Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hyderabad blues
The ongoing unrest in Telangana is disrupting day-to-day life in the
region. Education institutions, buses and trains, as well as other forms of
public transport have been seeing disruptions. While the only major city
to see disruptions is Hyderabad, it does form a meaningful part of the
portfolio for major retailers. A look at the same store sales growth trend
in late 2009 suggests that the disruptions over the issue in December
2009 may have delayed the recovery in same store growth for the retail
sector. Among the listed retailers, Shoppers Stop is the most exposed
with over 10% of the stores in its key formats in Hyderabad.
Background to the Telangana issue
q The demand for a separate Telangana state, distinct from Andhra Pradesh, goes
back to the 1960’s. The issue has gained more prominence in recent years after
electoral promises of creation of a separate state were made in 2004
q In December 2009, the lack of progress on the issue triggered protests in the state.
While the Congress initially accepted the demand, pressure from other parts of
Andhra caused the government to defer the decision until consensus was reached
q Subsequently, the Srikrishna Committee was appointed to consider the issue and
gave its view in early 2011, recommending against a new state
On the ground – day to day life seeing significant disruption
q The current strike in the Telangana region started on September 13 2011 and
includes people across health, sanitation, public transport and mining among others
q Our recent visit to Hyderabad shows the picture of a city under siege with schools
shut for two weeks, limited public transport, uncertain fuel and power supply
q Channel checks at a popular mall over the weekend indicate a 20%+ drop in footfall
2009 disturbance saw some impact on retailers
q The Telangana region had also seen major disruption of daily life in December 2009
q That disruption did have some impact on retailers same store growth with the
improving same store sales growth trend suddenly taking a pause in 4QCY09
q However, the localised nature of the issue prevents the impact from being too large
Hyderabad a key city, Shoppers Stop most exposed
q Hyderabad is an important city and constitutes ~4-13% of stores for most major
formats for Shopper’s Stop (10-12%) and Pantaloon (4-13%, 4% in Big Bazaar)
q While September is a seasonally soft month, a spill over of the disruptions into the
festive season in October could aggravate the impact
q We retain our cautious stance on the retail sector
Telangana issue timeline
Date Event
1956 Telangana unified with Andhra as a single state
1968 First protests in the separate Telangana state movement
2004 Congress party promised a separate Telangana State in assembly
and parliament elections
2008
State government promises to work towards separate Telangana
state
Nov 2009
K. Chandrashekar Rao started a fast-unto-death, demanding that
the Congress party introduce a Telangana bill in Parliament.
Arrested by the state government.
6-7 Dec 2009 General strike in Telangana
9 Dec 2009
Union Minister of Home Affairs P. Chidambaram announced that the
Indian government would start the process of forming a separate
Telangana state, pending the introduction and passage of a
separation resolution in the Andhra Pradesh assembly
23 Dec 2009
The Government of India announced that no action on Telangana
would be taken until a consensus was reached by all parties
following protests elsewhere in the state
Late Dec 09 – Jan 10 Rallies, hunger strikes, and suicides continued throughout
Telangana to protest against the delay in bifurcating the State
3 Feb 2010
Government announced the five-member Srikrishna committee on
Telangana that would look into the issue,[64] with a deadline of 31
December 2010.
Feb 2011 16 day non-cooperation movement by government employees
Mar 2011
Million March was organized in Hyderabad on March 10, 2011. In a
move to disrupt the march, police shutdown and arrested over
hundred thousand activists through out the region and closed down
entry to Hyderabad city, stopped transportation services, traffic
was diverted and no one was allowed to areas close to the venue.
July 2011 Majority of Telangana MPs and MLAs resign
Sept 2011
Starting Sectember 13, as part of 'strike by all section of people'
supporting Telangana state formation, government exployees,
lawyers, coal miners, health workers started indefenite strike.
Within days, they were joined by teachers, state transport
corportion employees, electricity board employees, sanitation
employees, temples employees etc.
