After launching the Shoppers' Stop and Crossword chain of stores, the K Raheja Corp Group is planning to venture into the hypermarket segment.
The Mumbai-based group, with interests in property development, retailing and hospitality, will soon launch hypermarkets under the banner of Hypercity.
The group has over 2,000 residential, commercial and educational buildings to its credit.
Of the five planned hypermarkets, at least one Hypercity is likely to come up before March 2006.
The group had launched the Hypercity Retail (India) Pvt Ltd in March 2005 with Inorbit Malls (India) Pvt Ltd, with the object to carry on the retail business through supermarket, hypermarket and chain stores.
IMPL is in the business of setting up and running the malls.
"It is very much premature to comment on our plans about the Hypercity, as we are in the process of shaping the concept for proposed hypermarkets. But we are confident to launch at least one hypermarket before March 2006. We have already acquired suitable sites and started developing properties. We are aiming to enter the Mumbai, Pune and Bangalore markets in the first phase with our retail chain," said S Raghunandan, chief executive officer, HRPL.
HRPL may target other cities in different forms depending upon the size of the local markets after completing the ongoing projects.
HRPL will launch two Hypercitys each in Bangalore and Pune and one in Mumbai.
It was learnt that a team of Shoppers' Stop, experienced in retailing, is assisting HRPL and IMPL in developing the hypermarkets.
It is also learnt that subsequently Shoppers' Stop that has majority stakes in Shoppers' Stop and Crossword, may take over HRPL to emerge as a larger player in the organised retail industry.
Each Hypercity will be spread in around 80,000 sq ft and the company is expecting a cost of Rs 1,300-1,500 per sq ft for the development.
Talking about the features of the Hypercity, Raghunandan said, "We are following international standards in commissioning the Hypercity to create state-of-the-art markets. We are yet to decide the range of products to be offered under the Hypercity. But it will be a wide range of products."
However, a company official informed that the Hypercity would stock domestic and international brands of customer goods, white goods, food and groceries, clothings and lifestyle products.
It is believed that the Hypercity will get benefited from the group's experience in retailing for over one-and-a-half decade.
Shoppers' Stop, with 16 outlets and more in the pipeline, is selling lifestyle products and own labels such as STOP, Life, Kashish and Karrot.
The other retail chain, Crossword, offers probably the widest range of books, magazines, CDs, music, toys and stationery products.
