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5. MAJOR PLAYERSThere is variety of retailers operating in the food retailing sector. This is not surprising considering
the enormous size of the market for food. However, traditional types of retailers, who operate small
single outlet businesses mainly using family labour, dominate this sector. In comparison,
supermarkets and other modern retail formats account for a minuscule proportion of food sales.
This is because of the strong competitive strengths that traditional retailers possess. These include
low operating costs and overheads, low margins, proximity to customers, long opening hours, and
additional services to customers (such as home delivery). Nevertheless, supermarket sales expanded
at a much higher rate than other retailers. This is because a greater number of higher income Indians
prefers to shop at supermarkets due to convenience, higher standards of hygiene and also for the
ambience. In the organised sector, these are the following major retailers:-
Existing players
Apna Bazar Food Bazar Food world MTR foods Nilgiris Spencers retail Subhiksha Reliance fresh Trinethra superretailEmerging players
Bharti retail5.1 Apna Bazaar
Name of the market Apna Bazaar
Name of parentgroup
Consumer Awareness and Research Centre(CARC trust)
Year of formation
Companyinformation
Apna Bazaar is aa consumer cooperative society with a customer base of over 12 lakh,concentrated in Wstern India especially inMumbai, Thane and the neighbouring Konkanregion including Goa. It claims that its the
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biggest chain of supermarkets in India operating with more than 500 outlets throughout theMagarashtra state, selling more than 6,000essential commodities. Though it has beenmostly identified with middle class, now plans
to cater to an upwardly mobile urbanpopulation. To get rid of all middle meninvolved in order to gain the crucial marginadvantage, the Apna Bazaar pursue F2O -Farmer to Outlet Policy. It aims to reach out tothe farmers creating an exclusive supply chainthat will stretch right from the farmer to ourstores. In order to meet the exacting standardsof cost-effectiveness and efficient service toconsumers, Apna Bazaar and DWCRA cometogether to create DWCRA Apna Bazaar SuperMarket. It aims at creating direct/indirectemployment to rural women, selling theproducts prepared and manufactured by theDWCRA women at all the State, National andInternational outlets, etc
The plans include trimming and training theworkforce, opening new outlets and focusing onthe FMCG sector. The chain plans to remainopen on all days of the week and this itself isexpected to fetch about Rs 10 crore a year. ApnaBazaar plans to scale new heights by establishingstrategic alliances, and consolidating its
operations. It is working towards partnering withthe Japanese Consumer Co-operative Union(JCCU) in areas of training the staff force, visualmerchandising and setting up a co-operativefood brand.
Apna Bazaar is also foraying into co-brandingexercises to offer value to its consumers. ApnaBazar also plans to sell `Apna Life', a Group Lifeinsurance cover, to its customers, along withMetLife India Insurance. Apart from this, it hassigned up a memorandum of understanding withSBI cards to issue co-branded credit cards.
ContactInformation
6-1-67/1/3, 1st Floor,Apna Bhavan, Besides Ravindra Bharathi,Opp. DGP Office,Lakdikapul, Hyderabad 500004Tel: +91-40-23233199, 23243376
Fax: +91-40-27719641
E-mail: [email protected]
Web: www.apnabazaar.org
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Markets Secunderabad, Hyderabad, Kurnool, Krishna,Guntur and Prakasam, etc
Products categoryand services
It deals in 5,698 different products including,cereals, pulses, oils, spices, groceries, packagedfoods, personal anc home care products, babycare products, plastics and rubber products, etc
Schemes and offers Apna Bazaar offers all items at less than MRPrates. Often promotional activities includingdiscounts and offers (freebies) go on in theApna Bazaar stores.
Future expansionplan
Apna Bazaar plans to reach out to each andevery mandal (1,100 mandals) in the AP stateirrespective of size and any other parameters. Italso plans for global expansion with the supportof NRIs- recently the ETA (European Telugu Association) has assured Apna Bazaar its
support in setting up Apna Bazaar outlets intheir places.
