Friday, January 05, 2007

Regional chains could hold out for more

DNA India reports that with the purchase of Trinethra, the Aditya Birla Group has leapt ahead of Reliance in retail space. The food and grocery segment is key to the Indian retail market, an estimated 55% spend of a total of $300 billion each year. Bangalore based Niligiris was sold to Actis due to differences in the family that ran the company. Another company on the lookout to sell is Jaipur based Bardiya Group who is looking to either sell or form a strategic association for its 4 Big Shopper stores in the city.

Market sources estimate that the Birlas paid an estimated Rs. 147 crore for the company which has 172 stores and is spread across the southern states. Comparatively, Reliance’s purchase of the Adani Group which has 54 stores for Rs. 110 crore seems more expensive.

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