Borders Group plans India foray

Global book and music retail chain, Borders Group, is keen to set stop in India once the investment scenario changes in the country. At present the current government regulations bar foreign direct investment in the retail sector.

"If the investment situation changes in India, we would be keen to set up a subsidiary or make a foray by acquiring an existing books or a music retail chain as the company's policy is not to enter the market through a franchisee route," said George Mrkonic, vice chairman, Borders Group Inc.

Global apparel retail chain major, Marks & Spencer, has adopted the franchisee route to enter the Indian market.

"We do believe that the Indian market has a lot of potential for a retail chain like ours. If we do enter this market, we may target setting up around 40 stores across the country," Mrkonic said.

The $3.7 billion retail giant, listed on the New York Stock Exchange, currently has around 1,200 stores across the world.

While the US is its primary market, the company has been focusing on newer markets to drive its growth, Mrkonic said. Borders International's strategy involves gaining strong positions in the United Kingdom, Australia, Singapore and New Zealand.

Its main competitor, Barnes & Noble, has over 600 stores across the world. About 80 per cent of Borders' turnover is contributed by book sales, while the balance comes from music and stationery among others.

In India, the organised book retailers are the Raheja's promoted - Crossword, Apeejay Surendra promoted - Oxford Bookstore and Strand Bookstore.