5.2 Food bazaar
Name of the market Food Bazaar
Name of parentgroup
Future Group
Year of formation 2002
Company
information
The Future group's flagship enterprise,
Pantaloon Retail (India) Limited (PRIL), isIndia's leading retail company with a turnover ofINR2.019 billion during 2005-06, and with awider presence in most of retail segments.
PRIL operates primarily through the Lifestyleand Value formats through multiple deliverymechanisms and lines of business. The companyhas about 331 stores in over 40 cities across thecountry, constituting 5m square feet of retailspace. PRIL caters to the Value retailingsegment through 66 Big Bazaar hypermarkets,97 Food Bazaars and more than 5 FashionStations, and other delivery formats across thecountry as on Aug, 2007.
Food Bazaars core concept is to create a blendof a typical Indian Bazaar and Internationalsupermarket atmosphere with the objective ofgiving the customer all the advantages ofQuality, Range and Price associated with large
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format stores and also the comfort to See,Touch and Feel the products. Most of the foodbazaars are located within Big Bazaar, howevergiven their ability to bring in customers, they arepart of every Pantaloon, Central and as
standalone stores. A Food Bazaar stocks anaverage of 7000 SKUs.
Contact information Pantaloon Retail (India) Limited
Knowledge House, Shyam Nagar,
Off Jogeshwari-Vikhroli Link Road
Jogeshwari (East), Mumbai 400 060
Tel: +91 22-6644 2200
Fax: +91 22-6644 2222
Web: www.pantaloon.com
Regional officesand branches
Haryana (North zone), Mumbai (West Zone),Bangalore (South zone) and Kolkata (East zone).It has branches in all metroes and almost all TierI, 2 cities in India.
Products categoryand services
The following are the product sections in any ofthe Food Bazaar outlets-
Farm Fresh
Food Bazaar has a Subji Mandi in Big Bazaar fordaily fresh fruits & Vegetables that are sold looseat the lowest prices in the city. With its promiseof daily fresh quality, cleanliness and Hygiene,the Farm Fresh section is the most popular
section at Food Bazaar.
Chill station
A wide variety of dairy products, juices, aerateddrinks & frozen foods ( Veg & non-veg) areavailable at the lowest prices in the city that aredisplayed in one of the best chill stations in thecountry.
Golden harvest
This section displays 20 varieties of cleaned rice,5 varieties of wheat, all types of flours, dals andpulses, edible oils, spices, tea and coffee available
at lowest prices in the city both as loose andpre-packaged, giving customers the choice.
Hungry kya
This division has a range of ready-to-eatproducts like biscuits, cookies, chocolates, chips,wafers, snacks and more.
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Few value added services available in FoodBazaar initiatives that will bring delight andconvenience to customers are-
Live Chaaki-allows customers to buy fresh wheat and have it grounded before thecustomers and right in front of their eyes
Live bakery Fresh juice centre Live diary- provides customers fresh milk
and milk products
Live kitchen- allows customers to buy freshvegetables, get them chopped, cooked fullyand partly.
Loose coffee and tea sourced from some ofthe best gardens.
Home made pickles in loose form Private label food products. Some of
private label products are contributing upto 15% of its category revenue. Forexample, dals and pulses, ready mixmasalas, tea, salt, basmati rice.
Schemes and offers It offers regular promotions and special offers,round the year. During Independence Day, thecompany celebrates Maha Savings 3 days'during which it offers products across categories
such as apparels, furniture, electronics, utensilsand food products at the lowest possible prices,coupled with attractive promotional schemes.
It offers co-branded credit cards like ICICI BankBig Bazaar Silver Credit Card and ICICI BankBig Bazaar Gold Credit Card, which help to earnpoints on use apart from their usage as ordinarycredit card. It also offers Shakti Card forhousewives.
Future expansionplan
Future Group plans to invest about INR4 billionin the next one year to expand its different retailchains. The number of Big Bazaar outlets will beincreased from 50 to 100 by 2008 at aninvestment of INR1 billion, along with eightmore stores of Hometown. Hometown is a newformat of store, which caters to home andhousing requirements.
