Tata Group Planning Retail Outlets
Tata group is entering into retailing business for the first time. The group has firmed up plans to set up a chain of departmental stores all over the country, which would source its products not only from Tata group companies but also other companies, both inland and overseas.
To begin with, group company Lakme Exports has already signed an agreement to purchase Littlewoods ---a UK-based retail outlet-store in Bangalore. The purchase agreement will be effective from March 15 this year. Talks are also on for purchase of properties in Hyderabad. The company has shortlisted another four cities for setting up the chain stores.
Talking to Business Standard Noel Tata, chief executive officer, Lakme Exports, said: "The Tata group has successful retail chainstores already, like our Titan showrooms all over the country.
The decision to enter into retailing is well-timed since the real estate prices have crashed all over. The real estate prices are more affordable now and we can think of buying properties."
However, the company might not use the Tata name as it is expected to coin a new brand name for its proposed chain of departmental stores.
"Everything is at the drawing board stage. We have not yet decided on the brand name to be used.
Even the exact investment levels have not been decide upon since it depends on the cities we open up the stores in and the real estate prices ruling there," said Noel Tata.
However, the company is certain that it would source its goods not only from Tata group companies but also from other domestic and foreign companies.
The stores would market a wide range of products including garments, accessories and jewellery among others.
"Even though competition is tough in retailing, we are not worried. We think that this area of business has high returns. Initially, we will start with 6 outlets, two of them being located at Bangalore and Hyderabad. We are planning to set up stores in 4 other cities, too.
However, our aim is to have a chain which consists of at least 15 to 16 stores," he pointed out.
Titan, watches from the Tata group, has been successfully marketed through retail outlets, he said.