Unilever India Exports (UIEL) today announced that it has reached an agreement to sell Sangam - a non-store home delivery retail business - to Wadhawan Food Retail (WFRL) with effect from March 31, 2007. UIEL is a 100% subsidiary of Hindustan Lever (HLL). The value of the deal was not disclosed.
The Sangam business was conceptualized in 2001 to experiment with the direct-to-consumer channel combining the twin benefits of convenience and value. The idea was to test market it in Mumbai under the brand Sangam Direct before taking a decision to extend it across the country.
The decision for a larger roll-out was put on hold in the context of the evolving retail scenario in the country. An HLL statement said that it was not in its strategic interest to continue to be present in this format of organised retail.
WFRL is currently present in Mumbai through its retail food & grocery store Spinach, and has about 23 outlets in the city. The Wadhawan group has diversified business interests including DHFL, a private sector housing finance company.
Source : Business Standard
Thursday, April 5, 2007
Monday, April 2, 2007
Reliance Retail mulls used vehicle mkt foray
Mukesh Ambani-controlled Reliance Retail is planning a second-hand car market venture on the lines of Maruti's True Value and Mahindra’s Automart.
The venture marks an addition to its plans to set up multi-brand car servicing stations at its retail outlets and its auto finance business.
Reliance Retail plans to cover 1,500 cities with over 1,500 supermarkets and 1,000 hyper-markets.
Reliance Retail is reportedly in talks with Corghi SpA, an Italian automotive firm, to offer customers at its outlets vehicle servicing facilities.
Corghi manufactures tyre changers, wheel balancers, wheel aligners, and lifting and testing equipment.
An RIL spokesperson declined to comment.
Industry estimates put the annual second-hand car market at 1 million units, almost as big as the new-car market (1.3 million units). Both markets grew 20 per cent in 2006-07 and are expected to grow at 20 to 25 per cent in the coming years.
The market is dominated by informal deals, with the organised sector accounting for only 20 per cent of the business through players like Maruti (True Value), Hyundai (Advantage), Ford (Assured), Mahindra (Automart India) and Honda (Auto Terrace). Others include e-commerce auto websites
Source : Business Standard
The venture marks an addition to its plans to set up multi-brand car servicing stations at its retail outlets and its auto finance business.
Reliance Retail plans to cover 1,500 cities with over 1,500 supermarkets and 1,000 hyper-markets.
Reliance Retail is reportedly in talks with Corghi SpA, an Italian automotive firm, to offer customers at its outlets vehicle servicing facilities.
Corghi manufactures tyre changers, wheel balancers, wheel aligners, and lifting and testing equipment.
An RIL spokesperson declined to comment.
Industry estimates put the annual second-hand car market at 1 million units, almost as big as the new-car market (1.3 million units). Both markets grew 20 per cent in 2006-07 and are expected to grow at 20 to 25 per cent in the coming years.
The market is dominated by informal deals, with the organised sector accounting for only 20 per cent of the business through players like Maruti (True Value), Hyundai (Advantage), Ford (Assured), Mahindra (Automart India) and Honda (Auto Terrace). Others include e-commerce auto websites
Source : Business Standard
Exclusive malls for luxury goods in India
While, over 200 international luxury retail brands like Escada, Alfred Dun Hill, Hermes are wanting to foraying into India, they are finding it difficult to do so for want of suitable space and high rental cost.
The situation, however, may change soon and customers accustomed to good life may not have to travel to Dubai, Singapore or Europe to buy them, since the Gitanjali Group is pumping in Rs.100 crore to set up ‘luxury malls’ for ceating exclusive space for selling high end goods of global and local luxury brands. Luxury Connections, another of Gitanjali’s subsidiary will facilitate the entry of such brands in the country.
While, Gitanjali’s first ‘luxury mall,’ admeasuring about 45,000 sq. ft., will come up by end 2007, it is also looking at setting such malls in Delhi and Mumbai thereafter. These malls, apart from offering exclusive retail space to luxury brands, will also be equipped with the world class digital exhibition and conference facilities.
KSA Technopak, in its report “India Luxury Trends 2006″, has estimates that the luxury segment in India is worth $444 million, spanning across 1.6 million high-income households with an earning capacity of Rs. 45 lakh (approximately $100,000) annually. These high-net worth households, according to the report, are growing at 14 per cent annually and are spending nearly $9,000 per annum on luxury goods.
Source : IndiaRetailBiz
The situation, however, may change soon and customers accustomed to good life may not have to travel to Dubai, Singapore or Europe to buy them, since the Gitanjali Group is pumping in Rs.100 crore to set up ‘luxury malls’ for ceating exclusive space for selling high end goods of global and local luxury brands. Luxury Connections, another of Gitanjali’s subsidiary will facilitate the entry of such brands in the country.
While, Gitanjali’s first ‘luxury mall,’ admeasuring about 45,000 sq. ft., will come up by end 2007, it is also looking at setting such malls in Delhi and Mumbai thereafter. These malls, apart from offering exclusive retail space to luxury brands, will also be equipped with the world class digital exhibition and conference facilities.
KSA Technopak, in its report “India Luxury Trends 2006″, has estimates that the luxury segment in India is worth $444 million, spanning across 1.6 million high-income households with an earning capacity of Rs. 45 lakh (approximately $100,000) annually. These high-net worth households, according to the report, are growing at 14 per cent annually and are spending nearly $9,000 per annum on luxury goods.
Source : IndiaRetailBiz
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