News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 19 years ago
Rediff.com  » Business » Indo Rama shelves retail plans

Indo Rama shelves retail plans

By T R Vivek & Bhupesh Bhandari in New Delhi
September 01, 2004 09:57 IST
Get Rediff News in your Inbox:

At a time when Indian corporates are falling over each other to grab a share of the Rs 20,000 crore (Rs 200 billion) organised retail opportunity, the Lohia family of Indo Rama has shelved its plans to invest in the sector. Ravi Deol, the former managing director of Barista who was spearheading the foray, has left.

"Deol is no longer working for us. Our retailing plans are on hold right now, but we will look at any opportunity that comes up in the future," said OP Lohia, chairman, Indo Rama.

The Lohias had set up Indo Rama Retail Holdings Pvt Ltd some months back to put up a chain of grocery retail stores in the country. They had roped in Deol, who had quit Barista in 2003, to explore the opportunities in the sector.

When contacted, Deol said that he continued to be a consultant to Indo Rama.

He denied speculation that he had signed up with a leading telecom services company. Indo Rama sources said that the team put together for the grocery retail venture has been disbanded.

The sources said the Lohias saw good margins in the grocery retail business but the huge investment required in the supply chain and the need to build sustainable scale on a national basis were acting as a deterrent.

Had the venture taken off, it would have been the Lohia family's first diversification from the commodities business in the country.

Indo Rama Synthetics is a leading player in the synthetic fibre industry of the country. In the last three years, anticipating a step up in demand, Indo Rama has invested heavily in expanding the capacity of its polyester plant near Nagpur.
Get Rediff News in your Inbox:
T R Vivek & Bhupesh Bhandari in New Delhi
 

Moneywiz Live!