Godrej all Set to Step into Retail Segment

March 16, 2007	(Be the first to rate this story!)  Loading ...
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Following in footsteps of other real estate enthusiasts, Godrej, a Rs 6,000-crore soaps-to-software major, is all set to establish a substantial presence in the retail segment. The company is looking to enter into a joint venture with a foreign retailer, and seems to be holding talks with the UK’s Makro, owned by Germany’s Metro.

The company may incline towards the British retail giant Tesco. However, Adi Godrej, Godrej Group Chairman, denied to disclose anything related to the ongoing plans.

The shift marks a change in the company’s approach to the retail business. One-third of Godrej’s turnover comes from the FMCG business and the rest from various sectors such as agri-business, appliances and furniture, properties etc. Moreover, the company is uncertain as far as the venture is concerned, given the potential of a conflict with the retail trade.

Connoisseurs advise Godrej to cash on its brand equity with end users and leverage the advantages of being a consumer goods player in the retail segment. Also, Godrej will welcome the step without feeling hesitant as it stays in step with the company’s goal to interact directly with the consumers and cater to the need of coming out of a ‘manufacturing mindset’.

The company has not yet decided whether it will partner with Makro, the group that enjoys the status of being the third-largest cash & carry wholesaler in the UK with a turnover of £1.1 billion or Tesco, the UK’s largest retailer and one of the world’s leading international retailers.

News Published Under:   Retail Market in India |

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