MNCs are lining up procurement plans, but only an aggressive retail strategy will enable them to make inroads
On the other hand, Singapore-based Wilmar International Ltd, which entered India in a joint venture with the Adani Group, believes in local procurement for its operations. Reasons Angshu Mallick, Asst. Vice President, Sales & Marketing, Adani Wilmar Ltd, “It ensures quality for the long run and the market is constantly growing, so to meet the demand, you have to be present in every segment of the production cycle.” Ensuring its presence on the front end, the group has made its Fortune brand available in 6 lakh out of 8 lakh organised grocery retail outlets across the country (according to ACNielsen figures). This has enabled Adani-Wilmar to mint an incredible turnover of Rs.32 billion for the financial ended 2007-08 and to target a turnover of Rs.120 billion by 2010. Marico’s Saffola is not sitting quite either, as sources from the company confirm to B&E that they are charting out plans to significantly increase production capacity and enhance their retail presence. This increased retail presence has also played the most critical role in making Ruchi Soya’s story a success in India; making it the largest domestic player today.
In the face of such promises, however, there is a challenge, which stares at all those dreaming big on the subcontinent – a market which today includes 80% of the organised segment. Hence, for those wanting to walk steadily here, the only strategy left forward is to magnify their channels and grow it to the maximum. It’s a slippery surface out there and you do need the retail support to run on it!
On the other hand, Singapore-based Wilmar International Ltd, which entered India in a joint venture with the Adani Group, believes in local procurement for its operations. Reasons Angshu Mallick, Asst. Vice President, Sales & Marketing, Adani Wilmar Ltd, “It ensures quality for the long run and the market is constantly growing, so to meet the demand, you have to be present in every segment of the production cycle.” Ensuring its presence on the front end, the group has made its Fortune brand available in 6 lakh out of 8 lakh organised grocery retail outlets across the country (according to ACNielsen figures). This has enabled Adani-Wilmar to mint an incredible turnover of Rs.32 billion for the financial ended 2007-08 and to target a turnover of Rs.120 billion by 2010. Marico’s Saffola is not sitting quite either, as sources from the company confirm to B&E that they are charting out plans to significantly increase production capacity and enhance their retail presence. This increased retail presence has also played the most critical role in making Ruchi Soya’s story a success in India; making it the largest domestic player today.
In the face of such promises, however, there is a challenge, which stares at all those dreaming big on the subcontinent – a market which today includes 80% of the organised segment. Hence, for those wanting to walk steadily here, the only strategy left forward is to magnify their channels and grow it to the maximum. It’s a slippery surface out there and you do need the retail support to run on it!
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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