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5.3 Food world
Name of company Foodworld Supermarkets LimitedParent group name Dairy Farm InternationalYear of formation 1996
Contact person Mr.Norman Yum
Contact Information Foodworld Supermarkets Private Limited*No. 740, Eswari Industrial EstateGate No. 2, HulimavuBannerghatta RoadBangalore 560076Tel : (91 80) 4110 9702 - 709Fax : (91 80) 4110 9710
Branches Predominatly in Bangalore and Hyderabad,Company Information The Dairy Farm Internationa which held
49% intertest in the foodworld chain of
supermarkets, has retained 44 retail outletsafter it put off the partnership with RPGgroup in 2005. Foodworld opened anadditional nine supermarkets in India, bringthe total to 55 outlets predominantly in thecities of Bangalore and Hyderabad. The year2006 saw the chain embark on an extensiverefurbishment programme which willcontinue through 2007.
Products category Apart from groceries and processed andpackaged products, it is the first chain ofsupermarkets in India to offer fresh foods, which include fruits, vegetables, bakery etc.It also pioneered the Private Labeldevelopment and now offers more than 150different items under its eponymous label.This private label products constitutes about22% of its retail business.
5.4 MTR Foods
Name of the market MTR foods
Name of parentgroup
MTR foods
Year of formation 1976
Companyinformation
The MTR Group of Companies promotedby the family of MAIYAS took birth in theyear 1924 with the commencement of aRestaurant in Bangalore. Later in 1976, MTR ventured into the business of retailing ofgroceries and other household general itemsby opening a Departmental Store. MTR first
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brought out packaged, processed foodproducts. Subsequently, efforts were madeto extend the distribution of the aboveproducts to few other prominent RetailStores in Bangalore, such as Nilgiris, VijayaBakery, Shivananda Stores, and HomeNeeds etc. The response was found to be very encouraging in terms of sales of theabove products. Consequently, a major stepwith respect to marketing was taken by theGroup in the year 1983. It was during 1983that MTR appointed Distributors inBangalore, Madras, Hyderabad and Vijayawada with a view to capturingbusiness opportunities in the said markets.
MTR has managed to increase its export of
ready-to-eat food products from two to sixproducts in 2006, and also sell them in thecompetitive Japanese market. Five of itsproducts are preparations of paneeer. MTR isable to sell only paneer preparations in the Japanese market because it is similar to theirsoya chunks. The packaging and presentation ofthe product is different; two hundred cartons arepacked in a pallet, which is shrunk wrapped andthen stretch wrapped.
Though, Japanese market has stringentregulatory compliances, MTR has always
adhered to quality practises, and has thus nowmanaged entry with the same packaging intoHong Kong, China and will be shortly shippingits range to Korea. Its other export destinationsare US, Europe, Australia, New Zealand andGulf countries. Companys export salesconstitute 10-12% of its turnover.
ContactInformation
MTR Foods Ltd.#4, 17th CrossKR RoadBSK 2nd stageBangalore - 560070
Ph: 080 26760569.Email:[email protected]
Markets Bangalore, Kolkata, Mumbai and New Delhi
Products categoryand services
Ready-to-eat curries and rice, ready-to-cookgravies, frozen foods, ice cream, instant snackand dessert mixes, spices and a variety ofaccompaniments like pickles and papads, etc
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5.5 The Nilgiris
Name of the market The Nilgiris
Name of parentgroup
Nilgiri Dairy Farm Ltd.
Year of formation 1905
Companyinformation
Nilgiris is a supermarket chain in South India,known for its good quality products and self-service shopping experience. It is also one of theoldest supermarket chains in India with originsdating back to 1905 and hence its products aresold under the brand name of "Nilgiris 1905". Also, unlike almost all other supermarkets andgrocery shops in India, Nilgiris sells its ownproducts among other brands.
