Hyderabad-based Heritage Foods (India) Ltd has forayed into Tamil Nadu, opening two pilot Fresh@ stores in Chennai. The company plans to have 100 stores across the South by this fiscal. It has earmarked an investment of Rs 150 crore for the retail venture in the first phase, and is looking for a pan-India presence in the near future.
“While we are rapidly expanding in the South and planning to put 100 stores by the end of the year, we are also studying other markets beyond the South,” S Jagdish, vice president (Retail), Heritage Foods, told Indiaretailing.com.
Spread across 2,000 square feet each, the Fresh@ outlets are positioned as complete daily-need stores with a distinct focus on fruits and vegetables and grocery. In other words, agri-based products will occupy almost 75 per cent of the shelf space and FMCG will make up the rest. The company will open more stores in Chennai and its suburbs in the near future.
“The Chennai stores are on a pilot basis to study consumer preferences and the right mix of merchandise,” Jagdish added. According to him, the official launch of the Chennai stores will happen in two weeks’ time. It is learnt that the company is also considering various other formats for Chennai to sell vegetables and fruits alone. The pilot stores in Chennai also offer home delivery, and a dedicated call centre has been set up to facilitate this.
The Rs 300-crore Heritage Foods opened its first retail outlet – Fresh@ – in Hyderabad in November 2006. It currently runs 20 stores – 15 in Hyderabad, three in Bangalore, and two in Chennai.
– Bangalore Bureau