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January - February Issue, 2007 (Vol 4. Issue 6.)
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M&S Prefers JV In India
The UK-based Marks & Spencer (M&S), which, under franchisee arrangement, operates 20 stores in India, has adopted a new strategy of direct entry through a single-brand FDI route by setting up a joint venture with a local Indian partner. Currently Planet Retail, owned by V.N. Sharma — a Starbucks franchisee in Indonesia and the ex-partner of Future Group owner Kishore Biyani — is M&S’ franchisee in India. M&S is now in talks with the likes of Trent Ltd. (Tata Group), Mahindras (M&M) and Lodha & Co.
The retail giant is launching its food and kidswear categories, to add further impetus to its growth in the country. M&S will offer a range of biscuits, confectionaries, groceries, savouries, priced between Rs 95 and Rs 1,800 for high-end items. There will be no standalone formats for the segments and both these segments would be a part of the Marks & Spencer outlets.
Hakoba Plans 480 Stores In 4 Years
Hakoba Lifestyle, the retailing arm of the Surat-based Pioneer Embroideries, has finalised plans to foray into small, medium and large format retailing. In the next four years it will invest over Rs 250 crores to set up 400 small and 80 medium-format stores. Small stores will have an average size of 1,000 sq.ft. and house Hakoba’s own brands. In the second phase of expansion, Hakoba Lifestyle plans to set up 30 large-format stores of average 40,000 sq.ft. size, wherein other brands of non-competing categories will also be available. Among other initiatives, Hakoba will also introduce a value retail format for hypermarkets. With these initiatives and increased focus through a dedicated subsidiary, Hakoba expects to garner revenue of Rs 210 crores in 2008-09 against 2006-07 revenue of Rs 44 crores.
Hasbro Eyes Tier-II & III Cities For Probase
With the launch of two exclusive brand outlets (EBO) for its recently launched menswear brand Probase, Chennai-based Hasbro Clothing Pvt. Ltd. has set a revenue target of over Rs 100 crores in the next three years. Besides, the company plans to have around 130 exclusive Probase stores across the country by the same time.
Priced affordably in the range of Rs 399-Rs 899, Probase offers casual, smart and formal lines in shirts and trousers. Probase stores operational in Kozhikode, Salem and Chennai cover a total space of 3,000 sq.ft. Hasbro’s other brands are Genesis and Basics. Out of the 48 outlets it runs, 11 are franchisee stores. About the targeted number of stores, Alok Sharma, Business Head, Hasbro Clothing, said that even though Hasbro has planned a number of stores, the openings are not entirely in their hands as most of the planned stores are in malls.
Subhiksha IPO By March 2008
Subhiksha, the Chennai-based, retail chain, having crossed the magic number of 1,000 stores, has now set its eyes on tripling the number of its stores to 3,000 in the next 30 months, or by early 2010. Meanwhile, Subhiksha wants the tally of its stores to go up to 1,500 by June, 2008. This would entail at an investment of Rs 300 crores.
The magic number of 1,000 stores holds special significance for the retail chain’s promoters as they had decided to consider going to the public for raising further capital resources only after crossing this milestone. Subhiksha has planned to go to public for raising capital through IPO by March, 2008. It requires about Rs 900 crores for its expansion (3,000 stores), and is expected to dilute 10% of its business valuation estimated at around Rs 3,500 crores, through a public offering of its shares at premium.
Techkidz Open Exclusive Store
Techkidz, the leading name in kids’ educational aids from Comp-Point systems (I) Pvt. Ltd., has introduced its exclusive outlet at the District Centre, Janak Puri in Delhi. The store has products like educational laptops, educational CDs, self-assembly kits, science models, robots, kids utility books and much more. The company has a network of 100 dealers and has tied up with more 1,000 public schools in leading Indian cities. It also plans to open the franchise outlets throughout the country.
Dabur’s Health & Wellness Format Called New-U
H&B stores Ltd., a wholly-owned subsidiary of Dabur India Ltd. will open a specialty beauty, health and wellness retail business called ‘New-U’ by the end of January, 2008 in the NCR and then expands to other major cities.
The New-U stores will offer comprehensive health and beauty solutions under one roof. The stores will also house beauty and health experts who will offer advice to consumers on particular products that suit their specific needs.
H&B Stores CEO Peter Baker claimed that the Indian consumer has come of age, but the shopping experience in India has not kept pace with this change. New-U will bring that world-class shopping experience to India. He added that the retail outlets also aim to launch a new product every month, and have promotional campaigns with gifts for consumers. The pricing of products is such that provides value for money.
While the New-U outlets will have a portfolio of Indian and international brands, private labels will also play an important role in the stores’ total merchandise offering. The stores will have around 20,000 products (SKUs) in different categories, including cosmetics, fragrances, skin and personal care, baby and family care, fashion accessories, general merchandise, ayurvedic, herbal and pharmaceuticals.
