| But now his dream lies shattered. He could not go beyond opening three outlets in Kanpur. "I was inexperienced in this business. Somehow we could not remove the impression from people's minds that this was an expensive place," he said. |
| "On a project cost of Rs 5 crore, we have not been able to recover either our investment or the interest. However, now I do not have to spend time every day at SGM because it has broken even as far as daily expenses are concerned. Now it is paying for itself. The three stores together do a sale of Rs 40 lakh every month. One is doing well, the second is just breaking even, and the third is still in losses. Surprisingly, the one located in the main shopping centre is not doing well. The ones located in residential areas are faring much better." |
| "Opening up the retail sector to FDI is likely to worsen the situation for any entrant. With Reliance too set to come in, there is very little chance left for us to invest in this sector," Director S P Agarwal said. But he admits if he had continued to invest then, today he might have become a strong player. |
| Now the company is reworking its strategy. First, there is no question of going out of UP. Big Bazaar has set up shop in Lucknow. "Once we see the response to it, we will decide whether to start more," O P Agarwal said. |
| However, it is going to set up chaupals on the lines of ITC in Kanpur dehat. This will start working from March. |
| The company is set to enter into an alliance with a US dollar store. To start with, SGM will keep a limited number of products of the US company. These are mostly toys, toiletries, lifestyle products, and utility items. "If we are able to sell these we can have more of their products and then enter into a full-fledged alliance" Agarwal said. |
| However, his regret is that big chains and foreign retailers will take advantage of his hard work. |
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