The Hindu Business Line : Godrej Agrovet to float garments label

IN the process of establishing a foothold in the rural retailing industry, Godrej Agrovet has decided to launch its private label for apparel under the Aadhaar brand. Having set up 18 Godrej Aadhaar centres across the country to cater to farmers, the company intends floating its own textile brand at its rural supermarkets.

Mr R. S. Vijan, Executive Vice-President, Godrej Agrovet, told Business Line, "We are looking at launching a private label for apparel under our own brand. Now we are sourcing apparel from a host of retailers but after a while our own label will get launched.'' Its apparel range would comprise kurtas, pajamas, shirts, trousers and even women's wear, such as salwar kameez and sari, under the Aadhaar brand.

Godrej Agrovet sources apparels from players such as Arvind mills, Century Mills and Vimal. "We would not be manufacturing the apparel brand ourselves and intend sourcing it from other vendors,'' said Mr Vijan. In fact, the company is also open to the idea of sourcing apparels from the retailers who are already selling their brands at its centres. Apart from apparels, the Godrej Aadhaar centres sell a host of FMCG products sourced from other retailers, such as Nestle and HLL.

The company has roped in the Bangalore-based agency - Idiom - to design the format of its stores. And, KSA Technopack is in charge of the company's overall retail strategy. Positioned as a `complete solutions provider' Godrej Aadhaar is expected to have a new baseline - Khushi aur Khushali to attract farmers to its retail network.

Adopting a hub-and-spoke model for selling its wares, the Godrej Aadhaar outlets would offer value propositions for its consumers. Explains Mr Vijan, "While our goods are being sold at MRP, there will be promotions which will be mainly value additions to help the farmers.''

Apart from the goods being sold through these outlets, Godrej Aadhaar is also offering professional guidance to improve productivity, higher returns and improved cost benefit ratio for the farmers. The services include crop advisory services, soil and water testing services, buy back of output, crop finance, supply of agri inputs, and animal-feed and so on.

Godrej Agrovet is also looking at synergies across its various divisions to give a boost to its rural retailing initiatives. The company plans to set up 1,200 Aadhaar outlets in the next 5-8 years.

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