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Retail scenario in South India

Retail scenario in South India



Metros of Bangalore, Hyderabad, and Chennai are growing at an exceptional rate, with the retail buzz in these cities becoming more pronounced day by day. These cities projected to touch over US$ 20,000 million by 2010-11.

With the growth in the IT/ITeS sector and other sunrise sectors like bio-technology, hospitality, etc. concentrated in these cities, the metros have experienced exponential growth over the past few years, and are expected to demonstrate robust economic performance in the coming years.

Demography of South Indian states

There were only about 11 million people in rural South India who, on an average, spent more than $304 per annum in 2004-05, while about 26 million people spend in the range of $181 and $304 per person per annum. In urban South India, about 3 million people spend in the range of $208 – $363, while about 10 million spent in the range of $363 – $668 per person per annum.

Kerala has the highest number of persons belonging to the $304 and more expenditure category in rural South India. In urban South India, Tamil Nadu has the highest number of persons in the $668 and more expenditure category.

Consumer behaviour

There are significant variations across cities.  While the single largest expense across all southern regions is food, Chennai spends the highest proportion on education while Delhi spends highest on personal transport. There is tremendous boost in prosperity, both nationally and at regional levels. Distinct regional and city specific variations in spending habits, consumption baskets and eating preferences are observed across the southern states of India.

The largest growth in prosperity has been in the south where the high income household has grown the fastest. About 70 per cent of India’s rich live in eight states including Karnataka and Tamil Nadu. Across all the middle and high income classes, except the super rich, growth has been highest in the southern region. The southern states have also seen the largest decline in poor/low income households. Per capita income in South India is around $510. Highest saving rate is also seen in the southern region.

Retail potentiality of emerging cities

The emerging cities of Coimbatore, Kochi, Vizag, Vijayawada, Trivandrum, and Madurai contribute to total US$ 7.000 million worth retail activity. Organised retail penetration is lower than in any of the metros, with traditional retail ruling the market across these geographies. These cities are less saturated than the metros, but have greater spending power. Middle class and lower middle class form majority of the households, with more than half the population falling in this category. The combined retail potential of these cities is expected to increase to US$ 10,000 million.

Cities of global brands

There are already 250 established brands in the South Indian markets and more are coming in. With advent of modern retail, high street will be edged out because their poor pricing and lack of infrastructure. On the other hand, there will always be locations such as Bangalore’s Brigade Road and Delhi’s Connaught Place, which provide a certain kind of shopping experience that shopping malls cannot match. They will continue to remain in favour and are unlikely to sink under the pressure.

Expansion of local chains in South India

While several corporate retailers still struggle to come out of last year’s slowdown blues, family-run regional chains such as MK Retail in Bangalore, Ratnadeep in Hyderabad and Sri Murugan in Chennai are mulling expansion. Same is the story of other regional brands such as Nalli Silk, Kamran Silk Traders and many more. MK Retail, a multi-crore-supermarket chain with six outlets across Bangalore, is now setting up a low-cost model of neighbourhood stores that sell fruit, vegetables and bakery products. The more than 80-year-old retailer also plans to open shops in neighbouring cities.

Coimbatore-based Shri Kannan Departmental Stores, which has 28 outlets across cities such as Erode, Madurai, Salem, Pollachi and Tirupur in western Tamil Nadu, plans to enter state capital Chennai next year, and Chennai-based Sri Murugan Department Store, which earns Rs 1.5 crore per month from each of its three outlets, will add three more stores this year. In Kerala, Varkeys Retail, the first mover in organised food and grocery retail in the southern state, plans to triple store count to 150 in four years.

Ratnadeep Supermarkets of Hyderabad is taking the franchisee route to enter nearby cities such as Vishakhapatnam and Vijayawada.  These retailers keep up their growth intact when many large corporate retailers are trimming their networks and closing down stores in certain localities due to last year’s slowdown. Ratnadeep Supermarkets offer home delivery services across all its five stores in Hyderabad, while MK Retail makes it a point to help shoppers load bags in to the car.

Credits: indianretailer

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Startup Brings Automation to Kitchen; Launches World’s First Multi-cuisine Food Printer

Food Printer, a Chennai-based automation technology start-up in the smart home space, has invented the world’s first multi-cuisine, and multi-food automated system.



Mr. Satheshkumar S, Founder & CEO, Food Printer with Dr. Mylswamy Annadurai, Moon Mars Mission, Former Director ISRO

The food printer can churn out hundreds of Indian dishes like idli, dosa, chapatti, gravy, chutney, beverages and many different cuisine foods from across the world. The food printer system is powered by Internet of Things and Cloud so that users can connect with the world; upload and download recipes, or seek consultation for diet and nutrition plans for various day-to-day requirements. Food Printer dedicates its namesake product to Mr. Ratan Tata.

The product is expected to hit the market by end of 2020 with multiple variations to suit the home needs. It focuses on B2C sale through white line goods outlets. Through strategic tie-ups, Food Printer is also planning to bundle its product with the apartment B2B builders in upscale metros. Mr. Satheshkumar, CEO, Food Printer, and an expert in automation-engineering, who invented the product, said, “Food printer is a smart home product that is set to revolutionise the future of cooking. It is suitable for small to large families. The product is targeted primarily at the working couple who are hard pressed for time, and aged parents in India.

The elderly couple staying away from their children would be another target segment, as food printer can be designed to meet the food needs of the elderly people.” He further said, “Our inspiration in the innovation and entrepreneurial journey is that we are addressing many social issues connected with food. The product can free women, who are treated as kitchen workforce, from cooking. It can bring all ethnic and nutritious food back to the plate with little time. These factors are important for working parents to help raise kids with healthy food choices. Importantly, cooking automation helps elders to take care of their food needs, and makes them self reliable.”

It took million man hours spent over a period of four years for Mr. Satheshkumar to create the product and the related systems. An expert in process automation design, he innovated the product with his accrued savings. Mr. Satheshkumar has executive management qualification from MIT Sloan/Columbia. Previously, he was working in a TATA group enterprise. “We want Food Printer to be identified with empowerment, values and ethics of high standards. It is fitting to dedicate this high impact product to Mr. Ratan Tata, who is the champion of these social causes,” Mr. Satheshkumar said. Dr. Mylswami Annadurai, Director of Chandrayaan-1 and Mangalyaan missions, and Former Director of ISRO, said that Food printer is “A novel, innovative product”, after witnessing a Proof of Concept demonstration of the product.

Credits: Hans India

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AIS Felicitates Architects and Designers of Tomorrow as it Announces Winners of the 1st AIS Glass Design Olympiad

Asahi India Glass Limited (AIS), India’s leading automotive and building glass company



Asahi India Glass Limited (AIS), India’s leading automotive and building glass company, offering end-to-end solutions across the automotive and architectural glass value chain has always believed in reshaping the architectural landscape.
AIS had recently launched the first edition of ‘AIS Glass Design Olympiad’ (GDO), which is aimed at students from reputed architectural institutes in Mumbai and Ahmedabad. AIS GDO is a great opportunity for architectural students to showcase their talents on a large industry platform.
After receiving an overwhelming response from the institutes and the students where many entries were received, AIS and its esteemed panel of judges were finally able to unveil the winners in a star studded showcase in the presence of leading architect from the industry –
Ar. Prem Nath of Prem Nath and Associates and Ms. Mala Singh MD, PEC Greening India, one of the country’s leading Green Building and Sustainability Consultants.
The awardees were as follows:
Divyanshi Gupta & Chaitanya Joshi (team) – Bharati Vidyapeeth College of Architecture,
Navi Mumbai Michelle Chokshi – SAL College of Architecture, Ahmedabad
Swara Ganatra – SAL College of Architecture, Ahmedabad
The winners received exciting cash prize and trophies from AIS. Speaking at the occasion Mr. Vikram Khanna, COO – AIS India Ltd. said, “It’s been an honour and privilege for us to organize AIS Glass Design Olympiad.
I would like to take this opportunity to thank all the eminent architects who helped us curate this event. I am sure we will take the future GDOs to new heights. I would also like to thank Ms’ Mala Singh and Ar. Prem Nath – our Chief Guest for the day, for their presence at this event.” Ar. Vivek Bhole, Curator – GDO said, “It was great associating with AIS GDO as a Curator.
I thoroughly enjoyed this journey with AIS team and hope to be part of many more GDO events in future.” Ar. Prem Nath, who was Chief Guest at the GDO Finale said, “I congratulate AIS on putting up an event like this, which helps budding architects of tomorrow to showcase their talents in front of industry leaders.”
AIS will help the students and their projects get good exposure across the platform to facilitate a good name in some key architectural firms About AIS Established in 1984, Asahi India Glass Limited (AIS) is India’s leading automotive and building glass company, offering end-to-end solutions across the automotive and architectural glass value chains.
A clear market leader in automotive glass, AIS today has 12 plants (including sub-assembly units), 8 offices, with a family of over 4,000 employees, spread across the country in strategic locations, supporting a discerning global and local customer base.
Credits: Hans India

