Kishore Biyani's Pantaloon Retail India intends to complete in the next two months legalities for its ambitious plans of raising Rs 1,500 crore and realigning of group companies for expansion Two months time is a good estimate (for the proposal's completion)," a company source said here. The Board of Directors of the BSE-listed firm met here yesterday and approved raising Rs 367 crore through preferential allotment of shares and warrants.
It is believed that Future Group is in talks with Carlyle, Bain Capital, Blackstone, Kohlberg Kravis & Roberts for private equity funding of about Rs 1,100-1,200 crore.
"We are looking to raise funds independently without diluting any stake," the source said, without giving details. In a major realignment exercise, the board proposed to rechristen Pantaloon Retail India (PRIL) as Future Market & Consumer Goods (FMGC), which will be the holding company for its multiple subsidiaries. It is believed that Big Bazaar and Food Bazaar (its value retail segments) may be hived off into a separate entity called Future Value Retail, if they find a suitable partner. "The proposed company - FMCG Ltd - will be the holding company for our two main subsidiaries, which will be created to focus on fashion and retail," Future Group founder and CEO Kishore Biyani told PTI. Existing companies like Future Capital Holdings, Future Media and Future Logistics will come under FMCG Ltd. "No new subsidiaries (apart from fashion and retail) are being created," the source said. Pantaloon Retail India will sell 11 million shares at Rs 183 -- the firm's closing price on Thursday last -- for raising Rs 201 crore, the company said in an emailed statement. Another 4.1 million shares will be sold at the same price to Dharmayug Investments Ltd to bring in Rs 75 crore.
Showing posts with label Retail. Show all posts
Showing posts with label Retail. Show all posts
Wednesday, April 15, 2009
Friday, April 10, 2009
Mahindra Retail to invest Rs 100 cr in Mom & Me chain
Mahindra Group retail subsidiary Mahindra Retail is planning to invest up to Rs 100 crore as part of its strategy to strengthen presence in the speciality chain 'Mom & Me'.
The company forayed into speciality retail for the 'mother and child' segment, with products catering to pregnant women, new mothers, babies and small children, this year and now plans to open unspecified number of Mom & Me outlets across the country. "We are planning to invest Rs 75-100 crore during the first phase of our retail expansion in the mother and child speciality retail, which will stretch for next few months," Mahindra Retail MD K Venkataraman told reporters here. He said the company is looking at opening Mom & Me outlets in all metros and Tier I cities, besides foraying into Tier II cities, but refused to give exact number of stores planned. "We started with one store each at Ahmedabad, Pune and Ludhiana and have now opened our first flagship outlet in Delhi. We are next venturing into Bangalore and Mumbai, besides looking at all the metros and Tier I cities and also looking at Tier II cities," Venkataraman said.
The company aims to achieve a breakthrough in speciality retail, which caters exclusively to one customer or product segment.
"There is huge potential in speciality retail and for us the target group is pregnant women and young mothers and their kids. We are seeking to evolve as a one stop shop for all the needs of that segment," Venkataraman said.
Mahindra Retail is exploring both malls and the standalone format for the Mom & Me chain.
Asked about private labels (company's in-house brands), Venkataraman said: "Currently one-third of our products are from private labels and we see lot of opportunity to increase the share."
Besides private labels, Mom & Me outlets also sell foreign brands like Marimare, Evenflow, Cam and Tutty Bambine under exclusive distributorship agreements.
The company forayed into speciality retail for the 'mother and child' segment, with products catering to pregnant women, new mothers, babies and small children, this year and now plans to open unspecified number of Mom & Me outlets across the country. "We are planning to invest Rs 75-100 crore during the first phase of our retail expansion in the mother and child speciality retail, which will stretch for next few months," Mahindra Retail MD K Venkataraman told reporters here. He said the company is looking at opening Mom & Me outlets in all metros and Tier I cities, besides foraying into Tier II cities, but refused to give exact number of stores planned. "We started with one store each at Ahmedabad, Pune and Ludhiana and have now opened our first flagship outlet in Delhi. We are next venturing into Bangalore and Mumbai, besides looking at all the metros and Tier I cities and also looking at Tier II cities," Venkataraman said.
The company aims to achieve a breakthrough in speciality retail, which caters exclusively to one customer or product segment.
"There is huge potential in speciality retail and for us the target group is pregnant women and young mothers and their kids. We are seeking to evolve as a one stop shop for all the needs of that segment," Venkataraman said.
Mahindra Retail is exploring both malls and the standalone format for the Mom & Me chain.
Asked about private labels (company's in-house brands), Venkataraman said: "Currently one-third of our products are from private labels and we see lot of opportunity to increase the share."
Besides private labels, Mom & Me outlets also sell foreign brands like Marimare, Evenflow, Cam and Tutty Bambine under exclusive distributorship agreements.
Friday, July 27, 2007
ICICI Venture sells 5% in Subhiksha to ICICI Pru MF
ICICI Venture, which holds 30% stake in discount retail chain Subhiksha, has offloaded 5% to ICICI Prudential Mutual Fund for an estimated Rs 75 crore
This brings ICICI Venture’s shareholding in the company to 25%. When contacted, Subhikhsha managing director R Subramaniam confirmed the change in equity stakes, reports Benny Antony in Mumbai.
