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Bangalore market to grow most

WINDOW ON SHOPPING: PART 4

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Sunil Jain New Delhi
Will grow by Rs 4,000 crore in 2007-08.
 
Though suburban Mumbai will continue to remain the country's largest market next year, it is Bangalore that will see the highest growth in value terms.
 
It will grow by over Rs 4,000 crore in 2007-08 to touch Rs 38,179 crore, as estimated by economics research firm Indicus Analytics in their latest publication, "Market Skyline of India 2006".
 
Even after this growth of nearly 12 per cent Bangalore will continue to remain a small market in terms of market density, or the amount of consumer expenditure per square kilometre.
 
In 2007-08, Indicus estimates, Bangalore's density will be Rs 17.4 per kilometre, a far cry from East Delhi's projected Rs 164 crore per square kilometre, Chennai's Rs 144 crore, and suburban Mumbai's Rs 97 crore.
 
Around 34 per cent of Bangalore's households earn over Rs 3 lakh per annum as compared to 42 per cent in the case of East Delhi and 21 per cent for suburban Mumbai. Just 9 per cent of households in Bangalore own four wheelers as compared to 17 per cent in East Delhi and 10 per cent in suburban Mumbai.
 
Suburban Mumbai is projected to grow at slightly over 9 per cent annually to become Rs 43,057 crore market in 2007-08.
 
Thane in Maharashtra is the third largest growth market in the country, in absolute terms. Even so, at the end of this, Thane's market density in 2007-08 will be a minuscule Rs 4 crore per square kilometre with just around a fifth of its households earning over Rs 3 lakh per annum.
 
Interestingly, very few of the country's top ten districts in terms of market density today are among the top ten growth districts in absolute terms (b/w 2006-07 and 2007-08) "" the only exception is suburban Mumbai and Chennai. Thus, East Delhi which has the country's highest market density is expected to grow by a much lower 10.3 per cent and Chennai by 7.8 per cent.
 
Ahmedabad in Gujarat is going to be the fifth top growth district in terms of the absolute increase in the market, from Rs 25,976 crore in 2006-07 to an expected Rs 28,111 crore in 2007-08. But even at the end of it all, the district expected to generate only around Rs 3 crore worth of sales per square kilometre, a figure that's about a fourth lower than Pondicherry.
 
Jaipur in Rajasthan is the ninth largest growth area in absolute terms, but will have a market density of just Rs 1.6 crore in 2007-08.
 
In relative terms, it is Raipur in Chhattisgarh that will have the fastest growth in the country, of around 19 per cent, to take the market size to Rs 6,120 crore "" the market density, however, will remain a tiny Rs 0.5 crore per square kilometre.
 
Other fast growth markets in percentage terms are Papum Pare in Arunachal Pradesh, Dehradun in Uttaranchal, Panchkula in Haryana and East Sikkim.

 
 

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First Published: Aug 25 2006 | 12:00 AM IST

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