Magazines Archives - 2007 October

Trent to operate Benetton’s Sisley stores in India
Story 11

TRENT LTD, the retail division of India’s conglomerate, the Tata group, has signed an agreement with Benetton Group, to manage the latter’s three Sisley stores in New Delhi, India, and open up to 30 stores, under a franchise, by 2012.

Over the next couple of months, the first few outlets will be set up in Hyderabad and Bangalore, and Trent will continue to invest about Rs50 crore (US$12 million) into the Sisley stores.

Currently, Trent runs nine Landmark bookstores and Westside department stores, both of which target mid-market consumers. It also operates two Star Bazaar hypermarkets, with two more under way by year-end, and plans to open up to 24 outlets over the next three years.

“Our existing operations, across three diverse retail formats, have given us key insights into the business and the Indian consumer,” Trent managing director Noel Tata told local media. “The partnership with the Benetton Group gives us the opportunity to tap the burgeoning premium segment of consumers. We believe that Sisley has high potential for growth and we will leverage our experience to optimise the tremendous opportunity,” Tata added.

India’s retail market has projected to double within the next eight years, to about US$700 billion from its current value of US$350 billion. The market is said to be growing at about 30% yearly, albeit largely due to more than 15 million unorganised retail outlets across the country. Organised retailing currently encompasses about US$8 billion, less than 5% of the trade.

Nonetheless, Alessandro Benetton, executive deputy chairman of Benetton Group, noted: “We are looking at India with a lot of optimism.” The group will gradually introduce more brands into the Indian market, as income levels rise, creating a demand for premium products, he added. “What is most important is having established a relationship with a company that has deep roots in this country,” Benetton averred.