German retailer Metro introduced the concept of Cash’n’Carry or wholesale B2B Costco type retailing in India. Buoyed by its success, everybody wants a pie of that market.
Videocon group which bought the Next electronics and consumer durables retail chain last year has now announced its intention to setup Bolld – Wholesale Cash’Carry retail business. The company will be a fully owned subsidiary of Videocon Industries Ltd. They plan to invest Rs 2,000 crore in the next 3 years. The 5 year gola for the company is to achieve a turnover of Rs 11,000 crore in the next 5 years.
Mr. Sunil Mehta has been appointed as the CEO and he said,
We will be sourcing from all the big players and also have our own private labels in the business. We are targeting 100,000 customers [retailers, resellers and institutions] in its first year of operations. Bolld will leverage on Videocons’s existing logistics and distribution mechanisms.
The company projects that food and groceries will comprise 50% of sales followed by other categories 10% from apparel and 12% from Consumer Durables and Infotech products. The company is optimistic about its existing logistics and supply chain efficiencies but will be only known when it kicks off operations.
Hypercity, Future Group, Reliance, Bharti-Wal-Mart are other players in this segment. However, Vishal Retail has announced its plans to enter this segment by all together a different B2B business model.