| After launching consumer electronics and durables mega stores, Croma, in collaboration with Australian retail giant Woolworths, the $22 billion Tata group is close to acquiring an interest in South-based consumer durables retail chain Viveks, reports Times of India.
The details of the deal are not available yet. Earlier reports had indicated that the Tata group was offered up to 50% ownership in the Chennai-based retailer. CMD of Viveks, Kodandaraman Setty denies any such development. "I don't know anything about it," he said. For the Tata group, Viveks fits perfectly into company's strategy to expand fast in the consumer durables retailing business.
The Tatas will gain a ready platform to sell consumer durables, a sector picked up by large retailers like Reliance and Pantaloon as a major growth area after food, groceries and apparel. As the sector expands, inventory management and ability to compete with regional price warriors such as Vijay Sales and Viveks will determine the success of such ventures. Others like Raymond's Plug-In have already been forced out by tough competition. The Tata group's retail venture is largely driven by Trent that has three different formats-departmental stores (Westside), hypermarkets (Star India Bazaar) and a book and music store (Landmark).
With Bharti spurning the long-time Tesco overtures and deciding to join with Wal-Mart, the speed factor is playing a very important role in the India retail with Reliance Retail and all the other big guys trying to reach the top in a tearing hurry. |
