Pune The Emerging Retail City

30% of proposed retail malls in India deferred

2012-07-19T23:14:00.002-07:00

The retail real estate market recorded a deferment of more than 30% of retail mall space against projected supply for the first half of the year, says Cushman & Wakefield in a recent report.

Around 2.27 million sft mall spaces was added to the existing stock in the first half of 2012, while approximately one million sft of expected mall space was deferred to second half of the year or next year. The overall vacancy rate for the major cities as of H1 2012 stood at 19.6% marginally higher than the previous quarter, mentioned the report.

"This slowdown in mall construction need not be viewed as a negative growth indicator for the retail real estate segment. With high vacancy levels as well as cautious expansion plans of retailers, the deferment of supply is a necessary measure to bring stability in the retail market," says Jaideep Wahi, director-retail agency, Cushman & Wakefield India.

However, despite deferment in retail space, rental across most malls in cities like Delhi-NCR, Chennai, Bangalore, Mumbai and Kolkata remained largely stable, while some micro markets have seen a growth over the previous quarter in the range of 2-13%.

"Given the current uncertain economic conditions, the retail markets are showing a largely stable scenario. Retailers of foreign brands still remain committed to the Indian markets with the recent announcements by multinational retailers indicating the strength of the economy," says Wahi.

The highest appreciation in rental value was recorded at Camac Street and Elgin Road in Kolkata at 12.4% and 25% respectively due to renewals of existing tenants at a higher value. Other cities like Gurgaon, Pune and Bangalore saw increase in high street rents by 7-9%.

However prominent high streets in Hyderabad (Banjara Hills, Jubilee Hills, Ameerpeet and A.S. Rao Nagar) saw a rental fall of 4-7% compared to the previous quarter due to significant amount of new construction becoming available in these markets.

Indian retailers retrench as reform hopes dashed

2012-06-12T03:51:00.000-07:00

India's largest supermarket operator, Future Group, is having a clearance sale: its financial service business and flagship clothing brand are gone, and more deals are in the pipeline.

Six months after the government backtracked on plans to allow foreign retail giants such as Wal-Mart Stores and Carrefour to form joint ventures, cash-starved domestic chains are selling assets, shutting stores, and scaling back expansion plans.

It seems improbable that retailers could be in such trouble in India. They have the world's second-largest population, increasingly affluent consumers, and limited competition.

But things are tough for supermarkets, a relatively new business sector in India, with every major chain losing money. The economy has lost momentum, compounding problems of high food inflation and low retail prices, and expensive real estate.

Foreign partners would bring experience, expertise and funds, but many in the industry do not expect a decision on foreign investment in supermarkets before elections in 2014.

"These companies have realised there is no point standing still and bleeding more, waiting for the government to act," said Debashish Mukherjee, partner and vice-president with consultancy AT Kearney.

Alternative Funding

With foreign investment ruled out, many supermarkets, which account for 70% of organised retail in India, are looking to private equity investors or hitting up their billionaire owners for more capital as they continue to bleed.

"Foreign private equity firms are in talks with smaller businesses which are less capital intensive. So this option is ruled out for the big boys," said an investment banker who did not wish to be identified.

Last November, after years of delay, the prospect of a foreign partner appeared tantalisingly close for the domestic chains. India said foreign supermarket operators would be able to own up to 51% of a joint venture.

Industry euphoria proved short-lived. Under pressure from ruling coalition allies, the government backtracked in an embarrassing reversal that has come to symbolise the inability of Prime Minister Manmohan Singh's administration to enact reforms.

Indian traders and middlemen vehemently oppose allowing foreign chains into a USD 450 billion retail industry where 90% of sales are made by informal "kirana" stores, which are generally family run.

Proponents argue the infrastructure and investment that can be brought by the likes of Wal-Mart would go far to ease crippling food inflation and a high rate of food spoilage.

"We are going cautious with our expansion plans," said Mark Ashman, chief executive of Hypercity, the hypermarket arm of Shoppers Stop , which, like many of its rivals, hopes to join forces with an overseas retailer once the rules change.

"If foreign direct investment was allowed, the appetite for expansion for us would certainly be higher," he said.

A smaller future

Future Group, controlled by Kishore Biyani, known as the father of Indian retail, recently sold control of its financial services arm Future Capital to private equity firm Warburg Pincus.

Future , which sells groceries under the Big Bazaar and Food Bazaar brands, announced the deal days after it sold a controlling stake in its flagship clothing brand Pantaloon. The two deals will wipe about USD 1 billion in debt from its books.

