Even as big retailers fret over how to do business profitably in smaller towns, SRS Ltd is comfortable catering to B and C cities.

The Faridabad-based company, which has business interests in food and beverages, retail, cinema exhibition and manufacture-cum-retail of jewellery, plans to raise Rs 225 crore through an initial public offering to expand in tier-II and III cities.

“We have chalked out a two-year expansion plan and if all goes well, our IPO will be launched in July,” said Dr Anil Jindal, Chairman and Managing Director, SRS.

The company would rely on its experience in the wholesale business and its first-mover advantage to grow its retail business in tier II and III cities, said Dr Jindal.

“We are not saying we will not go to the metros but our focus is on smaller towns,” he said.

The company plans to add 51 screens, 33 food courts, 29 retail stores and 17 jewellery stores under the umbrella brand SRS in Varanasi, Meerut, Agra, Kosi and Mathura in the next two years. It currently has a presence in Ludhiana, Palwal, Delhi and Indore, among others.

Proximity marketing or tapping the local media is the best strategy for marketing a brand in small towns, said Mr Ajay Johri, Assistant Vice-President, Marketing.

“It is not likely that a person travelling from Delhi to Meerut will watch a movie at SRS or shop at our retail centre. So we are basically catering to the local populace and need marketing plans to target them,” Mr Johri said.

At present, SRS operates 23 screens in five cities under SRS Cinemas, 10 food courts under SRS 7dayz brand, 27 retail stores under SRS Fashion Wear, SRS Value Bazaar and SRS Jewells and a mall in Faridabad.

Related Topics
comment COMMENT NOW