The Hindu Business Line : Piramyd Retail bid to boost in-store brands

EXPLOITING the synergies within the Morarjee group of companies, Piramyd Retail Ltd is roping in its group company Morarjee Brembana to design its in-store labels.

With intentions of increasing the presence of its in-store brands, the Rs 69-crore Piramyd Retail has decided to partner its group company to beef up the offerings of its in-store brands.

Mr Nandan Piramal, Vice-President, Piramyd Retail, told Business Line, "There are synergies within the Morarjee group which have not been acted upon. We are now working on a tie-up with the group's textile company to design our brands."

However, the company's turnover today is mainly contributed by its external brands. "Our main sales continue to come from the external brands which have the marketing power of their labels and contribute to our top-line growth. However, it is our in-store labels which help us in getting our margins, thus adding to our bottom-line growth," according to Piramal.

Building up the scale in its business is paramount to the company, which is on the verge of floating its IPO next month. "The purpose is to get scale and once we achieve that, there will be more in-store brands even in the foods business," adds Piramal.

In fact, the company has already explored the possibility of having its own in-store brand for commodities such as pulses and grains. "We are in the planning stage for having a separate brand in the foods category and intend getting some scale in our operations before launching the brand," says Piramal.

However, the company does not want to venture into the hypermarket mode as a future retail format. "It is true that the retail industry is looking at the hypermarket business, but we feel there is enough space in the supermarket business," says Piramal.

Enhancing its concept of supermarkets under its TruMart brand of retail shops, the company has decided to adopt a hub and spoke model for fulfilling the role of a neighbourhood grocer.

The company will also rope in its family entertainment brand — Jammin — floated by another group company, at all its outlets.

"Piramyd is based on the concept of a mini mall and we are planning to take Jammin to each outlet except in Delhi where the entertainment duties are steep," states Piramal.

The company expects to post a growth of nearly 150 per cent the next financial year. It broke even in its operations this year.

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