"Our intention is to exit from non-core businesses and focus on core retail business," a company spokesman said, adding Future Group aims to be debt-free by the end of the fiscal year in March 2013.

"Two recent deals are not the last ones from us."

Future is now in talks to sell a stake in its food processing and manufacturing business to Japan's Lawson Inc, Japan's No.2 convenience store chain, a source with direct knowledge said, adding a deal would be finalised soon.

Lawson spokesman Shin Ichikawa said the company was in talks with several potential partners about entering India, but declined to name them and said nothing had been decided.

Future Group also plans to exit its insurance joint venture with Italy's Generali, although a possible deal is further off, said the source with direct knowledge who declined to be identified.

Scaling down

As well as selling assets, Future Group, which operates more than 1,300 grocery stores covering 16.5 million square feet (1.5 million square metres) across its different formats, is also scaling down growth plans.

The source said the group will only open 2 million square feet of retail space this fiscal year, instead of a previously announced 2.5 million square feet (230,000 square metres).

Future is not alone. Aditya Birla Retail has shut 50 of its More supermarkets and is closing loss-making outlets in Mumbai, Delhi and Pune to focus on hypermarkets, a company source said.

The company, part of the Birla conglomerate, has also sought another 3 billion to 4 billion rupees from controlling shareholder Kumar Mangalam Birla, the source said.

Even mighty Reliance Industries , the conglomerate controlled by Mukesh Ambani, India's richest man, has been unable to make money in retail after six years in the business and 1,300 stores.

Still, it has no plans for a foreign partner and is pushing ahead with expansion of its supermarket chains.

"Food and grocery retailers have been suffering in most of the major markets," said Devangshu Dutta, consultant with Third Eyesight.

"Many believed India to be insulated, but that's not the case."

Nautica opens stores in Bangalore and Pune

2012-04-11T04:10:00.000-07:00

Men's apparel and accessories brand Nautica has opened its second store in Bangalore at Orion Mall, Malleshwaram and its first outlet in Pune at Plaza Centre Mall, Koregaon Park taking the total number of exclusive stores to 13 in the country. Spread over 1,003 and 1,380 sq.ft. in Bangalore and Pune, respectively, the stores stock the Spring/ Summer 2012 collection.

Speaking about the new stores, Mohit Seth, Brand Head, Nautica, said: “The two new stores in Bangalore and Pune bear testament to the cities’ spirit of adventure, vibrancy, and style. Nautica is a brand that provides some of the elements that make the journey interesting and adventurous.”

The Waverider concept is the central point for all the stores’ décor across the country.

Nautica is brought into India by Planet Retail Holdings. Some of the other international brands brought into India, by Planet Retail, include Accessorize, Nautica, Guess, Next, Debenhams, and Lavie.

Metro Shoes opens fourth store in

2012-04-11T04:08:00.003-07:00

Footwear retailer Metro Shoes has opened its fourth store in Pune at Premier Plaza. Spread over 1,362 sq.ft., the new outlet stocks more than 11,000 pairs of ladies, men’s, and kid’s shoes. The retailer also houses men’s and women’s accessories such as handbags, wallets, belts, and shoe care products.

Speaking on the occasion, Khalid Majid, Regional Manager, Metro Shoes, said: “Customers today are looking for exclusive options that match the latest fashion trends with best quality and best price. Metro Shoes gives them an opportunity to shop for all their needs under one roof."

Men’s shoes at the store are priced from Rs 1,090 onwards, while ladies shoes start from Rs 590 onwards.

According to company officials, Metro Shoes is present across 215 locations in the country. Its first store opened in Mumbai in 1947. The company operates as an MBO across tier I, II, and III markets. Metro Shoes clocked a turnover of Rs 411 crore in the financial year 2010–11.

Tribhovandas Bhimji Zaveri debuts in Pune

2012-04-11T04:07:00.001-07:00

Jewellery retailer Tribhovandas Bhimji Zaveri has opened its first showroom in Pune at Seth House, Bund Garden Road. Spread over 4,500 sq.ft., the new outlet stocks women’s and men’s traditional and modern jewellery collection in gold, diamond, platinum, and jadau with a combination of coloured stones such as ruby and emerald including rings, necklaces, bangles, kangan, bracelets, and assorted pieces. The store also has a special section for accessories.

Speaking on the occasion, Shrikant Zaveri, Chairman and Managing Director, Tribhovandas Bhimji Zaveri, said: “We have introduced a designer counter at TBZ Bund Garden where a trained designer helps customers create customised designs. We, at TBZ, believe that the past holds the key to the future! Today, we at TBZ haven’t lost sight of the legacy that began over 145 years ago.”

