Essar, IOC bid for Shell outlets
Essar Oil and state-run Indian Oil Corporation (IOC) have bid for around five and 10 of Shell India’s retail outlets, respectively. Bharat Petroleum Corporation Ltd (BPCL) is negotiating to bid for nine outlets. Shell India, the domestic arm of Royal Dutch Shell Plc, had offered for sale 20 of its 80 operational retail outlets and around 20 sites acquired earlier for setting up such outlets. The only foreign petro retailer in the country, it has approached oil marketing companies, public and private, on this. However, despite repeated attempts, Shell India could not be asked to confirm the development. Opening of the new fuel outlets will pump new business opportunity to the signage moguls engaged in the oil sector.
In order to provide agricultural inputs to farmers, Vadodara-based ACIL Cotton Industries (ACIL) has firmed up its plans to roll out four retail outlets under the brand name ‘ACIL Krishi Store’ in Gujarat. Based on the success of these retail outlets, the company also plans to set up 40 more stores in the state. The company has selected Vadodara, Surendranagar, Navsari and Anand for launching the ACIL Khrishi Stores. Launch of the new stores across the Gujarat is a privilege that in-store signage companies could grab for new business.
Organised retailing has been found widespread acceptance in India, which is the 5th largest retail destination globally. The growth in the sector touched $350 billion in 2009 and is projected to reach US$637 billion by 2015. Urbanisation of consumers in India increases in the disposable income of consumers and the interest of global retail giants in the Indian retail market as the reasons for the growth. The cost involved, increased competition among organised retail chains and evolving consumer preferences are some of the challenges faced by retail outlets. Such expected boom in the retail segment will be an added advantage for the signage sector, particularly for in-store signage companies and those engaging in the retail sector.
set to enter India by October this year to cash in on the expanding luxury space in the country. Delhi-based Blues Clothing company has tied up with the Orka Group, that has presence in over 35 countries worldwide with nearly 400 sales points, as franchise to bring the three apparel and accessories brands. Arrival of the Turkish high-end brands prods new retail expansion, which delivers an opportunity to in-store signage companies for new business retail segment.
Multi-brand car servicing company, Mahindra First Choice Services plans to ramp-up its service outlets to 450 pan-India from the present nine in the next four years. The outlets will come-up on company-owned and franchise-basis. The first franchised outlet will come in Hyderabad soon. Mahindra First Choice Services is a 100 per cent subsidiary of Mahindra and Mahindra. It is a chain of multi-brand car workshops with a presence in key cities. Unveiling of the new service outlets is a new delight for the signage companies dealing with in-store signage and others engaged in providing print service and fabrication.
RPG Group hypermarket chain’s plans to increase focus on apparel and other non-grocery products. Spencer’s, which already retails Ecko Unlimited and Ecko Red under Mark Ecko brand, plans to launch the Cut & Sow brand under the same brand by next fiscal. With the deliveries of new brands, the company plans to invest about Rs 30 crore this fiscal year to increase number of stores across brands in the existing locations and in new cities including Bangalore and Hyderabad. Signage companies in the in-store segment can prepare to tap a new business in the newly unveiled Spencer’s Retail.
RPG Group company Spencer’s Retail expects turnover from its specialty division to increase five folds in the next three years and touch Rs 500 crore. With that the contribution of the specialty division to the overall turnover of Spencer’s Retail will increase to up to 25 per cent in the next three years from 10 per cent at present. As part of plans to achieve its target, the company will be investing about Rs 30 crore this year to increase number of stores across brands in the existing locations and entering new cities across India. A new shift of Spencer’s stores across the country will bring in a new opportunity in the in-store signage segment where PSPs, sign makers, fabricators can tap bran dnew business.
India leading retailer Shopper’s Stop announces addition of 40 new medium and large-format stores across India in the next four years that could entail an investment of over Rs 500 crore. This fiscal, the company will invest about Rs 180 crore for opening up to 12 departmental stores under the Shoppers Stop brand and four HyperCity hypermarkets. The retailer, which clocked a turnover of Rs 1,578 crore last fiscal, also said it expects sales to touch Rs 1,800 crore this financial year. Magnification of Shopper’s Stop stores across the country is an opportunity for signage companies like in-store media majors, PSPs, fabricators, sign suppliers and others.
Chennai-based Naru Exports has acquired a major share in Italy’s CIAO World SRL, a garment retail company. Naru will be the 100 percent sourcing agent for CIAO till the end of December this year and from January 1, 2011, it will take over the operations of CIAO. CIAO has 100 retail outlets in Italy and Switzerland and has three garment labels. It sells textile products for men, women and children. It was sourcing its garment needs from Bangladesh, China, Sri Lanka, India and Indonesia so far. Naru Exports, owning garment facility in Tirupur, plans to have its retails outlets in India by 2012. The company’s next level move is for a tie-up with the Italian brand Irge. When the Italian companies mark inroads to the indian retail sector, signage companies engaging in in-store sector will find a new delight to tap a new business.
Realty major Forum Projects is planning to embark upon an expansion drive adding 3.7 million square feet of retail space within the next three years, with a total investment of Rs 1,000 crore. The projects would be spread across the eastern region and encompassing Tier-II city like Bhubaneswar and Tier-III ones like Jamshedpur and Rourkela, along with Kolkata. Keeping in mind the retail market potential of the eastern region, the real estate major plans to extend its reach to over 2 million square feet of mixed-use development by 2012, and another 3.5 million thereafter. Now the signage players in the eastern Indian region will find pace to tap new business in the in-store/retail segments.
Titan Industries, the largest manufacturer and retailer of watches, is planning to launch 20 new outlets of its new retail format—Titan One—across the country this fiscal. Through Titan One, Titan will focus on scaling up its presence in tier-III markets, where there is need and demand for retail stores. The outlets are pure watch stores to display collections like Titan Tycoon, Raga Flora, Titan Octane, Sonata Superfibre and Fastrack. Of course, the small Titan stores in the tier III markets will help in-store signage companies find big business.