March 19, 2012

Aditya Birla Group to ramp up food retail business in India

Indian business conglomerate Aditya Birla Group will invest Rs4bn ($79.74m) over the next two years to ramp up its food retail business operations in India.

By admin-demo

Indian business conglomerate Aditya Birla Group will invest Rs4bn ($79.74m) over the next two years to ramp up its food retail business operations in India.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Through this investment, the company plans to set up 15-18 hypermarkets across the country, which will sell everything from detergents to pasta under one roof, reported The Economic Times.

Aditya Birla Retail, the group’s unlisted retail arm, will be responsible for store openings.

Aditya Birla Group food retail and fashion retail head Pranab Barua said the company will focus on reducing losses and faster expansion.

"Our expansion plan will centre around hypermarkets. Fashion and food retailing need different strategies and they will remain independent," Barua told the newspaper.

Started in 2006, the retail venture of the Group used most of its investment in setting up small supermarket outlets under the brand name – ‘More’.

The firm has invested about Rs20bn ($398.72m) so far, but closed 100-odd outlets in the aftermath of economic slowdown in 2008, which restricted heavy consumer spending.

The food retail business of Aditya Birla Group has shown the signs of recovery by bringing down the losses to Rs4.23bn ($84.32m) in fiscal 2011.

Aditya Birla Retail, which employs 11,000 people, currently operates over 575 More supermarkets and 12 More Megastore hypermarkets.

The company’s supermarkets are neighbourhood stores averaging 2,500ft² area, while hypermarkets are self-service superstores with an average store size of 55,000ft² shopping area.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.