Spinach promoters plan to enter hypermarket space

Mumbai-based Wadhawan Holdings (WHPL), which runs the Spinach brand of convenience stores, is foraying into the hypermarket space. The company plans to open 10 hypermarkets across the country over the next three years by investing between Rs 800 and Rs 1000 crore.

The first hypermarket will be operational at Mumbai by the end of this financial year. The company is competing with Kishore Biyani’s Big Bazaar, Reliance Hyper, Vishal Megamart and Indiabulls Mart.

The country’s retail sector is estimated around $365 billion. Organised retail is worth around 2 per cent, but has the potential to grow 10 per cent in five years and attract big companies such as Tatas, Birlas and Ambanis.

Wadhawan Holdings has nearly 180 stores, including Spinach, and has acquired chains such as Sab Ka Bazaar in NCR, S-Mart in Bangalore, management contract to run Maratha Co-operative in Maharashtra and Home Store. WHPL bought the loss-making Sangam retail chain, a direct-to-home delivery model, from HUL in April last year.

WHPL also plans to venture into the hospitality sector through luxury hotels and wellness spas. “We are in an advanced stage of tying up with international hotel chains for all our properties,” said Gaurav Modwel, chief executive officer, Wadhawan Holdings.