labels: FDI in India, Real Estate Investment Fund
Author: Rakesh Malhotra » Comments:
Interest cut by banks lifts realty stocks
Thursday, October 11, 2007
Realty stocks got a boost with the State Bank of India announcing a cut in its rates by 50 to 100 basis points for new loan seekers from the period between now and the year-end. Borrowers with salary account with the bank would get an additional discount on the lower rate. A floating rate cut of 50 basis points by ICICI Bank also gave the additional fillip for the sentiment.
According to Ankur Srivastava, Managing Director, DTZ, a global property consultancy firm, real estate sale picks up during this time of the year, which also marks the festive season. Developers are able to realise better revenues. This move by SBI would bring about positive sentiment about rate-sensitive segment — low and middle income group urban housing — of the real estate sector. This trend of lowering rates is likely to be picked up by others in the banking sector and housing finance companies, industry analysts felt.
The growth of housing loan of smaller denominations slowed in the second quarter of the current financial year, according to bankers.
The prime property market had not been affected by relatively higher rates as its economics run on investment and speculative factors more than the shelter needs, analysts said. Mr Shailesh Kanani, an analyst with Angel Broking, said that SBI’s announcement was a positive development. According to Mr Gul Teckchandani, an independent market analyst, there are quite a few manufacturing companies with strong embedded real-estate play. BSE Realty Index today moved up 2.71 per cent, while the Sensex shot up by 0.84 per cent. In the past one month, the index gained by over 35.61 per cent and in the year-to-date it has returned 88.67 per cent. Among the 14 stocks in the index, only one — Anant Raj Industries, declined. DLF, which is also in the Sensex basket now, improved by 2.92 per cent. Akruti Nirman posted highest gain of 17.97 per cent, followed by Phoenix Mills (9.4 per cent).
-Business Line
Author: Rakesh Malhotra » Comments:
