The giant company in the Indian retail sector, and the wholly owned subsidiary of the Reliance Industries, the Reliance Retail has recently announced that it is about to finalize the forming of a Joint Venture (JV) company with the UK retailer, Marks & Spencer (M&S). The company officials have stated that the companies have not signed any formal deal yet and the partnership deal is likely to be signed by the next month. The officials added that the M&S is probable to hold a majority stake in the JV and the final contours of the partnership are being finalized at the moment.
The industry sources have informed that the Indian government allows a 51 per cent foreign direct investment (FDI) in the single-brand retail and a 100 per cent FDI in the cash-and-carry operations. The sources added that the multi-brand retail is totally barred for the foreign companies and investors. However, when contacted and enquired about the formation of new JV, the spokespersons of Reliance Retail did not agree to make any comments about it and the M&S spokespersons were also unable for a comment. The M&S is one of the leading retailers of food, clothing and also home products in UK and the company is employing over 75,000 people, at the moment. The company is also having over 600 stores in the UK and another over 275 stores in another 39 territories around the world.
The sources from the company have stated that the M&S is currently having a dozen stores in India, that are being run through a franchisee agreement with the Indonesia-based non-resident Indian Mr. BP Sharma. Mr. Sharma is the promoter of the company named Planet Retail, that runs the M&S franchise in India. The sources from M&S have also informed that the company is keen on expanding its business in India further, as the organized retail is constituting a minuscule portion of the annual market of $7 billion (Rs 28,000 crore) for retailing in India. The sources added that the company has recently decided to expand its presence in India and to address the large market opportunity that India represents. M&S has already addressed the mass market by reducing the prices of its merchandise by up to 40 per cent, as part of its strategy.
|
|
|
|
|
| Posted : 4/11/2008 |
|
| Browse through Product Directory of JimTrade.com which offers an exhaustive data on Products of Services where as Suppliers Directory of JimTrade.com provides a detailed information on Suppliers of Services |
|
|
|