Source: Wikipedia
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hyderabad blues
The ongoing unrest in Telangana is disrupting day-to-day life in the
region. Education institutions, buses and trains, as well as other forms of
public transport have been seeing disruptions. While the only major city
to see disruptions is Hyderabad, it does form a meaningful part of the
portfolio for major retailers. A look at the same store sales growth trend
in late 2009 suggests that the disruptions over the issue in December
2009 may have delayed the recovery in same store growth for the retail
sector. Among the listed retailers, Shoppers Stop is the most exposed
with over 10% of the stores in its key formats in Hyderabad.
Background to the Telangana issue
q The demand for a separate Telangana state, distinct from Andhra Pradesh, goes
back to the 1960’s. The issue has gained more prominence in recent years after
electoral promises of creation of a separate state were made in 2004
q In December 2009, the lack of progress on the issue triggered protests in the state.
While the Congress initially accepted the demand, pressure from other parts of
Andhra caused the government to defer the decision until consensus was reached
q Subsequently, the Srikrishna Committee was appointed to consider the issue and
gave its view in early 2011, recommending against a new state
On the ground – day to day life seeing significant disruption
q The current strike in the Telangana region started on September 13 2011 and
includes people across health, sanitation, public transport and mining among others
q Our recent visit to Hyderabad shows the picture of a city under siege with schools
shut for two weeks, limited public transport, uncertain fuel and power supply
q Channel checks at a popular mall over the weekend indicate a 20%+ drop in footfall
2009 disturbance saw some impact on retailers
q The Telangana region had also seen major disruption of daily life in December 2009
q That disruption did have some impact on retailers same store growth with the
improving same store sales growth trend suddenly taking a pause in 4QCY09
q However, the localised nature of the issue prevents the impact from being too large
Hyderabad a key city, Shoppers Stop most exposed
q Hyderabad is an important city and constitutes ~4-13% of stores for most major
formats for Shopper’s Stop (10-12%) and Pantaloon (4-13%, 4% in Big Bazaar)
q While September is a seasonally soft month, a spill over of the disruptions into the
festive season in October could aggravate the impact
q We retain our cautious stance on the retail sector
Telangana issue timeline
Date Event
1956 Telangana unified with Andhra as a single state
1968 First protests in the separate Telangana state movement
2004 Congress party promised a separate Telangana State in assembly
and parliament elections
2008
State government promises to work towards separate Telangana
state
Nov 2009
K. Chandrashekar Rao started a fast-unto-death, demanding that
the Congress party introduce a Telangana bill in Parliament.
Arrested by the state government.
6-7 Dec 2009 General strike in Telangana
9 Dec 2009
Union Minister of Home Affairs P. Chidambaram announced that the
Indian government would start the process of forming a separate
Telangana state, pending the introduction and passage of a
separation resolution in the Andhra Pradesh assembly
23 Dec 2009
The Government of India announced that no action on Telangana
would be taken until a consensus was reached by all parties
following protests elsewhere in the state
Late Dec 09 – Jan 10 Rallies, hunger strikes, and suicides continued throughout
Telangana to protest against the delay in bifurcating the State
3 Feb 2010
Government announced the five-member Srikrishna committee on
Telangana that would look into the issue,[64] with a deadline of 31
December 2010.
Feb 2011 16 day non-cooperation movement by government employees
Mar 2011
Million March was organized in Hyderabad on March 10, 2011. In a
move to disrupt the march, police shutdown and arrested over
hundred thousand activists through out the region and closed down
entry to Hyderabad city, stopped transportation services, traffic
was diverted and no one was allowed to areas close to the venue.
July 2011 Majority of Telangana MPs and MLAs resign
Sept 2011
Starting Sectember 13, as part of 'strike by all section of people'
supporting Telangana state formation, government exployees,
lawyers, coal miners, health workers started indefenite strike.
Within days, they were joined by teachers, state transport
corportion employees, electricity board employees, sanitation
employees, temples employees etc.
Source: Wikipedia
No comments:
Post a Comment