Tribhovandas Bhimji Zaveri has 14 showrooms in 10 Indian cities across 5 states will be investing around Rs. 18 crores in adding up new stores at different cities in this financial year 2012-2013. The jewellery at the new store is priced from Rs 500 onwards.

Pune gets its third Globus store

2012-04-11T04:06:00.000-07:00

Fashion brand Globus has launched its third store in Pune at Koregaon Park Plaza mall after opening stores at Inorbit mall and Pacific mall in the city. Spread over 10,000 sq.ft., the store stocks apparel and accessories for young men and women.

With existing categories such as western wear, Indian wear, and fusion wear for men and women, Globus will launch a new category "F-16" for the teens between the age group of 16 and 19 and a premium range for customers above 23 years. “We do have collection in the premium range but that is limited. So, we will introduce a special range of garments that will be priced at an average of Rs 2,500. The collection for the teens will be affordable and will be averagely priced at Rs 400,” said Vinay Nadkarni, CEO, Globus Stores.

After opening nine stores last year, Globus will be seen coming up in tier I, II and III cities this fiscal. “We will have around eight more stores across the country and the cities that we are targeting are a mix of metros and smaller cities,” added Nadkarni. The stores are likely to come up in Mumbai, New Delhi, Kolkata, Chennai, Bangalore, Vijaywada, Bareilly, and Jammu. The company that has 35 stores in 22 cities across the country expects a turnover of Rs 275 crore by the end of this financial year.

The collection at Globus is available at an average price of Rs 999.

Launched in January 1998, Globus is part of the Rajan Raheja group. The company opened its first store in 1999 at Indore.

Coming soon, six more multiplexes

2012-04-11T04:05:00.000-07:00

Multiplexes in Pune have certainly not grown the way they have in Mumbai, but more are coming to the city this year.

Multiplexes in Pune, which stand at 12 currently, have multiplied by 20%, say experts. Six more will open during this year which explains the 3.3 rating respondents gave to the city's entertainment scene in The Times Of India-IMRB Quality Of Life Survey.

Eight cities were rated on a scale of 5, and Pune bagged the third spot, followed by Ahmedabad, Bangalore, Hyderabad and Chennai. Mumbai, scored a 3.6, closely followed by Kolkata at 3.4.

Prakash Chaphalkar, secretary of the Multiplexes Association of India, said, "Two new multiplexes have come up in Pune and Pimpri-Chinchwad in the past one year-Cinemax on Ahmednagar Road and Abhiruchi City Pride on Sinhagad Road. Six more multiplexes are expected to open in 2012, including Inox at Amanora, Cinepolis at Magarpatta City, PVR in Market City, PVR in Koregaon Park, Cinepolis in Pulse Mall on Ahmednagar Road and Cinemax in Pacific Mall on Shankarsheth Road."

Soon, every locality will have a multiplex because malls are mush-rooming across the city and a multiplex in the mall guarantees more footfalls.

"This industry is largely product-based. Good movies coming to the city will send citizens to theatres. Pune is growing and people from across the country have settled here. Thus, demand for social infra-structure is rising and multiplexes are growing," said Chaphalkar.

However, more multiplexes do not mean more footfalls. In fact, they have reduced over the decade, he said. "City Pride on Satara Road, the first multiplex to open in Pune in April 2001, had 60 % occupancy on an average. Now, it is around 40 % or less. People who can afford high-priced cinema are limited, while they also get divided or scattered as more multiplexes come up," he said.

Multiplexes have sophisticated technology like digital screens. "In fact, now the emphasis will be on hyper-plexing, which means having 10 screens or more in one property," said Chaphalkar.

Ticket rates have risen by 15 % on an average during the past one year. "Among other expenses, power costs have gone up, and so have the salaries of the employees. Hence the increase in ticket rates," he said.

Neerav Panchamia, vice president (operations) at E-square feels that the multiplex culture has grown in Pune. "In the last five years, Pune has seen a major IT and automobile sector development, which has led to an increase in the need for entertainment. Cinema is the biggest source of entertainment in India, thereby resulting in the demand for more screens to cater to population requirements," Panchamia said. Cinemas are now digital, adding to picture quality to the cinematic experience. "The introduction of 3D movies, in both, Hindi and English formats has made movie viewing an experience. The simultaneous world releases of films also add great value to the cinema-viewing experiences. Pune multiplexes offer a great variety of food and beverage through foodcourts created for complementing the entire movie-viewing experience," said Panchamia.

