BCCL picks small stake in REI Six Ten Retail

Bennett Coleman & Company Ltd (BCCL), the publishers of the Times of India and the Economic Times dailies that strikes ad-for-equity deals, is picking an estimated 2.2% stake in neighbourhood retail chain operator REI Six Ten Retail Limited. Brand Equity Treaties Ltd, an arm of BCCL, is picking shares through a preferential allotment worth Rs 20 crore which at current market price translates into deal for 2.2% stake.

Originally a retail arm of rice company REI Agro, REI Six Ten was created through a demerger from the parent around two years ago. The company that operates through 6Ten chain of stores sells  groceries, FMCG, fruit & vegetables. Although it has presence in Mumbai, Kolkata, Ahmedabad, Nagpur and Baroda, it is primarily a northern Indian retail player. The firm has an asset light strategy that has allowed it to expand swiftly and as of March 2010 it had 310 stores all run through franchisees. For the year ended March