Thailand-based retailing firm Siam Makro PCL on Thursday announced entry into the cash and carry segment in India and plans to invest around ₹1,000 crore in the next five years.
Part of the $50 billion Charoen Pokphand (CP) group, the company will operate under the brand name ‘Lots Wholesale Solutions.’
“We are planning to open 15 stores within next three years and we are looking for investment in this country ₹1,000 plus crore in the next five years,” Lots Wholesale Solutions Managing Director Tanit Chearavanont told reporters here.
It would directly compete with retailers such as Walmart Stores, Metro Cash and Carry and Booker in the cash-and-carry market, which is estimated to be around ₹7,000 crore.
In the first three years, Lots Wholesale Solutions would focus on the North Indian market and aims to create around 5,000 direct and indirect jobs through its 15 wholesale distribution centres.
“We are focussing on north because we want to create enough scalability, where we can cluster our stores with a robust supply chain to sustain it. Even in Thailand, we first started with Bangkok and central region and then expanded,” he added.
The first two stores of Lots will be opened in Delhi NCR in 2018.
The company, which has entered India through the 100 per cent FDI route, would source most of the products locally.
“Predominantly, most of the sourcing would be local,” said Chearavanont.
Omni channel system
Besides, the company is also planning to start online sales for business customers and kirana shops and deliver it to their door steps adopting omni channel system, like other cash and carry retailers in India.
“From day one, we would adopt the Omni channel system approach because if you look the global trend, brick and mortar players are now moving into e-commerce space,” he said.
Lots also plans to provide credit line to the kirana shops and is working in that direction along with financial institutions and others.
“We are working on that with people as how best we can meet this,” said Sameer Singh, Director Operations, Lots.