Mumbai: RPG Group firm Spencers Retail is eyeing a sales turnover of Rs40 crore from its shop in-shop liquor stores in FY10, a hefty jump of 50per cent over the past year.
The Kolkata-based company also plans to add eight stores to the existing 14 operating inside its hyper - and supermarkets, a company official said today.
The multi-format food retailer, which had ventured into the liquor business 12 years back, saw sales jump to Rs20 crore in FY08 from Rs7.5 crore in 2007-08.
“This year, we are targeting 50% growth in sales,” Spencer’s Retail ltd, vice president (merchandising) - food & FMCG, Mohit Kampani told the agency.
The Indian liquor industry with an estimated market value of Rs34,000 crore is growing at 12-15% over the last couple of years and is on a steep growth curve, he added.
“This year, we’ll take the number of our shop in-shop liquor stores to 32 across India by Q2 of FY10. We operate 14 stores in our retail chains at Karnataka, West Bengal, Haryana, Punjab and Maharashtra,” he said, without stating the amount to be invested.
Spencers plans to open the new stores in Pune, Mumbai, Kolkata and the National Capital Region (NCR), he added.
The sector is expected to maintain its CAGR of 15%, while the premium segment wine and vodka is expected to grow at a higher rate, the companysaid.
Quoting a Price Waterhouse report, Kampani said 174 million cases were sold in India in 2008-09 compared with 157 million cases in the previous year.
While it is relatively easier to set up shop, getting licence is tough and expensive, he said.
“Alcohol is a state subject and it takes a long time to get a license,” Kampani said.
The company has planned 20% expansion for the current fiscal, which is already being rolled out.
“We have outlined dominant geographies where we want to be among the top three players. We are interested in Andhra Pradesh, Tamil Nadu, Karnataka (in Bangalore), NCR, Haryana and east and west Uttar Pradesh,” Kampani added.