India Retail News.

Reliance Retail has inked a JV with UK based Boots to run its Reliance Health and Wellness chain of Pharmacy stores. Reliance Wellness will be the front end as mandated by FDI in Retail sector. Reliance Retail will also be in the back end learning the process from Boots.

It is likely that the stores will be branded as Boots. [Not sure what will happen to existing ones] The stores will sell from medicine to high-street health and beauty products. They will also be equipped for quick healthcare checkups.

Looks like Mukesh Ambani is finding it easy to negotiate with UK based companies [American retailers, better watch out] since this is the third such agreement after Reliance Marks Spencer and Reliance Noah's Ark Toy Stores.

Americas Snap Fitness is all set to enter India through Mumbai's Gateway of India and mark its presence in Bangalore as well. They plan to setup 500 to 1,000 centers within the next 5 years on PAN India basis.

Mr. Peter Taunton, CEO of Snap Fitness said,

In many clubs facilities like swimming pools and child care are not optimally used. Most users are keen on pure express work-outs using stat-of-art GYM equipments with greater accessibility.

Snap Fitness is opening its first center in Indiranagar, Bangalore / Bengaluru. The best part of the deal is Snap Fitness is offering membership at mere Rs 1,200 / month and members can access any GYM in India or Worldwide. Compare this to the arrogance of Talwakars who refuse to let members in their centers while in different city for business.

Snap Fitness has realized that franchising is the best way to go with and is offering them between Rs 50 Lakh to Rs 1 crore investment with all the support it can back with [ Marketing, Training, etc]

Office1Superstore - a JV of Indo Rama Retail and and US based Office1SuperStore catering to the office and stationary needs of second fastest growing corporate sector in the world will depend on Franchisee model for expansion.

The company plans to open 200 stores by 2011 with an investment of Rs 250 crore. Currently they operate around 10 stores and are looking to add company owned as well as Franchisees. They plan to create a brand and change the way people look at servicing their office, school, college and home supply requirements with latest in stationery and office products. Company plans to have most of its stores in Central Business Districts or in the vicinity of Corporate Parks.

Mr. Srivastava, COO of Indo Rama Retail said,

Our store size range from 300 sft to 3,000 sft and above which can house a wide range of SKUs from stapler pins to office cubicles. A franchisee can invest according to his SKU requirements.

The company will source merchandise from China. Apart from in-store retailing, the company plans to go for catalogue based retailing.

Related Reading:
Reliance Retail Office Depot - in India
Pantaloon Retail Staples Office Retailing in India

Reliance Retail will setup Toy stores in India in association with UK based Hamleys owners of Noah's Ark chain of stores. Reliance has explored to venture with American Toys'R'Us before striking a deal with Hamleys. It is believed that Reliance pipped Pantaloon in the negotiations.

Reliance plans to open Hamleys in Bangalore, Delhi, Mumbai initially and each store is expected to be around 25,000 sft in size. It is still not clear about the holding structure in the JV due to FDI regulations. Since Hamleys is a single brand retailing, they can hold upto 51%. Hamleys operates one of the world's largest toy stores in London occupying the entire 7 floors of the building.

This is Reliance Retail's third major deal with UK company after Marks & Spencer and Vision Express.

Nilgiris a century old South based company with specialization in dairy, bakery and retail areas is all set to enter Andhra pradesh by the end of Sept-08.

Nilgiris currently operate 100 stores across Karnataka, Tamilnadu and Kochi. It plans to open 10 stores in Hyderabad and have set an ambitious target of 400 stores by 2010.

Mr. Prabhu, Director of Niligir Dairy Farms said,

We want to be sizable player in a certain market rather than spreading ourselves across India. We see our future growth coming from convenience model and expanding our portfolio of private labels.

Nilgiris is settin up a hi-tech distribution center one each in Bangalore and Chennai. PE firm Actis has pumped in Rs 300 crore into Nilgiris so far. If you are on Brigade Road in Bangalore, then don't forget to visit Nilgiris for some quick and real mouth watering pastries. This store hold record for churning out the best and biggest X'Mas cakes.

Nalli - Premiun Silk Saree retailer from Chennai has launched Nalli Next chain of stores to be located in premium upscale markets offering apparels and soft furnishings. The first Nalli Next store opened for business in Alwarpet, Chennai spread on a 4,000 sft showroom. Bangalore, the retail destination of India will open a 15,000 sft Nalli Next showroom very soon.

Nalli Next will offer unique saris, designer sarees, apparels for marriage, parties, corporate events and casual wear as well.

Nalli group also unveiled home furnishing retail chain under the brand name, Next Living. Nalli already has an export oriented manufacturing unit in Noida, Delhi for home furnishings.