ICICI Venture had initially taken a 10% stake in the company in July 2000. It had increased its stake in the retail outlet with another round of funding worth Rs 25 crore in late 2004. Started in March 1997 in Chennai, the retail chain, which operates in four verticals namely fruits and vegetables, pharmaceuticals, FMCG and telecom, currently has 800 stores. The company was recently in the news following speculations that it might be acquired by Reliance Retail.
The company had, however, denied any such development. It is planning to increase retail presence across the country to 1,000 outlets by the year-end. The company, which had clocked revenues of around Rs 800 crore during FY07, is also looking to tap the capital market after reaching the 1,000-store mark.Subhiksha had raised Rs 80 crore through a rights issue recently and is planning to achieve a turnover of around Rs 3,500 crore by the year-end.
(Source: Economic Times)
This brings ICICI Venture’s shareholding in the company to 25%. When contacted, Subhikhsha managing director R Subramaniam confirmed the change in equity stakes, reports Benny Antony in Mumbai.
ICICI Venture had initially taken a 10% stake in the company in July 2000. It had increased its stake in the retail outlet with another round of funding worth Rs 25 crore in late 2004. Started in March 1997 in Chennai, the retail chain, which operates in four verticals namely fruits and vegetables, pharmaceuticals, FMCG and telecom, currently has 800 stores. The company was recently in the news following speculations that it might be acquired by Reliance Retail.
The company had, however, denied any such development. It is planning to increase retail presence across the country to 1,000 outlets by the year-end. The company, which had clocked revenues of around Rs 800 crore during FY07, is also looking to tap the capital market after reaching the 1,000-store mark.Subhiksha had raised Rs 80 crore through a rights issue recently and is planning to achieve a turnover of around Rs 3,500 crore by the year-end.
(Source: Economic Times)
Monday, July 9, 2007
Biyani looks for buys overseas to spruce up back-end ops
Future group, the country’s largest retailer, is learnt to be in talks for buying stakes in some international manufacturing companies, mainly in the consumer durables and home equipment space. The move is seen as an attempt by India’s biggest retailer at strengthening its back-end operations. The Future group already has sourcing tie-ups with some of these manufacturers.
However, when contacted, Future group MD Kishore Biyani, denied any such move. “We are not doing anything internationally as of now,” he said.
Nevertheless the buzz in the retail trade is that the group is in different stages of negotiations with various manufacturers in countries such as China, Indonesia, Vietnam, France and Denmark. The company has picked equity stakes in some domestic manufacturers such as Capital Foods and Biba Apparels. “These were simple private equity deals, where the company put in money as an investor. However, the international deals will be linked with strengthening the backend and the supply chain,” a source said.
The name of Denmark’s Tvilum Scanbirk, the world’s leading manufacturer of functional-board based office and home furniture, is being mentioned as a possible candidate in which Future group could be interested in picking up equity. But this could not be confirmed. Tvilum Scanbirk is also one of the biggest suppliers to Future group’s latest retail venture Home Town.
At present, Mr Biyani’s Pantaloon Retail operates multiple retail formats in both the value and lifestyle segments. The company operates over 5 million sq ft of retail space and has over 350 stores across 40 cities in India. The company’s leading formats include Pantaloons in the fashion retail segment, Big Bazaar in the hypermarket segment, Food Bazaar a supermarket chain and Central, a chain of destination malls. Some other formats of the Future group include Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara.
(Source: Economic Times)
However, when contacted, Future group MD Kishore Biyani, denied any such move. “We are not doing anything internationally as of now,” he said.
Nevertheless the buzz in the retail trade is that the group is in different stages of negotiations with various manufacturers in countries such as China, Indonesia, Vietnam, France and Denmark. The company has picked equity stakes in some domestic manufacturers such as Capital Foods and Biba Apparels. “These were simple private equity deals, where the company put in money as an investor. However, the international deals will be linked with strengthening the backend and the supply chain,” a source said.
The name of Denmark’s Tvilum Scanbirk, the world’s leading manufacturer of functional-board based office and home furniture, is being mentioned as a possible candidate in which Future group could be interested in picking up equity. But this could not be confirmed. Tvilum Scanbirk is also one of the biggest suppliers to Future group’s latest retail venture Home Town.
At present, Mr Biyani’s Pantaloon Retail operates multiple retail formats in both the value and lifestyle segments. The company operates over 5 million sq ft of retail space and has over 350 stores across 40 cities in India. The company’s leading formats include Pantaloons in the fashion retail segment, Big Bazaar in the hypermarket segment, Food Bazaar a supermarket chain and Central, a chain of destination malls. Some other formats of the Future group include Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara.
(Source: Economic Times)
Wolfensohn's private fund picks 6% in Fabindia
John Bissell's export house of 1958 – better known as Fabindia today –has an unusual backer. Former World Bank president James Wolfensohn's private investment fund has picked up 6% stake in the country's marquee Indian ethnic wear company for $11 million. This puts the valuation of Fabindia at around Rs 750 crore.
