The Hindu Business Line : Wadhawan may bring Sabka Bazaar, Home Stores under Spinach brand

New Delhi June 25 Wadhawan Food Retail (P) Ltd (WFRPL), owner of Mumbai-based super market chain, Spinach, is still mulling over the branding of its two newly-acquired Delhi-based retail chains. The company recently acquired Sabka Bazaar and Home Stores, two formats of Home Stores Pvt Ltd.

"Yes, Wadhawan has acquired more than 70 per cent stakes in both the retail chains from Home Stores Pvt Ltd. It marks the company's foray in the organised retail trade market in the northern region that has been a part of the firm's future plans," said Mr Dipanker S. Halder, Chief Executive Officer, Spinach.

However, the decision, whether the two chains will be brought under the Spinach brand name is still being evaluated, said Mr Halder. "We hope to operate the stores as they are, without making too many changes till a decision is taken."

The company said that some changes would eventually have to be made to improve operational efficiency. "We have already stationed some of our resources at these outlets to study the basic system of functioning. Depending on the findings, we will work on things like day-to-day functioning of the outlets and the back-end supply system," said Mr Halder.

Advantages

On the advantages of acquiring an already established local retail chain to extend the company's footprint, Mr Halder said, "There are several advantages such as a set clientele and cheaper rents, since the outlets have been set up much before the sudden hike in real estate prices."

With the acquisition, WFRPL now has access to 31 Sabka Bazaar and seven Home Store outlets in Delhi.

Future plans

On Spinach's future plans, Mr Halder said, "We plan to set up a total of 1,500 outlets by 2012, around 300-400 of which would be through acquisition of already established small and medium retail chains."

Spinach currently has 24 outlets in Mumbai, and has plans to expand to other parts of Maharashtra soon.