DCM Shriram consolidating rural retail chain biz
June 24, 2010 |
Press Trust of India / New Delhi April 01, 2010
DCM Shriram Consolidated (DSCL) today said it has undertaken the process of fine-tuning the business model of the company's rural retail chain 'Hariyali Kisaan Bazaar' for faster growth.
"We are in the process of consolidating the business. We are visiting the whole thing to strengthen the model further, so that Hariyali Kisan Bazaar becomes strong to grow faster," DSCL Chairman Ajay Shriram told PTI while replying to a query on expansion plan of Hariyali Kisan Bazaar.
The objective is to strengthen the system of sourcing products, he added.
Shriram said the consolidation process would be completed in the next five-six months and only then, the company would think of expansion of Hariyali Kisan Bazaar.
At present, Hariyali Kisaan Bazaar has 300 outlets spread over Uttar Pradesh, Haryana, Punjab, Rajasthan, Chhattisgarh, Madhya Pradesh, Maharashtra and Andhra Pradesh. The company owns 85 of them, while the remaining are franchisees. In March 2007, it had 140 stores.
Hariyali stores sell agri-products like fertiliser, pesticides, farm implements as well as FMCG items in rural areas. Recently the stores have started selling milk too.
Shriram said that the company has recruited over 1,000 agricultural graduates to assist farmers for the betterment of their farm produce.
Stressing the need for improving sourcing of products, he said its better sourcing that contributes to the bottomline. However, he was non-commital when asked whether the company was mulling tie-up plan with any big retail chain.
"Though it will help in the bargaining power while sourcing products, Hariyali will not be benefitted from selling products of other retail chains," he said.
Hariyali Kisaan Bazaar had contributed Rs 419.13 crore in 2008-09 to the Rs 3,534 crore-DSCL group, which is engaged in fertiliser, sugar, seeds, chemicals and plastic business.
The revenue from Hariyali stores has gone up to Rs 471.5 crore during April-December of 2009-10, registering 42 per cent growth year-on-year.