Sahara for Rs 3,000-cr retail foray

Sahara for Rs 3,000-cr retail foray
Conglomerate Sahara India has announced its foray into the fast moving consumer goods (FMCG) retail sector by opening a chain of outlets in 60 cities and towns of five northern states, beginning from August 15, for which it has set aside a warchest of Rs 3,000 crore from its internal accruals in the last two years.

Named Sahara Q Shops, these outlets will initially be opened in Uttar Pradesh, Uttrakhand, Rajasthan, Bihar and Jharkhand. They will offer products under 73 different categories with 800 SKUs (stock-keeping units) in staples, processed foods, personal care products, home care products, general merchandise and lifestyle products. 

The new outlets are based on the concept of direct-to-home delivery of FMCG products whereby buyers need to place orders over the phone, which will then be delivered directly at their address.  Sahara India Pariwar Chairman Subrata Roy Sahara told reporters here that the company plans to launch retail outlets in 998 towns and cities by March 2013. 

“The company has made an initial allocation of Rs 3,000 crore towards this business. We will invest according to the need as we go ahead,” he said.

Sahara is targeting revenues of Rs 15,000-20,000 crore in the first 12-18 months and around Rs 50,000 crore after two years, with a customer base of 6 lakh customers. 

The company plans to launch 800 standalone stores, exclusively offering Sahara’s Q Shop products in the first phase, and aims at launching 60,000 standalone stores later. The company claimed that its new venture will provide jobs to 143,000 people within 18 months and it also plans to foray into organic and diary food business in the coming months.

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