Pune emerges as shopping hotspot with over 100 hotels and 20 malls, more to come up soon

2012-04-11T04:02:00.000-07:00

With a population of 31 lakh - according to the 2011 census - Pune has over 100 hotels, 20 malls, and more coming up. To wit: four Marriott properties, a Hyatt, Sheraton's Four Points, a three-million-square-feet Phoenix Market City, with a five-lakhsquare-feet Inorbit Mall on the opposite side of the road, among others.

Kolkata-based Hotel Hindustan International and Ramee Group of Hotels, that runs a chain of hotels in the Middle East, have also opened their hotels in Pune this month.

"I see this as some sort of an out-of-the-box thinking," Samantak Das, national research head, Knight Frank India, a property consultancy firm, said about the rising number of hotels in Pune.

"If we see the overall Pune market, I clearly see a lot of oversupply, and if we go by our research, the demand for hotel rooms will not grow more than 14% annually during the 2010-2013 period. But we see the supply in the city growing at a 25% rate," he explained.

Retailers eyeing the city expect mall rentals to come down due to oversupply. "Over 52 malls were planned in Pune four years ago. And, now, only 20 of them are there, either fully constructed or under construction," said Govind Shrikhande, customer care associate and managing director , Shoppers Stop.

He recently opened the fifth Shoppers Stop store in Pune. "Over 30 were cancelled at the planning stage and got converted to either hospitals or residential projects," he said.

"It will be a challenge to get good tenants for some of the ones that are still being built and it will have an effect on rent coming down," Shrikhande added. The profusion in malls is leading to retail chains going slow on expansion plans in the city.

Hypercity , a hypermarket format of K Raheja Group firm Shoppers Stop, opened its first outlet in Pune recently

Koregon Park Plaza Mall

2012-04-11T04:00:00.000-07:00

Anchors

Shoppers Stop
Ground Floor

Crossword
Second Floor

Leisure

Blu-O Bowling
Third Floor

PVR
Second Floor

Timezone
Second Floor

Hypermarket

SPAR
Parking Level 2

F&B

Cafe Mangii
Second Floor

Cooki Man
Ground Floor

Dominos

Falafel's
Second Floor

Gloria Jeans Coffee
Ground Floor

IBH
Second Floor

Indian Tadka
Second Floor

Juice Lounge

KFC
Second Floor

Mad About China
Second Floor

Mad Over Donuts
Second Floor

Madras Mail
Second Floor

McD

New Zealand Natural
Second Floor

Rajdhani
Second Floor

Subway
Second Floor

Tikka Town
Second Floor

Yogen Fruz
First Floor

Koregaon Park plaza Mall

2012-04-11T03:53:00.000-07:00

Manikchand Ikon

2011-12-29T03:46:00.001-08:00

Nilkamal opens 3rd @home store in Pune

2011-12-29T03:24:00.000-08:00

Nilkamal has opened its 3rd @home – the Mega Home Store in Amanora Town Center, Hadapsar, Pune. Spread over 15,000 sq.ft. the store offers a wide product range for home décor, furniture and accessories with easy finance options and after sales service.

Speaking on the occasion, Hiten Parekh, executive director, Nilkamal said, “Pune is a special destination for us. We started our retail operations from Pune, way back in June 2005 and today, after 6 years & 17 successful @home stores across the Country, we have come back to the City with our 18th store. Our stores in Shivaji Nagar & Yerwada have been very successful. With this launch in Hadapsar – the eastern suburb of Pune, we foresee us tapping a huge potential customer base. We are confident that we will receive a great response from this store as well”.

The customers can avail upto-24 months interest-free Easy Monthly Installment (EMI), free Interior planning service and a free consultation with the company's in-house interior designing & style experts. Built with an investment of around Rs.3 crores, the store offers products with prices starting at Rs. 7,500.

Nilkamal is a Rs.1500 crore company in furniture & material handling business. Currently, it has 18 @home stores across the country spread across 13 cities at Ahmedabad, Bangalore, Chennai, Coimbatore, Ghaziabad, Hyderabad, Kochi, Mumbai, Navi Mumbai, Pune, Surat, Thane & Vadodara covering a total retail space of 3 lakh sq ft carpet area. The Company is planning to set up two new stores in next six months, and will be looking for more opportunities to expand.

