Thursday, November 09, 2006

Who wil be India's Wal-Mart and Kmart?

Financial Express reports that India’s retail sector is soon to have another mega launch announcement, with The Aditya Birla Group who plans to establish more than 6,000 stores in the next three years. The company plans to invest more than Rs. 15,000 crore, second to only Reliance’s investment of Rs. 25,000 crore to set up 11,000 stores by 2011. These two companies are trying to set up retail chains at levels that global retailers such as Wal-Mart or Kmart established in 3-5 decades.

While Reliance and the Birla’s are working their way from cities and urban areas, Wal-Mart got started in the rural areas in the south, and Kmart and Target got started in larger cities. Wal-Mart established itself as a national chain over a period of 30 years and became the number one retail chain in the world and Kmart became a national chain in 8 years, becoming the 29th largest retail chain in 2005.

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