Former Barista chief Ravi Deol is setting up a food retail venture with the Lohias of the Indo Rama Group.
The total investment in the venture is likely to be Rs 150-200 crore (Rs 1.5-2 billion). A company has been formed to venture into the retail business of food and beverages, groceries and foodcourts.
Industry sources said the company's first store would come up after a year, and the others in phases across the country.
"It will be a completely different model, with the first store coming up in the North," an industry source said.
At the moment, both parties are tight-lipped. Indo Rama President (corporate) Arun Kapur said: "Indo Rama continues to examine several diversification options, retailing being one of them. We are considering a possible participation in this sector. Leading consultants have provided inputs and options, which we are evaluating. Therefore, it is premature to discuss any firm plan in this regard."
Kapur added, "We have met potential key personnel, but discussions are still pending."
However, another Indo Rama source said though Deol might be on board, he would not have a financial interest in the venture.
Deol, on his part, said he was indeed firming up plans for a new retail business. "I am talking to several companies, and Indo Rama could be one of them," he told Business Standard. He also clarified that he was looking at making an investment in the new firm.
Industry sources, however, confirmed that the new venture had initiated recruitment for top positions. Senior executives from the retailing and consumer durables industry had been sounded out and offers made.
This will be Deol's second innings in the retail business after his highly successful stint as managing director of Barista, the coffee chain that heralded the revolution in the food, retail business, especially beverages, in the country. It prompted other business houses to try their luck.
The Barista Coffee Company, which operates around 150 outlets, is 34.3 per cent owned by the Tata Group, while Turner Morrison owns 57.7 per cent.