Pune - Shivaji Nagar

Pune - Ishanya

Pune - Hadapsar

2012 Outlook For Indian Retail Real Estate

2011-12-29T03:15:00.001-08:00

2011 was a winning year for retail real estate with respect to its growth in terms of demand and supply of new retail space across the cities. Retail space saw an increase of about 14 million sq ft, led by NCR-Delhi which has added 4.0 million sq ft followed by Mumbai which has seen a completion of about 3.5 million sq ft. This happened after widespread distress in the sector during 2009 and 2010. High absorption of close to 10 million sq ft of retail space was forecast for 2011, out of which 7.1 million sq ft were already absorbed by 3Q11 and 1.1 million sq ft is pre-committed in malls were scheduled to become operational during 4Q11.

Retailers in cities like Hyderabad, Chennai and Bangalore continued to actively lease at high streets due to the unavailability of new upcoming operational malls and low vacancy in operational ones. Pan-India vacancy was recorded at 21.4% in 3Q11 falling 60 bps from 22.0% in 2Q11.

Several luxury international brands such as Zara, Vero Moda, Mango, etc. continued to expand their footprints in the suburban districts of Tier I cities of Mumbai and Delhi. For example, Zara opened two stores in Inifiniti mall, Malad and Market City, Kurla, during 2011 while KidZania, an international fun and entertainment brand made its first entry to the country with its flagship store at R-City, Ghatkopar.

Besides, various brands from Future Group, Reliance and Tata- Trent expanded significantly in 2011. Future Group launched a premium food chain called ‘Food Hall’ which opened its first store in High Street Phoenix at Lower Parel, Prime South. Food Hall, which brought the finest food items of international and domestic categories under one roof, leased 13,000 sq ft in the mall.

Although a demand revival was seen in the country’s retail sector backed by strong absorption in past two-three quarters, retailers are keen on taking space in better-managed malls in strategic locations, continuing the polarisation of demand in several cities. Going forward, this polarisation is expected to remain, resulting in structural vacancies which will raise the natural vacancy rate of the markets in the medium term.

Another 15-17 million sq ft of retail space is expected to get operational by end-2012. The major contributor is likely to be Delhi, followed by Mumbai. Other cities such as Bangalore, Chennai and Pune are likely to add increased retail spaces in the coming years. 100% FDI in multi-brand retail being permitted for multi-brand retailing remains a high possibility in 2012. However, due to the associated beliefs of negative effects to unorganized retail, it will be hard to have the proposition accepted unanimously, and we expect certain conditions being imposed for the same.

A total 146 malls opened in seven cities of Mumbai, Delhi, Bangalore, Chennai, Pune, Hyderabad and Kolkata. If 100% FDI in multi-brand retail is allowed, the sector might see a significant growth in supply of quality retail space. Besides, the sector is expecting to grow steadily with the increasing demographic and growing consumerism in the country.

Pune Retail – On The Fast Track

2011-12-29T03:13:00.000-08:00

The sustained demand for the office space since 2010 has resulted in increased employment generation, and the improving per capita income has given a necessary thrust to retail activity in the city.

As per the Indian Statistical report of 2011, Pune’s per capita income is the second highest in Maharashtra, and this figure has increased by 170% over the last decade. This clearly indicates the spending capacity of the population in the city. All this augers well for the city’s flourishing retail market. Mall space in Pune is expected to double from 5.2mn sq ft by end-2011 to 10.8 mn sq ft by end-2013. This clearly indicates the confidence Pune City has garnered with national and global retailers.

Eastern Pune leads the pack in terms of built mall space, contributing approximately 90% of the total mall space in the city. Most of the existing and under-construction malls in the Eastern corridor are concentrated along Nagar Road, Koregaon Park and the Hadapsar-Magarpatta belt. However, moving forward, the Western and Northern Pune is poised to catch up fast with the Eastern Corridor, with some quality malls scheduled for completion over the next two years.

This year till date, we have witnessed the completion of a few major malls such as

Phoenix Market City (1 million sq ft)
K Raheja Corp’s Inorbit (0.35 million sq ft)
Amanora Market City (1.2 million sq. ft.)

offering Puneites a totally new shopping experience. The opening of these malls has brought in international brands such as Zara, Blue O, Spar and Diesel, providing shoppers a totally new line of options.

Many national brands such as PVR, Jack and Jones, Reliance Trendz and Reliance Footprint have set up their stores in these malls for the first time in Pune. Premium retailers like Steve Madden, Timberland, Collective and Helios have a lot to offer to niche customer segments

In terms of hypermarkets, Pune will be witnessing a whole new array of offerings. While Trent is already operational, Star India Bazaar will add two new hypermarts to their existing operational ones. Big Bazaar is coming up with its new and improved avatar. Hyper city will set up its first store in Pune.