From a small shop in 1905, soon "The Nilgiri
Dairy Farm Ltd." was established. The NilgiriDairy Farm Ltd. specialized in dairy, dairyproducts, bakery and chocolates. The founderMuthusamy's son Chenniappan expanded thecompany by setting up a modest store inBangalore to sell Nilgiris' own products.Eventually, it evolved into a supermarket whenChenniappan visited the U.S. and Europe andwas influenced by the old supermarket conceptin the west. This chain has now blossomed tocover a vast region in South India with 26outlets and annual sales of about Rs.230 crore.
The chain is planning to open an additional 30outlets in their next phase of expansion.
Nilgiri's is setting up two new bakery formats,Masala Bread, a mass market bakery chain andBlue Oven offering premium range of breadsand patisseries. Masala Bread offers about 400SKUs, including packaged and open productsand would essentially target customers of `localbakeries.' The retailer is planning to go foraggressive promotion of Masala Bread and would open 30-40 outlets in the next one yearacross South India. Blue Oven would be
promoted in a phased manner (about five-sixoutlets in 2007), as the premium foods segmentis still a growing market in the country. Both thechains would source products from company-owned local bakeries. Nilgiri's is also promotinga chilled foods section in its retail outlets, calledthe Nilgiri's Chef's Range, the product categoryhas Indian, Chinese and Continental recipes.
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Nilgiris is in the process of setting up andenhancing its distribution and satellite centres inthe four States. The chain, while undertakingdirect distribution of its milk and dairy products,is also looking to increase the presence of its
Nilgiris brand of bakery and dairy products inother stores, apart from being retailed throughthe Nilgiris chain.
Nilgiris supply chain strategy is unique. Theyprocure products from the local markets andalso overseas. They import different productsfrom different countries like soya milk importedfrom Thailand, honey from New Zealand,sauces, chickpea, and green pea from the US,etc. Wheat is procured from local dealers inPunjab. Hence it could sustain a viable supplychain and ensure continuous availability to its
customers. The only reason for the extensiveefforts on the supply chain is to provide choiceand varieties to its customers.
ContactInformation
The Nilgiri Dairy Farm Limited171, Brigade Road,Banglore-560001.Tel.:+91-80-5588401Fax : +91-80-5585348Email:[email protected]
Markets Bangalore, Chennai, Coimbatore, Pondicherry,Guntur, Vishakapatnam, Vijayawada and Pune
Products categoryand services
It deals in diary, confectionary, chilled/frozenpackaged food products, etc
Future expansionplan
Nilgiris is planning to increase its store networkstrength to 500 from the present 40 stores by2010 through an investment of Rs 120 crore.The chain also plans to increase the The plan isalso to increase the private label presence to atleast 40% of shelf space in all the stores fromthe current 20% to earn better margins.
In September/October 2006, Actis, a UK-basedprivate equity investor, invested US$65 millionand bought more than 51% stake in the Nilgiris
Group, in order to strengthen the group'smanufacturing and franchising operations inSouth India.
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5.6 Spencers RetailName of the market Spencer's retail (Spencers daily and spncers
fresh)
Name of parent
group
RPG Group
Year of formation 2001
Companyinformation
One of Indias largest industrial conglomerates,RPG Enterprises comprises more than 20companies spanning across seven businesssectorsRetail, Technology, Entertainment,Power, Transmission, Tyres and Specialties. Theretail division comprises Spencers Retail, Music World and Spencers, contributing around 11%to RPG groups revenue.
Its retail division operates in five formatsSpencers Hyper, Spencers Super, SpencersExpress, Spencers Daily and Spencers Fresh.Spencer's has a total of 135 outlets in 27 citiesacross the country during FY2007. Theseinclude nine hypermarkets, five Spencer'sSuperstores, 104 Daily stores, two Fresh storesand 15 Express stores. Spencer has decided toreanme 49 of its 93 Foodworld outlets it hasretained after breaking ties with Dairy FarmInternational (DFI) as 'Spencer's Daily.'Spencer's Fresh will keep all fresh products suchas vegetables, milk, bread and eggs.
