New Delhi: Future Group's Rs1,000 crore business unit Food Bazaar has decided to undertake a product category expansion within its existing formats, which will see it add new items like regional foods with a view to cash in on local flavours.
Food Bazaar plans to double its outlets from the existing 102 across various formats by June 2008. The retail chain will add baby care, traditional requirements like puja items and organic foods to add value to its retail shelves.
According to Food Bazaar CEO Sadashiv Naik, the addition of new categories is one way to add value in its existing business.
Branded Thank You, Aunty, Food Bazaar has kicked off its regional food initiative in Maharashtra. It has roped in local experts to make delicacies at in-store counters.
Naik added that the new categories would include regional food offerings at the stores, grooming products for men, baby care, traditional items for personal care and herbal products. He said that the organic foods category was still being conceptualised, and plans for that are yet to crystallise.
The expansion plans will see Food Bazaar doubling its number of outlets by June 2008, and expand its presence in a lot of tier - II cities, at an "average investment" of Rs 80 crore in the initial set up of the stores, excluding inventory and land cost.
Food Bazaar anticipates cities like Mumbai, Delhi, Kolkata, Pune, Hyderabad, Bangalore and Ahmedabad continuing to contribute 14-15 per cent of the company's total revenues.