In an apparent move to catch up with the burgeoning retail business in India, Lalmahal Group, one of the largest rice exporters of the country, has planned to roll out 500 food, grocery, pharmaceuticals and apparel retail outlets.
The company will invest about Rs 1,000 crore over the next three years.
The company has formed a new subsidiary, Lalmahal Retail Ltd (LMRL), which will open the company’s first store called LM 365 in New Delhi, on February 14.
“We at Lalmahal foresee a tremendous growth potential in the organised retail sector in India. Having been in business for over 100 years now, our experience will help us to provide the best of services and quality products to our customers,” Prem Garg, managing director, Lalmahal Group, said in a statement.
In the first phase, LMRL intends to set up 250 stores in North India, starting from New Delhi, and then gradually move on to other cities, while in the second phase, the company is aiming for a pan-India presence with 500 stores.
“A typical discount store operates with around 1,000 stock keeping units (SKUs), while Lalmahal stores, being convenience stores, will have between 1,500 and 8,000 SKUs,” Garg said.
To be sized between 750 and 4,500 square feet, the outlets will be a discount store that will sell food, grocery and pharmaceutical products, and also house a café. The stores will also sell apparel for masses and offer value-added services like mobile phone recharge.