The world’s third largest consumer durables retailer, DSG International Plc, which runs 1,450 electronics and durables stores in 27 countries under the Dixons brand, is close to signing an agreement with Kishore Biyani’s The Future Group to support its chain of stores under the Electronics bazaar, e-zone and Gotit brands.
The tie-up is expected to be similar to that of Tata and Woolworths, which is not in an equity joint venture but is providing the entire back-end support and sourcing to the Tatas for its Croma range of consumer durables stores.
With revenues of over £7 billion in 2005, DSG is next only to US-based $30 billion Best Buy and $11.6 billion Circuit City among the world’s largest durables chains.
The Future Group is India’s largest retailer with Rs 2,019 crore revenues.The consumer durables segment of The Future Group registered a turnover of around Rs 400 crore in 2005-06.
Kishore Biyani could not be contacted for his comments. However, a company official confirmed that the group has been in talks with Dixons for some time, though nothing had materialised yet. According to sources, Dixons has been scouting for an Indian partner for the last eight months.
Last year, the Tata Group, along with Australian retail giant Woolworths, launched a chain of consumer electronics shops through Infiniti retail with an investment of Rs 400 crore.
Reliance Retail is also expected to begin rolling out its consumer electronics stores by April, while Bharti has signed a JV with the world’s largest retailer, Wal-Mart.
From Financial Express