Finally, as 2014 rings in, its a good news for multi-brand retail FDI. Foreign Investment Promotion Board (FIPB) approves Tesco’s proposal to invest $110 million in Indian retail market in JV with Tata’s Trent Hypermarkets.
The approval makes Tesco the official first in the Indian retail market to set shop in JV with an Indian brand.
Tesco will own 50 per cent stake in Trent Supermarkets that currently runs 16 Star Bazaar hypermarts across Maharashtra, Karnataka, Gujarat, and Tamil Nadu. But Gujarat and Tamil Nadu not yet up for FDI, the current JV will focus on the stores in Maharashtra and Karnataka.
Walmart, after turmoil in its retail venture this year, now plans to lay off 100-150 employess from the mid-senior level. Walmart, post snapping ties with Bharti Retail, has delayed its expansion plan until 2015.
According to sources the process of handing over pink slips have begun and will be done over in next couple of days.
Walmart currently employees 1,100 people.
If the reports are to be believed, Vikram Bakshi in his battle with McDonalds has picked up McAloo Tikki and other Indian items on the menu as his contention.
Bakshi’s Contention says that while McDonald’s levies royalty charges on the local joint ventures for selling items on the menu, the same is not paid by the US based parent company for India selling vegetarian burger in West Asian and Southeast Asian countries. He further argued that McAloo Tikki was researched and developed by the Indian JVs.
The India specific products, especially McAloo Tikki and McPuff, contribute to 60 per cent of the sales by Indian JVs.
McAloo Tikki was first introduced in 2001 and was developed by the Indian R&D team. The product’s popularity also took it overseas to Middle East and Singapore.
It really sounds like a sad story, an alliance that looked like a perfect match, ‘growing old’ kinds but finally, Bharti and Walmart part ways and call off their Indian JV.
With the split, the US counterpart will buy in the stake of the Indian partner in the cash and carry wholesale JV, for an undisclosed amount. The two parties have come to an agreement wherein the two will pursue separate retail businesses in the country.
According to the company statement, “Upon receipt of required clearances, Walmart would acquire Bharti’s stake in Bharti Walmart Pvt Ltd, a joint venture between Bharti and Walmart, giving Walmart 100 per cent ownership of the Best Price Modern Wholesale cash and carry business.” Bharti will acquire the $100 million worth Compulsory Convertible Debentures (CCDs) held by Walmart in Cedar Support Services, a company owned and controlled by Bharti.
Bharti Retail plans to continue the expansion plans for their stores, easyday, which currently stand at 212 in number.
The business has been going through various internal issues, given the Indian FDI policies. Moreover, the changes started show as soon as Raj Jain called it quits.
Now as we think, is there a possibility of Raj Jain joining back?
Tata Starbucks Limited, the 50/50 joint venture between Starbucks Coffee Company and Tata Global Beverages Limited has announced the opening of the first Starbucks in Pune.
Located off North Main Road at Koregaon Park, the store depicts the rich copper heritage of the city along with offering the best of coffee to its customers. The customers will have to wait until Sunday, 8 September 2013 to taste the Starbucks in their city.
The two storied store has been designed to reflect the rich historical architecture of the city and the interiors of the store embrace and celebrate the local culture with the use of railings, displayed antiques and copper. The elevations in the exterior of the store are attractively designed to reflect the shadows of the Gum trees surrounding it, along with the traditional Indian swing which is popular throughout Pune.
Manmeet Vohra joins Tata Starbucks as Director – Marketing & Category
Starbucks opens at Ambience Mall, Gurgaon
Starbucks explores beyond shopping centres
Its a good news for the French fashion brand Celio as Foriegn Investment Promotion Board (FIPB) approves its plans to raise the stake in Future Group JV. The brand can now raise its stake from 50:50 to upto 100 per cent, thus allowing it to invest nearly Rs 40 crore in the country.
As the news come in, the two companies are already in talks to discuss the details of the deals. The brand has been operational in the country since four years with 30 standalone stores and over 100 shop in shops.
The French retailer which entered the Indian market in 2012, now opens its seventeenth exclusive boutique in Gurgaon’s premium luxury mall, Ambience Mall. The new store recreates the Parisian High Street allure for timeless fashion.
Spread over 1200 sq ft, the boutique is designed beautifully with soft interiors based in white background. The store spells elegance all across with the latest Summer 2013 line with designs revolving around themes relevant to the season.