Sunday, October 18, 2009

Indian Retail Majors Eying for Profit

The organised retail companies in India after passing through a year long bout of recession, are now moving forward with business expansion plans. Retail majors like Future Group, Aditya Birla Retail, Reliance Retail, Trent and Spencer's Retail are now opening new stores and planning to come up with new hyper market chains.

The Future Group is sure of success after the end of economic down turn. The group is confident that it revenues would touch Rs. 25,000 crore next year even though its business extension planes have been delayed by 2 years. The group is planning to increase its space to 30 million sq ft and 10% operating profit margin. In 2008-09 the revenue of the company was Rs 5,000 crore.

The company coming up with retail malls in Chennai, Kolkata, Bangalore and Udaipur in the coming three months.

Releasing its expansion plans in front of the media Mayur Toshniwal, president (retail operations), Future Group told "We are planning to add at least two Big Bazaar stores every month. We would come up with 15 Big Bazaar stores and add one million sq ft over the next six months.

The slowdown did affect retail companies because big-ticket purchases like electronics went down by 30% and household electronics and furniture tumbled by 30%.'' But now the market is showing improvement signs and as of now his company growth is 10% and hopeful of making it double in the coming months.

Moreover Mr Toshniwal added that to fulfil its sales target and to increase its retail space the company would be in need of big investments of Rs 3,000-4,000 crore. The other retail majors are also in the mood of making cash. That is why Aditya Birla Retail is expanding its retail hyper market 'More' one in every month.

Spencer's Retail owned by RPG group is also planning to invest Rs 1000 crore for expansion of its business in the next three years. It is going to open 10-15 small format stores and the same no of large format stores by the end of 2010.

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