retail

Food Inflation can be Controlled without 51% FDI in Multi-Brand Retail

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The new policy by the corrupt Politicians of Congress in the Government allowing FDI in MultiBrand Retail Trade – MBRT has several shortcomings. In our view, claimed benefits with respect to crop storage, preventing wastage, employment, consumer prices are
overstated.

The claimed lower food inflation ensuing from FDI in MBRT needs to be grounded to the underlying causes, which in our view are a) government policies encouraging high food prices1 since 2006 (aggressive procurement and pricing), b)
increasing input and land costs, c) rising labor cost and d) rising financial strength in the intermediation

Read moreFood Inflation can be Controlled without 51% FDI in Multi-Brand Retail

Big Bazaar likely to be Hived off by Feb-2010

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Pantaloon Retail’s (PRIL) planned hive-off of Big Bazaar is on track and is likely to be consummated by February 2010, according to management. Pantaloon’s management indicates that hive-off of Big Bazaar and Food Bazaar is on track. The hive-off will pave the way for fund-raising at the Big Bazaar level and induction of a foreign food retailer. The latter, which management has hinted at in many forums, is likely to provide the next leg-up to Big Bazaar’s growth trajectory. Big Bazaar and Food Bazaar account for 70% of PRIL’s (standalone) revenues and 67% of its total retail space.

Read moreBig Bazaar likely to be Hived off by Feb-2010

Government unlikely to relax FDI norms for the retail sector

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India’s organized retail sector has been facing tough times because of the ongoing economic slowdown and resulting job losses and salary cuts that have had downsizing impact on spending power of consumers. As a result, the foot-falls and the average revenue per sq. feet for the retailers have been strongly impacted. Lack of financing is … Read more Government unlikely to relax FDI norms for the retail sector

Godrej Industries approves merger of group companies + Swap Ratio

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Godrej Industries has announced that the board of the company has given its nod for the merger two group companies with Godrej Consumer Products (GCP). As per the approval, Godrej Consumer Biz (GCB), a 100% subsidiary of Godrej & Boyce Manufacturing Company and Godrej Hygiene Care (GHC), a 100% subsidiary of Godrej Industries will be … Read more Godrej Industries approves merger of group companies + Swap Ratio

Pantaloon Renamed as Future Markets and Consumer Group Limited

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We have received fax from our reporter about the recently concluded board meeting of India’s largest retailer – Pantaloon Retail India Ltd in which the board has approved to change the name of this listed entity to Future Markets and Consumer Group Limited. Further, it will raise Rs2.8bn through a preferential allotment to promoters / … Read more Pantaloon Renamed as Future Markets and Consumer Group Limited

Titan + Pantaloon – What’s in Store this Quarter’s ?

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Pantaloon Future Group Retail – We expect revenue, operating profit, and adjusted net profit growth of 25%, 43%, and 16% YoY, respectively in F3Q09. Gross margins are expected to drop 100bp YoY on a higher proportion of value retail sales. However, EBITDA margins are likely to improve by 125bp, but a 70% rise in interest … Read more Titan + Pantaloon – What’s in Store this Quarter’s ?