With an investment of Rs 1.55 billion global information technology company 3i Infotech plans to launch 12, 400 retail stores under the brand name I-SERV in rural areas of nine states by December 2009. The software provider would offer insurance and telecom-related services for which it has tied up with insurance companies ICICI Lombard and Max New York Life and telecom service provider Airtel.
Commenting on the development, Anirudh Prabhakaran, executive director and president – South Asia, 3i Infotech said, “The capital expenditure on each of our 12,400 stores is between Rs 1.0 to Rs 1.25 lakh. This will be funded from internal accruals.”
The company’s total spend on all 12,400 stores thus comes to Rs 124 crore-155 crore.
“It’s a win-win win situation for the rural consumers, the partners as well as the I-SERV stores,” said Prabhakaran on the alliance.
3i Infotech is setting up the stores across nine states and union territories, which include Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Goa, Andhra Pradesh, Tamil Nadu and Delhi.
“There will be one store for every 3-6 villages, which would service about 3,000-18,000 people and nearly 700 stores in Haryana and Gujarat have already commenced operations”, added Prabhakaran.
The company would set up 2,000 stores by March-end. “It would take us more than 18 months to break-even,” concluded Prabhakaran.
— IndiaRetailing Bureau