Grofers enters FMCG segment, to grow private-label business

Our Bureau New Delhi | Updated on July 17, 2018 Published on July 17, 2018

Online grocery space is witnessing stif competition among Big Basket, Soft Bank-backed Grofers and Amazon’s India unit. An employee sorts out vegetables before packing them at a Big Basket warehouse (file photo)   -  Reuters

Online grocery player Grofers on Tuesday said it is foraying into the FMCG segment as part of its strategy to aggressively expand its private-label business. The company is targeting revenues of about ₹2,500 crore by FY 2019.

It closed FY 2018 with ₹950 crore in sales.

On its FMCG strategy, the company said in a statement, it plans to expand its private label business with the launch of 250 food and non-food products such as tea, fruit jam, muesli, tomato ketchup, corn flakes, detergents, household care, oral care, kitchen tools and accessories, furniture and storage. As part of this strategy, the company is launching seven private label brands to offer these products under two categories — budget and premium G-brands.

It said its range of private labels is priced 5-50 per cent lower than the average market prices in these categories.

“The popular G-brands category offers premium quality products under brands including ‘G Mother’s Choice’, ‘G Happy Day’ and ‘G Happy Home’. Labelled under the budget category, the brands include ‘HaveMore’ and ‘SaveMore’ to cater to price-sensitive consumers by offering entry-level quality products,” Grofers said in the statement.

Albinder Dhindsa, Co-Founder and CEO, Grofers, said: “Our foray into the FMCG segment uniquely differentiates and positions us in the e-grocery business. This vertical expansion is key to drive our next phase of growth in India.”

He added, “Our focus is to service what we call the ‘Real Bharat’ - the two-wheeler families of India who are yet to experience the world of e-commerce and our target is to bring the next 100 million new customers to e-commerce industry through our platform.”

“Grofers successfully closed FY 2018 with ₹ 950 crore of sales and is targeting for a stronger growth trajectory in 2019, with a 50 per cent contribution from its private brands,” the company’s statement added.

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Published on July 17, 2018
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