Loss-making grocery chain Nature's Basket is likely to turn profitable over the next two years, a senior company official said on Wednesday.
Spencer's Retail, a subsidiary of the RP-Sanjiv Goenka Group (RPSG), had acquired the business venture from the Godrej Group in July in a Rs 300-crore deal.
"We are taking measures to bring efficiency and cost optimisation, leveraging Spencers' strengths in sourcing and IT. We are confident of turning around Nature's Basket in two years," sector head of RPSG's retail and FMCG business, Shashwat Goenka said.
Nature's Basket has posted a loss of Rs 60 crore and revenues of Rs 300 crore in the 2018-19 fiscal.
During the same period, Spencer's Retail reported revenues of Rs 2,187 crore and net profit of Rs 8 crore.
The newly-acquired business will add at least 10 per cent to the topline of Spencer's Retail, Goenka said, on the sidelines of the inauguration of the first Nature's Basket store in the city.
RPSG will close three loss-making stores in Mumbai, he said.
Goenka said plans are afoot to open at least 12 more Nature's Basket stores this year, concentrating primarily on the west and east.
Out of these, eight stores will be in the east, mostly in Kolkata.
Goenka also said he expects Spencer's Retail, which will add 25 new stores in 2019-20, to perform better this fiscal.
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