Krishna Lifestyle eyes luxury retail market

Krishna Lifestyle Technologies (KLTL), a dealer in 100 percent cotton yarns, open-end yarns, ring spun yarns, carded and combed for weaving and knitting, is now venturing into the luxury retail.



The Tayal Family Enterprise has tied up with international fashion and lifestyle brands like Calvin Klein, Tom Ford, Roberto Cavalli, Fendi, Kenneth Cole, Nike Vision and Tommy Hilfiger for this retail project.



Though Company plans to initiate this venture through a recently-set-up 20,000 square feet store in Mumbai, it has revealed plans to launch atleast 50 outlets in India within next three years.



The target venues will not only be the metros but also growing big cities like Pune, Nagpur, Baroda, Amritsar, Kolhapur and Ludhiana.

Vishal Retail IPO price band fixed

Vishal Retail, which has roped in high-profile investors like the Burmans of Dabur India, Munjals of the Hero group and HDFC, is all set to make a debut in the primary markets.



The price band has been fixed at Rs 230-270 per share and the IPO will open on June 11 and close on June 13. The proceeds raised from the issue will be invested in establishing 32 new retail stores.



At present, it operates 50 stores, spread over 12.82 lakh square feet, located in 18 states. In a statement issued to the media, Vishal Retail said that it proposes to deploy Rs 104 crore from the net proceeds of the issue towards setting up additional stores in fiscal 2008.



Vishal Retail that started as a retailer of ready-made apparels in Kolkata in 2001 broadened its business portfolio. It diversified its product offerings to include other retail goods such as footwear, toys, watches, toiletries, grocery items, sports items, gifts and novelties.



Unlike other large retailers like Pantaloon, Shoppers' Stop, Reliance Retail, which have a pan-India strategy including metros, Vishal Retail will focus its attention on tier-II and tier-III cities. Products in its malls will target an income group of Rs 5,000 to Rs 50,000 per month. R C Agarwal, chairman of Vishal Retail, said: "In the next 3-4 years, we expect that this market will grow faster than the big cities."



In FY07, the apparel business contributed 63% of revenues, while the non-apparel business contributed 22% and the FMCG sector 15%. The revenue mix is expected to change further with the company eyeing more into FMCG, Agarwal added.

The retail chain's IPO will coincide with India's biggest share sale by DLF.



DLF's issue opens on June 11. Once listed, Vishal will join a handful of Indian listed retailers, including Pantaloon Retail (India), Shoppers' Stop, Piramyd Retail and Trent among others. Organised retailing currently accounts for 3% of India's overall $300 billion annual retail market.



Bennett, Coleman & Co., the publishers of The Times of India and Economic Times, has equity interests in the retail chain.

India : Flawless Diamond ties up with 'The Bombay Store'

Flawless Diamond India Ltd has informed that it has tied up with "The Bombay Store" to open several outlets and initially at P M Road, Fort, Mumbai for sale of its AUM branded Jewellery. The Bombay Store is a chain of exclusive stores catering to discerning shoppers.



It has a special place in the hearts and minds of people having served an up market clientle for over 100 years. The AUM brand will get a tremendous boost with this association. One other major advantage is the international set of people for whom this place is a 'must' to pick up things before heading to different destinations around the globe.



The Bombay Store's premium location and the status it commands fits very well with Company's marketing strategy and brand development policy.



Further, after receiving very good response in its retail business and very good buyer response for its branded AUM Collection Jewellery from overseas, the Company is totally focused on its retail marketing strategy. Recently the Company has developed more than 5000 special new designs for its retail outlets.



These designs are very exclusive and would cater to all class of customers. The Company is going to launch this range for its domestic retail outlets and also for its overseas buyers and HNI's. Recently the Company has hired 100 artisans for developing its R & D division and to derive maximum benefit from its R & D works.



Mr. Bhawar U Jain, Managing Director says that "Company is very well equipped and well experienced, and all systems fully developed to launch successfully its first phase of opening up 25 retail outlets successfully and as fast as possible. We are looking for good growth in the near future."

MNCs, corporates to enter pharma retail

The country's highly disorganised drug retail, whose annual turnover of Rs 45,000 crore (Rs 450 billion) is shared by some 550,000 traders, is poised for a metamorphosis with some of the biggest names, including from overseas, having spotted it as a big opportunity.

The first off the block appears to be the Reliance Anil Dhirubhai Ambani Group (R-ADAG), which is investing Rs 1,200 crore (Rs 12 billion) in setting up a large drug distribution backbone.

As has happened frequently, R-ADAG may soon be joined by brother Mukesh's Reliance Industries [Get Quote]. The spokesperson for Reliance Industries said its retail arm, Reliance Retail, was exploring the option of sourcing directly from manufacturers to weed out spurious drugs from its proposed pharmacies.

The brothers are likely to have company in two multinationals: Zuellig Pharma, the $6 billion Hong Kong-based pharmaceutical and healthcare distribution and logistics specialist, and US-based Cardinal Health, which is behind the drug retail chain Medicine Shoppe.

