MUMBAI: Gordon Reid — the chief operating officer, who oversaw the expansion of Trent’s Star Bazaar retail outlets — is returning to his parent firm Tesco to head its Chinese operations. According to an official Trent release, Mr Reid’s India stint was part of a franchise arrangement with partner Tesco, and he is now moving back. The company said his replacement at Trent will be announced soon. Trent officials that ET spoke to felt that managing director Noel Tata may opt for international expertise until Star Bazaar strengthens its operational set-up in the country. Mr Reid took over at Trent in 2008 after Tesco inked a deal with the retail arm of the salt-to-software Tata Group.

A pharmacist by training, he had worked with Boots for about 15 years earning his spurs in organised retail. He eventually ran the South East of England Region, responsible for around 200 stores. In 2005 he joined Tesco in Central Europe as the COO for their Hungarian business before coming to India. That stint is expected to come to an end on March 1.

Star Bazaar is estimated to have around seven operational stores and plans to scale that up to 11 by end of the year. That figure is slated to touch 50 in five years, according to company plans. Star Bazaar sells fruits, vegetables and non-vegetarian products, dairy, home care, health and beauty products, apparel, home decor, gifts and household items.

Tesco, the world’s third-largest retailer, is currently concluding its supply-chain integration with Star Bazaar as part of its franchise agreement with Trent. Tesco chose Trent as its partner almost two years after calling off talks with the Bharti Group. The wholesale outlets will sell groceries and other goods to small retailers and restaurant owners and supply Star Bazaar, Tesco said. Tesco’s first wholesale store in India is scheduled to open sometime this year. The UK retailer is keen to get a foothold in India where chain-store sales are expected to touch $97 billion by 2012, according to consultant Technopak Advisors. Tesco officials have said the retailer is relying on emerging markets of China, South Korea and India for future growth.

Vaidyaratnam eyes to have more franchisees

3rd February 2010: Vaidyaratnam, an ayurvedic player, has announced plans to roll out 1,000 more franchisees in major destinations in India and abroad in the next three years. Meanwhile, the company has set a turnover target of Rs 200 crore by 2015. For this, the company would invest 25 crore in a phased manner over the next four year. The target is achievable considering the pace at which the market for ayurveda is expanding both within the country and abroad. The company has also decided to invest Rs 25 crore in a phased manner in the next four years, E T Neelakandan Mooss, managing director, Vaidyaratnam, said at a press meet.

“In the next three years, the company will have 1,000 more franchisees in major destinations in India and abroad. This initiative will provide 3,000 fresh employment opportunities. The franchisees outside Kerala will showcase ayurvedic products, especially the Vaidyaratnam brand,” Mooss added. Vaidyaratnam, with a current turnover Rs 65 crore, already has to its credit 1,000-odd retail outlets in the State. It also has branches and distribution network spread across Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra and Delhi.

Read More

Indian retail market to reach $535 bn by 2013: Report

New Delhi, Nov 26 (IANS) India’s retail market is expected to reach $535 billion by 2013, says a report on fashion and lifestyle franchises released here Thursday. “With anticipated $30 billion fresh investment over the next five years, modern retail will show impressive compound annual growth rate of 40 percent,” said the Fashion and Lifestyle Franchise Report 2009-10.

“With this growth rate, the market is expected to reach $535 billion by 2013,” added the report compiled by Franchise India Holding Ltd, a franchise solutions provider. “The growth of organised retail will be driven by the franchise model in future,” said company president Gaurav Marya while releasing the report at the two-day Franchise India summit on retail trade that began here Thursday.

“In fact, that is the reason that many big companies going into retail mode are adopting it,” Marya said, adding that he expected business deals worth Rs.150 crore would be struck at the summit. About 250 firms including 30 foreign brands are participating. India’s franchise segment is growing at 38 percent annually with the market size, currently valued at $7.2 billion, expected to reach $20 billion by 2013, the report said.

Read More