Size matters in the fresh wave of Indian retail boom and the easiest way for big boys like Kumar Mangalam Birla to add shelves, floors and stores is to step up the gas on the buyout route.
Sources have told NDTV that Piramyd retail, the retail venture of the Piramal group run by the Ashok Piramal is up for grabs. An informal move has been made by Birlas who picked up Trinetra earlier this year.
Pyramid makes sense on valuations with its market capitalisation of Rs 132 crore compared to its peers Pantaloon Retail's valuation of Rs 5,713 crore, Shopper Stop at Rs 2,065 crore and Tata's controlled Trent valued at Rs 1,350 crore.
There are enough reasons why the Piramal group company is up for sale. It has failed to scale up at a time when Reliance, Biyani and the Tatas garnered retail muscle. On the top of it they are also short of good retail expertise, since the big retailers have snapped up most of the talent.
Big boys of retail
Right now Piramyd retail operates five Piramyd Megastores in the lifestyle segment and eight true marts in the food and grocery segment but its expansion has been sluggish when compared to the big boys of retail.
At present Piramyd occupies a retail space of 25,000 square feet while Shoppers' stop has an expansion plan of 1-5 million square feet by 2010. Kishore Biyani controlled Future Group has expansion Plan s between 4-30 million square feet by 2011 while Trent has plans to expand from 1-2million square feet.
For Birlas it makes sense to pick up companies on its way. Trent in the past also indicated that it is looking for acquisitions in the food and grocery space after landmark. If the stock performance is anything to go by Piramyd is by far the best performer with the Birla buzz.
Sources have told NDTV that Piramyd retail, the retail venture of the Piramal group run by the Ashok Piramal is up for grabs. An informal move has been made by Birlas who picked up Trinetra earlier this year.
Pyramid makes sense on valuations with its market capitalisation of Rs 132 crore compared to its peers Pantaloon Retail's valuation of Rs 5,713 crore, Shopper Stop at Rs 2,065 crore and Tata's controlled Trent valued at Rs 1,350 crore.
There are enough reasons why the Piramal group company is up for sale. It has failed to scale up at a time when Reliance, Biyani and the Tatas garnered retail muscle. On the top of it they are also short of good retail expertise, since the big retailers have snapped up most of the talent.
Big boys of retail
Right now Piramyd retail operates five Piramyd Megastores in the lifestyle segment and eight true marts in the food and grocery segment but its expansion has been sluggish when compared to the big boys of retail.
At present Piramyd occupies a retail space of 25,000 square feet while Shoppers' stop has an expansion plan of 1-5 million square feet by 2010. Kishore Biyani controlled Future Group has expansion Plan s between 4-30 million square feet by 2011 while Trent has plans to expand from 1-2million square feet.
For Birlas it makes sense to pick up companies on its way. Trent in the past also indicated that it is looking for acquisitions in the food and grocery space after landmark. If the stock performance is anything to go by Piramyd is by far the best performer with the Birla buzz.
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