After the successful completion of Vishal Retail’s IPO, with the issue being subscribed 82 times over, the company may stir the packaged mineral water market by launching a 1 litre bottle for as low as Rs.6, to be sold initially at Vishal Megamart stores.

The per capita bottled water consumption in India is less than 5 litres a year as compared to the global average of 24 litres. However, the annual bottled water consumption has risen rapidly in recent times and is worth Rs. 800 crore today and growing at 25% per annum, highest in the world.

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After creating nerves for Indian exporters, especially the IT companies, the rupee finally touched a month low by falling 43 paisa to close at 41.13 (it touched an intraday high of 41.18) on 8 June. It has dipped 90 paisa to the week’s high of 40.28 (also a 9 year high) during the week and might be a signal to the start of the downward cycle.

Another good news for Indian corporates was the 6th consecutive fall in weekly inflation figures to reach below RBI’s target of 5%, thus mitigating the need to increase interest rates. The inflation for the week ending May 26, 2007, was at an 8-month low of 4.85%.

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With the opening of first store in Pune and announcing its retail plans, the Aditya Birla Group has finally joined the crowded retail space. And from the voices in the media, its not far when the group has a pan-India retail presence.

Organised retailing is just 3% of total retail market but still a debatable point whether the Birlas are an early or a late entrant. Since Pantaloons, Spencers, Subhiksha and Reliance have already set up a good base, ‘More’ stores may find hard to invade the territory which these stores have already captured in their respective locations.

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