Salora Retail Venture Ltd, the retail arm of Salora International Ltd, has announced the opening of nine multi brand electronics retail outlets in different parts of Delhi and is targeting an annual turnover of around Rs 50 lakh per store.
Branded as ‘Terminal’, these stores will retail digital consumer durables including LCD’s, mobile phones, digital cameras, camcorders, laptops and digital healthcare products.
Speaking to media, GK Jiwarajka, vice chairman and managing director, Salora group, said, “After extensive market research, we have found that the digital electronics category is throwing up exciting opportunities in the Indian market. With a very small percentage of this market being captured by organized retailers, we see huge opportunity in this space in the years to come. With the launch of Terminal, we have introduced this ‘all-under-one-roof’ model and have redefined a long distance destination store to a neighbourhood store.”
Elaborating the company’s expansion plans, he added, “Right now we are experimenting with nine stores and will gradually expand our business to a pan-India level by targeting another 15-20 stores by this year-end and around 500 stores over the next five years.”
Speaking to Indiaretailing about the company’s plans to move towards rural India, Jiwarajka said: “We are not focusing on rural India as there is enough scope of expansion in urban India itself. By 2030, around 40 per cent population will be staying in urban centres and the products that we offer are in demand among these people.”
Answering why they do not want to enter malls, Tarun Jiwarajka, director, Salora Retail Venture Ltd, said, “We do not want to open stores in malls because the very existence of a mall is always a matter of concern. We plan to develop Terminal as a neighbourhood and high street brand.”
Currently, Terminal is operational in nine areas including Malviya Nagar, Kalkaji, Lajpat Nagar, Kamala Nagar, Krishna Nagar, Uttam Nagar, Pashchim Vihar and Jail Road in New Delhi, and will think of franchise partners in the long run.