Even though the Indian government does not allow foreign investment in multibrand retail, the policy was partially relaxed recently and FDI up to 51% allowed in single brand retail. Following this, several luxury brands such LVMH, Chritian Dior and Hermes began converting their franchisee agreements into joint ventures.
Fabindia generates annual revenue of Rs 200 crore selling ethnic menswear, womenswear, household furnishing, handicrafts and organic food. The company declined to declare the profit figure but said its balance sheet was “highly profitable”.
Fabindia has extensive expansion plans and intends to grow the number of stores from 61 to over 200 in the next four years. The money raised will be used to strengthen its supply chain. Fabindia is setting up community-owned joint ventures in the rural areas with artisans and craftspersons as shareholders.
Fabindia is essentially a retail platform for the hand made (both textile and non-textile) which brings rural craft to urban markets. At present it sources from 21 states and works with 15,000 craftspersons. The company said that in the next four years it would create 100,000 sustainable jobs in the rural, handicraft sector.
Mr Wolfensohn, who was the president of World Bank for 10 years from 1995 to 2005, plans to open an investment banking group along with his children and friends. He wants to raise $500 million to $1 billion for investing in countries like India. He also plans to open an office in the country.
(Source: Economic Times)
Even though the Indian government does not allow foreign investment in multibrand retail, the policy was partially relaxed recently and FDI up to 51% allowed in single brand retail. Following this, several luxury brands such LVMH, Chritian Dior and Hermes began converting their franchisee agreements into joint ventures.
Fabindia generates annual revenue of Rs 200 crore selling ethnic menswear, womenswear, household furnishing, handicrafts and organic food. The company declined to declare the profit figure but said its balance sheet was “highly profitable”.
Fabindia has extensive expansion plans and intends to grow the number of stores from 61 to over 200 in the next four years. The money raised will be used to strengthen its supply chain. Fabindia is setting up community-owned joint ventures in the rural areas with artisans and craftspersons as shareholders.
Fabindia is essentially a retail platform for the hand made (both textile and non-textile) which brings rural craft to urban markets. At present it sources from 21 states and works with 15,000 craftspersons. The company said that in the next four years it would create 100,000 sustainable jobs in the rural, handicraft sector.
Mr Wolfensohn, who was the president of World Bank for 10 years from 1995 to 2005, plans to open an investment banking group along with his children and friends. He wants to raise $500 million to $1 billion for investing in countries like India. He also plans to open an office in the country.
(Source: Economic Times)
Friday, June 22, 2007
Trinity to pick up 1.66pc stake in Phoenix Mills
UK-based investment firm Trinity Capital Plc on Friday said it will pick up about 1.66 per cent stake in Phoenix Mills for Rs 59.2 crore. Trinity would acquire 3.7 lakh shares for an aggregate of Rs 59.2 crore at a price of Rs 1,600 per share, the company said in a filing to the London Stock Exchange (LSE). The price to be paid by Trinity would be at a discount against the market price of Rs 1,900.
Deutsche Bank and Americorp would also be investing in Phoenix Mills alongside Trinity, the statement said. The investment would help Trinity to participate in the growth of Phoenix Mills and invest in future projects and entity level financings, it said.
Phoenix Mills is currently involved in seven retail-led developments covering 15 million square feet and is a mall operator, who would be involved in the development and management of Trinity's own retail projects.
The seven market cities, which Phoenix Mills plans to develop are Mumbai, Chennai, Thane, Pune, Raipur and Bangalore.
(Source: Economic Times)
Deutsche Bank and Americorp would also be investing in Phoenix Mills alongside Trinity, the statement said. The investment would help Trinity to participate in the growth of Phoenix Mills and invest in future projects and entity level financings, it said.
Phoenix Mills is currently involved in seven retail-led developments covering 15 million square feet and is a mall operator, who would be involved in the development and management of Trinity's own retail projects.
The seven market cities, which Phoenix Mills plans to develop are Mumbai, Chennai, Thane, Pune, Raipur and Bangalore.
(Source: Economic Times)
Wednesday, May 30, 2007
Best Buy in talks with Vivek to enter India
Best Buy, the larget US consumer electronics retailer in US appears to be setting its sights on India.
A top level delegation from Best Buy was recently in India to meet senior representatives from leading consumer electronic firms like LG, Samsung, Haier and Sony to gain first hand knowledge of the Indian market.
The buzz suggests that Best Buy may enter into a partnership with Vivek Ltd to enter India. Vivels is the largest consumer electronics and home appliances retial chains in the country with more than 52 stores.
A top level delegation from Best Buy was recently in India to meet senior representatives from leading consumer electronic firms like LG, Samsung, Haier and Sony to gain first hand knowledge of the Indian market.
The buzz suggests that Best Buy may enter into a partnership with Vivek Ltd to enter India. Vivels is the largest consumer electronics and home appliances retial chains in the country with more than 52 stores.
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