Heritage foods launches fresh retail stores

Hyderabad, Dec 30: Heritage Foods, part of the Rs 292 crore Heritage Foods (India) Limited belonging to family of opposition TDP President and former Andhra Pradesh Chief Minister N Chandrababu Naidu today announced foray into the retail business with the launch here of 'Fresh', a line of retail stores to be extended across the state capitals of three Southern states overs the next few months.

The stores will provide the complete range of daily home needs with a distinct focus on fresh fruits, vegetables and grocery.

Heritage Retail Vice-President S Jagdish said the company plans to open 45 stores in Hyderabad, Bangalore and Chennai by first-half of 2007. 'Our direct access to the farm level and our direct linkage to the source for products in food and grocery eliminates non-value adding elements in the value chain, thus enabling competitive pricing at superior quality'.

The company, which plans to invest Rs 150 crore on its phase I operations, expects to generate Rs 300 crore business. It will be scaled up to 100 stores while focusing on 30 per cent business from home delivery.

Heritage retail opened its first pilot store in Vikrampuri very near here in November 2006 to validate its consumer offering. The formal launch at eight locations will be on December 31, 2006.

The Bangalore launch will be by February-March 2007 along with the Chennai stores amidst finalising agreements for property leases in the two metros.

The company plans to leverage its 6,000 milk collection points and 35 chilling plants to roll out its 'rural' retail plan sometime next year.

UNI