We may first start with the doorstep delivery format through Sangam Direct before we launch our Spinach stores in new markets. Today their are no wet categories in Sangam Direct and we will be adding Fresh Fruits and Vegetables which already exist at our Spinach stores.
The modus operandi is, consumers will call the call center operating on behalf of Sangam Direct and the calls will be routed to the nearest Spinach Outlet to service customers. However, it faces an uphill task when it comes to scale and competencies. Food Bazaar of Pantaloon Retail has already withdrawn this model of business. Reliance Retail also plans to introduce the same business model.
Wadhawan foods is a market leader in Mumbai with an annual turnover of Rs 600 crore. The company will launch Sangam Direct in parts of Mumbai and expects to get 15-20% of its revenue to come from this operation.