With an eye on the nascent organised retail business opportunity, the Aditya Birla group will invest over $2 billion in the next five years for rolling out a mix of supermarkets and hypermarkets across the country.
A key element of the group's strategy will be its focus on 'private labels', products that are sold under brand names owned by the company. The initial roll out is expected to begin within 15 months.
Unlike the retail plans of other Indian corporates, the Aditya Birla group, headed by Kumar Mangalam Birla, is not looking at tying up with a global major. Project finances were being tied-up, sources said. Key resource people have already been hired from existing retail majors like Shoppers' Stop and Pantaloon.
When contacted, the group spokesperson declined to comment. Barring branded fast-moving consumer goods, the Aditya Birla group's retail foray is expected to look at creating private labels in all categories such as food and groceries, apparel and homecare products.
Sources added that most of the sourcing would be from within the country, because the duty structure did not make imports a viable option.
The group has substantial experience in textile retail with Madura Garments, which has leading brands like Van Heusen, Allen Solly, Peter England, Louis Philippe and SF Jeans in its kitty. It is also the licensee for international brands like Esprit.
The booming retail sector is attracting the country's leading business houses such as Reliance Industries, Bharti Enterprises, the Tatas and the Reliance Anil Dhirubhai Ambani Group. Organised retail in India is estimated at $6 billion and is projected to grow at 20-25 per cent per annum.
