recent news in retail sector

8/14/2019 Recent News in Retail sector

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Reliance Retail Wincanton Partnership to Boost Retail

Add comment | August 15, 2008

Reliance Retail is now entering into a joint venture with leading European supply chain

specialist Wincanton for giving a boost to its food and grocery and hypermarketbusinesses. The venture will do a lot forIndian retail. The synergy would enable Relianceto efficiently run its critical back-end operations, which essentially include warehousingof goods and transporting them to stores on time. The latest move by Indias largestcorporate house, which jumped on the retail bandwagon two years ago by promising todo everything on its own, seems to suggest that it now needs a partner for almost everyretail initiative.

Industry observers believe that the company has expanded very fast and has managed toset up over 600 stores across various retail formats in less than two years, but its supplychain is in a mess. How to get the right merchandise to the stores on time has been its

biggest problem. Youd often not find the goods you want in Reliances food and groceryoutlets, said a source.

Reliance ties up with Vornado


Mukesh Ambani-led Reliance Industries that currently operates over 700 retail stores inmultiple formats in India announced a 50-50 partnership with US-based real estateinvestment trust Vornado to collectively invest $500 million in a shopping mall jointventure. RIL is Indias largest public company with revenues in excess of $34 billion anda market capitalization of over $75 billion.Vornado Realty Trust, on the other hand is afully-integrated equity real estate investment trust. It is one of the largest owners andmanagers of real estate in the United States with a portfolio of over 100 million squarefeet in its major platforms, primarily located in New York and Washington, DC metroareas.

Under the JV, RIL and Vornado Realty Trust would commit up to $250 million each toacquire, develop and operate retail shopping centers across key cities in India. Theshopping centers will contain 500,000 to 1,000,000 or more square feet and typically beanchored by a hypermarket to be owned and operated by Reliance, Vornado said. Vornadohas an aggregate investment in other India joint ventures of approximately $91 millionand capital commitments to these ventures of an additional $92 million. Vornados otherreal estate investments include 32.8 per cent interest in Alexanders Inc, 32.7 per centinterest in Toys R Us and Hotel Pennsylvania in New York City. Total real estate owned
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or managed, including pro-rata share of partially-owned entities and joint ventures, isover 100 million square feet, including Vornados 16 million square feet of Toys R Usreal estate. Read More

Tata signs Retail agreement with Tesco


After the Bharti-Walmart deal, the Tata Group, are signing up a partnership agreementwith Tesco, UKs largest retailer, to launch retail businessin India. Tesco and the Tataswill sign a 50:50 joint venture for cash and carry and a franchisee agreement for thefront-end. A formal announcement is expected very soon.

This is the most viable option for foreign retailers wanting to enter India as Indiangovernment does not allow foreign direct investment in direct-to-consumer retail thatsells many brands and products. Those who know the culture of both Tesco and Wal-Martsays that they complement each other. Both are conservative companies who treadcautiously. They wouldnt make gigantic plans which would be difficult to follow later.Both would take one step at a time, given the low consumer sentiments and still-high realestate prices. Read More

Bahrains TAIB Bank shells out Rs 216 cr for 26% in

Anant Raj

Add comment | July 24, 2008

In the midst of a general slow down in the Indian real estate market, TAIB Bank, aleading private bank based in Bahrain, has picked up a 26% stake in Anant Raj Projectsfor Rs 216 crore. The deal, one of the first Shariah-compliant transactions in the Indian

real estate industry, puts the valuation of the subsidiary of New Delhi-based Anant RajIndustries (ARIL) at Rs 831 crore.

TAIB Bank has routed the investment through its real estate investment arm Acacia RealEstate. Anand Raj Projects plans to develop of 600,000 sqft of retail space which isexpected to be operational by first half of 2009. The proceeds of the transaction will beinvested in this project. DTZ India, the Indian subsidiary of DTZ Holdings, andInternational Property Consultant were the advisors to the transaction. Read More
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Add comment | May 27, 2008

Theprivate equity (PE) graph in Indias real estate sector is growing as high as itsskyscrapers. The first five months of 2008 has PE commitments in Indian real estatecompanies surpassing the total PE investments committed in the whole of 2007that is

$3 billion.

Experts say PE funding in the second half of the year will be even more. This is a goodtime for PEs to invest as there is a liquidity crunch and valuations of many real estateplayers are down. PEs also expect a further lowering of valuations, somewhere in thetune of another 20%. Even as private equity money comes into the market, there areconcerns among investors about the execution capabilities of many of developers. ReadMore

CENTURY 21 Real Estate LLC Expands into India


Century 21 Real Estate LLC has announced that it has signed a master franchiseagreement to open CENTURY 21 franchises in Greater India. Dr. Devinder KumarGupta and others have partnered to become the master franchisee of the CENTURY 21System for five regions in India, including Bangalore, Chennai, Delhi,Hyderabad, andMumbai, operating as CENTURY 21 Greater India.

Considering Indias emerging economy and healthy real estate market, this marks atremendous milestone for the CENTURY 21 System and we are thrilled to work with Dr.Gupta and his team to establish a CENTURY 21 brand presence in this area, said TomKunz, president and chief executive officer, Century 21 Real Estate LLC. Its an honorfor the CENTURY 21 brand to be an integral part of the real estate landscape in India foryears to come. We will work to provide the utmost in value and support to the CENTURY21 Greater India team. Read More

Organized Retail to Capture 25 PC Markets by 2011

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