Business & Economy

India's retailers shop around
for more money to expand 

What is India News Service, Tuesday, 25 January 2005, 2100 hrs IST

Glass-and-chrome malls, slick grocery chains and an array of packaged foods are the vanguard of India's retail revolution. 

Expect more as the government may allow more foreign direct investment (FDI) in 'organised' retail, as large stores are known. If it did, analysts say the sector would grow 10-fold in five years. 

Local firms are getting ready for the next stage of growth, tapping private investment and the stock market to finance their ambitious expansion plans. 

"Many retail players are beginning to reach critical mass, and this is a business of scale, so you need to be big," said George Thomas, a business manager at GW Capital. 

"Whatever the colour of money, the industry requires capital for growth and expansion, so any form of funding, including FDI, will be welcomed and quickly absorbed," he said. 

Pantaloon Retail, which operates department stores and hypermarkets, recently sold a 4.5 percent stake for 700 million rupees ($16 million) so it can treble its retail space to 3 million square feet (278,700 sq metres) in the next 18 months. 

Govt to revisit patents ordinance: The government today assured the industry that it would make the necessary amendments to \93accommodate their suggestions in the interest of consumers and industry\94 before presenting it in Parliament in the next session.

Sensex ends at 2-week low: The Bombay Stock Exchange (BSE) Sensex fell sharply by a whopping 76.81 points to end at a two-week low of 6,106.43 points today as equities, across the board, tumbled after a surge in crude oil prices and dwindling foreign fund inflows sparked hectic selling pressure.

Fuel cess may be hiked to Rs 2: The additional cess will be used for financing new road projects.

Reliance Info plans big expansion: Reliance Infocomm has embarked on an ambitious expansion plan aimed at spreading its telephone network to four lakh villages and 5,700 cities and towns by the end of this year. 

Regulator for Railway business mooted: Planning Commission Deputy Chairman Montek Singh Ahluwalia today reiterated the need of setting up a rail tariff regulatory authority for regulating the business segment of the Indian Railways.

History Channel ties-up with contests website to attract young viewers: Shows such as History\92s Lost and Found, Barbarians and games like Secret Agents and Spy Game are bound to attract the young audience.

Maruti Q3 net zooms 70 pc: Despite pressure from rising costs of key raw materials, passenger car leader Maruti Udyog Ltd on Monday announced a 70.3-per cent jump in net profit.

FM pulls the plug on pre-Budget splurge of ministries: They may whine about inadequate funds and shortage of resources, but with less than three months of the financial year remaining, ministries are sitting on Rs 30,000-crore worth of "unspent balances" earmarked for them in the Budget.

Why China will never beat India in the BPO space: When it comes to English language skills & IT education, India has an advantage over its rival
China.

TRAI show-cause to Hutch, BPL for not submitting separate accounts: The Telecom Regulatory Authority of India (TRAI) on Monday issued
show-cause notices to Hutchison, BPL and Shyam Telelink for not submitting separate audited accounts.

Silicon Valley gets more A-I flights: A-I will soon launch flights connecting Bangalore, Hyderabad & Chennai with the west coast of the US. 


Business papers 


Business Standard
Economic Times
Business Line
Financial Express