Mafatlal Industries Ltd, flagship of Rs 2,000-crore Arvind Mafatlal group, is planning to relocate or revive nearly 65 of its exclusive ‘Mafatlal’ branded family retail stores in cities with low demand. These stores form nearly a fifth of the 362, mostly franchisee-operated Mafatlal retail stores in cities like Baroda, Pune, Akola, and Sholapur etc.
The company cited low growth as the reason behind the decision. The low growth is because the consumer demand is low in the middle end of the branded retail market. In order to revive them, the stores will change their product mix and appoint well-trained staff to make sure that footfalls are converted into sales. Mafatlal’s competition is with Grasim, Vimal and Siyaram, among others in Tier-II & III cities. Mafatlal plans to increase its exclusive stores to 500 in Tier-II & III cities in two years. It is aiming at revenues of Rs 200 crore, up from Rs 60 crore now.