Indian traditional handicrafts might be the next range of products to be retailed by Vishal Retail Limited (VRL), the flagship company of Vishal Group.
Speaking to Indiaretailing on the sidelines of a press conference in New Delhi, Ram Chandra Agarwal, CMD, said, “This looks like a good proposition. We might look at the option of retailing handicrafts at our fashion speciality stores only after judging the viability of the products.”
The company has recently launched a franchisee store in the fashion category in New Delhi, and plans to open other speciality stores in categories including footwear, toys and games, home appliances and FMCG.
Explaining the model of the speciality stores, Agarwal said, “We have opted for the franchise route wherein we will partner small retailers. This will help us to reach a large number of consumers.”
Addressing media at a conference held for announcing the future plans of the company, Manmohan Agarwal, CEO, corporate affairs, VRL, said, “Besides our hypermarket format, we are venturing into other formats including cash-and-carry, food court retailing and speciality retail formats. Besides, we will also enter logistics business.”
The company also operates a management training institution for boosting the number of professionals in the services industry.
The company plans to expand its operations to gain popularity in the Indian retail space. For funding these expansions, the company has planned to raise Rs 200 crore through preferential issue in the next few months.
Speaking about the current inflation and its effects on retailers, Ram Chandra Agarwal said, “We are a value chain and hence, we have not experienced any fall in our sales.”
The company presently operates around 2,000,000 square feet of retail space with 100 outlets in 66 cities across India and has earned revenue of around Rs 600 crore in 2006-07.
– Satrajit Sen