Retail Mantra

Marico is facing a steady deterioration in the fortunes of its flagship business, Kaya Skin Clinic which was one of the fastest growing segments of the company.

The Managament says that Kaya will continue to make losses in FY11F (we estimate a loss of INR100mn) and is only looking at breakeven in FY12F. Management remains convinced of Kaya as a business model and reaffirms its view that it will succeed in the medium term; it will continue to support (more…)

Currently the Indian Government allows Foreign Direct Investment in the retail sector in single brand outlets only. Multi Brand retailers are operating with an Indian partner. The Government has now proposed to allow 51% FDI in Multi Brand Outlets – This means Costco, Sams Club, Careefour etc can now directly retail to the Indian consumer.

A copy of (more…)

Different Reports of various research entities have always given different figures on the total consumption directly linked to the Retail Market Size in India. To satiate our urge, we filed an RTI and obtained 100% Authentic Data from the Government of India and we would like to share it with our (more…)

We would like to Present to you a Detailed Study on the Financial Matrix of Spencers Retail and the Managements View on the business and how it managed to cut losses and sail the 2008 storm.

Financials of Spencers Retail:
In FY10, our pre-tax losses have reduced by 50% YoY. The cash losses have also halved to Rs2bn (excluding Rs200m incurred by Music World). There are several adjustments to reported FY10 numbers. For instance, in FY10, they have taken a onetime non-cash charge of Rs1bn, comprising store closure, inventory write-down, etc. If we adjust FY09 numbers for (more…)

Excerpts from Enterprising India an interview with Mr. Sanjiv Goenka.

His views On Spencers Retail Business

I certainly expect Spencer’s Retail to become profitable, but would not like to comment on the precise time. In the retail business, we are creating a new vertical. It is a pioneering effort and a challenge, but we do believe we are on top of that challenge. I think sanity has (more…)

The over hyped Reliance Retail venture is yet to take-off. The company lost Rs 260 cr in FY 2010. Though Reliance operates ~1,000 retail stores in 14 states (85 cities) there (more…)