Global retail giant Wal-Mart has registered a new company in India as it prepares to enter the country’s lucrative multi-brand retail market with a new partner. The retailer has registered a new company called ‘Wal-Mart India Private Ltd’ in the country, according to the data available with the Ministry of Corporate Affairs.
According to a recent study by industry body Assocham, the fake luxury market in India is growing at a 40-45 percent rate annually and is likely to more than double to INR5,600 crore (INR56 billion, USD910.1 million) from the current level of about INR2,500 crore. The body has further said that several web shopping portals account for over 25 percent of the fake luxury goods market in India.
Retail inflation eased to a three-month low at 9.87 per cent in December, thanks to moderation in vegetable prices. This has raised hopes that the Reserve Bank of India may leave key rates untouched at its policy review meeting this month-end. In recent months, the RBI has indicated that it may look at the consumer price index-based inflation as a gauge for inflation management.
The surprise move by UK-based Tesco to open multi-brand retail stores in India with an initial investment of USD110 million is expected to change the contours of the sector next year. Experts say the brand's entry into the country, more than a year after the government relaxed the multi-brand retail policy, may prompt those sitting on the fence to invest, too.
Two days before New Year, the Indian government on Monday approved UK retail giant Tesco Plc's plan to invest USD110 million to buy 50 percent stake in Tata Group's Trent Hypermarket Ltd (THL). With this, Tesco will become the first foreign player to open stores there that will sell anything from fruit to furniture.
Establishing its position as one of India's fastest growing markets for organised retail, Chennai accounted for over half of the new property rentals and purchases that took place in the space in January-September, 2013.
According to real estate consultancy firm Jones Lang LaSalle’s Indian Real Estate: A Review of 2013 And Outlook for 2014 report, Chennai witnessed the strongest retail real estate absorption in the first three quarters, at 53 percent of net rentals and property purchases across the country during the period.
Enthused by Tesco's plan to enter the Indian supermarket segment, the Indian government expects another European major to apply for the multi-brand retail sector.
"In multi-brand retail trading, the first (application) has come. There will be more and I think another European major will come," Commerce and Industry Minister Anand Sharma said in New Delhi. He, however, did not share the details of the possible applicant.
The Indian government said it has cleared 12 foreign investment proposals, including that of Swedish fashion major Hennes & Mauritz, totalling Rs 821.63 crore (USD131.8 million). "Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on 13 November2013, the government of India has approved 12 proposals of Foreign Direct Investment (FDI) amounting to Rs 821.63 crore (USD131.8 million)," Finance Ministry said in a statement.
Retail inflation for industrial workers rose to 11.06 percent in October compared to 10.7 percent in the previous month mainly on account of rise in price of food items and higher electricity charges. "The year on year inflation measured by monthly Consumer Price Index for Industrial Workers (CPI-IW) stood at 11.06 percent for October as compared to 10.7 percent for the previous month and 9.6 percent during the corresponding month of previous year," a Labour Ministry statement said.
India’s luxury market, pegged at USD7.5 billion in 2012, seems to be shaking off slowdown blues and slated for a revival with a 16 per cent compounded annual growth over the next three years. This follows a slack in year-on-year (y-o-y) growth from around 20 per cent in 2010, when the industry was pegged at USD5.74 billion, which subsequently dipped to 16 percent in 2011 (USD6.68 billion) and 13.5 percent in 2012 (USD7.58 billion).