The Hindu Business Line : DRS group opening relocation retail stores

Hyderabad June 15 Eyeing a huge opportunity in the relocation segment, the DRS group has decided to open `Relocation Retail' stores in major cities, offering a variety of utility services, including housing, in places where people are moving to.

Besides the very act of relocation, people generally are worried about issues such as finding houses, schools, banks, gas suppliers and hospitals in a new place, Mr A.K. Agarwal, Director of DRS group, told Business Line.

Agarwal Packers and Movers registered 40,000 packagings in 2006-07. The months of June and July generally register highest number of packagings as most of the relocations take place in this period. In the first phase, the company is planning to open at least 25 such retail outlets this year, with a focus on potential areas such as information technology hubs in these cities. "It is going to be a one-stop-shop for all the relocation needs. We have started pooling information on availability of various utility services in different cities," he said.

Sitting in Mumbai, Delhi or Pune, people could have access to information on availability of real estate and other important services.

Initially, the company was planning to open four outlets in New Delhi, three each in Mumbai and Bangalore and two each in Chennai and Hyderabad.

The group, which registered a turnover of Rs 198 crore last year, was looking at a turnover of Rs 402 crore this financial year. Of this, 3PL (third party logistics) alone was expected to contribute Rs 75 crore against Rs 3 crore last year, Mr Agarwal said.

Public issue

The company, which received an investment of Rs 100 crore from Kotak Mahindra's private equity fund, is firming up plans to come out with a public issue by September 2008.

Meanwhile, the company was in the process of tying up with financial institutions and banks for a debt of up to Rs 150 crore, he added.