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Looking beyond pure-play retail, Mahindra Retail is entering pre-and post-natal care services and is eyeing hospitals as future partners for its new venture.
The retail company with its ‘Mom and Me' stores is at present test-marketing the concept of a Mom's Lounge in cities such as Bangalore and Delhi where pre- and post-natal services are being offered.
“We are testing out a new service. While the margins in this business are likely to be better, the cost of setting up such services is also going to be higher than the current retail operations,'' said Mr K. Venkataraman, Managing Director, Mahindra Retail.
Extension
Treating the new service as an extension of its existing retail stores, Mahindra Retail will secure retail space measuring up to 2,500 sq ft and tie up with doctors and nursing homes to offer services, the fee for which would range from Rs 500 to Rs 4,000. Giving details, Mr Venkataraman said, “We are looking at tie-ups with hospitals in Delhi and Bangalore where the test marketing is currently on. The consultation services would begin at Rs 500 and there would also be full-fledged trimester programmes for mothers which could go up to Rs 4,000.The services would range from childbirth-related educational programmes to yoga and reflexology massages.''
Mom's Lounge is expected to be an extension of the existing ‘Mom and Me' stores which already retail products for mothers and kids.
“We are also looking at taking up physical space within hospitals for offering such services. It is a nascent concept and is an adjunct to our retail operations. In India such services are relatively new and will take time,'' added Mr Venkataraman.
Investment
Mahindra Partners, the private equity arm of the Mahindra Group, is already investing in Mahindra Retail and has infused funds to the tune of Rs 200 crore.
“The same funds would be used to set up Mom's Lounge as we enter the services area under retail,'' said Mr Venkataraman.
High-end services
Analysts says that specialised retail formats such as Mom and Me will take time to make money and high-end services might help the retail operations make profits sooner.
Mom & Me at present has 37 stores.
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