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from Expert Zone:

Mall developers take to revenue-sharing to woo retailers

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Over the last five to seven years, the retail segment in India has evolved towards a more organized pricing structure. After the real estate boom of 2005-06, when property prices increased to as much as 40 percent of a retailer’s operating costs, developers seemed more willing to share the business risk. They moved from a per-square-foot rental model to versions of the minimum guarantee and/or the revenue share model. Most investment-grade properties in major cities now follow this model, unlike shopping centres in smaller cities.

In the original model, rentals varied depending on the store and location. But with increased brand awareness and rising vacancies, developers saw the need for a customized tenancy mix, adopting efficient mall management techniques while protecting retailer interests to maximize their own earnings.

This practice of revenue-sharing evolved with brands usually paying a minimum guarantee or a certain share of generated revenues each month. The adopted model varies according to individual developers or brand strength. Fashion apparel brands, for instance, often operate on a pure revenue-share model. For some apparel brands, revenue-share percentage across top Indian cities is between 10 and 14 percent; the range for footwear retail is between 12 and 14 percent while fashion accessories command around 8 percent.

The supermarket segment shares between 3 and 6 percent of revenues as rent, while the typical range for vanilla retailers is 1-3 percent. As far as location is concerned, the Saket retail district in New Delhi, for instance, takes in minimum guarantee monthly rentals in the range of 350 rupees to 450 rupees per square foot. In Gurgaon, it’s between 200 and 250 rupees while central Mumbai mall rentals are in the range of 475 to 600 rupees.

from The Human Impact:

Why India’s Mars mission matters, despite poverty

There has been much fanfare over the launch of India's first rocket to Mars - a mission which, if successful, will position the Asian nation as a major player in the global space race.

For days last week, local television news channels broadcast constant updates as the Indian Space Research Organisation readied to send "Mangalyaan" – the “Mars-craft” – to the red planet.

from India Insight:

Markets this week: Sensex loses 2.7 percent, SBI falls 7.5 percent

Hurt by profit-taking in blue chips, the BSE Sensex posted its worst weekly decline since August as it lost 2.7 percent in a holiday-truncated week.

On Thursday, shares were hurt after ratings agency Standard & Poor's said it will review the rating of Asia’s third-largest economy after the new government lays out its policy agenda next year. The agency’s outlook on rating remains negative.

from India Insight:

Indian women get a new look, with some help from Pernia Qureshi

In a country where styling has not always been recognized as a worthy craft, Pernia Qureshi has put her profession at the forefront of Bollywood fashion.

Qureshi styled actress Sonam Kapoor for 2010's "Aisha", ushering in trendy outfits paired with designer handbags that overshadowed the film, a modern-day take on Jane Austen's "Emma".

from India Insight:

Equity mutual funds record best monthly performance since Jan 2012

India's diversified equity funds posted their best monthly performance since Jan 2012 as the benchmark Sensex scaled record highs in October, with bets on sectors such as banking and capital goods boosting mutual fund returns.

Such schemes, which form the largest category of equity funds in India by number and assets, rose 9.2 percent on average, mirroring returns on the 30-share BSE Sensex, data from fund tracker Lipper, a Thomson Reuters company, showed.

from India Insight:

India’s mission to Mars at a glance

India's Mars Orbiter Mission, the country's first interplanetary foray, is billed as a pathfinder to test technologies to fly to orbit and communicate from the Red Planet. It follows India's successful 2008-2009 Chandrayaan-1 moon probe, which discovered water molecules in the lunar soil.

Here are some facts about the project:

    One of the objectives is to develop the technologies required for design, planning, management and operations of an interplanetary mission. The mission aims to explore Mars surface features, morphology, mineralogy and search for methane in the Martian atmosphere using indigenous scientific instruments. Payloads on the satellite include instruments for studying the atmosphere, particle environment and surface imaging. These include the Lyman Alpha Photometer, a methane sensor, a composition analyser, a camera and an imaging spectrometer. The Polar Satellite Launch Vehicle will launch the 1,337 kg Mars Orbiter satellite as part of its 25th mission. The satellite is scheduled to reach the Mars orbit in September 2014 and is designed to circle the Red Planet in an elliptical orbit of 366 km X 80,000 km. The total cost of the Mars mission is $73 million.

Source: Reuters, Indian Space Research Organisation. More info here

from India Insight:

Pricey onions mean more tears for businesses, public

By Anupriya Kumar and Arnika Thakur

Onion prices recently reached 100 rupees per kilogram ($1.62) in some parts of New Delhi. It is hard to emphasize enough how prices like that are hurting businesses and the public. Onions are one of India's staples, and people consume 15 million tonnes of them a year. Now, many people can't afford to buy as many as they need – or any at all.

The government’s efforts to ease the price, which has quadrupled in some cities in the past three months, are unlikely to succeed. Heavy rains have reduced crop yields and delayed harvesting. Now, the average price of onions in India is 83 rupees per kilo, Delhi Chief Minister Sheila Dikshit said in an interview with Reuters published on Wednesday.

from Expert Zone:

India-Pakistan border flare-up a zero-sum game

(Any opinions expressed here are those of the author, and not necessarily of Thomson Reuters)

At places along the Line of Control (LoC), barely a wire separates the Indian soldier and his Pakistani counterpart. The genesis of the recent flare-up was the killing of five Indian soldiers on the Indian side of the LoC. The media blitz in Delhi found more fodder with a spike in infiltration attempts and exchange of fire beyond the LoC at posts across the international border.

from India Insight:

Interview: Sheila Dikshit on elections, rise of Modi and Kejriwal

By Aditya Kalra and Shashank Chouhan

The emergence of Arvind Kejriwal’s Aam Aadmi Party (AAP) as a credible contender in the Dec. 4 state election in Delhi has not dampened the Congress party’s confidence, its chief minister Sheila Dikshit said on Tuesday.

Dikshit, 75, who has been chief minister of India’s capital since 1998, spoke to Reuters at her official residence about the upcoming elections, the rise of Kejriwal and the Bharatiya Janata Party (BJP) under Narendra Modi.

from India Insight:

Uncompromising Kejriwal won’t support any party if Delhi gets hung assembly

(This article is website-exclusive and cannot be reproduced without permission)

The Aam Aadmi Party has up-ended the calculations of the Congress and the Bharatiya Janata Party in the race for control of New Delhi in one of five state assembly elections later this year.

Party leader Arvind Kejriwal is an uncompromising anti-corruption crusader who has tapped into a vein of urban anger after a string of breathtaking graft scandals.

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