ContactInformation
Spencer's Retail,
Duncan House, 1st Floor,
31, Netaji Subhas Road, Kolkata - 700001
Tel: +91-33-44115600
Fax: +91-33-22318767
Web: www.spencersretail.com
Markets Chennai, Ahmedabad, Hyderabad, Vishakhapatnam, Delhi, Gurgaon, Mumbai,Ghaziabad and Kolkata, etc
Products categoryand services
Products: Fresh fruits and vegetable, groceries,grains and cereals, baked chilled and frozenfoods, personal care and baby care products,home care products, office and home stationery,apparel and fashion accessories, electrical andelectronics, music, toys and other entertainment.
Schemes and offers It offers regular promotions and special offers,round the year. This includes prices off and in
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addition to the low prices being offered. Theseoffers are across the entire range of productsand offer great savings on a number of leadingbrands, basic staples and fresh foods likevegetables.
Future expansionplan
As part of its national rollout plan, Spencer'splans to set up a total of 2,000 stores by 2009and 4,000 stores by 2011.
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5.7 Subhishka
Name of the market Subhishka
Name of parent
group
Subhishka group
Year of formation 1997
Companyinformation
Subhiksha is a Chennai-based retail food andpharmacy chain prinmalrily operating inSourthern states. This discount retail chain,arguably climed the largest retailer in thecountry, has 780 stores across nine States.Subhiksha stores sell household items andmedicines at significant discount to normalprices. Each of Subhiksha's store is 2,000 sft insize and mainly stocks Vegetables, fruits,Groceries. Some stores have added FMCG and
OTC medicines. The company also offers itsgoods via home delivery but has recently closeddown its internet business due to a decline insales.
Subhiksha supermarket and pharmacy is on anexpansion mode. The group is looking atextending operations in Karnataka and also venturing into neighbouring markets ofMaharashtra, Andhra Pradesh and Gujarat. Ithas 35 stores in Bangalore and will touch 60 byend of 2007 further consolidationg its positionin TamilNadu, Karnataka, Gujarat and AndhraPradesh.
ContactInformation
NA
Markets Chennai, Bangalore, Coimbatore, mysore,Secunderabad, Hyderabad, Trivandrum, Cochin,etc
Products categoryand services
Cereals, pulses, dry and wet grociers, packagedfoods, personal anc home care products, babycare products, plastics and rubber products, etc
Schemes and offers
Future expansionplan
Subhiksha has planned an ambitious Rs 300crores expansion across various states(Hyderabad, Bangalore, Ahmedabad, NCR ofDelhi, Western UP, Chandigarh, Punjab,Haryana, Mumbai, Pune and Nasik) in India. Itplans to expand its retail stores to 1,2000 by2007-08. Subikasha currently has 520 storeswhich makes it the largest retailer in India today.
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5.8 Reliance Fresh
Name of the market Reliance freshName of parentgroup
Reliance
Year of formation 2006
Companyinformation
The Reliance Group is India's largest privatesector enterprise, with businesses in the energyand materials value chain. The Group's activitiesspan exploration and production of oil and gas,petroleum refining and marketing,petrochemicals (polyester, fibre intermediates,plastics and chemicals), textiles and retail.
In 2006, Reliance entered into retailing toprovide a world-class shopping environment,state-of-the-art technology, a seamless supplychain infrastructure, a host of unique value-added services and above all, unmatchedcustomer experience. Its INR250 billion retailproject will be operated through Reliance RetailLimited and its subsidiaries Ranger FarmsPrivate Limited, Retail Concepts and ServicesPrivate Limited, Reliance Retail InsuranceBroking Limited, Reliance Dairy Foods Limited,Reliance Retail Finance Limited and RESQ
Limited. It entered the retail sector with itsReliance Fresh chain of grocery stores andoperates about 169 Fresh stores in the country.Its main focus is on retail formats of vegetablesstores, supermarkets and hypermarkets.
ContactInformation
Reliance Industries LimitedMakers Chambers - IV,Nariman Point,Mumbai 400 021.Tel : 91-22-2278 5000Web: www.ril.com/
Markets Chennai, Bangalore, Hyderabad, Delhi,
Lucknow, Mumbai, Gurgoan, etcProducts categoryand services
Cereals, pulses, dry and wet grociers, packagedfoods, personal anc home care products, babycare products, fruits and vegetables, etc
Schemes and offers A customer loyalty programme is run in all thefresh outlets. Every purchase carries somepoints, wchih can be accumulated andexchanged for products.
