A S Watson Group eyes India entry

The A S Watson Group, the Hong Kong-based international retail and consumer division of the highly-diversified Hutchison Whampoa Group, is understood to be in talks to have a presence in India. The Group, better known for its Watsons pharmacy retail chain across Asian and European markets, is said to be in discussion with a couple of retailers who specialise in the neighbourhood convenience store format.

Retail industry players, too, have indicated that talks were on, which may eventually see the Group investing in the backend of the Indian chains until foreign direct investment (FDI) in retail is opened up.

With a history dating back to 1828, the AS Watson Group has evolved into an international retail and manufacturing business with operations in 33 markets worldwide. The Group has a portfolio of various retail formats, including health and beauty specialist Watsons Your Personal Store, PARK n SHOP supermarket, TASTE food galleria, GREAT Food Hall, FORTRESS electrical appliance stores, Watson's Wine and Nuance-Watson airport duty free shops. The Group is also a major producer and distributor of water products and beverages in the region with Watsons Water the top-selling brand in Hong Kong.

 

“Many global retail chains are waiting in the wings to enter India, even as there is strong opposition to opening the retail sector for overseas players. While some are starting their presence in cash & carry formats, some others are looking at investing in the backend of Indian retail chains, hoping that sooner or later the sector is opened to an extent,” noted an investment banker who is close to the Indian retail chain, which is in discussion with A S Watson.

A S Watson, however, said it does not have a plan for the Indian market, even as they continue to expand in all the 33 markets they operate with the vision to reach 10,000 stores by the end of this year. The Group had 9,300 outlets by end of 2010.

If the move fructifies, it may set the stage for re-entry of Hutchison Whampoa in India.

The conglomerate, which had a sizeable presence in the Indian telecommunication sector in a joint venture with Essar Group, exited the market after selling off its stake in favour of UK-based Vodafone Group in a $9.8 billion deal during 2007.