The Food and Grocery market size is estimated at $325 billion
The segment is expected to grow at over 5 % over the next four years
In its first-ever retail venture, Sahara India has announced an initial investment of Rs 3,000 Cr to open 800 Sahara Q Shops across five states - Bihar, Jharkhand, Rajasthan, Uttar Pradesh and Uttarakhand. The shops will sell food and grocery items, which account for around 69 per cent of all retail. The total food and grocery pie is expected to grow to $ 425 billion by 2016.
Initially, the stores will sell products including staple food items, processed foods, personal care, home care and lifestyle products and home merchandise, to be produced under exclusive tie-ups with manufacturers. The company wants to sell only its own range of products.
The company plans to scale up operations to 998 cities and towns by March 2013. Besides providing employment to some 143,000 people, Sahara will rely on its existing network of salespeople in its other ventures to generate demand. Sahara's various financial services have a depositor base of 65 million people it will initially tap. It expects to garner revenues of around Rs 15,000 crore in the next 12 to 18 months.