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Purvita Chatterjee

Mumbai, April 21

Videocon Industries is floating a separate subsidiary company for its cash and carry retailing business — Bolld Cash & Carry. The fully-owned subsidiary is expected to set up 60 outlets targeting a turnover of Rs 11,000 crore in the next five years. It would be investing Rs 2,000 crore over the next three years.

Speaking to Business Line, Mr Sunil Mehta, CEO, Bolld Cash & Carry, said, “We would be sourcing from all the big players and also have our own private labels in this business.” Targeting 1 lakh members (retailers, resellers and institutions) in its first year of operations, Bolld will leverage Videocon’s existing logistics and distribution mechanism.

Mr Mehta said, “We already have logistics and supply chain efficiencies through a separate division (autocars) which runs fleets and trucks for our consumer durable business which we would be utilised for our cash and carry format.” Retail consultants Technopak and Ernst & Young have been appointed to help the B2B company with its sourcing strategy.

“With our 19 plants we would have adequate logistics and distribution to cater to the local requirements for every region especially in the consumer durable category, “ said Mr Mehta. Bolld stores would be rolled out in cities such as Mumbai, Hyderabad and Ahmedabad, Jaipur and Delhi.

Food and groceries would comprise almost 50 per cent followed by other categories such as apparel (10-12 per cent) and CDIT (10-12 per cent). Besides, private labels would get launched in the next phase.

“Cash & Carry is a $350-billion market and there is big scope for any player who enters this business. We are not looking at a joint ventre this point of time,” said Mr Mehta.

Videocon is also hoping the kirana outlets would become its members to compete with big retailers. “We would be helping the kiranas as they would benefit from our operations which would help them in pricing and merchandising while competing with the big retailers,” he stated.

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