How do you see new GST regime will help premium food retailing where share of imported items is high?
For us GST regime is going to be very interesting regulation, and we would like to congratulate the government for making it possible within the set deadline of 1st July 2017. This is going to be landmark regulation across the sectors. As we are the part of Godrej Group, we have been preparing GST for some time. We see a very positive impact of GST, whether it is premium food retailing or different segment of food retailing, it will be beneficial in terms of simplification of taxes. Moreover, we were looking a platform and an opportunity to build a stronger supplier relation as this July we are about to launch very innovative product line. With the back-up of Godrej group, we are going to help many SMEs to bring their system and comply with the regulation of GST. This will certainly enable us building a strong relationship with suppliers. We hope to pass-on the benefit to consumers. We see this tax reform as a very strong foundation to drive economic growth in India.
So, what are growth plans of the Godrej Nature’s Basket (GNB) now?
We are going to create fresh and finest kind of food experience for India that would be the combination of physical store as well as digital experience.. As far as our growth plans are concerned we aim to cross 1000 cr mark by 2020. We are looking to further penetrate into the markets which are primilerly West and South. We are going to introduce new kind of retail experience that our patrons would see folding in this financial year itself. We are hopeful to drive double digit growth, to achieve the same; we are looking forward to different type of retail experience.
Apart from introducing new range of products we are equally committed to further nurture our in-house brands which are well researched products. So, our growth streategy includes nurturing our own brands, creating different retail format, penetrating really wide and deep into to market where we already present.
Last year brand exit the Delhi/ NCR market. Any plans to re-enter this market?
Delhi/NCR has tremendous potential. We are keen to re-enter this region shortly with new model. As of now, we are looking to tap the regions where we can leverage our supply chain and we have proven model which mainly are South and West, so the brand will continue to grow in these two markets by penetrating deep and wide.
So what is going to unfold in coming days?
We will see Nature’s basket as premium destination store and world Gourmet store. We aspire to be a neighborhood moving beyond an occasional shopping. We are going to play in premium market but the range of products will be different. We will continue to bring new and curated products. We are looking double our store count in next three to four years.
Any plans to explore franchise distribution for certain markets?
Being a part of Godrej group, it gives us a very different opportunity. We would be looking to various avenues of growth in the future but as of now we would continue to focus on own store model as we are looking to create a different kind of retail experience.
What is percentage spilt of international and national products placed at GNB?
It is very consumer centric; however 25%-30% is coming from international products. But our endeavor is to encourage local Indian innovation. In fact, there are many categories such as cheese, meat, cold press juices where Indian innovations are doing great.
What are the plans for online business expansion?
Our strategic call is be omni-channel player which really combines the strength of physical store as well as penetrate deeper by home delivery for orders coming either by online or app/ telephone. We would penetrate cities such as Mumbai, Bangalore, Pune with a strong focus on online and home delivery. Our online business is growing exponentially along with our physical experience. The focus is on creating a sustainable model.