A marathon race is on in the $37-billion organised retail sector, with the country’s top business houses — the Tatas, Aditya Birla and Reliance Industries — aiming to become the largest retailer.

While Mukesh Ambani-led Reliance Industries claimed to have become the largest retailer by dislodging ‘original’ retail czar Kishore Biyani’s Future Group last year, this year it is the turn of the Tata Group, which has streaked past with its combined offering, according to analysts and retail experts.

The Tata Group, which owns retail ventures such as Titan Industries, Infinity Retail, Landmark and Trent, has slowly and steadily emerged as the country’s largest retailer in the country, with consolidated revenues pegged at over ₹17,000 crore.

Though a bulk of the revenue, at ₹8,000 crore, is from its gold jewellery brand, Tanishq, the Group’s lifestyle, hypermarkets and consumer durable and electronics segments are growing steadily.

Data from the BSE and annual reports of retailers have pegged Tata Group (Titan, Croma, Trent, Landmark, Zara) revenues at ₹17,000 crore, while Reliance Retail (including retail formats and international brand tie-ups) has been placed at ₹14,496 crore.Revenues at the Future Group (lifestyle and consumer) are at ₹14,000 crore, while the Aditya Birla (Madura Fashions and Pantaloons) posted revenues of ₹8,000 crore.

According to retail consultancy firm Technopak Advisory, food and grocery form 69 per cent of the total retail sector, whereas jewellery, watches, apparel and electronics together form about 18 per cent.

Sector focus This sector is where the Tata Group features predominantly, though Reliance and Future still have the edge over the Tatas in the food and grocery area, said analysts.

They say the Tatas have grown thei retail business with fewer stores, and not by scaling up rapidly, like the Future Group or Reliance Industries’ retail wings.

Companies such as Titan, that owns the Tanishq, Titan and Fastrack brands, and Trent, that owns Westside and Star Bazaar, focus on premium products and consolidation. The Tata Group is now trying to increase its hypermarket (food and grocery) and lifestyle business by tying up with UK-based Tesco, which is to invest up to ₹850 crore in the joint venture, and will open more stores in different formats and sizes across the country.

Noel Tata, who heads Trent, recently said the focus this year would be to achieve profitability with different formats.

Arvind Singhal, Chairman, Technopak Advisors, said: “The Tatas are, no doubt, the largest retailer if we combine all their businesses. They can be a threat to others, though they do not boast about their plans. They also have the potential of becoming the largest e-commerce firm in the country.”

The company already has an e-commerce venture with Croma, its electronics brand.

Related Topics
comment COMMENT NOW