Spectrum Retail invests Rs 90 cr for Mumbai foray

Spectrum Retail Mart, a retail chain of medical stores and fast moving consumer goods (FMCG), has set up shop in Mumbai with an initial investment of over Rs 90 crore.

A distribution company that directly procures products from manufcturers and supplies to member retail outlets, Spectrum started operations two months ago. In the first phase, the company will be setting up warehouse infrastructure, logistics and automating the existing oulets, said Kishore R Shah, president of the Retail and Dispensing Chemists Association (RDCA), Mumbai, and Chairman of Spectrum Retail Mart.

More than 300 outlets in the Central Mumbai region have joined Spectrum, and plans are to enroll 10,000 retail outlets in Mumbai within three months. In the second phase, the company would expand operations in Thane and other parts of Maharashtra. Majority of the members of RDCA would join Spetrum, Shah said.

"Spectrum shops will offer drugs and FMCG goods at a price marginally lower than the MRP. The drug stores with our chain will offer life savings drugs at about 30 per cent lower than the prevailing market prices. If a regular shop offers a shampoo with an MRP of Rs 100, we would sell it at Rs 85, with a very nominal margin. Prices of each product will be uniform in all the shops under the Spectrum Retail brand," he said.

Shah further said elimination of middlemen involved in the trade would benefit the consumers, as current distribution set up of medicines and most other products involve two-three tiers of authorised dealers, stockiests and sub-stockiests.

The existing retail traders and drug stores will have to pay a membership fee of Rs 4,000 as joining fee. In return, Spectrum Retail Mart will supply products directly procured from the manufacturers. Further, Spectrum would modernise and automate the retail outlets to have a brand equity and modern outlook to attract customers, he said.