Britain Asks India to Open up Retail Sector

Britain wants India to open up retail sector and further liberalise defence and financial services to promote economic growth and deal with the food security problem. The issues are likely to come up for discussion during the visit of UK’s Secretary of State for Business, Innovation and Skills Vince Cable who is arriving in India on January 17 on a three-day visit along with a 50-member business delegation. “We want to talk to the government about opening up areas of retail, defence where this debate is going on… Defence Minister yesterday made announcements about the private sector’s involvement in the defence sector,” British High Commissioner to India Richard Stagg told reporters.

At present, the government allows 51 per cent FDI in single brand retail and 100 per cent in the cash-and-carry (wholesale) formats, while FDI in multi-brand retail is prohibited. In defence and insurance sectors, 26 per cent FDI is permitted. The UK has strong expertise in areas like retail, infrastructure, energy, financial services and defence. The visit is aimed at further identifying opportunities for British and Indian companies to work together to realise ambitious goals of economic growth in areas like infrastructure development, Stagg said.

Besides, Cable would chair the meeting of the US-India Joint Economic and Trade Committee (Jetco) with Commerce and Industry Minister Anand Sharma. It was set up in 2005 to tackle trade and investment barriers on both sides and promote business links. The 6th Jetco meeting was held on 4 February last year in London. Cable would also attend the launch of British India Infrastructure Group which would be co-chaired by Permanent Secretary of the Department for Business, Innovation and Skills Martin Donnelly and Finance Secretary Ashok Chawla.

“There are enormous opportunities available in India’s infrastructure sector. British companies have expertise in the sector and can help in the infrastructure development of the country,” Stagg said. The government has planned to invest USD 1 trillion in the infrastructure sector during the XII Five-Year Plan (2012-2017). Besides, Cable would hold meetings with Road and Transport Minister Kamal Nath and Minister for Corporate Affairs and Minority Affairs Salman Khurshid.

“Cable will also look at corporate governance which is very important particularly at a moment when we move towards more global standardisation. We see more opportunities for both countries to work more closely together in this regard,” Stagg said.
During 2009-10, India-UK bilateral trade stood at USD 10.6 billion.

Slowdown Hit Indian Retail Sector can Witness Growth in 2011: Fitch

After going through a downturn, the Indian retail sector is likely to show positive results this year with several firms witnessing buoyant sales, improved capital management and stable margins, according to ratings agency Fitch. “Retailers in the country are likely to benefit from buoyant sales, improved working capital management and stable margins,” Fitch India said in its report ‘2011 Outlook: Indian Retail’. The retail sector had suffered massively during the 2008-09 downturn with many firms closing stores and holding back on expansion.

The report said the total debt is expected to increase in most cases to fund growing capex requirements as companies focus on cementing their market share and retail footprint. “However, debt levels are likely to be supported by higher operating profits and consequently leverage levels should remain stable and are likely to improve,” it said.
The agency also said it expects liquidity to remain comfortable, led by efficient working capital management.

“Improvements are expected from better inventory management and lower lease deposit levels,” it added. Besides, retail firms are likely to witness stable operating margins this year, depending on each company’s choice on product category. “This, in addition to economies of scale, private label sales mix and discounts from suppliers will help strengthen margins,” the agency said. The report also said small retailers and new entrants are likely to go more aggressive this year, while large players are also likely to face lesser risk in executing their expansion plans.

“Given the size and scale achieved by larger retailers such as PRIL and Shopper’s, their capex execution risk has reduced considerably in line with their reduced pace of expansion,” the report said.

Godrej Properties expects to double sales in FY11

MUMBAI: Godrej Properties expects sales to double in the current fiscal from a year ago, a senior official said on Friday.

The firm has sold 1.5 million sq.ft in the first three quarters of FY11, Pirojsha Godrej, executive director told reporters.

Earlier in the day, the firm posted a 25 percent dip in December quarter net profit to 132.52 million rupees.

Realty report: Mumbai, Pune, Delhi

Recently, a 1,650-sq ft, 3-BHK apartment located at Cuffe Parade in Mumbai, was transacted at a price of around Rs 8.40 crore which was inclusive of a covered car parking space. This is a secondary sale trans-action. The apartment located on the 9th floor of the building has an exclusive view of the Arabian Sea.

Cuffe Parade is an up market and most sought after residential and commercial locale in South Mumbai which houses many old residential buildings quoting rates in the range of Rs 34,000-85,000 per sq ft, depending on the location, floor, view from the apartment and age of the building . Prominent commercial projects located here are the IDBI Towers, World Trade Centre, Maker Arcade as well as the Vivanta by Taj-President .

PUNE

A garden-facing, 3-BHK apartment with a saleable area of 1,500 sq ft at the project Yuthika by Paranjpe Schemes was sold for a total amount of Rs 83 lakh. This comprises charges for registrationstamp duty, society formation, MSEB, as well as an exclusive parking space. The premium residential project at Baner consists of 2- and 3- bedroom apartments with good layouts, specifications and opulent amenities at an affordable price range.

The project is currently quoting Rs 4,300 per sq ft for non-garden-facing apartments and Rs 4,600 per sq ft for garden-facing ones. The project assures possession in the next 24-30 months from now. The area has seen good amount of development in the past few years and scores on approachability from the rest of the city, making it a good residential option.

