Betting big on the $12-billion Indian retail market, Australia’s Retail Food Group (RFG) plans to make its proposed venture here to be bigger than its domestic operations within the next 15-20 years.
The company, which will enter the Indian market next year, is aiming to clock a revenue of $87 million (about Rs 4022 crore) from the country within five years from start of operations.
“We expect revenues of $87 million from our India within five years. In 20 years, we expect Indian operations to be bigger than the Australian business,” RFG sales and leasing manager Gavin Nixon said in a report.
RFG, the largest retail chain in Australia, last year clocked a turnover of $505 million in the domestic market. “The Indian food market is one of the most promising and offers immense potential. We want to capitalise on it as part of our global growth strategy,” Nixon said.
The overall Indian retail market is estimated to be around $12 billion, of which the organised segment accounts for less than six per cent.
RFG will be introducing all its four brands — Michel’s Patisserie, Donut King, Brumby’s Bakery and ‘bb’s cafe’ — in the Indian market next year and plans to double its retail strength every year.
“We will open a total of 15 outlets of four of its brands within the first year and double the number every year for next few years,” he said, adding, RFG currently operates over 1,100 outlets in Australia. Last year it had entered China.
Source: Agencies
