Saturday, January 13, 2007

Retail lottery

Of late, there has been a slew of activity in the Indian retail space and some acquisitions - big ticket in the retail space. Recently Trinethra was acquired by the AVB group. Recently Reliance acquired Adanis retail venture.

If you were in India and you were not a minnow (Minnows are the local single store kirana) but you did not have pockets as deep as the biggies the best idea seems to be to sell off your retail venture. You have blocked real estate, set up a retail venture and this is perhaps the right time cash in. Bharti Walmart has not even begun yet. And there is a fair amount for space for 5-6 big players.

Predictably, the story is that big guys are on the prowl, acquiring the little guys. Perhaps the "little" guys want to sell out, much like playing the start up game in search of the Google acquisition lottery. Its smart business.

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