South Mumbai to get a Pantaloon Central

 

KOLKATA: It doesn’t get more central than this, perhaps. Pantaloon Retail is learnt to have zeroed in on the Haji Ali area in south Mumbai to set up its first Central Mall in the city. And the grapevine has it that the location would be none other than Crossroads, the country’s first mall and a landmark in Mumbai.

 

A few months back, there was a strong rumour that the Ashoke Piramal group had sold off Crossroads, the country’s first mall and a landmark in Mumbai, to Kshitij Real Estate Fund — owned by Pantaloon and a foreign private equity fund. The figure at which the deal was sealed also varied. While some put it at around Rs 400 crore, others pegged it at a conservative Rs 250 crore.

 

Now, Pantaloon Retail is rumoured to have decided to convert the existing Crossroads property, spread over more than 1.2 lakh square feet, into its first Central Mall in Mumbai.

 

When contacted, Jaydeep Shetty, chief of new business, Pantaloon Retail India, told DNA Money: “We have finalised a property in south Mumbai.” Without elaborating further, he said, “Except for Mumbai, the rest of the new malls across the various cities will be new structures.” At present, there are three Central Malls in the country — in Pune, Bangalore and Hyderabad.

 

The Kishore Biyani-led Pantaloon group plans to have six Central malls across the country over the next two years. While Baroda’s Central is bracing for a Diwali launch, Centrals at Kolkata and Gurgaon have till mid to late 2007 to throw open their doors. Hyderabad and Ahmedabad have also got a look-in. The Kolkata Central would be spread over 3 lakh sq ft, Shetty stressed, adding, the other malls would have at least 1.20 lakh sq ft of space.

 

Pantaloon Retail’s investment in each Central Mall will vary from Rs 50 lakh to Rs 100 crore, depending on the city and location. “These investments will include property price plus inventory,” added Shetty.

 

 

 

AHMEDABAD: If Pantaloon Retail is to be believed, Gujarat is all set to be the biggest retail success story of the nation. In addition to 10 superstores, including India’s fourth Fashion Station inaugurated last week, the company plans to open as many as 50 more outlets across 15 town and cities of the state at an investment of at least 200 crore in the near future.

 

The group’s high-end stores Pantaloon and Big Bazaar will be opened next month in Rajkot and Surat each, while Baroda will get a ‘Central’. “After Metros like Mumbai and Delhi, Gujarat is the most important destination. Some of Pantaloon’s best and largest stores are in Gujarat. Fashion Station’s (FS) first store after Mumbai and Delhi is in Ahmedabad. Plans are afoot to establish three more FS outlets in Ahmedabad, five in Mumbai and six more in Delhi and Ghaziabad,” Sadashiv Nayak, operations head, west zone, of Pantaloon Retail, said.  Gujarat constitutes around 12% of the country’s Rs 27,000-crore organised retail market, which is growing at 20% a year.

 

“Disposable income of an individual is arround Rs 2,500 a month is about the same in Gujarat as the metros, discounting the disparity in the cost of living. Moreover, real estate is relatively cheaper here and the non-resident Gujarati consumer base is phenomenal,” Pantaloon’s regional manager, operations Anand Adukia said.

 

The company plans to enter the live food retailing (restaurants) through a tie-up, but Nayak is tight lipped about the proposal. Indications are that Gujarat might get the first taste of the venture.

 

“Nearly 40% of any mall or multiplex’s business comes from food retailing in Gujarat. An average Gujarati eats out twice in a week, which is high by any standard,” Adukia said.

 

Pantaloons and Fashion Station witness over 20,000 footfalls per week with a 40% conversion rate. The average turnover of Pantaloon in Ahmedabad is Rs 10,000 per square feet per annum. The company has recently tied up with Liberty for footwear retail, Lee Cooper for apparels and Galaxy Entertainment for offering gaming opportunities.

 

 

The Kishore Biyani-led Pantaloon group plans to have six Central Malls across the country over the next two years

 

There are three Central Malls in the country today — in Pune, Bangalore and Hyderabad