The reason for Trent's success is rooted in its slow and steady approach to expansion. Unlike others, Trent, led by Noel Tata, ensured that each store was profitable before it went on to the next, says Raghavendra Kamath.
The UK-based retailer can add to the best practices it already brings to Tata's retail business.
Retail giant Tesco will make foray into Indian retail market as it has signed an agreement with Tata Group-led Trent.
Titled India's Favourities, it was launched in September last year, to raise money for various causes concerning underprivileged children.
In calendar year 2024, the stock price of Trent has zoomed 160% As compared to the 18% rally in the BSE Sensex during the same period. It has outperformed the market in the past 10 consecutive years.
Will it be Noel Tata, Ratan Tata's half brother?
The first such proposal in the sector has come from the joint venture between Tata-Trent and Tesco Plc, which will open outlets simultaneously in these two states.
The company has entered into an exclusive franchise agreement with Tata group's retail venture Trent, which will help in driving the latter's hypermarket format Star Bazaar. Tesco plans to develop new wholesale outlets, which will offer a range of food, grocery and non-food products to small retailers, restaurants, kirana stores and other businesses.
They plan to cut shop sizes and look at opening standalone stores after years of losses.
Noel Tata likes to relax at his Alibaug beach home on weekends, but he is equally passionate about driving on the Mumbai-Pune Expressway at a speed of over 100 kilometres per hour.
Big chains such as Star Bazaar, Future Group and D Mart have set up separate shelves to sell products of Patanjali.
Noel, Ratan Tata's half-brother and Mistry's brother-in-law, was a contender for the top position when Mistry was chosen as chairman in 2011.
The company is not holding plans for clarity on policy.
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Retail giant Tesco's entry into Indian market has hit a regulatory roadblock.
The UK's largest retailer, with revenues of 67 billion pounds, is currently focusing on its existing franchise agreement with the Tata-run Trent.
Trent, the retailing chain of the Tata group, on Tuesday said it would invest more than Rs 100 crore (Rs 1 billion) over the next 2-3 years to increase the presence of its flagship retail chain outlet 'Westside' and hypermarket 'Star India Bazaar'.
Led by Trent, which hit its lifetime-high recently, apparel retailers have gained between 10 per cent and 36 per cent over the past three weeks. Given the network of physical stores, these stocks shall be major beneficiaries of the unlock theme, with most states doing away with Covid restrictions. Amid improving footfall, analysts expect the sector to post double-digit growth in FY23.
Tesco, which has sought the government's permission to buy 50 per cent stake in Tatas-owned Trent Hypermarket Ltd, will have to invest atleast $55 million in creation of fresh back-end infrastructure.
The headline for corporate profit growth has been very encouraging in the July-September quarter (Q2) of 2023-24 (FY24), with the combined net profit of listed companies up by 38 per cent year-on-year. However, the earnings distribution has been very lopsided, with most of the growth coming from public-sector oil-marketing companies (OMCs), banks, non-bank lenders, automobile (auto) companies, and cement producers. By comparison, companies from information technology services, fast-moving consumer goods (FMCG), retail, and consumer durables were disappointed, experiencing a sharp slowdown in net sales growth and a relatively muted increase in reported net profit.
'Unlike Big Bazaar, where the promoter calls the shot, in ABRL, professionals take decisions. So, every new CEO leads to a change in strategy, which confuses vendors and the team.'
Since allowing FDI in multi-brand retail has been left to the states, Indian companies may not benefit as foreign investors are wary of the politics.
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