IndiaRetailBiz

Wadhawan Food Retail, a part of the Delhi-based housing and housing finance major Wadhwan Group is planning to raise capital next year through IPO. Fresh capital will be used to expand retail business of the group.

Apart from operating flagship food & grocery retail chain “Spinach,” Wadhwans have focussed on inorganic expansion. Besides acquiring Sabka Bazaar and Home Store in Delhi and Smart Retail in Bangalore, Wadhwans have also acquired Sangam Direct– a direct to home retail business of FMCG major Hindustan Unilever Ltd. Wadhwans are also managing Maratha Co-operative Store retail chain based in Mumbai.

Wadhwans, who currently operate 179 stores under different brands and formates, are mulling over bringingin all their brands under one umbrella.

As an alternative business strategy, the group while giving up the idea of brands integration could even consider integration of its supply chain.

“We are in the process of finalising our brand architecture and shall announce the strategy in the near future. It is imperative to take cognizance of the similarities and differences in brand promise and service offerings of each of the brands, and brand perception in their respective locale,” said Gaurav Modwel, Director, Wadhawan Food Retail Ltd (WFRL), while speaking recently to Business Line.

The group is looking at investing over Rs 1,500 crore in its retail business. It is preparing a blueprint to set up 1,500 convenient format neighbourhood retail stores in the coming four years, 500 of which are likely to become operational in this financial year itself.

Although details are yet to be made available, Wadhwas are also looking at venturing into large format retail business as well. Their flagship retail chain “Spinach,” is currently operating three formats, namely, Spinach Super, Spinach Local and Spinach Express.