KOLKATA: Vishal Retail is planning a major FMCG push across its stores. The mid-market retail chain, which is looking to chart out a major national expansion plan, retails garments, grocery, home appliances, furniture, gifting and stationery items.
Around 15-16% of its products across categories are private labels with its garments mainly being manufactured in-house. Now, however, the focus is on fast moving consumer goods, with the intention to take the private labels share up to 25-27%, said sources.
Plans are afoot to introduce a slew of products, including talcum powder, packaged water, shoe polish packaged ghee, shaving gel and foam and deos, chips and biscuits amongst a host of other items, it is learnt. Ketch-ups have just been already launched.
However, it seems some of the products may require some corrections in terms of consumer tastes and thus could see a slight delay in hitting the shelves.
Sources indicated that the company has already soft- launched body lotions, dish-washing liquid, floor cleaners dish wiping tissues and agarbattis.
Ritesh Rathi, chief operating officer (COO), Vishal Retail, told DNA Money that the FMCG business is at a very nascent stage but it has received a good response. He added: “We are looking at 20-25% of our revenues to come from the FMCG business by this year-end.”
The products are slated to be launched in a phased manner and are to be retailed from Vishal Retail’s hypermarkets. The company, which recently went public, registered a Rs 600-crore turnover in 2006-07. The target for 2007-08 is Rs 1,200 crore.
Vishal, with a strong presence in northern India, is also looking at a more pan-Indian footprint. Currently, there are 54 stores, covering 13 lakh sq ft of retail space. About 35-40% of the turnover is contributed by apparels, which are mainly menswear.