DELHI

In one of the recent transactions in Defence Colony a 2,050 sq ft apartment located on the third floor of a three-storey building, was transacted for Rs 6.15 crore which is inclusive of a car-parking space. The owner of the house has exclusive terrace rights. This unit comes with luxury bath fittings, Italian marble flooring and imported kitchen fittings. Defence Colony, located in the southern part of the city, is one of the key residential zones.

The location commands a premium in terms of property prices as it is well connected with other parts of the city and has a mature F&B retail market. Defence Colony has witnessed an 36% appreciation in capital values over 2009 end.

Hospitality Chain Choice Hotels to come up with More than 60 hotels in India

Banking on the growing economy and rapid infrastructure development in India, international mid- scale hospitality chain Choice Hotels plans to open more than 60 hotels in the country over the next three years, a top company official said. The chain plans to add around 20-30 hotels in the country every year. “Our target is to open 20-30 hotels every year in India for the next 2-3 years. In 2011, we plan to open 14 hotels mainly in tier II cities. All are in various stages of construction. We are looking at a double-digit growth in India,” said Vilas Pawar, CEO, Choice Hotels India.

The US-based firm, through its wholly-owned subsidiary Choice Hotels India (CHI), currently operates 28 hotels in the country through the franchise route. “The mid-scale segment has a huge potential in India and is expanding due to rise in the number of budget conscious domestic business and leisure travellers,” Pawar said. The hotel chain, with a tariff size ranging from Rs 2,000-7,000 per night depending on the location, operates in the country across five brands — Sleep Inn, Comfort Inn, Quality Inn, Clarion and Cambria.

These hotels are in various destinations, including New Delhi, Mumbai, Chennai, Ahmedabad, Bangalore, Gurgaon, Hyderabad, Jaipur, Kodaikanal, Lucknow, Faridabad, Amritsar, Pune, Nashik, Haldwani, Tuticorin and Vijayawada. Choice runs 6,200 hotels across 12 brands globally — Comfort Inn, Comfort Suites, Quality Inn, Sleep Inn Clarion, Cambria Suites, Mainstay Suites, Suburban Extended Stay Hotel, Ascend Collection, Econo Lodge and Rodeway Inn.

Carlson to Open 100 More Hotels in India by 2015

Global hospitality major Carlson, which runs 5-star hotel Radisson, plans to open 19 more hotels in India by the year-end and 100 by 2015 with a total expected headcount of 30,000 by then, a company official said. The US-based hotel chain currently employs around 10,000 people across its 34 hotels (3,234 rooms) in India.

“We plan to open 19 more hotels this calender year. These hotels will help generate 6,000 employment opportunities,” said Hubert Joly, president and CEO, Carlson Hotels. The company has already signed management contracts for about 54 hotels, of which 19, with a total of 2,670 rooms, will open this year. The total project cost of these 19 hotels is estimated at around Rs 2,250 crore.

Of these 19 hotels, 11 are Radisson to be opened in Agra, Ahmedabad, Amritsar, Chennai, Ghaziabad, Goa, Greater Noida, Haridwar, Hyderabad, Ranchi and Rudrapur, Joly said. While two Country Inns will come up at Gurgaon and Mussourie, one Park Inn will be opened in New Delhi (CBD) and five Park Plazas will open at Bangalore, Chandigarh, Coimbatore, and New Delhi (Dwarka).

Park Plaza is in 3-4 star hotel segment and Country Inn and Suites and Park Inn are in the mid-segment. About 90 per cent of the hotels are operated, globally, through management contracts and franchise model. “We are quite optimistic about the India’s tourism and travel growth story. We see India as a strategic destination with enormous opportunity and hence plan to scale-up our operations here,” Joly added.

Scam Hit Adarsh Housing Society Faces Demolition Threat

The Union Ministry of Environment and Forests has ordered the removal of the scam-tainted Adarsh Cooperative Housing Society building in Mumbai within three months. In a press release issued on Sunday, the Ministry said it has decided to remove the entire structure as it is ‘unauthorised’ and as no clearance under the Coastal Regulation Zone (CRZ) Notification, 1991, was obtained.

The Ministry had considered the other two options of removal of that part of the structure in excess of the floor space index or recommending that the Government take over the building for a public use to be determined later. Jairam Ramesh, minister of state for environment and forests, said the option of removal of part of the structure was rejected since it would have been ‘tantamount to regularising or condoning an egregious violation of the CRZ (Coastal Regulatory Zone) Notification’.

The other option was rejected on the grounds that even though the final use may be in the public interest, it would still be tantamount to regularising a violation of the CRZ Notification. Besides, there would be substantial discretionary powers that would vest with the State or Central Government in case of takeover. Ramesh said that any other decision would have diluted the strong precedents that have been set in judgments of the Supreme Court and different High Courts and that ‘ignorance of law can never be an excuse for non-compliance’.

The Adarsh society, which was originally meant for allotment to Kargil war heroes and their families, has been the centre of a controversy on charges that several politicians, bureaucrats and army men were allotted flats there. It is also alleged that the building got speedy approvals for land allotment. Post the revelation, Ashok Chavan, the then Maharashtra chief minister, was forced to step down from his post. The matter is being currently investigated by the Central Bureau of Investigation.