Tuesday, February 13, 2007

Aditya Birla to enter into retail sector with 15 supermarkets

Aditya Birla to enter into retail sector with 15 supermarkets
Source: IRIS NEWS DIGEST (10 February 2007)Aditya Birla Retail (ABR), AV Birla group`s retail venture, is planning to make its maiden entry into retail with 15 supermarkets at Nashik, Pune and other tier II cities in western India in June this fiscal, reports Business Line. The group, which has kept its investment and roll-out plan under wraps, has decided on India`s second-most ambitious retail venture with a Rs 150 billion outlay. This is next only to Reliance Retail`s Rs 250 billion investment for 3,000 outlets by 2010. ABR, which is planning a range of hypermarkets and supermarkets, is believed to have chosen the supermarkets first, because the segment is the most preferred among global retailers. Of the top 250 retailers worldwide, the highest number of 100 retailers operate in the supermarket segment, which globally registered a sales growth of 5.6% and a net profit margin of 2.6%. Five of the world`s top 10 retailers operate supermarkets globally, including the US-based Wal-Mart and France’s Carrefour. Aditya Birla Retail had roped in ex-Carrefour hand Russell Berman, who later dabbled in the Chinese retail market, to head the hypermarket venture and the group is now looking for an experienced top-level manager from overseas to head its supermarket venture



Aditya Birla to enter into retail sector with 15 supermarkets



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