Arvind Mills Planning Superstore Chain
Arvind Mills Ltd. plans to set up a chain of lifestyle superstores catering to different cross-sections of the retail business. Presently, Megamart stocks only Arvind Mill brands like Excalibur, Ruf&Tuf and Flying Machine, but the lifestyle superstore-format will be spread over 50,000-60,000 sq.ft. and stock products ranging from footwear, luggage, home furnishing, cosmetics, apparel and electronic products. In the coming months, the company will roll out stores in Chennai, Pune and Hyderabad.
While the cost for setting up each of the store is around Rs 15-20 crores, the entire investment is likely to touch Rs 600 crores. The investment will mainly be from internal accrual, informed J. Suresh, Chief Executive Officer of Arvind (Brands and Retail). At present, brands and retail business contributes 12-14% of the Rs 1,800-crore turnover. It is expected to rise to 30-35% in the next three years.
Talwalkars Comes Up With Premium Health Clubs
Riding on the retail boom, Talwalkars Better Value Fitness Ltd, is planning indoor swimming pools at malls with intentions of bringing in a range of premium health club. Revealing new plans, Prashant Talwalkar, MD of Talwalkars, confirmed that the fitness major would be floating an equal joint venture with a European company.
Having entered into a joint venture with the Future Group recently, Talwalkars currently has access to the malls owned by the retailer. It is now open to more tie-ups with retailers to gain access to more malls. Their premium health clubs would include a gym, a spa, and an indoor swimming pool, along with a restaurant which will serve health food. It has earmarked a member fee of Rs 25,000 annually for its premium health clubs and has planned to open three of such centres beginning with Mumbai. With 45 gyms and clubs under its fold, Talwalkars plans to add another 15 in the next three months.
B-school Planned By Career Launcher
Career Launcher, a premier test preparation institute, is all set to join the league of B-schools. Indus World School of Business (IWSB), as the B-school is christened, will induct its first batch next year.
With an investment to the tune of Rs 50 crores, the B-school will come up in Greater Noida. It will accept scores of CAT, GMAT and XAT, for strength of 90 students in its first batch. The B-school will eventually look at seeking approval from the regulatory body of technical education — All India Council for Technical Education (AICTE).
Industry interface and entrepreneurial leadership forms a major focus of the B-school’s syllabus. Career Launcher has signed letters of intent with over 20 companies like Google, Motorola, CNBC-Network 18, InfoEdge and others for internship programmes of their students.
Titan Eye+ Prepares For 250 Stores
Titan Eye+, the eyewear business of Titan Industries that was launched last year, plans to set up about 20 stores across India over the next year. About 15 of these would be company-owned and the rest franchisee-owned, claimed S. Ravi Kant, COO (Eyewear Business), Titan Industries Ltd.
Each showroom would stock over 1,000 frames from major brands including Christian Dior, Elle and Tommy Hilfiger besides Titan and Dash (children’s spectacle frames). Eye+ showrooms will also have optometry clinics to offer free ‘zero-error’ eye testing service.
According to Bhaskar Bhat, managing director of Titan Industries, the company plans to launch its innovative watches, jewellery and eyewear in Pakistan, while Thai and Indonesian markets are also on the cards. The US jewellery market is another destination in the company’s foreign expansion plans.
Separate Spencer’s Chain For Electronics
RPG Group company Spencer’s Retail Ltd. is planning a separate chain of large-format stores for consumer electronics. To be named Spencer’s Electronics, the first outlet will open in Hyderabad. The company is planning five stores in the South initially. This will be followed by a national roll-out, said Ramesh Menon, Senior Vice-President (Operations), Spencer’s Retail Ltd. The stores will have a minimum floor space of 4,000 sq.ft. and will stock consumer electronics goods from various brands.
Madame’s New Franchise Is EBO
Madame, the trendy casual-wear brand, opened its exclusive store at V3S Mall, New Delhi. The 700 sq.ft. franchise outlet stocks all Madame merchandise. Madame is the brand of Jain Amar Clothing Pvt. Ltd. This opening is a part of Madame’s retail strategy, which includes plans to open 42 exclusive stores and shop-in-shops in all major fashion markets across the country in the coming months. According to Bipan Jain, Director, Jain Amar Hosiery Pvt. Ltd., exclusive retail presence ensures increased brand equity and opportunity to gauge customer response directly. The brand has a strong representation network of over 500 multi-brand outlets and 37 exclusive brand outlets.
Kodak Approaches Retailers For Express Counters
Kodak India is planning to set up its Kodak Express counters within the premises of big retailers such as Big Bazaar and Reliance Digital. Exploring various formats, the camera company is currently negotiating with retailers to launch its branded outlets within the stores. In addition to its 1,700 franchise-run stand-alone outlets, the Kodak is now tapping into big retail chains to expand its photo-finishing services across the country.
