FMCG firm CavinKare, on Monday, took a plunge into organized retail business.
The retail foray will have dual purpose of selling its products and also distributing items to nearby retail outlets.
Cavin’s Parlours, the retail outlet chain of the company, will sell its products in the dairy, beverage, snacks and foods segments. These stores will set up in both company-owned and franchisee modes.
The proposed move is aimed at strengthening its position in some of the categories by getting closer to the customers.
“We are marrying two concepts for this retail foray. These stores will be set up by the company and our distributors. Besides retailing out products, Cavin’s Parlours will also serve as a stockist to serve at least about 100 retail stores that sell our products along with others. These stores are meant only for our products, and we are not going to compete with other outlets,” C. K. Ranganathan, Chairman and Managing Director of CavinKare, said.
These stores will be set up according to company’s specifications, and have retail space in the range of 150-200 sq ft. Each store may entail an investment of Rs.7-10 lakh. These stores will be launched in strategic and busy locations.
“We plan to set up about 50 stores before this year end. But, we will embark on an aggressive expansion of these stores during next year,” he added.
Cavin’s Parlous will initially come in about four places (Chennai, Kancheepuram, Salem, Madurai and Tiruchi) in Tamil Nadu by December.
It intends to focus on other states in south after strengthening presence in Tamil Nadu.
