Forms venture with Office 1 Superstore of U.S.
Lines up investment of Rs. 20-25 croreTo source products from central warehouse in China
NEW DELHI: The promoters of polyester manufacturer Indo Rama Synthetics have entered the booming retail industry through a franchise agreement with the U.S.-based `Office 1 Superstore' to sell office supplies. They have floated a separate company for the purpose Indo Rama Retail Holdings and already opened two stores in the National Capital Region. Besides, they had lined up investment of Rs. 20-25 crore for the office supplies retail venture, Vishal Lohia, Executive Director of Indo Rama Retail Holdings, said.
"By the end of this year we will be opening 8-10 stores," he said, adding that the company would own the first few stores. Later, it would rope in partners.
Through the tie-up with Office 1 Superstore, Indo Rama has got an exclusive right over the global brand name in India and the right to appoint more franchisees.
The company will be selling stationery and other office supplies, including computers, through its retail outlets. Apart from the brand name, Indo Rama Retail Holdings will benefit from the hand holding that Office 1 will provide.
"Instead of reinventing the wheel, we decided to go in for the tie-up as it will get us knowhow about the business," Mr. Lohia said.
Apart from knowledge about the business, Indo Rama would be sourcing products from Office 1's central warehouse in China. As a part of the global chain, it would be tapping the customers of Office 1 in other countries.
The company would be selling some of the Office 1 branded products in India but many of them would be sourced from the Indian market. PTI