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Future expansionplan
It is planning to open 250 Reliance Fresh outletsby February/March, 2008 in cities like Pune,Bangalore, Hyderabad and Mumbai, and in somecities in Gujarat. It also plans to start homedelivery services for its Fresh outlets within a
range of one to three km very soon, in order toget the advantage currently the mom-n-popstores have.
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5.9 Trinethra superretailName of the market Trinethra superretail
Name of parentgroup
Aditya Birla Group
Year of formation 1986Companyinformation
Trinethra Superretail Limited is one of theleading supermarket and convenience chain ofretail outlets with around 225 stores under the Trinethra and Fabmall brands. Its operationsspan across the four states of Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. Trinethrahas around 2500 employees and enjoys a strongconsumer franchise in all the states in which itoperates.
Trienthra has earlier acquired Fabmall Indias 12grocery retail stores and the merged companyplans to enter the hypermarkets formatnationally. Both of them share a commonwarehouse for groceries and are to position thegroup as a leading multi-channel retailer; with aphysical presence via Fabmall/Trinethra. The web based would be through Fabmall.com andalso via the telephone. The online retailer hasentered into a strategic alliance with two USbased sites Indiaplaza.com and Sulekha.comto leverage its sourcing expertise and the largecatalogue of items further.
During January, 2007, Aditya Birla Retail, theunlisted retail arm of the diversified Birla group,has acquired Trinethra Superretail and its onlineshopping outfit Fabmall. It marks the formalentry of Birlas in to Indian retail industry.
ContactInformation
NA
Markets Chennai, Bangalore, Trivandrum, Cochin,Hyderabad, Secunderabad, Vizag, Vijaywada andGuntur, etc
Products categoryand services
Products: Fresh fruits and vegetable, groceries,grains and cereals, personal care and baby care
products, home care products, etc
Schemes and offers
Future expansionplan
Trinethra, now under the Umberlla of Birlagroup, is focussed on the expansion of the chainin the West, North and East will be under thenew brand and eventually Trinethra's 225 stores, which are predominantly in the South, will berebranded. The group has set itself target to
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open 20-25 stores in each city that it enters. Thegroup's hypermarket venture will be on courseby 2008; it already has one in Mysore, set up byTrinethra before the acquisition.
Emerging players
5.10 Bharti RetailName of the market Bharti Retail
Name of parent
group
Bharti Enterprises
Year of formation 2006
Company
information
Bharti Enterprises is one of Indias leadingbusiness groups with interests in telecom,agribusiness, insurance and retail. Bharti Retail(Pvt) Limited, which is a wholly-ownedsubsidiary of Bharti Enterprises, plans toprovide a world-class retailing experience toconsumers across India towards which thecompany has planned an investment of USD2-2.5 billion by 2015.
Bharti Retail will launch its retail outlets inmultiple consumer-friendly formats, which willinclude Hypermarkets and Supermarkets. For
the small store format, Bharti Retail is alsolooking at partnering with existing local storeowners across India through a franchise model.
The back-end operational support from thisretail initiative is provided by Wal-Mart in areasof logistics and supply chain management.
Contact
Information
Bharti Enterprise,
Qutab Amibience (at Qutab Minar),
Mehrauli Road,
New Delhi - 110 030
Tel. No.: +91 11 4166 6000Fax No.: +91 11 4166 6011/12
Web: www.bharti.com
Products category
and services
The products include all food and grocerycategories, fresh fruits and vegetables, meat andpoultry, dairy products, staples, FMCG andprocessed foods, electronics and appliances,clothing and footwear, furniture and furnishing,
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and other household articles.
Future expansion
plan
With its USD2-2.5 billion pan-India operationsretail initiative, Bharti Retail is looking atapproximately 10m sq ft of retail experienceacross all cities in India with a population of
over one million. It plans to employ 60,000people in the project.