The Hindu Business Line : Speciality formats, the next step for Ebony Retail

New Delhi, Dec. 5 Ebony Retail, the retailing arm of the $3-billion DS Constructions group, said that it would invest around Rs 120 crore over the next three years for its planned foray into the home adornments format. It plans to enter other segments of speciality retail in the future.

“We have been in the department format for sometime now, and having established our presence there, plan to enter into speciality formats. We will begin our foray into speciality retailing with our home adornments format,” said Mr Manhad Narula, Director, Ebony Retail.

The company plans to open 15-20 outlets of the home adornments format by 2009, and around 50 by 2011. Each of these stores will have a built-up area of around 20,000 sq ft to 40,000 sq ft. The first outlet will be opened in the Delhi NCR by December this year, followed by Punjab and later, the company plans forays into the southern, western and eastern domestic markets, with its outlets located mostly in malls and high-streets.

“We will be retailing mostly branded items. In fact furnishings and textiles, which will form 20 per cent of our Stock Keeping Units, will all be private labels,” said Mr Narula. The company will retail furniture, furnishings, textiles and related accessories through its home adornment stores, for which it is yet to decide on a brand name. It could also tie-up with a foreign brand for this format.

Ebony is also scouting for foreign companies to form strategic tie-ups and joint ventures for its other niche-outlet plans including those for cosmetics and fragrances, kidswear and other personal care formats.

Mr Lalit Kumar, CEO and Director, Ebony Retail, said, “We are established in the Indian retail scenario with our departmental format. Therefore, it doesn’t make sense tying up with an Indian company. Also, our outlook for a tie-up with a foreign company is primarily on logistics and back-end supply.”

The company, however, does not plan to foray into the more traditional formats of modern retail such as hypermarkets and supermarkets. The company clocked revenues of Rs 80 crore in 2006-07 and plans to achieve the Rs 500-crore mark as a result of its foray into speciality retail by end of 2009.

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