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| Tata Croma draws up capex of Rs 150 crore |
| Ravi Menon / Chennai/ Bangalore Nov 04, 2009, 00:10 IST |
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Consumer electronics chain Tata Croma has drawn up capex of Rs 150 crore over the next two years to expand the footprint of its Tata Croma stores in the metros and launch new product lines via its dedicated computing and electronics chain Croma Zip.
“We have capital expenditure of Rs 150 crore planned into the next two years of expansion. Tata Croma, the consumer electronics-focussed chain, will expand its presence in the metros to 52 stores by the end of March next year from 37 presently,” according to Ajit Joshi, chief executive officer of Infiniti Retail, a part of Tata Sons, which operates the Croma chain stores.
Tata Croma presently runs 12 stores in Mumbai, with two new stores set to be added this month. “We will start eight new Chroma Zip stores by March next year. Five new Tata Croma stores will be operational in New Delhi by January next year, and three more stores by the end of this year in Bangalore — of which two will be Croma Zip stores. As for Chennai, where we operate three large format stores presently, we have been scouting for land there for a Croma Zip store. Two new Croma Zip stores will come up in Hyderabad too, along with a large format Tata Croma store in fiscal 2010,” Joshi said.
Croma Zip, a new format store focussed solely on technology retailing over 4,000-4,500 sq ft of floor space, started operations in July this year. The Croma Zip chain, where each store has a set-up cost of Rs 1.50-1.80 crore, presently has a presence at Delhi and Mumbai airports and will be extended to Bangalore and Chennai by the end of this year, Joshi said.
“Croma Zip will exclusively stock laptops, mobiles, flat screen televisions and other electronic accessories. Going ahead, we will not stock washing machines or vacuum cleaners here. We also see higher conversion rates being achieved out of our small format (Croma Zip) stores in comparison with the larger format ones, as the customer profile falls in the 18-32 year bracket; these are people who are tech-savvy and spend lesser time in the store. Besides, they know what they are looking for and are quicker to zero in on a purchase.”
Tata Croma is targeting revenues of Rs 1,000 crore in fiscal 2010 from Rs 658 crore in 2008-09. The chain is also in the process of launching new products in smaller home appliances and wellness space and expanding the scope of its ‘Croma’ computing brand. Tata Croma has launched over 30 different products under its private label to augment the chain’s revenues. These include wine coolers, bagless vacuum cleaners and bendable massagers.
After launching its own laptops, Tata Croma launched its netbooks priced at Rs 17,990 on October 17. “We have sold close to 80 off netbooks so far. Croma Zip will help showcase our private labels in the electronic space to the younger and tech-savvy buyer,” Joshi said.
India’s consumer durable market is estimated at Rs 32,000 crore and has organised players such as Videocon’s Next, Tata’s Croma, Reliance Digital, Future Group’s EZone and Electronic Bazaar. The growth rate in the durables market is expected to be 10-12 per cent in 2009, from 10 per cent in 2008.
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