New Delhi: Mahindra Retail, owned by the Mahindra Group, plans to invest up to Rs100 crore during the financial year ending March 2010 to open stores for mother and child products, a company official said on Wednesday.
“We plan to invest at least Rs75-100 crore this year, out of which a portion has already been invested,” K Venkataraman, managing director, Mahindra Retail said.
The group, which also has interests in automobiles and real estate, has a majority stake in the retail venture, while private equity firm ICICI Ventures will hold 26% stake, he said.
The company has so far opened speciality stores for mother and children’s products in Ludhiana, Pune and Ahmedabad, said Venkataraman, who inagurated the company’s store in Delhi called ‘Mom and Me’.
“ We will shortly open such stories in Mumbai, Bangalore and other major tier I and II cities,” he said.
Apart from distributing toys, games and apparel under licenses from international brands like LEGO, Disney and Mattel, Mom and Me stores will offer products of Mahindra and other Indian companies, he said.
According to industry estimates, India has an organised retail market for mother and child products worth Rs70 billion, growing at a substantial rate annually, he said.
“There have been some good advantages of the downturn in our segment,” he added, pointing out that economic slowdown, which has pulled down rents and costs of products has benefitted the retail sector. “ Indian market in the long term is very promising. We need to take it by step by step,” he said while declining to provide details about expansion plans or revenue targets for the year.
The company would focus on the Indian market for the time being and has no plans to expand overseas, he said adding that no strategic tie-ups are in the offing either.