Aditya Retail launches 'more' brand of retail stores

RETAIL COMPETING: Mr Kumar Mangalam Birla, Chairman, Aditya Birla Group (right), and Mr Sumant Sinha, CEO, Aditya Birla Retail, at a press conference in Mumbai (From Hindu Business Line)

Aditya Retail, promoted by the Aditya Birla Group has announced the launch of 'more' brand of stores on May 18th, 2007 to sell fresh fruits, vegetables and groceries through a chain of retail outlets across the country. They would not have any joint venture for this purpose. While unveiling the 'more' brand in Mumbai, Aditya Group Chairman Mr. Kumar Mangalam Birla said: "we intend to invest at least INR 9000 crores over a period of three years to set up 1000 'more' brand stores across the metros and in the tier 1 cities of India.

Recently Birla Group acquired South India based Trinethra supermarket chain. It is expected that Birla Group wants to grow inorganically by such more acquisitions in the future.The funding for the expansion comes as a mixture of debt and equity. However, the chairman does not rule out the option of tapping capital markets in future for raising resources.

To assure cost effective and freshest supply of fruits and vegetables, the Aditya Retail is in a process of building direct linkages with the farmers to eliminate the costs incurred in the supply chain. Within a year's time, the retail chain is expected to hire skilled manpower of not less than 10,000 people to operate the 'more' brand stores across the country. The first 'more' store is scheduled to open in the Pune city in June.

Aditya Birla Retail will compete with the other large industrial groups such as Bharti and Reliance Industries, which have announced plans to invest, over time, Rs 10,000 crore and Rs 25,000 crore respectively in their retail ventures.

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