200 'Grand' branded products to be launched in Gulf
As the Indian retail sector has now been opened to foreign direct investment, the UAE-based Regency group of companies, which runs the 'Grand' chain of shopping malls and hypermarkets, plans to expand its Indian operations by opening 30 retail outlets and selling its own branded products.
The group, which runs 27 hypermarkets in the UAE and other GCC states, is also launching about 200 of its own branded products, including food products, for sale through its retail network.
The group is planning to start its own farms in India, China, Thailand and Turkey to cultivate fast moving vegetables, which will be available in as 'Grand' products, said Shamsudeen bin Mohideen, chairman of the group.
Speaking to Emirates 24|7, Anwar Ameen, managing director, said the group is taking land on lease in China, Thailand, India and Turkey to grow its 'Grand' brand of farm products.
"We will be developing our own brand of pineapple and vegetables like tomatoes, mushrooms, cucumber, potatoes and other fast moving farm produce. By next year, we will start our own agricultural production and our branded farm produce will be available throughout our retail network," said Shamsudeen.
"We will also be producing organic food products and Grand outlets in GCC states and India will have a separate section for organic foods. We are also planning to provide space for promoting UAE and GCC products," he added.
In Qatar, the group is developing a 100,000 sq metre hypermarket.
"The opening of the Indian retail sector offers opportunities for us. We plan to open 30 'Grand Fresh' shops in India initially. In GCC states, we are trying to move into fast moving consumer goods (FMCG). To start with, we have launched 16 cosmetics and toiletry products with the 'Grand' brand name," said Shamsudeen.
"While we continue expanding in the UAE and other GCC countries, developing our own brand name is a priority for us," he added.
Retail business is profitable to groups which can handle big quantities at reasonable prices, and starting its own branded products and venturing into corporate farming are part of the strategy to remain competitive.
The group is also investing $150 million to develop a steel mill in Qatar as part of the group's foray into manufacturing. The group has steel manufacturing units in South India.
"Supermarkets like the Grand City Mall or Grand in Al Qouz are thronged not only by the working class but by middle class residents of the Al Khail Gate area. We are trying to sell quality products at affordable prices and creating the 'Grand' branded products will help us to introduce Japanese-quality products at the cost of Chinese products," he added.
Two hundred 'Grand' products will be available through its retail network in the UAE, Saudi Arabia, Qatar, Oman, and Kuwait. Other retail chains like Carrefour and Lulu are have their own branded products.
© Emirates 24|7 2012