Ravi Karamcheti, MD and Country Business Manager, Consumer Digital Group, Kodak India, said that Kodak is looking at creating multiple formats and is talking to retailers such as Reliance Digital and Big Bazaar. There would be variants created depending on the sq.ft. size of the stores.
Videocon Snaps Up Planet M
Consumer durables major Videocon Industries has acquired Planet M, the music and entertainment retail arm of Bennet, Coleman & Co., for Rs 200 crores. The acquisition has been done by NEXT, Videocon’s retail chain for consumer electronics and home appliances.
Videocon chairman V.N. Dhoot said Planet M, which has huge brand equity, fits in well with the group’s retail ambitions. Dhoot said the group plans an over six-fold increase in Planet M’s turnover from around Rs 150 crores now to around Rs 1,000 crores.
With 150 stores across 42 cities, Planet M is one of the leading players in organised music retail. Dhruva Chandran, NEXT CEO, claimed that Planet M offers a unique opportunity for Videocon’s retail foray to tap products and services demanded by the new-age Indians.
Last year, Videocon made its maiden debut in retail through NEXT. Apart from leading consumer durable brands NEXT also sells its private labels under the same brand name in more than 500 stores in 180 cities. With Planet M in its kitty, NEXT Retail aims to clock a turnover of Rs 2,000 crores by the next year.
Yatra.com Pairs Up With Sify
Yatra Online Pvt. Ltd. has joined hands with Sify Technologies Ltd. to increase penetration of travel-related services, including air tickets, hotels and travel packages at retail level, through Sify’s 7,000 retail points across 220 cities in the country. The alliance will act as extended retail points to offer Yatra.com’s travel services with an integrated offline cash acceptance model of Sify. Customers who are more comfortable with an offline payment mode and do not have access to credit cards or are wary of using their credit cards for e-commerce transactions, will be able to avail the services that Yatra.com currently offers online. Through the tie-up, Yatra.com hopes to enlarge its customer-base by tapping these customers, who account for roughly one-third of all air travellers in India. According to Dhruv Shringi, CEO and Co-Founder, Yatra Online Pvt. Ltd, Sify’s expertise and its pan-India reach will help Yatra extend its services to mass consumers in smaller cities and non-metros who are still not familiar or comfortable with internet and credit card transactions.
Lee Bets Big On Concept Stores

Denim brand Lee is betting big on ‘concept’ stores to create brand loyalty. Lee recently opened a boutique store in Greater Kailash, Delhi. The store conveys an uppity attitude and “celebrates snobbery” — right from its diamond studded signage to store interiors with modern minimalist furniture, vanity mirrors, plasma screens and foot massagers. While the Lee store in Bangalore is all about the “vintage meets contemporary”, its Pune store addresses the youth. Lee is all set to open a ‘Buddy Lee’ café in its store in Ahmedabad. Buddy Lee is the brand’s advertising icon.
While a multi-brand outlet stocks merchandise like just another product, large concept stores try to bring about all the images of the brand. Concept stores give consumers a complete brand experience and convey the values and ‘lifestyle’ imagery of the brand. Therefore Chakor Jain, Business Head, Lee is looking to take the concept story forward by setting up more such stores in various cities.
Mallya Eyes High-End Retail

Motivated by the high-end brands entering the country, the Vijay Mallya-led UB Group, the world’s third-largest maker of alcoholic spirits, has entered the business of high-end retail. The group will hold 55% stake in the Collection, a shopping mall that will exclusively retail luxury brands, coming up in Bangalore. The rest of the stake remains with the property developers Prestige Estates.
Louis Vuitton, a French luxury brand, has been roped in as the anchor along with other up-market tenants including Gucci, Fendi, Mont Blanc, Van Cleef & Arpels, Zegna, Rolex and Omega.
The project will include a 250-room JW Marriott hotel, service apartments and office space, already leased to Citigroup, Toyota, ABN Amro, Jones Lang LaSalle, 3M, Ernst&Young and Yahoo. The mall is expected to open in early 2008.
Epincion, The Designer House From Essel
The Essel Group has launched its premium lifestyle-retail venture. Named Christened Epincion, it will house jewellery, artifacts and designer wear from Rohit Bal, Shaina NC and Neeta Lulla. Says Epincion founder and CEO Kaveeta Goel, “During our trips across the country, we found that many of the dying age-old crafts have been inspiring modern designs, and have a demand in the growing neo rich class in India and abroad. This endeavour also aims to provide these unknown-unsung craftsmen an opportunity to share a platform with the best designers in the country.” The venture which flags off in Mumbai plans to expand to other metros and international destinations like Dubai and London in the coming years.