Food Bazaar to set up 150 new stores; eyes growth in edible oil
New Delhi, July 23 (UNI) Pantaloon Retail (India) Ltd's Food Bazaar, which is planning to add 150 new stores in the next two years, will expand its presence in edible oil to generate 15 per cent of its total revenue from this growing business.
''We are excited by the opportunity in edible oil, which at present accounts for more than 10 per cent of our revenues, and will expand this category through our modern retail formats. Revenues from the edible oil business can go up to 15 per cent by partnering and experimenting with a large oil player,'' Pantaloon Retail India Ltd MD Kishore Biyani said here while announcing a strategic tie-up with Ruchi Soya Industries Ltd, a leading producer and supplier of edible oil in the country.
Encouraged by the consistent performance of its in-house Food Bazaar brands, Pantaloon is planning huge expansion in edible oil, through partnership with Ruchi Soya.
Food Bazaar stores are expected to grow to 200 in the next two years, from the present 50.
''The tie-up will help us cater to the growing demand for FMCG products and reap the benefit of rising disposable income,'' Ruchi Soya MD Dinesh Shahra said.
Pantaloon will also launch a private label by the name of 'Fresh and Pure' in the next two months, that will be manufactured by Ruchi Soya, while the the brand management and sale will be handled by Pantaloon.
Besides, Pantaloon has also announced tie-ups up with three other companies -- Fun Foods, S R Foils and Nepal's Wai Wai, just before the two-day vendor fair it is organising in Delhi, from July 21-23.
The alliance with Fun Foods will entail setting up of salad bars at Food Bazaar stores, which will offer customers fresh salads with an array of salad dressings, and will give them the option of either making their own salads or choosing from a ready set of recipes.
Food Bazaar and the S R group, manufacturers of aluminium foil, paper tissues and cling film owners of the brands -- Home Foil, Mistique and Clean Wrap -- will collaborate to lower prices in these categories and grow them by bringing supply chain efficiencies, thus generating revenues for both companies.
Under the partnership with the Chaudhary Group from Nepal, Pantaloon will sell the group's 'Wai Wai' branded noodles at all Food Bazaar stores all over India.
The alliance will give the noodles a strong platform alongside existing market leaders Maggi and Top Ramen, ensuring Food Bazaar will offer more choices to its customers.
Food, grocery and tobacco account for 72.2 per cent of the Indian retail market, and Pantaloon sells dal, spices, basmati rice, atta, salt, tea, masala and pulses, among others under Food Bazaar.
The company's in-house brands have garnered a market share of 25-40 per cent in its existing stores.
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