The Hindu Business Line : Retail companies jump on expansion plans

Strategic joint ventures and expansion plans have driven up the stock prices of retail companies. Shares of all major retail chains - Pantaloon Retail, Provogue India, Trent Ltd and Piramyd Retail - have appreciated month on month.

Pantaloon Retail traded at Rs 1,602, up Rs 24.55 or 1.56 per cent, on the BSE on Wednesday. This is a near 8.5 per cent growth over last month.

"We expect our turnover to double this year. It was Rs 1,073 crore in 2005-06. Pantaloon hopes to touch 90 cities by 2010 from the present 26 cities.

Expansion plans

The company is also expanding its format base to niche sectors such as home solutions (electrical and plumbing fixtures), furniture retailing and electronic and consumer durable retailing," said Mr Atul Takle of Pantaloon Retail.

The retail chain is also tying up with various gem and jewellery manufacturers and boutiques for selling their product lines and exclusive collections. Pantaloon has tied up with Talwalkar's for fitness and personal well-being and with Manipal group to retail healthcare and medical consultation solutions.

Pantaloon Retail will also open `Depot', exclusive outlets for books and music, in 17 cities in the coming months.

Other stocks

Another buzzing stock is Provogue India. The retailer traded at Rs 237, up 1.74 per cent, on the BSE on Wednesday. Provogue stocks have reflected a near 15 per cent rise over the past one month.

"Provogue, through Prozone, will set up around eight retail outlets in metros and tier II cities in a year's time. Our focus will be on the clothing sector," said a company official requesting anonymity.

Trent Ltd, the retail arm of the Tatas, proposes to mark up the number of its apparel retail chain, Westside. The group also has plans to share shelf-space with premium international brands.

Trent traded at Rs 872.10, down by 2.77 per cent, on the BSE on Wednesday. Shares of Trent logged an increase of around 14 per cent over the last one month.

Shoppers Stop has also fared well on the exchanges logging a near 12 per cent rise over a period of one month. The scrip ended the day at Rs 525, up by 2.34 per cent.

"Investment in the retail sector will hold well in the long run. The sector is all set to attract fresh investments in the next few years. Investors should wait for the appropriate moment to invest in these stocks. Let the stocks undergo some correction," said Mr Pratik Dalal, Analyst - Retail, Emkay Share and Stock Brokers Ltd.

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