Sep 29, 2009|
India goes shopping again
Organised retail was among the hottest sectors in India during the euphoria that lasted before the onset of the global financial meltdown. Since then they have had a tough time coping with high fixed costs and plummeting footfalls. With talks of an economic recovery all around, Indian retailers are attempting to start from where they left.
As per a leading business daily, Future Group is planning to add 2 Big Bazaar stores every month and open 15 hypermarkets over the next six months. Shoppers Stop is also upbeat about expansion of organised retail in India. Aditya Birla Retail plans to open around 60 supermarkets and 2 hyper markets in this fiscal, while Lifestyle plans 44 new stores. Bharti Retail plans to add 40 stores by end of the calendar year, while Metro plans to set up about 7 stores in Punjab soon.
In our opinion, the size and quality of the retailer's balance sheet remains the key. With increased conversion of footfalls, players with strong balance sheets are aiming at opening new stores and expand topline. However, companies that stretched their balance sheet too much the last time are having a tough time surviving, let alone expand.
Set your house in order: SEBI to BSE
The 134-year-old Bombay Stock Exchange (BSE) has been planning to get itself listed and had approached the Securities and Exchange Board of India (SEBI) for permission to list without an initial public offer. As per a leading business daily, SEBI has asked the exchange to make some changes before proceeding. One of the key requirements is the need for BSE to improve its technology platform.
It may be noted that National Stock Exchange (NSE) has constantly trumped the BSE, when it comes to technology. At a time when more competitors are set to enter the space, we believe BSE has no option but to match them in terms of technology. After all, no one is above the forces of competition.
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