The Hindu : Business : Parsvnath to put on hold retail foray

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Parsvnath to put on hold retail foray

Special Correspondent

The company will review the situation after three to six months

No change in plans on real estate side
Five star status for hotel projects

NEW DELHI: The economic slowdown and the depressing global financial sentiment have forced leading real estate company Parsvnath Developers to put on hold its foray into the retail sector along with a multinational company as its partner.

The company is now studying the market conditions and would further re-evaluate the situation and then decide on its future expansion in the retail sector. However, the company said there would be no change in plans on the real estate side and all its projects, including the one connected to the hospitality industry, were proceeding on schedule.

The company had recently got the five star status for its hotel projects in Goa, Ahmedabad and Lucknow that are expected to be in place by 2010-11.

According to a company spokesman, the present adverse market conditions caused by the global financial crisis and the resultant economic slowdown have forced the company to review the retail plans. The development was a temporary phenomenon and had been done after taking into confidence its international partner. “If the condition improves, we would review the situation again in another 3-6 months and take the necessary decision,” the spokesman added.

Parsvnath was planning to have 5-10 front-end stores by this fiscal, with an international retail partner supporting the company for logistics. The company’s retail plans included, hypermarkets, food joints, and very large retail stores of about 2.5-3 lakh sq. ft. In June, when the company announced its plans to foray into the retail space, it expected a large roll-out number to add to its balance-sheet this fiscal.

Initially, the plans were to roll out stores in Delhi and Mumbai, followed by other cities.

Parsvnath had last year formed a subsidiary, Parsvnath Retail Ltd., for its retail business and has acquired 5.5 million sq. ft. of space across the country.

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