Indo Rama Retail Holdings to Launch 200 Stores Across India
Indo Rama Retail Holdings Pvt. Ltd, the retail arm of Indo Rama Synthetics (India) Ltd, is embarking on an ambitious expansion plan. The company will establish 200 stores nationwide over the next three years. This announcement coincided with the launch of their new store in Chennai.
Focus on Tier-2 and Tier-3 Cities
Mr. Ashok Srivastava, chief operating officer of Indo-Rama Retail Holdings, highlighted the company's strategic focus on expanding its presence in tier-2 and tier-3 cities. By the end of 2008, they aim to have close to 50 stores in these locations. Cities such as Madurai, Coimbatore, Trichy, and Salem in Tamil Nadu are among their key targets. Furthermore, the company is exploring opportunities within Special Economic Zones (SEZs) in these cities.
Investment and Funding
Investments per store will range from Rs 15 lakh to Rs 40 lakh, depending on real estate values. Funding for this expansion will be sourced from internal accruals. Mr. Srivastava also added that “Our investments per store would vary depending on the real estate value. We will be investing around Rs 15 lakh to Rs 40 lakh per store”.
Market Opportunity and Growth
Mr. Srivastava expressed confidence in the growing demand for office products, especially given the boom in IT, education, financial, and media sectors. He stated, “Any company spends close to Rs 400 per employee on stationery and other office materials. With IT, education, financial, media sectors booming we are confident there will be a huge demand for our products.” The Indian office products market is estimated at $10 billion, with a year-on-year growth of 15%. Office1 Superstore aims to capture a 5% market share in the organized sector.
Having generated Rs 5 crore in revenue last year, Indo Rama Retail Holdings projects Rs 1 crore in business from each new store.