Reliance Digital added seven new stores to the Pune market. Reliance Trends and Reliance Footprints are expected to create considerable interest. Shoppers stop will introduce its Gold class.

2012 Outlook:

The growth of retail in Pune has been enormous. While the Eastern corridor has taken the early lead in terms of organized retail developments, the Western and Northern corridors will see a lot of retail development between 2012 and 2014. Overall, retailers are very bullish on Pune and have robust growth plans.

Kumar City Mall

2011-12-29T01:37:00.001-08:00

Auteur multiplexes providing luxury cinema experience becoming a big hit

2011-12-24T10:20:00.001-08:00

Two months after launching uber-luxury theatre Director's Cut, PVR Cinemas chairman and MD Ajay Bijli says it's too early to chart the concept's expansion, but adds luxury movie viewing is here to stay. "With the growing luxury real estate developments in the country, we are looking to expand luxury cinema concept to pockets with high-affluent population," says Bijli.

He is not alone. Multiplex rivals such as Big Cinemas, Cinepolis and Inox, too, plan to expand their luxury screens - offering reclining premium seating and dining options and much more at a high premium - across metros and big cities, following good initial response from consumers. Big Cinemas COO Ashish Saksena says, "All the multiplex players have now perfected their high-end cinema concepts and are ready to expand."

After changing the way urban Indians watched movies over the past decade-anda-half, multiplex chains now look to woo the new, affluent and highly-aspirational consumers with premium auditoriums and luxury services.

It turns out that there are many takers for 5-star comfort in theatres.

Monica Garg, an image consultant in the Capital, has become a regular at PVR Director's Cut at Vasant Kunj, where she and her friends can book an entire auditorium for themselves, request for movies on demand, watch classics and dine from an elaborate buffet at a movie-themed restaurant. "For me watching a movie is also the time to catch up with friends, time away from my busy schedule," says Garg, who recently got to interact with Rockstar director Imtiaz Ali at the theatre.

Ali too loved his interaction with the audience at Director's Cut. "A wholesome entertaining movie-going experience is what filmmakers want for their audience and cinemas are where we would want our audience to watch our movies," he says. PVR reports 60% occupancy at Director's Cut, which is higher than a normal multiplex.

"While formalising the concept of Director's Cut, we constantly asked ourselves what can we offer to the affluent Indian who owns the best of gadgets and home theatres, so that they can come out for a unique movie-viewing experience," says Bijli.

Not happy with luxury reclining chairs in the market, PVR built plush seats for Director's Cut in-house and patented the technology. "One cannot get away with premium pricing strategy if you are not offering the best," says Bijli.

Luxury in cinemas is not just about legroom. Multiplex operators strive to provide the best of food, ambience and content, and give consumers the option to watch a movie exclusively with a select group of friends or family. PVR Cinemas and Big Cinemas have auditoriums with just 25 seats.

The cost of building high-end screens is about 40-50% higher than normal cinemas. "The investment on such screens is high and it's like setting up a mini manufacturing plant with high initial investment and a moderate-to-long payback period," says Ashesh Jani, partner, Deloitte Haskins & Sells.

While tickets are priced at a big premium, companies say, food is the most important factor in this business. And the trickiest. While the menus have to be innovative, they need to be easy to eat while watching a movie. "One cannot serve curries or strong-smelling food to the consumer while they are watching the movie," says Ashish Saksena of Big Cinema, whose luxury formats include Cine Diner and 180 Degrees. "Also serving in the middle of the movie disturbs other audiences," he adds.

Village malls coming up to market self-help groups’ products

2011-12-22T07:13:00.001-08:00

To enable Self Help Groups (SHGs) to sell their products better, three malls that will serve as marketing hubs, have been lined up in rural areas of Pune district, which has over 90 lakh SHGs.

