Rural Retail: The latest buzz

The New Entrant

Kishore Biyani-led Pantaloon Retail, which operates a number of retail format primarily catering to the urban India, is looking at expanding in the rural markets to enhance its presence. Reports exist of Pantaloon Retail's plans to pick up 70 per cent stake in the Godrej Group's rural initiative--Aadhaar. With its latest plans to focus on the rural side, the Future Group looks set to join the bandwagon along with ITC Group. ITC also has a considerable presence in the country's rural side with its e-choupal retail initiative, which is basically aimed at providing a support system to the farmers. Pantaloon Retail currently operates over 6 million square feet of retail space across 48 cities in India with multiple delivery formats covering areas like fashion, food, general merchandise, home, leisure and entertainment, financial services, communications and wellness.

The Biggie - Choupal Saagar

ITC has built a strong platform for its growth through e-Choupal and Choupal Sagars and is best placed compared to others in cashing-on from the growing rural demand. The e-Choupal network comprises of more then 6500 e-Choupals and covering 40000 villages and ~4 million farmers. Apart from the e-Choupal network, ITC also has 21 Choupal Sagars, a chain of retail malls that caters to the needs of rural community by offering FMCG products, farm equipments, medical facilities, banking operations and vehicles. The company has also entered in retailing of fruits and vegetables through three Choupal Fresh cash and carry stores and six Choupal Fresh retail stores.

Hariyali Kissan Bazaar

Another company that has seized upon the importance of reaching out to the rural market is the Rs 2000-crore DCM Shriram group that has launched a chain of rural business centres under the brand name Hariyali Kisaan Bazaar. The Bazaar sells consumer products like farm fuels like petrol and diesel, kerosene and gas, fertilisers, pesticides, seeds, farm implements, vet products, lubes, irrigation equipment, auto parts, consumer durables, drugs, financial services like farm credit, retail banking, insurance and integrated storage facilities. It also acts as a last mile agri-advise and customised agri-solutions on a 24x7 model, explains Chhabra. Each Bazaar is part of a three-four-acre campus, which can accommodate other facilities like farm output warehouses, fuel pumps, tractor service centres, warehouses, bank branches, ATMs etc. The company is planning to rapidly scale up the operations and create a national footprint with over 500 centres across the country.

Godrej Adhaar

The Godrej group is another industrial powerhouse that has walked into the hinterlands by opening its rural malls under the brand name Godrej Aadhaar Stores, which are a complete solution provider for the village folks. A complete solution provider, each Aadhaar facilitates rural credit, water management, agri-inputs supply, advisory services, marketing of rural produce, consumer goods, vet services etc. Aadhaar doesn’t sell its wares at lower price unlike in urban malls but retails only at MRP but only branded items.

Mahindra ShubhLabh Stores

The Rs 6,000-crore Mahindras, the largest farm equipment maker in the country is another key player, that is also into agri-extension services, contract farming. Its branded rural retailing foray is a chain of superstores called Mahindra ShubhLabh Stores, while the farm extension arm is called Mahndra Krishi Vihar. The company has already got into agreements with the governments of Punjab, Haryana, MP, Chattisgrah, Karnataka, AP and TN for contract farming, says an official.ShubhLabh Stores, began in 2002, are present in 11 states—AP, MP, TN, Maharashtra, Karnataka, Gujarat, Rajasthan, Orissa, Chattisgarh, Bengal and Delhi.Over the past three years, the company has pumped in Rs 20 crore into these stores. Now, it is planning to get into food retailing, following its reported loses in contract farming.