Zodiac will not sell Shoppers Stop's shares in near-term

Zodiac Clothing has been very active over the last one week after private investors, Nemish Shah and Akash Bhansali bought a large chunk of stock in it. It owns 17 lakh shares in Shoppers Stop. In an interview to CNBC-TV18, Anees Noorani, VC & MD of Zodiac Clothing said that they do not expect to sell holding in Shoppers Stop as it is an important strategic investment for them.

Below is the edited transcript of his interview to CNBC-TV18 Also read: Staggered de-regulation to help consumers adjust : BPCL Q: What you intent to do with 17 lakh shares that you own in Shoppers Stop? Do you have any plans of liquidating and booking cash out of that?
A: This has been a strategic investment for us and it has stood us in good stead. A couple of years ago we pulled out our cost. So, whatever is standing now is net of cost. This is an important strategic investment for us as this is a sunrise sector. Q: You have no plans of selling those shares any time soon?
A: We have not looked at it. Q: You also hold nearly 60,000 square feet of land in Worli, do you intent to hold on to that or monetize it at some level?
A: We do not hold 60,000 square feet of land. We have a building, which houses our corporate office as well as several departments. The entire business outside of production is headquartered here. Image in our industry is extremely important and we have just moved in just six months ago. It is more important in especially with our international customers. Q: Is there any thought of promoters exiting Zodiac at any point if the price is right?
A: No. Our father has built this brand and our focus is to grow the business on a sustainable basis and run a clean business. Q: The Q2 numbers were not great. What kind of growth are you expecting as you get into FY14?
A: The Q2 numbers were not great because last year Diwali was in October. Due to this a lot of selling to independent retailers, international chains happened then. Also there was a spike in our own sales and stores because Dussehra fell in September. Going in 2014 it is directly linked with the economy. Our customers have the money to buy but it is the feel good factor. If there is gloom and doom all-around whether economic scandals or certain scandals, our customers’ moods are driven by that. However, in the end it is an impulse purchase.