Trade sources also mention plans being hatched by the Aditya Vikram Birla Group, retail chain Subhiksha and a leading unnamed pharmaceutical company.

At present, the only semblance of organisation in drug retail is the umbrella of the All India Organisation of Chemists and Druggists (AIOCD). Its structure involves tiers of stockists, wholesalers and retailers. Drugs are sold in accordance with the agreements specifying the margins between the associations of traders and manufacturers.

With the new entrants comes the inevitable churn of talent. Rajendra P Gupta, who had been heading R-ADAG's Reliance Health Venture, has quit and will soon join a similar venture of a top Indian corporate house. The R-ADAG venture is scheduled to take off in May.

Gupta said: "I have moved out of Reliance ADAG and am on vacation. I will finalise the options shortly. Healthcare including pharma retail and distribution will remain my key focus area."

The R-ADAG spokesperson confirmed the exit, but said: "The exit of an individual will not affect the business plans of an organisation like R-ADAG. We are going ahead with our project."

Zuellig is the largest drug logistics provider in Asia with extensive operations and warehousing facilities in a dozen countries. "India is a major market with vast potential," said Nike Ampton, managing director of Zuellig Pharma India, the Indian subsidiary that Zuellig has already set up. It has tied up with the Chennai-based logistics provider Sical for warehouse management and trucking services.

A team of Cardinal Health's senior executives visited Mumbai two months ago to assess the Indian market and held rounds of discussions with Indian companies for a partnership.

Gen-X are drivers of Indian retail boom: study

India's booming retail industry, estimated to become a $427-billion industry by 2010 from the current $328 billion, should increase its focus on the youth as the most potential consumer, says a study.

The retail sector in India is undergoing a major paradigm shift, boasting of a billion plus consumers of which over 50 percent are less than 25 years of age with an enormous appetite for quality products and have high purchasing power, said YouSumerism - Youth In India: Opportunity Knocks - conducted by leading global professional services firm Ernst and amp; Young.

Effective capitalisation of India's youth would help the global retailers, who are eyeing major investments in the sector, in securing their business in an emerging market like India where large-scale consumerism has yet not attained maturity.

'Those living in emerging markets still have the tendency to save money. However by 2010 it is expected that the per capita income in India will reach a tipping point which will then lead to accelerated consumerism in India,' Ashok Rajgopal, director (retail industry), Ernst and amp; Young said in a statement here.

'By targeting the youth population in India, retailers will be investing for the future as they will be able to influence and create loyalty from the start,' Rajgopal added.

According to the study, Indian youth can be classified into three age groups - 13-21, 22-28 and 29-35 - who have different behavioural patterns and thus distinct habits.

It also elaborates on how consumerism differs between the behaviour of youth in large cities and those in smaller towns, highlighting the fact that regional set-up and ethnic backgrounds also could be used as an effective tool to reach out to the youth.

'The Indian youth offers a huge lifestyle and luxury products and services consuming audience,' stressed Rajgopal.

He underscored that though the industry continues to be regulated, the retail sector has become the cynosure of a considerable amount of foreign investors.

Rajgopal said that India currently is most suitably poised for the retail revolution to occur, adding: 'The availability of quality retail spaces and brand communication are seen as positive factors inviting investment from retailers in the UK, Spain, Germany, Italy, France and some from the United States as well.'

Gen-X are drivers of Indian retail boom: study

India's booming retail industry, estimated to become a $427-billion industry by 2010 from the current $328 billion, should increase its focus on the youth as the most potential consumer, says a study.

The retail sector in India is undergoing a major paradigm shift, boasting of a billion plus consumers of which over 50 percent are less than 25 years of age with an enormous appetite for quality products and have high purchasing power, said YouSumerism - Youth In India: Opportunity Knocks - conducted by leading global professional services firm Ernst and amp; Young.

Effective capitalisation of India's youth would help the global retailers, who are eyeing major investments in the sector, in securing their business in an emerging market like India where large-scale consumerism has yet not attained maturity.

'Those living in emerging markets still have the tendency to save money. However by 2010 it is expected that the per capita income in India will reach a tipping point which will then lead to accelerated consumerism in India,' Ashok Rajgopal, director (retail industry), Ernst and amp; Young said in a statement here.

'By targeting the youth population in India, retailers will be investing for the future as they will be able to influence and create loyalty from the start,' Rajgopal added.

According to the study, Indian youth can be classified into three age groups - 13-21, 22-28 and 29-35 - who have different behavioural patterns and thus distinct habits.

It also elaborates on how consumerism differs between the behaviour of youth in large cities and those in smaller towns, highlighting the fact that regional set-up and ethnic backgrounds also could be used as an effective tool to reach out to the youth.

'The Indian youth offers a huge lifestyle and luxury products and services consuming audience,' stressed Rajgopal.

He underscored that though the industry continues to be regulated, the retail sector has become the cynosure of a considerable amount of foreign investors.

Rajgopal said that India currently is most suitably poised for the retail revolution to occur, adding: 'The availability of quality retail spaces and brand communication are seen as positive factors inviting investment from retailers in the UK, Spain, Germany, Italy, France and some from the United States as well.'