Apna Bazar In Alliance With Radhakrishna Foodland  ( March '2,2004, FE)

In continuation of its effort to position itself as a pure retailing format, Apna Bazaar Co-operative has entered into a memorandum of understanding with Radhakrishna Foodland. The MOU envisages using Foodland’s expertise in supply chain management, store layouts and product mix. The co-operative is also looking to add more services under its umbrella and has become the corporate agency for Life Insurance Corporation (LIC), under which it will sell LIC products at its stores.

Speaking to FE, Mahesh Kambli, additional general manager, Apna Bazaar Co-operative, said that apart from the pulses and grain, the impetus for the co-operative is also on fresh vegetables, meat and poultry products. “In the near future, around 15 per cent of the sales mix will be on the above assortments and that’s why we are looking to have this mix as we go ahead in our effort to become a pure retailing format,” said Mr Kambli. Therefore, the MOU with Foodland is one such step, whereby the co-operative is looking at gaining expertise in store layouts, supply chain management and also new product mix. “We are looking at utilising Foodland’s expertise in supply chain management and also store layouts,” said Mr Kambli. He added that the co-operative is also contemplating the idea of launching co-branded products with Foodland.

Apna Bazaar will first start with six departmental stores and then eventually roll it out to all its stores. Re-aligning the layout of the store is also high on its agenda underwhich the co-operative is also planning to have food courts at select stores and also re-do the ambience of its stores. “It’s still on paper as we are considering whether we will go on our own or whether we will align with other parties for the food courts,” said Mr Kambli.

As reported earlier, Apna Bazaar Co-operative has embarked on a restructuring exercise and has appointed Darashaw and Company as strategic consultants. The restructuring involves exiting certain business while adding more services, to be provided under its umbrella.The restructuring plan involves exiting out of businesses like export of fish and grapes, milk processing, manufacturing bakery products like biscuits and also pickles, papads and spices. The focus therefore will be on providing services and products as a retailer.

Mr Kambli said that as part of its effort to provide more services, Apna Bazaar has become the corporate agency for LIC, under which it will sell LIC products at its store, with General Insurance products also under consideration in future. Apart from that, it has money transfer facility under an arrangement with Western Union money transfer. On the tie-up with HPCL for having Apna Bazaar outlets at the petrol pumps, Mr Kambli informed that so far three HPCL pumps have Apna Bazaar outlets and the results are still being analysed. “So far we cannot say its been a run away success,” said Mr Kambli.

On the expansion plans, Mr Kambli said that gamaplan involves acquiring defunct co-operatives and gaining a foothold in that territory. “We are eyeing the co-operatives which are defunct, so that we can acquire them and run under the Apna Bazaar umbrella,” said He said. Apna Bazaar currently has 80 stores in Mumbai, parts of Maharashtra and Goa, which comprises of formats like department store, supermarkets, franchisee stores and chemist shops.