News: International retail majors eye India
(NDTV 12/04/2006) Mumbai - As foreign investors get ready to climb the retail ladder, they are depending on global property consultants to find the right plots for them to set up their mega malls.
For realty consultant Cushman & Wakefield, scouting out real estate for retail players promises to be big business.
Cushman says retail majors will invest $3-4 billion on real estate in India over the next three to five years.
"Our experience from rest of the world is that retail real estate development tends to deliver higher returns. We see India as no exception," said John Strachan, Global Head of Retail Services, Cushman & Wakefield.
Real estate boom
Cushman says despite the real estate boom, land prices in India are still not too high compared to other international destinations, which is why even Indian retail players will be able to compete with the global giants in the retail space.
"There is always a blend of dominant local format with some international entrants. There's absolutely no doubt that players like Shopper's Stop, Pantaloon, Westside are capable of competing with new entrants. But they have to get logistics right, it is a critical issue," added Strachan.
Apart from Walmart and Tesco, there are other retail big guns like AS Watson of Hong Kong or Zara of Spain looking to India for a retail foothold.
Experts say the government's continued revision of regulations and pro-FDI policy will certainly attract a sizeable chunk of investments from the international business community.
For realty consultant Cushman & Wakefield, scouting out real estate for retail players promises to be big business.
Cushman says retail majors will invest $3-4 billion on real estate in India over the next three to five years.
"Our experience from rest of the world is that retail real estate development tends to deliver higher returns. We see India as no exception," said John Strachan, Global Head of Retail Services, Cushman & Wakefield.
Real estate boom
Cushman says despite the real estate boom, land prices in India are still not too high compared to other international destinations, which is why even Indian retail players will be able to compete with the global giants in the retail space.
"There is always a blend of dominant local format with some international entrants. There's absolutely no doubt that players like Shopper's Stop, Pantaloon, Westside are capable of competing with new entrants. But they have to get logistics right, it is a critical issue," added Strachan.
Apart from Walmart and Tesco, there are other retail big guns like AS Watson of Hong Kong or Zara of Spain looking to India for a retail foothold.
Experts say the government's continued revision of regulations and pro-FDI policy will certainly attract a sizeable chunk of investments from the international business community.
posted by InCar Group Press Room at 21:11
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