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| AV Birla Retail to up pvt labels biz revenue to 10-15% | |
| Press Trust of India / Mumbai February 23, 2009, 13:05 IST | |
Aditya Birla Retail is targeting a 10-15 per cent revenue from its private labels business in the next two-three years and plans to set up 250 supermarket stores by March 2010, a top company official said.
"Private labels business now contributes around three per cent to our revenue. We plan to up it to 10-15 per cent in the next three years," Aditya Birla Retail's CEO, Thomas Varghese told PTI here.
Aditya Birla Retail is a part of India's leading conglomerate, the Aditya Birla group.
The company plans to expand its private labels portfolio into segments such as personal care products, including hair oil, hair styling gel, shaving creams and gels and toothpaste, among others, by March.
"Personal care products would be launched by March. This would be on a pilot basis and the products would initially be launched in Vishakapatnam. Depending on the market feedback we will then enter other markets," Varghese said.
The company already has private labels in categories such as food products including ketchups, jams, honey, carbonated drinks, chipsand cookies under the 'Feasters' brand.
Its detergents and dish-wash bars come under the brand '110%' while shampoos and soaps come under the brand 'Enriche'.
The company plans to set up about 250 supermarket and 12 hypermarket stores pan-India by March 2010. The hypermarkets would be spread across 1,500 sq ft-3,500 sq ft., Varghese said , adding that the group would focus on existing clusters for supermarket stores.
Currently there are 660 supermarket small-format stores, which will increase to 910 by March 2010.
Varghese said the company planned to add 12-13 hypermarkets every year, in Mangalore, Bangalore, Surat, Pune, Hyderabad, Indore and Nashik, among other centres.
Currently, there are two hypermarket stores including one at Vadodara and Mysore. This number would go up to 14 by March 2010.
"After the 12 hypermarkets stores are set up we would come up with private labels in categories like consumer durables and electronic items," Varghese said.
Aditya Birla retail does not have any plans to enter the deep discount stores business, he said.
Though the company has studied the format of deep discount formats, "we are not planning to open any deep discount stores," Varghese said, adding that the company's focus would remain on the supermarket and hypermarket formats.
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