Target to up sourcing from India to $1 billion

Even as Wal-Mart, Carrefour and Tesco make a beeline to enter the burgeoning Indian retail space, Target, $52.62 billion retailer of the US, plans to make it big in sourcing.

The retailer hopes to triple its sourcing from India by 2010 and touch the $1 billion mark. The retailer has been running a sourcing operation, Target Sourcing Services/AMC, in India since 1975.

Target, which has sourcing operations in 51 countries, has been growing its sourcing from India.

While it sourced less than $100 million worth of merchandise in 2003, the company will source $300 million this year and is expected to touch the $450 million mark in 2007.

It currently sources textiles, stainless steel, handicrafts, stationery, lighting equipment and home furnishings from India.

However, company executives said they had no plans to enter the retailing segment in India through the cash and carry route, like the other global biggies, Wal-Mart and Tesco.

"We are very excited about the fast growing Indian retail sector but there are no definite plans to make an entry right now. India still has a major role to play for providing merchandise to our operations," said P Jagannath, managing director, Target Sourcing Services/AMC.

Official sources said despite the domestic retail sector having everything going for it at the moment, the company's own plans were currently focused on the US market.

"Target has plans to grow to a $100 billion operation by 2010 and they see enough potential in the US market and need not look elsewhere now," retail analysts said.

They added that this was not the case with Wal-Mart, which had to look outside the US for pushing growth, as it had hit a plateau in America.