Videocon eyes $4-bn revenue from retail biz

The VN Dhoot-promoted Videocon Group is aiming for sales revenues of $4 bn through the retail business including 'Planet M' stores, 'Bolld' wholesale cash & carry stores, ‘Next’ stores, in the next five years. Videocon Retail will achieve the revenues through the rapid expansion of these stores in 250 cities in the next five years. Till the period, Videocon Retail plans to set up 1,000 Next stores, 1,500 Planet M stores apart from 60 Bolld wholesale Cash & Carry stores. They are planning half a billion as overall investment in retail. The move has come in the wake of an increase in footfalls and rise in demand for electronics and appliances within the existing stores. Hence, Videocon is not looking at forming alliances. Rather, they will focus on expanding their retail network pan-India.
The lifestyle products segment in India has witnessed a steep rise in sales and as a result, the Videocon group plans to make laptop computers, mobile phones and gaming solutions by the last quarter of 2008. This is to tap the growing lifestyle products market. The laptop computer market in India grew a whopping 84.8% in the third quarter of 2007.
Further, Dhoot added that it becomes imperative for all retail players to have direct relation with consumers in order understand their needs better.
Currently, Planet M has 150 stores in 42 cities, and has a turnover of over Rs 150 crore growing at 40% year-on-year for the last four years. In the segment, Planet M competes with RPG Group’s Music World, Mumbai-based Rhythm House and Groove. Meanwhile, the existing over 500 Next stores too have taken off well, Dhoot said. Since there is no restriction on foreign direct investment (FDI) in cash and carry retail, a large number of retail biggies in the world are gearing up to set shop in India. While, Metro Cash & Carry, a part of Metro AG Germany and Shoprite of South Africa are already operating in this space, the world’s top two retailers, namely, Wal-Mart of USA and Carrefour of France have also announced their plans to enter into the business. While Carrefour plans to operate on its own, Wal-Mart has tied up with Bharti Enterprises for this activity.