After Biyani's Future Group, BSE-listed stationery maker Today's Writing Products is entering retail of office supplies and stationery products.
Today's is planning to open 500 stores under the OFFIX brand in the next three years. The company has earmarked nearly Rs 160 crore (Rs 1.6 billion) for the venture and plans a mix of company-owned and franchises for the same.
The company has floated Today's Stationery Mart for the venture. Today's is also setting up six warehouses, of 70,000 to 80,000 sq ft, to cater to operations across the country.
Last year, Future Office, the office products venture of Future group, entered into a joint venture with US company Staples to form Staples Future Office Products in the country's $10 billion office product market, which is dominated by city-specific unorganised players.
According to estimates, the segment is growing at 8 to 10 per cent every year.
Office products and supplies carry a margin of 20 to 30 per cent, a reason why big players have entered the segment.
Today's opened its first store in Malad, a Mumbai suburb, and is planning to open nearly 80 stores in western India in 2008. The stores would retail 4,500 products in 20 broad categories such as calendars, cartridges, office automation and others from over 100 vendors.
The company has also tied up with Essar Group's mobile retail chain The Mobile Store, RPG's music retail chain Music World and digital printing solutions company Printo to have space in the stores on a revenue sharing and rental basis.
"The sheer size of the market and the absence of organised players made us look at the market. We want to be a dominant player in the segment," said Amit Mohta, Chief Executive, Today's Stationary Mart.
Today's is expecting nearly 30 to 40 per cent sales from retail customers and nearly 60 per cent from corporate besides cash-and-carry operations. The company is also setting up a call centre to cater to corporate clients
The company is planning to have three store formats - express, in the range of 500 to 1,000 sq ft, medium, in the range of 1,000 to 2,500 sq ft and large spanning upwards of 5,000 sq ft.
"The company has already identified properties and is signing up most of them soon," said Mohta, adding it would tie up with an international office product player in March this year.
Today's has launched 50 private labels under office products and would be launching 100 more, he said.
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