Business Daily from THE HINDU group of publications Thursday, Jul 12, 2007 ePaper |
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Marketing
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Strategy Industry & Economy - Gender Women employees to form majority at Radhakrishna Foodland
Purvita Chatterjee
Mumbai, July 11 Mumbai-based Radhakrishna Foodland is planning to replicate the Wal-Mart model in terms of tilting its balance towards recruiting a majority of women employees. Having served as General Manager retail operations at Wal-Mart UK, Mr Purvin Patel, Chief Operating Officer, Radhakrishna Foodland intends having a 64:36 ratio between its women and male employees. According to Mr Patel, “Wal-Mart is known to employ a majority of women and there is no reason why it should be different in India.” From housewives to grandmothers, women up to 65 years of age without any formal qualifications are welcome to join the retailer as they are better equipped to understand the nuances of food and grocery selling compared to the opposite sex, according to the CEO. Adds Mr Patel, “We would offer such women flexible timings along with mandatory incentives.” Women serving as sales assistants can draw salaries from Rs 4,000 upwards at its Food Land Fresh stores. Ramping up
With intentions of ramping up its number of stores from 32 to 100 by the year 2011, it is also planning a franchise model to enhance its presence in the food and grocery category. A pilot testing of this model would be launched under the brand –— Foodland Express — under a smaller format of 500 sq ft. The company has already raised money through a private equity placement arranged by Warburg Pincus. “The company is on a scale up mode and believes in de-risking its existing model before adopting a franchise operation,” says Mr Patel. Radhakrishna Foodland’s other line of business comprises providing distribution and logistics platforms to independent domestic retailers. The company is now eyeing international retailers making a beeline into the country. Indian retailing
“Most of the international retailers have met up with us. It is only natural for them to talk to us and this includes the biggest retailer Wal-Mart,” claims Mr Patel. The complexities of Indian retailing have had international retailers seeking Indian expertise. “Being in the back end of the retailing business, today we are open to just about anyone who is interested in a national wholesale broad line retail distribution system,” adds Mr Patel. Apart from independent retailers, it is also servicing big clients such as Mc Donald’s, HLL, Cadbury, Reliance Fresh, Amul and the Future Group. Apart from Radhakrishna Foodland, other organised logistic and distribution players in the Indian market today include the likes of Snowman, AFL and Mahindra Logistics (already tied up with the Aditya Birla Group).
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