B2C India drafts Rajasthan, Maharashtra foray plans

The Ahmedabad-based supermarket chain B2C India will enter the retailing markets of Rajasthan, Madhya Pradesh and Maharashtra next year.

B2C, which is currently present only in Gujarat, has embarked on an expansion plan in the state. B2C is promoted by the Rs 11,000 crore multi-diversified Adani Group.

From a turnover of Rs 35 crore in 2003-04, B2C India has chalked out plans to post a turnover of Rs 1,200 crore by the next four years.

In the present fiscal alone the company expects its turnover to increase by more than three times to Rs 120 crore. B2C has so far invested Rs 16 crore in the supermarket and hyper market chain and will invest an additional Rs 25 crore by the next three years, taking the total investments in the chain to Rs 40 crore.

"We have carried out surveys and several cities outside Gujarat in Rajasthan, Madhya Pradesh and Maharashtra have been identified for expansion. The company will shortly begin the exercise of identifying sites in these cities where our supermarkets and hyper markets will be opened," said Vahid Ravji, chief operating officer, B2C India.

He said the first expansion outside Gujarat will take place in the 2005-06 fiscal.

Ravji, however, added that the market in Gujarat itself is huge and the company will spread its reach across the state before launching the chain outside Gujarat in a big way.

"The retail market in Gujarat alone is worth Rs 4,500-6,000 crore. By doing business of even Rs 200 crore we are scratching the top layer of this huge market," said Ravji.

At present organised retailing accounts for two per cent of the country's total retailing market and this is expected to grow to about 10 per cent in the next three years.

In the past four years alone the share of organised retailing in China has shot up from four per cent to 25 per cent of the total retailing market. Similar trends have been seen in other south Asian countries such as Thailand and Indonesia.

B2C India is the first retail chain in the country to get the ISO 9002 certification. Having added as many as 11 supermarkets in the past fiscal, the company now has 25 stores in Gujarat. It plans to add another 20 stores across the state this fiscal.