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V. Sajeev Kumar

Kochi, Aug. 17 The efforts made by Kerala State Civil Supplies Corporation (Supplyco) to counter competition from private retailers seem to be yielding results, as evident from the sales growth achieved by its outlets recently.

Mr Yogesh Gupta, Chairman and Managing Director of the corporation told Business Line that the company’s AQPBL (availability, quality, pricing, behaviour and location) strategy had worked well in wooing customers to Supplyco outlets, resulting in average monthly sales growth of Rs 135 crore.

Supplyco targets a turnover of Rs 1,500 crore in the current fiscal as against Rs 1,265 crore in 2007-08, he said. “We have also earned an operating profit of Rs 9 crore last fiscal even though our objective is not to make profits. The figure is likely to touch double digit next fiscal if everything goes well,” he added.

“After the entry of private retailers in the market, our sales have gone up and consumers can now compare our performance with other players. Behaviour of the staff and availability of products have definitely contributed a lot in improving Supplyco’s performance,” Mr Gupta said.

Supplyco plans to expand outside Kerala by setting up an outlet showcasing products from the State comprising handicrafts, textiles etc. It has identified Kerala House in Mumbai to set up a supermarket and requested the State Government for space in the ground floor for the facility.

Likewise, it plans exports of products to countries with a Malayalee population. Initially it will focus on the Gulf region. A delegation comprising Government and Supplyco officials will soon visit the Gulf to chalk out an action plan, Mr Gupta said.

This year, Supplyco has tied up with FMCG companies for its Onam sales. This would generate more revenue for the corporation, he said. The corporation has set a target of Rs 175 crore during Onam sales (August-September) as against Rs 131 crore achieved last season.

The work on setting up the Council for Food Research and Development (CFRD) by Supplyco at Konni is fast progressing. The first component of the project, a Microbiology lab — the first of its kind in the Asia Pacific Region, would be inaugurated by the President of India in the third week of September. The 35-acre CFRD will also feature a chemical analysis laboratory and a college for biotechnology. For forward integration, Supplyco is looking for another 50 acres to set up a food park, he said.

More Stories on : Retailing | PSU | Kerala

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