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.
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.