Mr K Venkataraman, MD, Mahindra Retail, a post-graduate in Management from IIMA. He joined the Mahindra Group in June 2007 and has over 25 years of experience in industries covering Retail, Electronics, FMCG and Advertising. He has worked in senior marketing and profit centre head roles in these industries. Prior to joining Mahindra Group, he spent 8 years in U.A.E. working for Al Futtaim Group on franchises of Marks & Spencer, Toys R Us and Panasonic. He has also worked in advertising (LOWE, Mudra) & FMCG Companies (Rasna, Nestle) in India before his stint in the Gulf.
Mahindra Retail is an extension of the US$7.1bn Mahindra Group's trading foray in the domestic India market. The Group believes that this is the favorable time to extend its distribution business into direct retailing, when the organized retail market is expanding in India. Apart from distributing toys, games and wellness products under licenses from various international brands like Disney and Mattel, NUK, it has now entered into a unique venture with the launch of Mom & Me stores, which specialize in infant and maternity care.
Replying to Anurag More of IIFL, Mr K Venkataraman, says, "We plan to open about more than 50 stores by March 2011, and further expansion is also on the cards."
How do you see Indian retail sector in the near future?
The Organised Retail Sector in India will see steady and substantial growth in the next years. We also foresee a major improvement in the standard of retail, and, quality of products and services in the future to serve customers better. The demographics of India and the rising disposable incomes will also aid our specialty sector of Mother & Child, and the growth will be substantial for kids products.
Tell us about your portfolio of products?
Mahindra Retail, which was established two years back, started with "Mother & Child" Retail, a retail chain of stores under the brand "Mom&Me". The first store opened in Jan 2009, and after the initial concept test, has since grown to 18 stores today across 14 cities. The company also distributes toys & other children’s products under license from various international and Indian companies like Mattel (Barbie, Fisher Price & Hot Wheels), Cam, Graco, Simba Baby, Quercetti etc. Recently a wellness studio in the name of Mom’s Lounge has also been launched in Delhi and Bangalore, in the premises of Mom & Me to enhance the bouquet of services offered.
Brief us about your expansion plan and how will you raise funds for the same?
We plan to open about more than 50 stores by March 2011, and further expansion is also on the cards.
Apart from baby products, what else are you looking at?
At this point of time, we are focusing on the Mother & Child Retail only.
What kind of arrangement do you have with Walt Disney, Aqua, Mattel and Lego?
We have only relationships with Mattel now, which has been growing over the years. We work with the others as any other Retailer would do. We also have exclusive distribution rights, apart from certain products of Mattel under Barbie, Hotwheels & Fisher Price ranges, for brands like Graco, Cam, Bluebox, Quercetti etc.
Any plans to tie up with any other brands?
We are always seeking, just as international brands seek us, for good mutually beneficial associations.
What is the market size?
The size varies depending on how one defines the market. Organised Retail for Mother & Child space in India is estimated to be upwards of Rs100bn.
What about competition from unorganized sector. To what extent are you affected?
Major cities have many local toy stores and few mother & child stores as well. The market is under-served and hence there is scope for all.