News: Heritage Foods' retail foray
(BL 23/03/2006) Hyderabad - Hyderabad-based Heritage Foods India Ltd may choose Bangalore as a launch pad to foray into the retail sector. Industry sources said Heritage Foods will open its first retail store in August.
The company had announced its intention to enter processed the food products retail business in early February; it is planning a retail chain across the country.
The Rs 270-crore company, which has tied up with farmers (contract farming) for sourcing its dairy products, will use the same network to source agri-products for the retail stores.
On Realty hunt
Heritage Foods is said to be on a realty hunt in Bangalore, with each store occupying an area of around 4,000 sq ft. Agri-based products will occupy 40 per cent of the store shelves while FMCGs will take up the rest, sources said.
The company may also supply "fruits and vegetables to bigger retail players that are planning an entry in the sector," according to sources.
Hi-tech cold chain
Heritage Foods is reportedly in the process of establishing a hi-tech cold chain and "will use highly sophisticated software to merchandise perishable products." Company sources, however, said the retail foray is being planned in Andhra Pradesh, Karnataka and Tamil Nadu, but "nothing has been finalised."
In February, the company had appointed KSA Technopak (India) Pvt Ltd as consultants for the venture and is expecting a detailed report from KSA "sometime during April."
Mr Lokesh N, son of the former Andhra Pradesh Chief Minister, Mr Chandrababu Naidu, will head the retail venture, sources said.
The company has earlier said the estimated investment would be around Rs 200 crore for the project, though this would "mostly be towards working capital."
The company had announced its intention to enter processed the food products retail business in early February; it is planning a retail chain across the country.
The Rs 270-crore company, which has tied up with farmers (contract farming) for sourcing its dairy products, will use the same network to source agri-products for the retail stores.
On Realty hunt
Heritage Foods is said to be on a realty hunt in Bangalore, with each store occupying an area of around 4,000 sq ft. Agri-based products will occupy 40 per cent of the store shelves while FMCGs will take up the rest, sources said.
The company may also supply "fruits and vegetables to bigger retail players that are planning an entry in the sector," according to sources.
Hi-tech cold chain
Heritage Foods is reportedly in the process of establishing a hi-tech cold chain and "will use highly sophisticated software to merchandise perishable products." Company sources, however, said the retail foray is being planned in Andhra Pradesh, Karnataka and Tamil Nadu, but "nothing has been finalised."
In February, the company had appointed KSA Technopak (India) Pvt Ltd as consultants for the venture and is expecting a detailed report from KSA "sometime during April."
Mr Lokesh N, son of the former Andhra Pradesh Chief Minister, Mr Chandrababu Naidu, will head the retail venture, sources said.
The company has earlier said the estimated investment would be around Rs 200 crore for the project, though this would "mostly be towards working capital."
posted by InCar Group Press Room at 22:09
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