Global growth private equity firm Siguler Guff and other investors in Baazar Retail, the operator of retail chain Baazar Kolkata, is exploring options to sell their stake in the company, three people familiar with the matter said.
“The deal is expected to value the company at between ₹4,000-5,000 crore and O3 Capital is advising on the transaction,” one person said.
“Several private equity funds and strategics have been tapped as part of the process,” a second person said on condition of anonymity.
Siguler Guff, o3 Alternatives and NR Group, the Mysuru-based company that makes Cycle-branded incense sticks, acquired a 51% stake in Baazar Retail in 2018. Siguler Guff and O3 Capital declined to comment. Baazar Retail and other investors did not respond to Mint’s requests for comment till the time of publishing.
Baazar Retail, which began operations with one store in Kolkata in August 2002, is managed by Manoj Khemka, Abhishek Khemka and Rishab Goenka. The company currently operates over 250 retail stores across West Bengal and 10 states including Odisha, Uttar Pradesh, Assam, Andhra Pradesh, Telangana, Uttarakhand and Sikkim.
The retailer operates large-format value fashion and general merchandise stores and trades mainly in garments for men, women and children, alongside cosmetics, stationery, toys, household items and accessories. It gets 95% of its revenue from the garments segment.
The company's warehousing facility and procurement are centralized and located in Kolkata. While 60% of the procurement is from suppliers in the region, the balance is from the rest of India. This centralized system ensures efficient inventory and supplier management, credit rating company Crisil said in a report this year.
Growth prospects
Baazar Retail competes with organized and unorganized players that are entering the domestic retail market on the back of healthy growth prospects and high profitability. Its primary competitors include V-Mart Retail, V2 Retail, Citykart, M Baazar and Baazar Style Retail (Style Baazar), alongside broader value discounters like DMart, as per online reports.
Crisil noted that organized retailing is expected to grow over the medium term after a low base during 2018-2023, driven by new store rollouts, increased penetration in tier-II and tier-III cities and increasing disposable income.
Baazar Retail’s operating income was estimated at about ₹1,157 crore in the first eight months of FY26, Crisil noted. It reported revenue of ₹1,324.83 crore in FY25, up from ₹1,182.38 crore a year earlier. Its loss widened to ₹127.48 crore from ₹57.52 crore in FY24.
Beyond rising consumption, private labels and operational efficiencies, value-first retailers have successfully bridged the gap between affordability and quality, setting the stage for sustained growth, Redseer said in a report.
Through modern trade formats like supermarkets, hypermarkets and exclusive brand outlets, value-retail has remained resilient amid challenges by offering curated shopping experiences and competitive pricing that have continued to attract consumers.