Can any one brief of the management quality ? or is it "it is fine as far as the stock is moving" !!

 

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India’s largest real estate company, is learnt to be close to signing a licensing deal with Italian luxury brand, Giorgio Armani. As per the deal, DLF will have the rights to retail and market the brand in the Indian sub-continent. When contacted, DLF Retail MD Arvind Nair said, “This is an area we are seriously exploring as demand for international brands has grown manifold and consumer expectations far outweigh supply.

However, it is still premature to comment on specific deals and we are still under discussions.” A source close to the development said that talks with Giorgio Armani is at a fairly advanced stage, and the two companies only have to iron out some small glitches. The first store is likely to open in Delhi at DLF’s luxury mall, Emporio, in the first quarter of 2008.

Giorgio Armani, named after the famous Italian designer, was started in the 1960s and is credited to have redefined corporate dressing in the Western world. Since then, the brand has diversified and the company now licenses its name for perfume, watches, and accessories, though apparel still accounts for more than half of revenues. The brand is present in over 35 countries with over 300 stores.

Recently, DLF has been one of the most sought after India partner for such foreign brands and retail chains. What seems to be attracting foreign companies to DLF is the landbank the Delhi-based company has in various parts of the country. For any retailer, access to right locations is a primary concern. Plagued by increasing real estate costs, particularly commercial properties, many brands, department stores and fast-food retail chains have even shelved expansion plans in the country.

A source said that DLF plans to develop over 30 million sq ft of retail space in five years, which would be an attraction for any retailer. “DLF’s lack of retail expertise isn’t an important concern as that can be provided by the foreign brand. Good real estate at the right cost is the most important requirement,” a source said.

More importantly, a major part of DLF’s development will come up in metropolitan cities. This makes the proposition even more viable for a high-end luxury brand like Giorgio Armani. At present, DLF commands a stand-alone landbank of over 13,000 acres. Of this, almost 3,000 acres can be used for commercial purposes.

 

Source : ET