Delhi-based Nysaa Retail Pvt. Ltd, which operates a chain of value retail stores under the brand name 1-India Family Mart across Eastern and Northern India has stepped up its expansion plans. The fastest growing value retail chain in India plans to invest Rs 200 crore and open around 100 stores in the next two fiscal.
1-India Family Mart has been consistently proving its mettle as one of the fastest growing value retail chains by providing affordable fresh fashion and general merchandise to its large customer base in Tier II and III cities. With its inception in 2013 and a vision to address the need of 75 percent of the population that resides in the small towns and cities of India, Nysaa Retail Pvt. Ltd backed 1-India Family Mart looks to expand and accumulate around 12 lakh sq. ft. of retail space by 2020.
“Value retail has long been associated with consumers having to compromise in terms of the shopping experience, ambiance and customer service. 1-India Family Mart wants to change this perception and provide a value retail experience akin to the experience of walking into a supermarket in a Tier I city. The understanding of business for this segment was scarce but there was an innate enthusiasm about the possibility of business that could be extracted from these towns. The plan is to expand and accumulate about 12 lakh sq. ft. of retail space by 2020 from the present 4.25 lakh sq. ft. Following the opening of the new stores, we expect to record net revenue of about Rs 750 crore in 2019, which will further increase to Rs 900-1,000 crore by 2020” comments Jay Prakash Shukla, a retail veteran and the Founder and Chief Executive Office of 1-India Family Mart.
About 50 percent of the total investment required would be raked in through internal accruals and the remaining through debt. Nysaa Retail Pvt. Ltd has recorded more than 60 percent growth over the previous fiscal, with net sales rising to Rs 235 crore as against Rs 147.5 the previous fiscal year. Earlier this year, Nysaa raised Rs 42.5 crore from private equity firm Carpediem Advisors Pvt. Ltd in the company’s first and only external funding round since it was founded in 2012.
Currently the company has established 56 stores across Uttar Pradesh, Bihar, Jharkhand, Chhattisgarh and the North East and will touch a top line of Rs 750 crore in net revenue by 2019. More stores have translated into significantly higher revenue, which has grown at a steady clip and 1-India Family Mart has been profitable for three years running.
The retail sector in India contributes to 10 percent of the GDP. However, lack of innovation and new-age infrastructure has hindered the rise of organised retail in rural areas. To combat this, 1-India Family Mart analyses big data insights accumulated from their customer’s buying habits and trends. These insights then give way to their unique growth strategy by anticipating the fashion and lifestyle changes required by their consumers. So far, the company has already implemented this in 35 stores and aims to further gain competitive insights regarding their customers’ frequency of visits, buying behaviour, instant preferences and repetitions via big data.
The concept of ‘Value Retail’ has been successfully cracked by 1-India Family Mart by catering to the aspirational and pocket-friendly requirement of the buyers, bringing high street designs at affordable prices for the multitude. Value retail stores have pioneered the concept of meeting their profits by virtue of large scale reach and unique target audience segmentation. What is noteworthy here is that 1-India Family Mart manages to maintain quality products in a brick and mortar presence at extremely competitive and affordable prices.