Trent buys Landmark for Rs 103 crore

INDIA INC ON THE MOVE

Tata group company Trent Ltd today acquired 76 per cent stake in India's largest privately owned books and music retailer Landmark, as well as its subsidiaries, from Hemu Ramiah for Rs 103.6 crore.

Ramiah, who is responsible for creating the Landmark brand, will continue to be the CEO of the company with her remaining 24 per cent stake.

In a statement, Noel Tata, managing director of Trent, said, "We are happy to be partnering in the growth strategy of Landmark. Landmark has one of the finest retail concepts in India and we see significant synergies in this partnership."

The statement quoted Ramiah as saying, "Trent is one of India's most stylish retailers with a unique business model. We see a strategic fit between Trent and Landmark and hence our decision to partner with them. We are looking at an aggressive growth over the next few years and this partnership will help us in achieving our expansion."

The Trent scrip gained 9.42 per cent today to close at Rs 900.80 on the Bombay Stock Exchange.

Kishore Biyani's Pantaloon Retail, too, was negotiating with Landmark for a possible acquisition. But a deal could not be struck as Biyani reportedly was in favour of a buyout through a share swap deal, while Ramiah was keen on an all-cash transaction.

Trent is into retailing with two formats "" Westside and Star India Bazaar. Westside has a national presence with 18 stores and Star India Bazaar has recently launched its first hypermarket in Ahmedabad. Landmark had started operations in Chennai in 1987.

It owns four stores "" three in Chennai and one in Bangalore "" and operates in Kolkata through a joint venture with Emami. The sizes of Landmark stores range from 12,000 sq ft to 45,000 sq ft. It sells books, audio and video music, gifts, stationery, cards and toys.

Landmark, including its subsidiary firms, closed financial year 2005 with a sales turnover of Rs 95 crore. The figure was expected to go up to Rs 130 crore in the current year, said the Trent statement, without giving details of Landmark subsidiaries.