These malls, with dormitories, basic amenities and even play areas, will help members of SHGs to directly sell their products throughout the year and they would not have to travel to cities to find buyers.
Besides, SHGs mostly push their products mostly during exhibitions. At the rural malls, they would have an address where buyers can approach them directly. The malls would have dormitories, too.
The state cabinet recently approved the proposal to set up rural malls to make these products more marketable. Such trading centres will be able to avail of 100 per cent aid from the state and central governments.
“In Pune, there would be three village malls and land will be allocated for them. The district is yet to allot land for this initiative that will benefit self-help groups,’’ said an official.
Deputy secretary of Rural Development Department, Avinash Subedar, said each district will have three malls. “These will be well-equipped with all basic amenities, including dormitories for traders. There would be good lawns and play areas to complete the mall look,’’ said Subedar.
The Centre will fund 75 per cent of the cost of the centres to be be built under the Swarnajayanti Gram Swarojgar Yojana while 25 per cent will be borne by the state government. “These centres will be equipped with all basic amenities, including dormitories for traders and there will be good lawns and play areas to complete the mall look,’’ said Subedar.
To market the products, the union government has already sanctioned 99 trading centres at gram panchayats and has released Rs 5.56 crore as its share. “Work on 129 trade centres at various tehsils has commenced and 158 more are in the pipeline,’’ said Subedar. Subedar said that nearly 2.6 lakh SHGs will be given space to display their products free of cost.
Besides providing SHG members dormitory facility at village malls, they would be given training in packaging and branding of products. SHG members have welcomed the move. “These facilities and training will help us directly,’’ said Surekha Doiphode from Soudamini SHG from Ambegaon in the district. Meena Raut of Geetanjali group says their products were being sold at exhibitions only.
Subedar said that they have got part share from the central government and the state is to put in 25 per cent which will be done soon. “The state has already allocated funds for the project and it will be rolled out soon.’’

Seasons mall, Pune to become operational in April, 2012

2011-12-22T07:12:00.001-08:00

Seasons mall, Pune will become operational on April 4, 2012. Developed by Magarpatta Retail with an investment of Rs 450 crores, the mall will spread across a total built up area of 1.5 mn sq.ft. and a gross leasable area of 7 lakhs sq.ft. Almost 75 percent of the mall has already been leased out and fit outs of few anchors have also commenced. Urban Link Consulting is looking after the leasing of the mall.

The mall will cater to the the catchment area of Magarpattacity, Amonora, Hadapsar, Kharadi, Mundhwa, Manjri, Sopan Baug, Empress Garden, Fatima Nagar, and Koregaon Park.

Zaheer Bandukwalla, Director, Urban Link Consulting, said: "The construction of the mall started in 2008 with pre-defined locations in the master planning of Magarpattacity. Seasons mall will have the largest number of anchors under one roof with the largest Shoppers Stop in Pune and largest multiplex in the country. It will also house the largest hypermarket, Star Bazaar in Pune, spread in the area of 90,000 sq.ft. We are expecting a footfall of around 12,000 to 15,000 on weekdays and 25,000 to 30,000 on weekends."

Exteriors of the mall have been designed by Benoy while the interiors have been done by SSA Architects. Magarpatta Retail will look after the operation and maintenance of the mall. Schindler has provided the lifts and elevators and Ravi and Varsha Gavandi has done the landscaping. The mall houses 160 stores with six passenger and six service elevators. There are three exit and entry points for four- wheelers and two- wheelers and two entry and exit points for loading and unloading. The mall has four floors including two basements and one stilt.

The mall will have both covered and basement parking spread across 70,000 sq.ft. which would accomodate over 2,000 four-wheelers and two-wheelers. The food court spreads across 25,000 sq.ft. area with a seating capacity of 1,200 and will be leased out to various F&B brands as independent kitchen spaces.

Seasons mall will house other anchors like Lifestyle, Westside, Croma, Landmark, Max, and a family entertainment zone by Amoeba. The 15- screen multiplex will be provided by Cinepolis and will spread across 90,000 sq.ft. Seasons mall has also signed Woodland, Metro Shoes, United Colours of Benetton, W, Titan, Turtle, Levis, Puma and other brands as tenants through direct leasing. Some of the F&B tenants signed by the mall include Cafe Coffee Day, Kailash Parbat, Kareem's, and Santino's, Simply South.

Realtors Turn Malls into Housing Projects

2011-12-19T23:03:00.001-08:00

Oversupply forces builders across the country to either shelve projects or convert their ambitious mall projects into mixed-use & residential projects

