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Archive for the ‘Retail’ Category

Restaurant inflation running at 15%!

Posted by fairval on February 10, 2014

An article in The Times of India ‘Rate cards of Mumbai eateries double in 5 years‘ points out that inflation in Mumbai’s mass restauarants, popularly known as Udupi restaurants, is running at 15% per annum for last several years. Prices have doubled since 2009!

The graphic from the story gives rates of key items in 2009 and now. The fastest item of costs are the utilities – LPG, water and electricity. LPG cost is up 3x, water and electricity 2x. The only positive here is that LPG cost could stabilise for a while



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Pantaloon must have been real desparate to sell its clothing chain

Posted by fairval on May 1, 2012

We all knew Future group was in trouble, but amazing to see it was so desperate. It has sold its one of the few profitable business to a key rival.

An article in Firstpost says; win-win for both. It may certainly be great for AB Nuvo, but on Future side, it points to a desparate need for cash. Its fashion retail was a key part of its business, and what it originally started with. To have sold it, is a huge step, and surely one Biyani would not have ideally wanted to take.

Future Capital is on the block as well for majority sale.With fashion gone, what Biyani has is the erstwhile subsidary of Pantaloon Retail – Future Value Retail, and a few minor businesses like Hometown, ezone etc, all of which are struggling.

Pantaloon Retail (the listed co) has more than Rs 5000 crore of debt, so even this sale may provide only a temporary relief.

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