The Hindu Business Line : Prime Deli aims at 100 counters by 2009

Chennai June 22 Prime Deli, a retailer of high-end foods that include cheeses and meats cured and fresh, aims to have 100 counters in operation by 2009.

Speaking to Business Line, Mr Nicholas Paul, Managing Director of the Chennai-based Tan Business Ventures Pvt Ltd, said, "The delicatessen concept had really caught on in the metros. Also, modern retail chains want to outsource these products and the requisite expertise in procuring, storing, handling and processing, and the future's bright for this segment."

Prime Deli now has eight stores in operation in Chennai, Bangalore and Hyderabad. These are in partnership with standalone supermarkets such as Chennai's Amma Nana or with chains such as Spencer and FoodWorld.

The company is in talks with other supermarket chains to open shops-in-shops in various cities. Prime Fresh, housed in Prime Deli counters, is its other brand for hygienically processed fresh meats and the company expects good demand for those products too.

Thirty centres each in Chennai, Hyderabad and Bangalore along with a few more in the smaller cities such as Mangalore, Mysore and Puducherry by 2009 is the company's goal.

Mr Paul said the company may even look for venture capitalist funding at a later stage provided things go well. Right now, the focus is on providing easy access across neighbourhoods.

The investment for a 250-sq ft counter is around Rs 10-15 lakh, but counter space will expand as the market grows. The investments now are being funded through internal accruals. There are no estimates of market size available as it's still nascent, but the sales per store come up to Rs 12-15,000 a day, Mr Paul said.

Prime Deli stocks about 60 varieties of cheese and many imported meats such as sausages, ham and other cold cuts, caviar, pates and foie gras, mostly from Europe. Prices don't vary with location, though at Prime Fresh, the rates are fixed on a daily basis, like the rest of the fresh meat market.

With advice from professionals, the company will soon stock pre-marinated meats that customers can use - this is expected to give the business a fillip.

Though the meats, cheeses and other items are premium/luxury products, most of them are sold in portions of 100 gm onwards to make them accessible. Between Prime Fresh and Prime Deli, prices could range from Rs 90 for a whole, skinned chicken to Rs 3,000 per kilo of Parma ham to Rs 5,000 per kilo of foie gras, Mr Paul explained.

Mixed clientele

In Chennai, the clientele is an equal mix of Indians and foreign nationals but this varies depending upon city and locality, he said.

On the issue of freshness, he said that in his delis, products are always consumed by the time they are halfway through their shelf life. The turnaround time for fresh meat is a day.

The prices of fresh meat and fish are at an 8-10 per cent premium over the wet market (traditional butchers' outlets) but temperature maintenance and packaging account for that, he said, adding that they could perhaps match prices as volume builds up.

"It may take another year or two for the market to grow to that level," he said.

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Prime Deli aims at 100 counters by 2009