Business Conglomerate Sahara India will enter the fast moving consumer goods (FMCG) retail business on Independence Day launching a chain of shops of packaged food and other consumer products initially in 60 cities and towns across five states — Rajasthan, Uttar Pradesh, Uttarakhand, Bihar and Jharkhand.
Named Sahara Q Shops, the outlets will offer products under 73 different categories with 800 SKUs (stock-keeping units) in staples, processed foods, personal care products, home care products, general merchandise and lifestyle products.
The products will be distributed through direct-to-home mode.
“We expect the initial sales to be around Rs.16,000 crore-Rs.20,000 crore. We expect a customer base of nearly one crore within the next 12-18 months,” Subrata Roy Sahara, chairman, Sahara India Pariwar.
“In the next one and a half year we expect the sales to grow to Rs.25,000 crore. Our ultimate aim is to have sales worth Rs.48,000-Rs.50,000 crore with a customer base of six crore customers.”
The company plans to launch 800 standalone stores which will exclusively offer Sahara’s Q Shop products in the first phase. The company plans to launch 60,000 standalone stores but no time line was divulged.
Pan India, the company will enter 998 towns and cities by March, 2013.
The company added that its new venture will provide jobs to 143,000 people within 18 months.
The Sahara Q Shop is based on the concept of direct-to-home delivery of FMCG products whereby buyers need to place orders over the phone. The orders will then be delivered directly at the customers address.
The company’s brand campaign will focus on the issue of adulteration in food. If the products are found to have been adulterated then the company will compensate the customer from anywhere between Rs.2-Rs.5 lakh.
“We plan to provide packaged goods directly from the source where it is sealed to the homes of customers. For this supply chain needs to be perfect and for that we have put in place one of the best supply chain management,” Roy said.
The company has invested Rs.3,000 crore from internal accruals in the new venture which took two years to take shape. The company expects more investments to come from the group as it expands presence.
The company also plans to foray into organic and diary food business in the coming months.
“We expect some major developments to take place in this area (organic foods) by next year. We are also planning something in the diary foods industry as well,” Roy added.