The Hindu Business Line : Indo Rama to invest Rs 25 cr in retail venture

RETAIL FORAY: Mr Vishal Lohia , Executive Director, Indo Rama Retail Holding Pvt Ltd, and Mr Mike Schmidt, COO & Senior V-P, Office 1 Superstore International, at a news conference in the Capital on Monday. — Kamal Narang

New Delhi , July 17

Polyester major Indo Rama announced its entry into the fast expanding retail sector by entering into a franchise agreement with US-based Office 1 Superstore International to sell office supplies in the country.

Indo Rama has floated a separate company, Indo Rama Retail Holding Pvt Ltd (IRRHPL), for the venture and has already started two stores in Delhi and the NCR region.

To rope in partners

An investment of Rs 25 crore-Rs 30 crore has been lined up for the entire project," said Mr Vishal Lohia, Executive Director, IRRHPL. He added that they were looking at opening 8-10 stores by the end of the year. The first few stores would be company-owned, while the company would be looking at roping in partners in the franchisee format.

Exclusive rights

Through the tie-up with Office 1 Superstore, Indo Rama has acquired exclusive rights over the global brand name in India along with the right to appoint more franchisees. The company will be selling stationery and other office supplies including computers through its retail outlets.

Apart from the brand name, IRRHPL would also benefit from the hand holding that Office 1 will provide. ``Instead of reinventing the wheel, we decided to go for the tie-up as it would get us know-how about the business,'' Mr Lohia said.

IRRHPL would also be sourcing products from Office 1's central warehouse in China. Apart from Office 1 branded products, the retail chain will also source products from the local market.

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