Q1 RE­SULT BRINGS CHEER TO THE RE­TAIL SEC­TOR

The first quar­ter of the year has turned out to be a pos­i­tive and suc­cess­ful quar­ter for re­tail busi­nesses across the coun­try. Re­tail­ers have in­tro­duced new strate­gies to keep the profit jug­ger­naut rolling.

Images Retail - - CONTENTS - – By IMAGES Re­tail Bureau

EYE­ING UN­TAPPED MAR­KETS, BATA TO EN­TER SMALLER TOWNS

Bata In­dia is ag­gres­sively pen­e­trat­ing footwear mar­kets of tier III and IV cities in or­der to reach out to con­sumers in un­tapped mar­kets, a com­pany of­fi­cial said. “We are ag­gres­sively pen­e­trat­ing into the footwear mar­kets of tier III and IV towns and have in­creased our fo­cus to im­prove the per­for­mance of the sin­gle town Bata stores,” com­pany Chair­man Uday Khanna told share­hold­ers at the 84th an­nual gen­eral meet­ing. He also said the footwear re­tail in­dus­try in In­dia was ac­cel­er­at­ing and it pro­vided im­mense scope for the com­pany to reach out to dif­fer­ent kinds of con­sumers in un­tapped mar­kets of semi-ur­ban and ru­ral ar­eas. Khanna said the footwear ma­jor had adopted a dual strat­egy of driv­ing same store growth while adding new re­tail stores in malls, high street lo­ca­tions.

Bata, held their An­nual Gen­eral Meet­ing for the year

2017 in the pres­ence of all their di­rec­tors, at Kala­mandir in Kolkata, West Ben­gal, In­dia. The con­clu­sion of the AGM saw Bata an­nounc­ing its fi­nan­cial re­sults for the com­pany’s FY 16-17. Turnover and profit be­fore ex­cep­tional items and tax stood at ₹ 2,497.2 crore and ₹ 255.2 crore, re­spec­tively. Speak­ing on the oc­ca­sion, Pres­i­dent-south Asia, Ra­jeev Gopalakr­ish­nan, said, “It gives me im­mense plea­sure to share with you an up­date on the over­all per­for­mance of the com­pany dur­ing 2016-17. Bata In­dia Lim­ited con­tin­ues to be the mar­ket leader in the or­gan­ised footwear seg­ment. As our cus­tomers be­come more and more de­mand­ing and the mar­ket­place gets in­creas­ingly crowded, we have re­alised that our best bet for win­ning is by of­fer­ing a great prod­uct. And so, for the past year we have sin­gu­larly fo­cused on the strat­egy of ‘Prod­uct is king’!”

ONIDA TO FO­CUS ON MINI MET­ROS, TAR­GETS ₹1,000 CRORE SALES

Mini met­ros are go­ing to be big­gest con­trib­u­tor for the growth of LEDS and LCDS, air con­di­tion­ers, re­frig­er­a­tors and other ap­pli­ances for Onida. The com­pany has re­ported rev­enues of ₹748 crore in FY17 and is tar­get­ing to reach ₹1,000 crore turnover dur­ing the cur­rent fi­nan­cial year. Onida’s 40 per­cent of sales comes from Tier-i cities and met­ros, while the rest comes from mid-seg­ment con­sumers mostly in semi-ur­ban ar­eas.

Com­ment­ing on the de­vel­op­ment MD, Vi­jay Man­sukani said, “We are ex­pect­ing good growth from our air con­di­tion­ers and tele­vi­sion seg­ments. Post GST there is no sales tax ad­van­tage based on the place of man­u­fac­tur­ing, this gives us level play­ing ground and we can com­pete well with in­ter­na­tional play­ers. Some of the growth is also ex­pected from new prod­ucts the com­pany is go­ing to launch in tele­vi­sion and mi­crowave seg­ments. Our ef­forts for the last three years have fi­nally paid off and we were very suc­cess­ful in ex­pand­ing our dealer net­work in the last three years. This is go­ing to give us the growth of 34 per­cent dur­ing the cur­rent year, which will take com­pany’s rev­enues to ₹1,000 crore. Our mar­ket share in tele­vi­sion seg­ment will also grow from cur­rent 8 per­cent to 10 per­cent.

“Even though the com­pany’s pres­ence in mod­ern re­tail is 15 per cent cur­rently, the com­pany would take this up to 20 -25 per­cent in the coming years. The com­pany has re­cently tied up with Flip­kart and other mod­ern e-re­tail­ers for bet­ter reach and vis­i­bil­ity for their prod­ucts,” he added.

Cur­rently the com­pany has 4,000 deal­ers spread across In­dia and this num­ber is in­creas­ing every day.

