Saturday, Apr 22, 2017

Eros Group is looking at other businesses to increase its profitability such as logistics and real estate, the company’s executive vice-chairman said.

The group took a hit of about 25 per cent in revenues last year due to the change in Samsung distribution policy compared to Dh4.8 billion in 2015.

Deepak Babani said that the group expects 10 per cent growth in revenues to Dh4 billion this year.

“We are exiting the restaurant business as we did not get the formula right. We are looking at land bank, labour camps, villas segment and apartments as part of diversification,” he said.

The company in 2013 ventured into food business by taking the franchise of Scottish chain Baguette Express as a new avenue for growth and opened four outlets in Dubai.

He admitted that the group is in the process of streamlining its retail outlets after realising that existing mall operators are raising rents despite weak sales.

“Mall operators’ only idea is about revenues but they are looking at the long-term outlook of the mall. Some malls are only expecting international brands as they are ready to pay the exorbitant rents. Don’t you think that mall owners are not aware of the growth in e-commerce and entry of Amazon. Those who can afford are going abroad to shop,” he said.

The group may close four non-performing stores this year.

By Naushad K. Cherrayil Staff Reporter

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