Sahakar Bhandar ropes in Agri Solutions for facelift

Does the name Sahakar Bhandar conjure up images like extension of the local grocery store with drab surroundings and unmindful shop managers?

Well, if your answer is yes, then you are not alone. For 37 years, this co-operative chain of supermarkets has been working in this manner. But not any more.

Sahakar Bhandar has entered into an alliance with Agri Solutions and Services (India) to spruce up its image and offer services that are on par with the current supermarkets.

Sanjay Shete, chairman, Sahakar Bhandar, said, "We have been one of the most successful co-operative supermarket concepts in the country. The changing times have forced us to rethink on our service patterns and hence this tie-up. We are confident that with the necessary professional sprucing, we would be as good as any of the latest supermarket."

According to Vinay Adhye, managing director, Agri Solutions, their company would help the co-operative retail chain of supermarkets in terms of training the employees of these stores, making the stores visually appealing and promoting the brand of Sahakar Bhandar.

"The brand has always existed in the mind of middle class Mumbaiites where people feel that they would get value for money goods at prices lower than the retail stores," says Adhye.

Agri Solutions is a two-year old company that is into the distribution of imported and domestic food products to food service operators and retailers.

The cost of this whole exercise is to be around Rs 10 crore with equal contribution from both companies. The co-operative supermarket's flagship store in Colaba would be the first to don new colours.

The 20,000 sq ft shop would be revamped with pleasing interiors, friendly staff and new product categories.

Shete agreed that the supermarket has been facing a steady decline in revenues over the last few years.

Although the turnover for the chain was Rs 80 crore last year, it was still 11 percent less than the previous year.

According to Shete, despite co-operative chains like Apna Bazar and Sahakar Bhandar being the early movers in the supermarket category, the burgeoning supermarkets have dented the income of these established players.

The only point of difference has been the quality of service which has been lacking in these co-operative outlets. Most of the employees have been with the stores for more than 20 years and have studied up to SSC only.

These employees would now be groomed to handle consumer queries, requests and complaints in a professional manner. Sahakar Bhandar is also planning an aggressive promotion of the stores through different mediums. The company has expansion plans and is looking at strategic alliances in Goa, Nashik, and Pune.