IndiaRetailBiz

Videocon, the Venugopal Dhoot owned, country’s largest producer of durables and electronic components with several international manufacturing facilities, after successfully launching a retail chain of durables called “Next” has now decided to jump into the ‘cash and carry’ retail bandwagon, reports Business Standard.

The new retail chain, which among others,plans to sell food, groceries, apparel, durables, IT, has been branded as “Bolld Cash & Carry.”

Apart from selling branded merchandise, Bolld also plans to introduce private labels, in consumer durables and other categories. “Our understanding of the local market will enable us to create a pull for the private labels,” said Sunil Mehta, chief executive officer, Bolld Cash & Carry.

,in the second phase. , ,” Mehta said. Dhoots have decided to initially set up five stores at an investment of Rs. 400 crores. These stores, measuring between one and 1.5 lakh sq ft, are expected to become operational during the current financial year (by March, 2009). The first store is slated to become operational by September, 2008. The group has identified Ahmedabad, Bangalore, Hyderabad, Jaipur, and Pune as store locations for the first phase.

In the next three years, however, the group has planned to set up 16 “Bolld” C&C stores at an investment of Rs. 2,000 crores. The group expects to garner an annual turnover of Rs. 10,000 to 11,000 crore (US$ 2.5 billion) from this activity.

While a company, under the group’s consumer durables operations, will handle logistics and supply chain activities, the group does not envisage induction of any outside partner for the new retail chain.

As there is no restriction on Foreign Direct Investment (FDI) in cash and carry retail, a large number of retail biggies in the world are preparing to set shop in India. While, Metro Cash & Carry, a part of Metro AG Germany and Shoprite of South Africa are alreay active 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.