Chief Executive Officer, Essar Hypermart in talks with B&E’s
Busy on an expansion spree, one of India’s handful of organised steel retailers, Essar Hypermarket is aiming to double its top-line by increasing the number of its touch points in the country to 800. But prior to that, it plans to strengthen its inventory management practices that have proven to be one of the major reasons for the retailer to face structural process issues.
B&E: Recently, Essar Hypermart market increased the number of its outlets in India to more than 100. Where do you wish to take that number to?
Girish Rao (GR): Expansion beyond a certain point does not make any business sensible. Our aim is to create a sufficient number of touch points in India. At present, we have 109 Hypermarts and 460 Express Marts across the country, which is a franchisee owned outlet. We wish to take our touch points across India to around 800, including 125 Hypermarts. For us, North India is the biggest market after the western part of the country, contributing 32% to our total sales. So, we are also planning to increase our presence in the region by 25% before March 31, 2010.
B&E: Talking about North, you have recently opened your third Hypermart in Punjab (in Mohali). Do you have any special plan in mind for the state?
GR: The region has a strong presence of SMBs and north is the second largest retail market in India. We have come to know that people from Mohali and surrounding areas were buying steel from our outlet in Jalandhar. So we decided to open an outlet in Mohali itself. For that matter, we are planning to open a store in Amritsar as well.
B&E: What about your global plans? A few weeks back you opened up a store in Dubai. What kind of contribution, in terms of revenue, are you looking at from the global operations?
GR: Yes, recently we have opened Essar Hypermart in Dubai in a bid to expand our foothold in the Middle East. Further, we have a steel mill and as many as six Essar Hypermarts in Indonesia. Apart from these, we are also planning to expand in the sub continent by entering into countries like Sri Lanka, Nepal and Bangladesh because markets there are similar to that of India. We are hoping to replicate our Indian model in these countries and also looking forward to have around 5-6% contribution from global operations over the next 3 years.
Busy on an expansion spree, one of India’s handful of organised steel retailers, Essar Hypermarket is aiming to double its top-line by increasing the number of its touch points in the country to 800. But prior to that, it plans to strengthen its inventory management practices that have proven to be one of the major reasons for the retailer to face structural process issues.
B&E: Recently, Essar Hypermart market increased the number of its outlets in India to more than 100. Where do you wish to take that number to?
Girish Rao (GR): Expansion beyond a certain point does not make any business sensible. Our aim is to create a sufficient number of touch points in India. At present, we have 109 Hypermarts and 460 Express Marts across the country, which is a franchisee owned outlet. We wish to take our touch points across India to around 800, including 125 Hypermarts. For us, North India is the biggest market after the western part of the country, contributing 32% to our total sales. So, we are also planning to increase our presence in the region by 25% before March 31, 2010.
B&E: Talking about North, you have recently opened your third Hypermart in Punjab (in Mohali). Do you have any special plan in mind for the state?
GR: The region has a strong presence of SMBs and north is the second largest retail market in India. We have come to know that people from Mohali and surrounding areas were buying steel from our outlet in Jalandhar. So we decided to open an outlet in Mohali itself. For that matter, we are planning to open a store in Amritsar as well.
B&E: What about your global plans? A few weeks back you opened up a store in Dubai. What kind of contribution, in terms of revenue, are you looking at from the global operations?
GR: Yes, recently we have opened Essar Hypermart in Dubai in a bid to expand our foothold in the Middle East. Further, we have a steel mill and as many as six Essar Hypermarts in Indonesia. Apart from these, we are also planning to expand in the sub continent by entering into countries like Sri Lanka, Nepal and Bangladesh because markets there are similar to that of India. We are hoping to replicate our Indian model in these countries and also looking forward to have around 5-6% contribution from global operations over the next 3 years.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles
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