A huge oversupply in retail real estate sector is forcing Indian developers to turn their mall projects into homes.About 96 million sq ft of retail space is expected to be added by 2013 in the top 10 cities in India,while demand will be only for 34 million sq ft,said Crisil Research.This will create a significant demand-supply mismatch,arresting the rise in rentals.Bangalore-based,RMZ Corporation has recently converted its 1.1 million sq feet mall plan into residential cum-hotel project.The firm had earlier tried to reduce the size of the mall to 500,000 sq ft and add a new office space component.We are now building luxury homes at the location, said Raj Menda,managing director of RMZ Corp.Looking at the numbers,many real estate developers in India are seeking to convert their malls into mixed use or residential projects.This phenomenon has increased recently, said Amit Bagaria,chairman of retail consultancy Asipac.While some micro markets in Bangalore will see an over supply of 168%,Hyderabad,on the other hand,from a present shortfall of 66% is headed for an oversupply that could go as high as 322% in 2014.The Mumbai Metropolitan Region will see an oversupply of 58% with Pune at 128%.Because of the expected oversupply,a number of big mall projects,such as Atul Ruias Pheonix Market City mall,Sobha Developers Global mall,RMZ Corporations Galleria in Bangalore,Parsvanaths Metro mall in Delhi and Lancos mall projects,are either being redesigned or shelved.Delhi-based builder Parsvnath has shelved five retail projects due to fund crunch.Moreover,Pheonix Mills,Entertainment World Developers,Salarpuria,Omaxe,IVRCL and Goel Ganga Group are reconsidering their mall projects in Hyderabad,Bangalore and Pune.Sobha Developers has included a residential component in its mall project,jointly developing with Davnam Constructions.The mall was earlier expected to have an ice skating rink,amusement park and a commercial tower.With many other malls coming up in the same vicinity,Sobha is building only 660,000 sq ft of retail space while the rest will be residential, said a person with direct knowledge of the development.Sobha Developers confirmed the development but refused to comment.Delhibased Omaxe said that over supply of mall spaces will only lead to stress on rentals and lower occupancy.Building malls is not a lucrative business as the demand from retailers is lukewarm,especially in the NCR.We are not looking at setting up new retail projects now, said Rohtas Goel,MD of Omaxe.

Town Square @ Viman Nagar

2011-12-08T05:20:00.001-08:00

The cardinal principles of and ideal shopping centre are location, easy access and pleasant ambience. Not only should a shopping centre be a one-stop-shop for all daily conveniences but should have a welcome and comfortable ambience for leisurely social interaction, like a Town square..

Town square Shopping Centres are designed along the successful Australian & European models, as opposed to the glitzy "MALL" model. Being neighborhood shopping centres, actual brisk business happens at Town Square.

Town Square shopping Centres Provide shopkeepers a unique opportunity to become a retailer in a professionally designed and managed shopping centre. The affordable monthly rentals with low investment and heavy shoppers traffic, make this a high profit business proposition.

Town Square Shopping Centres will be perfect for retailers and professionals who haven’t so far found the right shopping centre. The creators of Town Square shopping centres have planned the entire shopping centre so that a variety of businesses will be offered spaces in every shopping Centre, an ideal mix, attracting shoppers in very large numbers.

Highlights

First time in India the new Shopping center concept.
Minimum investment maximum profit.
Shops are available on easy lease.
Adjacent to VIP Road to Airport.
Availability of variety of retailers at one destination thus attracting more customers.
Opportunity to start your own franchise/retail chain business.
Promotional activities for shopping center by our retail management team.
Generator with power back up.
Easy connectivity from surrounding area.
Ample car/scooter parking space.
Bank of High speed elevators.
Food court on roof top with seating capacity of more than 300.
24x7 security for our shopping centres.
Prompt housekeeping at your service.
Whole facility will be managed Professionally by our expert Retail Team.
Central evaporative cooling system for all retailers.
Help for Visual Merchandising and shop fit-out.

GCorp Shopping Mall

2011-12-07T06:56:00.001-08:00

KHARADI Mall

2011-12-07T06:44:00.001-08:00

Time Frame:

Project currently in final stages of concept design.
Planned opening by end of 2010

Plot Size & Area:

Plot size: 56,715 sqm
Built area-Mall (Including Supermarket ): 76,060 sqm.
Bulit area- Hotel (360 rooms): 32,630 sqm.
Apartment hotel (151 apartments): 16,520 sqm
Parking area and technical (*): 88,900 sqm.
Total built up areas: 214,110 sqm.

Sky MAX @ Viman Nagar

2011-12-07T06:38:00.001-08:00

Premium Retail Spaces
Presenting Premium Retail & Semi-Retail spaces, at Viman Nagar.
Sky Max is a unique project that combines thoughtfully planned features and amenities, second-generation intelligence technology and a highly visible and noticeable location.

Sky One @ Kalyani Nagar

2011-12-07T06:35:00.001-08:00

Proposed Mall @ Blue Ridge Hinjewadi

2011-12-07T06:32:00.001-08:00