Friday, November 10, 2006

Birlas ready a Rs. 15,000 crore retail rollout

The Financial Express reports that the Aditya Birla Group has planned its retail rollout at an estimated cost of Rs. 15,000 crore, making it the second largest investment in the retail industry after Reliance Retail’s investment of Rs. 25,000 crore earlier this year. The Birlas plan to start operation by mid 2007, opening 6,000 stores in three years eventually and will be focusing on the food and grocery segment for half of its revenue. Lifestyle segments will account for approximately 22% and the balance will be from all other segments.

The Birla Group plans to set up retail stores in a similar manner to how Reliance is doing, by not entering into any tie-up with a foreign partner, following a carpet-bombing approach to opening stores in a variety of formats such as neighborhood convenience stores, supermarkets and hypermarkets and also on its focus on food and grocery.

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