Organised retail firmly on a roll in Bharat

Source: The Hindu Business Line, Nov 14, 2018

Mumbai: People in smaller towns are increasingly shopping at organised retail stores such as supermarkets and hypermarkets.

According to market research firm Nielsen, smaller towns and villages are fuelling the growth of FMCG sales on the back of growing income, increased use of plastic money, and the rise of regional FMCG players. Read the rest of this entry »

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India’s retail sector projected to grow to $1.3 trillion by 2020

Source: The Hindu Business Line, Oct 04, 2018

Bengaluru: India’s retail sector is projected to grow to $1.3 trillion by 2020 from the level of $672 billion in 2017, said Anuj Kejriwal, Managing Director & CEO, Anarock Retail.

“The India’s retail sector is on a faster roll than ever before and the boosters acting on retail sector are rapid urbanisation and digitisation, rising disposable incomes and lifestyle changes, particularly that of the middle-class,” he explained. Read the rest of this entry »

Retail inflation for industrial works rises to 5.61pc in August

Source: The Economic Times, Oct 01, 2018

Retail inflation for industrial workers rose to 5.61 per cent in August from 2.52 per cent in the year-ago month mainly due to rise in prices of food items and petroleum products. “The year-on-year inflation based on CPI-IW remained stagnant at 5.61 per cent for August, 2018 as compared to the previous month and 2.52 per cent during the corresponding month of the previous year,” a Labour Ministry statement said.

According to the statement, the food inflation was (-) 0.32 per cent in August as compared to 1.61 per cent during the year-ago period. Read the rest of this entry »

Samara-Amazon bags Aditya Birla Group’s retail chain More for Rs 42 bn

Source: Business Standard, Sept 20, 2018

Mumbai: Almost 11 years after setting up the food and grocery retail business, Aditya Birla Group on Wednesday signed a deal to sell Aditya Birla Retail (ABRL) to home-grown private equity fund Samara Capital and global e-commerce giant Amazon.

The Group did not disclose the value of the deal, but sources said it was around Rs 42 billion. The buyers, they said, would take Rs 40 billion debt in ABRL, which runs stores under the ‘More’ brand.

The Birlas are likely to end up with losses amounting to Rs 70 billion in the venture, given that they had invested Rs 110 billion of personal capital, by way of both equity and debt of ABRL, said sources. Read the rest of this entry »

How India’s middle class is drawing big MNC consumer companies

Source: ETRetail.com, Aug 30, 2018

NEW DELHI: Why are global consumer goods companies such as IKEA headed to India? It’s the country’s burgeoning middle class that holds out the promise of rapidly growing consumption.

The domestic consumption is set to treble to $4 trillion by 2025 as rising affluence levels drive changes in consumer behavior and spending patterns that have big implications for companies, according to a report by Boston Consulting Group released last year. About 40 per cent of the population would be living in urban areas by 2025, and city dwellers would account for over 60 per cent of consumption, it said.
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Food retail firms need to maintain separate books of accounts, inventories

Source: The Economic Times, Jun 25, 2018

Food retail firms having foreign investments will have to maintain separate books of accounts and inventories in warehouses, the government has clarified.

Currently, the government permits 100 per cent foreign direct investment (FDI) in the food processing sector, under approval route.

As per norms, a foreign company can open a wholly-owned subsidiary in India to retail food products produced and or manufactured in the country by way of opening stores or online.

It is clarified by the Department of Industrial Policy and Promotion (DIPP) that “business of food product retail trading is required to be kept distinct and separate from other businesses, if any, of the investee company by way of maintenance of separate books of accounts and records (including sales records), separate bank accounts, and separate invoicing”. Read the rest of this entry »

Online retail sales in India seen growing to $32.7 billion this year

Source: LiveMint.com, June 08, 2018

Bengaluru: Online retail sales in India are expected to grow by 31% this year to touch $32.70 billion, led by e-commerce players Flipkart, Amazon India and Paytm Mall, according to a report by marketing research firm eMarketer. However, India’s growth rate in e-commerce is yet to catch up with countries such as China and Indonesia in the Asia Pacific market.

Flipkart, Amazon and Paytm Mall have been expanding into new sectors, including grocery, and with Walmart’s recent $16 billion acquisition of Flipkart, e-commerce in India is expected to launch more offline retail stores with private labels playing a larger role in segments such as fashion and electronic accessories. Read the rest of this entry »