Retailing

India retail sector to grow at 12% CAGR succeeding(prenominal) 5 yrs: CLSA Moneycontrol Bureau Investment bank CLSA suffers the retail sector in India will grow at a compounded yearly rate of 12% oer the contiguous five familys, with hyper marketplaces and fast(a) intellectual nourishment yields growing faster than the overall market. The low acuteness train of the organised channel leaves significant headroom for growth. In particular, we expect hypermarkets and fast food formats to sustain five year revenue CAGRs of 19-22%, said CLSA analyst Jaibir Sethi. Growth in per capita gross interior(prenominal) product (gross domestic product) will cause the proportion of heart break population to rise from sub 6% to 13.7% over 2010-2016 and feat a growth in disposable income, he said. CLSA has an overcome rating on sniffy Foodworks, which operates Dominos Pizza and Dunkin Donuts preparedness stoves in India, given the strong growth in the sector. We regard well exulting Foods, given its strong brand, scalable precedent and capital efficiency. We fit it as a strong period of play on middling term growth in Indian fast food, Sethi said. Jubilant Foodworks last month laxed its 500th Dominos outlet and plans to open 100 outlets this year. It will also open 80-100 Dunkin Donuts outlets in the next five years. According to Euro Monitor 2012 report, Dominos has a 55% market share in the organised pizza market.

However, CLSA is not so bullish on Pantaloon Retail, despite being a superior hypermarket operator. Pantaloon operates hypermarkets under Big Bazaar brand, apart fro m other outlets like Central, Home Town and! Fashion @ Big Bazaar. The friendship has a total operational space of 16.71 million real feet. Kishore Biyani promoted Pantaloon, all the same has had a huge debt of more than Rs 5,000 crore, which it is essay to cut by selling non-core assets. The futurity Group recently sold its venture in consumer finance company Future Capital Holdings to PE unwaveringly Warburg Pincus. It has also announced plans to sell its Pantaloon primp retail chain to Aditya Birla Group. Our...If you want to get a extensive essay, order it on our website: OrderCustomPaper.com

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