Tuesday, September 4, 2007

It,s All Desi Retailors

REI Agro opens retail stores in Punjab, Haryana
Chandigarh- A leading rice producer REI Agro
Ltd today announced to enter into retail sector of Punjab,
Haryana and Chandigarh with the opening of 5 retail stores
"6Ten" here.
The company also plans to open 50 more stores in Punjab
and Haryana with an investment of Rs 50 crore within one year.
"Today, we are opening our 5 retail stores in Chandigarh,

Mohali and Panchkula to penetrate in these regions. We will
also open 50 more such stores during next one year in order to
strengthen our position here," REI Agro Ltd, Managing
Director, Sundip Jhunjhunwaala told reporters here today.
6Ten stores, opened on a lease format, will offer grocery
items, FMCG, fruits and vegetables and dairy products to the
customers.
Having so far opened 35 stores mainly in NCR, the company

plans to open these stores in Patiala, Ludhiana, Jalandhar,
Amritsar and Rohtak soon. "With organised retailing growing at
more than 30 per cent, there is a huge untapped market for
these stores in India and we are targeting this space across
the states of Punjab and Haryana," he said.
The company has decided to procure fruits and vegetables
from several markets in Delhi, Punjab, Haryana, Rajasthan and
Chandigarh while staples such as pulses, flour, spices would
be procured from millers. Similarly, FMCG items would also be

sourced from companies for their retail venture, he said.
REI Agro Ltd, which plans to open 1500 such stores by
2011, would also set up flour milling facility, a processing
centre in north in order to feed its retails stores, he said.
REI Agro undertakes processes of procuring paddy to
drying, de-husking, milling and polishing, colour sorting,
grading, inspection, packing, branding, distribution and
retailing.

Super, hypermarts to corner majority of investments: Study

New Delhi- The booming Indian retail sector,
which is expected to reach a size of USD 1,011 billion by
2017, will see supermarkets and hypermarkets cornering as much
as 66 per cent of the total investments, a study by marketing
consultancy firm Technopak has said.
According to the study, in the next three to five years
there could be increased rate of shakeout with only four
categories of 'survivors' emerging in the next 3-5 years.
Predicting a clear tilt in favour of large formats on the
investment front, the study said majority of investment in the
next 6-7 years is slated for hypermarket and supermarkets with
32 per cent share and 34 per cent respectively.

While warehouse, cash and carry will have 9 per cent
share, departmental stores -- 2 per cent and other formats
which include apparel, footwear, watches, furniture,
furnishing, toys will have 23 per cent share in the total
market, it added.
According to Technopak estimates, maximum action in the
Indian retail space is going to be in top 50-60 urban markets.
"In these markets there shall be rapid margin erosion for
those competing in mainstream formats like supermarkets and
hypermarkets, which may lead to pressure on the supplying
brands as well," the study said.
Predicting a rapid transformation in the next five years,
it said the share of organised sector in total retail will go
up from the present 4 per cent to 16 per cent in 2012 and to
28 per cent by 2017.
Forecasting consolidation, the study said in next five
years top seven players will have 31 per cent of the market
share in top 150 cities, while share of next 43 players will
be just about 8 per cent.

More retailors are here...

Metro cash and carry in Punjab
Chandigarh- A German retail enterprise METRO Cash and Carry, is likely to pump Rs 900 crore to start its chain of distribution cum retail centres in Punjab.
The company is likely to start operation in Jalandhar, Ludhiana and Amritsar in the first phase, followed by three more distribution centres at Mohali, Patiala and Bathinda in phase II.
While making a presentation to the Punjab Chief Minister
Parkash Singh Badal here today, Director (Development and
Expansion) of Metro Cash and Carry Erik Schmit said, the
company's operations would help the farmers of the state who
were facing difficulties due to the diminishing returns from
agriculture.
These ventures would result in creation of 2,700 jobs for
local youth and impart training in modern management
practises.
Besides sourcing vegetables, fruits and other fresh items
directly from local farmers, which would help eliminate the
middlemen, the company was also committed to supplement the
income of the farmers, said Chief Executive Officer of Metro
Cash and Carry (India) Martin.
The Chief Minister assured the delegation full support
and corporation on behalf of the state government.
He directed the Chief Secretary of state RI Singh to find
ways to finalise the formalities through a single-window
clearance facility and complete all formalities within a month
in consultation with other government departments.
Badal appreciated the company's initiative for setting up
these distribution centres that would provide over 18,000
items-both edible and non-edible to kirana stores, hotels and
restaurants in Punjab.