Top Story

e4m_logo.png

Home >> Marketing >> Article

Godrej plans foray into food retailing

26-July-2004
Font Size   16
Share
Godrej plans foray into food retailing

The Rs 4,000-crore Godrej group is foraying into food retailing, either by acquiring a food retail chain or by setting up a new one.

“The group is yet to firm up its strategy — whether to adopt the acquisition route or to set up a greenfield project,” said a source close to the development.

Godrej group Chairman Adi Godrej said: “We are looking at retailing as a new business avenue. In fact, we had talks on acquiring a food retail chain. However, that did not materialise. We are still open to it (the proposal of foraying into retail).” The group was in talks for the acquisition of the south India-based retail chain, Trinethra.

New Delhi-based retail consultancy firm KSA Technopak is helping the group draw up plans for the new venture. The organised retailing industry grew 25 per cent to Rs 22,500 crore in 2003-04. The food and grocery segment accounts for 14 per cent of the market.

Others venturing into food retailing include the K Raheja Corp, promoters of retail chain Shoppers’ Stop, and the Indo Rama group, the New Delhi-based polyester producer.

The Goenka-controlled RPG Enterprises, which manages supermarket chain Foodworld and hypermarket store Giant, is setting up more stores.

Through Trent, the Tata group has a presence in apparel retailer Westside and is planning to enter the food retailing business.

The Kishore Biyani-controlled Pantaloon Retail India has a presence in this segment through Big Bazaar and Food Bazaar. Also, Shoprite, South Africa’s largest supermarket group, has decided to set up shop in India.

The rush into retailing is prompted by the industry’s growth potential, demographic trends, higher disposable incomes of the middle class and a glut in commercial real estate. An industry source said rentals had come down nearly 10 per cent across the country.

Tags

Rajat Sharma who was recently elected as President of the NBA talks about his plans for the industry body

The Country Sales Manager Media at Akamai says that technology seems to be taking over all possible spaces and people considering it in both positive and negative ways

The India Marketing Lead of Skyscanner believes that with the acquisition by Ctrip they have reached the market leader status

Our typical marketing budget is usually 10 per cent of the topline spend

The BBC carried out a survey along with Globescan to see how the world looks at the issue of ‘fake news’

The objective of content marketing is not just to encourage product purchase or generate ROI. The key to its success lies in building relationships based on trust, opines Dasgupta

The interesting animated rap music video encapsulates Droom’s ecosystem tools and their role in facilitating second-hand automobile transactions