RE­LIANCE RE­TAIL RE­PORTS 65.8 PER­CENT RISE IN Q1 PRE-TAX PROFIT AT ₹398 CRORE

Re­liance Re­tail, the re­tail arm of Re­liance In­dus­tries, has re­ported 65.8 per­cent rise in pre-tax profit at ₹398 crore for the first quar­ter ended on June 30, 2017. The com­pany had re­ported a PBDIT (profit be­fore de­pre­ci­a­tion and in­come tax) of Rs 240 crore in the same pe­riod last fis­cal. The turnover in the quar­ter un­der re­view jumped by 73.6 per­cent to ₹11,571 crore com­pared to ₹6,666 crore in the year-ago pe­riod, Re­liance In­dus­tries said in a reg­u­la­tory fil­ing. “The in­crease in rev­enue was led by growth across all con­sump­tion bas­kets,” the com­pany was quoted by PTI as say­ing. Re­liance Re­tail added 18 stores across var­i­ous store con­cepts dur­ing the first quar­ter.

DEVEN­DRA CHAWLA JOINS WAL­MART IN­DIA AS COO

Wal­mart In­dia has roped in former CEO of Fu­ture Con­sumer Deven­dra Chawla as its Chief Op­er­at­ing Of­fi­cer, a source close to the com­pany told PTI. “This ap­point­ment is in sync with com­pany’s plans to set up 50 new stores across

In­dia over the next three to four years,” the source was quoted. Wal­mart In­dia owns and op­er­ates 21 best price mod­ern whole­sale stores in nine states across In­dia. The com­pany is seek­ing to lever­age on Chawla’s ex­per­tise in food re­tail as it looks to scale up its re­tailer de­vel­op­ment model ‘Mera Ki­rana Pro­gramme’ to en­able small Ki­ranas serve their cus­tomers bet­ter, an­other source told Chawla had joined Fu­ture Group in Jan­uary 2009 as the CEO for its pri­vate brands busi­ness. He had pre­vi­ously worked at Re­liance Re­tail Ltd, Coca-cola and Asian Paints.

ON ITS RUN UP TO AN IPO, SHOPCLUES AP­POINTS DEEPAK SHARMA AS CFO

Shopclues, has ap­pointed Deepak Sharma as its CFO. Deepak who joins Shopclues from V-mart, is an alum­nus of St. Stephen’s col­lege and In­sti­tute of Char­tered Ac­coun­tants of In­dia, Delhi, with over 20 years of in­dus­try ex­pe­ri­ence in the re­tail sec­tor. He led V-mart’s IPO as its CFO in 2013. Deepak is cred­ited with es­tab­lish­ing ro­bust prac­tices around cor­po­rate gov­er­nance, fi­nan­cial re­port­ing and dis­clo­sures, FP&A, risk man­age­ment, trea­sury and In­vestor re­la­tions among oth­ers, which en­able sus­te­nance and sta­bil­ity for or­ga­ni­za­tions, es­pe­cially in the chal­leng­ing cat­e­gory of brick-and­mor­tar busi­nesses. Speak­ing about his style of work, Deepak Sharma, CFO, Shopclues said “I be­lieve that the CFO of the com­pany has the prime re­spon­si­bil­ity to en­sure that value cre­ation be­comes a main­stream part of the cor­po­rate cul­ture while fun­da­men­tals of the busi­ness are fur­ther strength­ened. I am happy to be at Shopclues and hope to make a dif­fer­ence in this vi­brant and new age com­pany.”

San­jay Sethi, Co-founder and CEO, Shopclues, added, “We are very happy and ex­cited to have Deepak on board. His will bring greater ve­loc­ity in achiev­ing bot­tom line prof­itabil­ity and pre­pare the or­ga­ni­za­tion for a suc­cess­ful IPO..”

FORMER CROMA CEO AJIT JOSHI JOINS UR­BAN LAD­DER

Ur­ban Lad­der has ap­pointed in­dus­try vet­eran Ajit Joshi as Pres­i­dent & Chief Op­er­at­ing Of­fi­cer. Ajit Joshi comes to Ur­ban Lad­der with over 30 years of pro­fes­sional ex­pe­ri­ence and has been in­stru­men­tal in build­ing some of In­dia’s finest re­tail brands. He was pre­vi­ously the CEO & MD of Croma – A Tata En­ter­prise. Over the past 5 years, Ur­ban Lad­der has built a strong prod­uct brand on­line. The next wave of growth will come from a two-pronged strat­egy of es­tab­lish­ing a strong prod­uct dif­fer­en­tia­tor and cre­at­ing a world-class om­nichan­nel ex­pe­ri­ence.

“Ur­ban Lad­der has made an in­cred­i­ble foray into re­tail with the first flag­ship ex­pe­ri­ence cen­ter in Ban­ga­lore. In the past 5 years, we have carved a niche in the fur­ni­ture space with in­no­va­tive de­sign and ex­cep­tional cus­tomer ex­pe­ri­ence. We have done a great job of mak­ing houses into homes for peo­ple across In­dia. Hav­ing es­tab­lished our­selves as the leader in on­line fur­ni­ture, I’m now look­ing for­ward to the team con­quer­ing phys­i­cal re­tail in the coming months,” says Pres­i­dent & COO, Ur­ban Lad­der, Ajit Joshi.

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