Recently launched joint venture between the UK's Marks & Spencer and India's Reliance Retail has the UK retailer holding both financial and operational control.
'We are opening our first Marks & Spencer Reliance store in Mumbai by January next year. The store, spread over an area of 18,000 sq ft would be set up at an investment of half-a-million sterling,' said Mark Ashman CEO of Marks & Spencer India according to the report by indiaretailbiz.com
The second and the third stores that propose to sell apparel and house-wares will, however, be opened later, in September 2009 and April 2010 respectively. The JV plans to open 50 stores in the next five years.
"We have zeroed in on 20-odd locations which includes five stores in Mumbai, five in Delhi, three in Bangalore, one or two stores in Chennai, Hyderabad, Kolkata, Jaipur, Pune, Chandigarh and Ludhiana " added Mark Ashman, according to the report.
M&S still has the franchise arrangement with Planet Retail, which currently operates 14 M&S stores in India. M&S proposes to phase out this arrangement gradually.
M&S has partnered with Reliance in India as single-brand retailers under the current guidelines are allowed to bring in a maximum 51 per cent of FDI. This policy is currently under review and there are enough hints to the effect that like 'cash and carry' retail being carried on by companies like Metro, 100 per cent FDI may soon be allowed in single-brand retail as well.
An expansion in retail sector with ventures like the M&S Reliance JV augurs well for retail sales of wine in India. The sales are expected to go up significantly in the next 3-5 years through this channel. Wine importers and producers are busy signing up deals with such ventures and are busy sourcing inexpensive wines which will be the thrust at these points, at least initially. |