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Realtors expect debt restructuring up to Rs 1 trn, tax sops for homebuyers

He said loans up to Rs 1 trillion are required to be restructured in view of liquidity crunch faced by builders



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Realtors’ body CREDAI expects the government to allow debt restructuring of cash-starved developers and tax incentives for homebuyers as part of measures to boost housing demand.

“We have high hopes from the Budget to be presented on Saturday. We have demanded restructuring or rollover of developers’ loan, steps to increase residential property demand and a policy to promote rental housing. We believe that our demand will be considered positively,” CREDAI National Chairman Jaxay Shah said.

He said loans up to Rs 1 trillion are required to be restructured in view of liquidity crunch faced by builders.

“Liquidity shortage continues to cause distress in real estate. Hence, a one-time restructuring scheme with moratorium on principal and interest of 2 years is immediately needed,” CREDAI President Satish Magar said.

Naredco has also been demanding restructuring of loans or one-time rollover in case of the stressed assets at the options of banks. In such cases, the borrower will retain the asset classification of the restructured standard accounts as standard and the same will not be treated as non-performing assets (NPAs).

Anarock Chairman Anuj Puri said there is a need to lower GST rate on under-construction flats to 2 per cent from the current 5 per cent, apart from tax incentives to boost purchase of homes.

“While real estate has attracted investment over USD 6 billion in 2019, however the government should take more steps to ease and widen domestic/international fund flow, fasten approvals/clearances, provide incentives to aid use of technology to allow faster construction and launch some skill development programmes specifically aimed towards RE (real estate), which is the second largest employer in the country,” said Anshuman Magazine, chairman & CEO (India, South East Asia, Middle East & Africa), CBRE.

Knight Frank India CMD Shishir Baijal sought further deduction on the principal repayment of housing loans under Section 80C.

JLL India Country Head and CEO Ramesh Nair said the Union Budget is an effective tool that can be used by the government to bring in more demand-side interventions to incentivise the homebuyers who are crucial for the revival of the sector.

Dhruv Agarwala, Group CEO of and, said, “Immediately, the biggest challenges confronting the real estate sector are liquidity and demand. While the Rs 25,000 cr stress fund/AIF (alternate investment fund) that was announced earlier is likely to solve part of the liquidity crisis, there is an urgent need for a one-time loan restructuring for the sector.”

He said the restructuring would provide significant relief to developers and lead to faster completion of projects.

To push demand, he said the government should consider lowering the tax burden on individuals to put more money in people’s hands and also consider providing an additional tax deduction on purchase of a second house.

Omaxe CEO Mohit Goel demanded a one-time loan restructuring for the sector. “This will speed up construction, and once construction begins in a full swing, not just consumer confidence but also sales and overall economy will see an upswing.”

Prashant Tiwari, chairman, Prateek Group, and president, CREDAI Western UP, said, “One-time loan restructuring permission should be granted for real estate loans. Give infrastructure status to the real estate. Reduce the GST for under-construction projects. These changes in the policy will help to revive real estate.”

Honeyy Katiyal, founder of Investors Clinic, said the limit of Rs 45 lakh to avail reduced GST rates of 1 per cent for affordable housing should be increased to Rs 65-75 lakh.

Online marketplace’s co-founder, Dushyant Sinha, said that the commercial real estate sector has been performing well, especially co-working segment, so the Budget should provide tax incentives for property buyers who want to own office and retail space.

Paras Arora, chief executive officer and founder of Qdesq, said the co-working industry relies solely on equity infusion from investors for fund growth and demanded that the options for bank and financial institutions funding for recognised co-working start-ups should be provided.

Credits: business-standard

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