To cash in on surging consumer spending, Aditya Birla Retail Ltd has chalked out a Rs 350-crore expansion plan for the current financial year.
After two-three years of moderate growth “we plan a massive ramp-up,” this year, said Mr Thomas Verghese, CEO, Aditya Birla Retail. The company plans to add 150 supermarkets (More) and 13 hypermarkets (More Megastore) this year. Currently, it has 560 supermarkets and nine hypermarkets.
Are hypermarkets viable? “Yes. Our hypermarkets are quite successful, as they are only 65,000 to 80,000 sq.ft. and not above that. In fact, other retail players too are slowly gravitating to this model.” He also said the company is not keen on taking up any other retail model.
Mr Verghese was in town to deliver the first lecture of the Raghu Pillai Annual Memorial Oration on ‘Leadership' organised by the Madras Management Association and Executive & Business Coaching Foundation India.
Talking to Business Line on the sidelines of the event, he said the country's retail industry is at an inflection point. Consumer spending is going up, reflecting in the toplines of all consumer goods manufacturing companies. “We will see a massive explosion in consumption in the next few years, which will certainly trigger further growth in organised retail in the country,” he said.
He said organised retail is “completely aligned” on bringing FDI into India. Only then would the industry get the kind of funds it requires.