A huge inventory pile-up in the December quarter has led to the rush of ‘discount sales’
One has to usually wait for at least a month into the New Year for the off-season sales to start. But not in 2012. Most retailers, including Pantaloons, Shoppers Stop, etc, are offering discounts on their products at the beginning of the year, when usually, there are no discounts. Shoppers Stop, Big Bazaar, Ezone, etc, have started with their discounts from the beginning of January. Westside, too, has started advertising for its big sale with the ‘come prepared’ commercial.
The rush is prompted by an inventory pile-up, on the back of diminished sales in the last quarter. “We are offering more discounts—even on products like iPad and new tablets and phones,” said a Reliance Retail salesman in Navi Mumbai. “We have seen little offtake; and the stock should be cleared up.”
While brokerage reports have placed FMCG (fast moving consumer goods) as a bankable sector, retail is now viewed as a prospective weak performer in the third quarter of FY2011-12 (Q3F12). A report by IDFC Securities says that big retailers like Shoppers Stop and Pantaloon Retail are looking disappointed. “Same-store sales growth across formats is expected to be in low single digits. Pantaloon Retail’s revenue growth is expected to be at 10% with same-store sales growth at 4%-5%. Shoppers Stop, is expected to report low single digit same store sales growth and HyperCity losses are expected to be at Rs160 million”, it says.
Apparel seems to be one segment which has seen a diminished consumer interest in the past six months. The IDFC Securities brokerage report also says that Pantaloon Retail will see an expected 20.6% decrease on a year-on-year basis for the December quarter in profit after tax while Shoppers Stop will see a paltry 5.4% expected increase for the same period.
Westside is now offering up to 60% off on its products; Shoppers Stop is offering discounts on various products like kids’ apparel, jewellery, footwear, kitchenware and home décor. Ezone belonging to the Future Group started with the discounts with New Year’s weekend. The already struggling premium brand, Espirit is going for a flat 40% off, while Mango, Raymond, etc, are also trying to clear the stocks while there is demand.
“The thing is, many retailers have seen mostly same-store growth in sales,” said an analyst, “but if they can’t clear their stocks, even these ‘pet’ stores will see fewer footfalls.”
The project is a partnership between Servtec and the Brazilian investment fund manager, Rio Bravo Investimentos, and will comprise of 12 units of Suzlon's S95 - 2 MW wind turbines.
Suzlon Energy has informed BSE about the Suzlon Group winning a 24 MW order in Brazil. Suzlon Energia Eolica do Brasil Ltda. - subsidiary of Suzlon Group, the world's fifth leading wind turbine maker - announced a new order from the Servtec Group to set up, operate and maintain a 24 MW (megawatt) wind power project in the state of Ceara, Brazil. The project is a partnership between Servtec and the Brazilian investment fund manager, Rio Bravo Investimentos, and will comprise of 12 units of Suzlon's S95 - 2 MW wind turbines.
The project is scheduled to be commissioned in phases by December 2013 and is expected to offset over 43,000 tones of CO2 annually. This is the second partnership between energy and engineering major Servtec and Suzlon, which already has 155 MW of wind capacity operating across four wind farms in Ceara.
Mr. Lauro Fiuza, Chairman of the Board - Servtec Group, said: "Suzlon is a market leader in Brazil and has immense experience of wind markets in emerging economies. We are confident to work with them in this second enterprise. They are the right partners for us in expanding our renewable energy footprint in Brazil. We look forward to a very rewarding long term relationship for both companies."
Mr. Tulsi Tanti, Chairman - Suzlon Group said: "Brazil is today a very important economy on the world stage, and a leading adopter of wind energy. As Brazil deepens its commitment to powering economic growth on green energy, we are proud to bring our technology, service offerings and vast experience to this market. With the trust of renowned companies like Servtec, we are poised to make the most of Brazil's wind potential."
Suzlon established its presence in Brazil in 2006. In just over five years, the company has installed 11 wind farm projects with a total installed capacity of 389 MW and employs over 180 people. Suzlon operations in the country are located at Ceara State, with sales offices in Sao Paulo."
In the late afternoon, Suzlon Energy was trading at around Rs20.25 per share on the Bombay Stock Exchange, 3.05% up from the previous close.
The By Product Plant (BPP) Package for the upcoming 3 MTPA integrated steel plant at Nagarnar has a total cost of Rs509 crore.
NMDC Ltd has informed the BSE that the company has signed the contract for By Product Plant (BPP) Package for the upcoming 3 MTPA integrated steel plant at Nagarnar, with the consortium led by Shriram EPC Ltd (SEPC) on 10 January 2012. The total cost of the package is Rs509 crore.
The BPP unit is an important installation in integrated steel making, which processes valuable raw Coke Oven gas from coke ovens to yield by products like TAR, Naphthalene and Sulphur besides clean coke oven gas used in the fuel gas network of the integrated steel plant.
In the late afternoon, NMDC was trading at around Rs171.35 per share on the Bombay Stock Exchange, 1.42% up from the previous close.