Mahindra & Mahindra''s Big Plans For The Retail Space - Jan 17, 2009

In 2007-2008 there was a lot of noise around Mahindra & Mahindra''s big plans for the retail space. Then it seemed that M&M put on those plans. But now, it''s clear the company was always calmly working its strategies in the space.

Staying under the radar with an almost secretive soft launch and after months of speculation on just what retail play Mahindra is deploying, the brand name is out and so is the retail format. It is a niche lifestyle segment offering, which caters to the needs of mothers and infants and will be operated under the brand name Mom & Me or M&M.

The first two stores have opened their doors in Ludhiana and Ahmedabad. With a total investment so far of Rs 100 crore, M&M plans a phased roll out of stores across India. Although it will scrutinize mall presence in bigger cities but is not keen on multi-genre, large scale formats. Mahindra is presently identifying other locations for expanding its store chain. The priority at this stage is to ensure that the new business gets off the ground and says it will tread cautiously given the submission many players who made massive investments have seen recently.

Sensex Plunges Over 250 pts In Early Trade @ 10:13 hrs

Information technology stocks moved up sharply even as stocks from other sectors drifted lower on selling pressure in early trade this morning due to a weak trend on the Asian bourses.

The Sensex, which opened at 17,991.29 and suffered a loss of over 250 points as it plunged to a low of 17,844.26 in early trade, is down with a loss of 211.37 points or 1.17 per cent at 17,884.29 at present. The Nifty, which drifted down to 5212.25 after opening at 5267.15, is down with a big loss of 1.18 per cent or 62.40 points at 5218.40.

IT bellwether Infosys Technologies is up by a little over a per cent at Rs 1573 at present. Wipro has gained 1.25 per cent at Rs 417.95. Satyam Computer Services has notched up a gain of 1.8 per cent at Rs 429.10 while Tata Consultancy Services, which remains relatively subdued, is up by around a per cent at Rs 883.

Bajaj Auto has gained 1.2 per cent. Mahindra & Mahindra (1.1 per cent) and Ranbaxy Laboratories (1.7 per cent) have also moved up on strong buying in early trade.

HDFC and Reliance Communications have lost more than 2.75 per cent at Rs 2780 and Rs 589 respectively. ICICI Bank has eased by 2.65 per cent to Rs 1186. Bharti Airtel is down by 2.1 per cent at Rs 869. BHEL, DLF, Grasim Industries, HDFC Bank, ONGC, Larsen & Toubro and Tata Motors are down by 1 per cent - 2 per cent.

Reliance Industries, Reliance Energy, State Bank of India, Maruti Suzuki, Cipla and Ambuja Cements are also down in the negative territory with sharp losses.

Nalco, Unitech, ABB, GlaxoSmithKline Pharma, Hero Honda, Suzlon Energy, BPCL, Tata Communications, Tata Power, Idea Cellular, GAIL India, Reliance Petroleum, Zee Entertainment and Punjab National Bank have declined sharply in opening trade this morning.

Sterlite Industries has moved up by 2.75 per cent to Rs 783.90. Cairn India has posted a sharp gain of 0.9 per cent at Rs 215.80. Sun Pharmaceuticals, SAIL and HCL Technologies trade flat.

Shriram EPC, making its debut, has gained 12.52 per cent at Rs 337.50. Bank Overseas has also started on a firm note. At Rs 226.55, the stock is up by around 9.5 per cent over its issue price of Rs 207.