Mumbai: The diversified
$4.5-billion Mahindra group is entering retail business. The group plans to roll
out `Mahindra Retail'', a multi-format specialty chain in the premium lifestyle
space, primarily in soft goods, in a year''s time.
Retail will sell international and private labels while it has also tied up with
some international brands.
Mahindra group has a reasonably large trading business in `Mahindra Intertrade''.
The group believes that this is the opportune time to enter and extend its distribution
business into direct retailing when the organised retail market is expanding in
India. As such, it is a natural extension of the group''s existing business,"
Raghunath Murti, executive vice chairman of Mahindra Intertrade, said.
company already holds licences to distribute kids'' apparel, toys and furnishings
of companies, including Walt Disney, Mattel, Lego and Woolworths Plc''s Ladybird
in India, he said.
is a natural extension of that business, and we will also look at entering other
areas," he said.
retail venture would be a group business, although the company may consider taking
on strategic investors at a later date, he said.
this point we are doing it on our own steam, but we won''t rule out the option
of taking on strategic investors," he said, adding investments and staff
appointments were being finalised.
industry in India, cuttently valued at about $350 billion, is estimated to nearly
double by 2015.
Indian groups, including Reliance, Tata, RPG, Bharti and Aditya Birla are already
tapping the market. Foreign multiple-brand retailers are allowed wholesale, licenced
or franchise operations in India, the route taken by Wal-Mart Stores Inc, Germany''s
Metro and Shoprite Holdings.