After Aditya Birla–Trinethra and Reliance–Adani Retail deal, more consolidation is happening among small and medium-sized retailers. Mumbai-based Wadhawan Retail, owners of stores under name ‘Spinach’ have taken over Delhi-based Sabka Bazaar and The Home Store for over Rs.100 crores.
Wadhawan has also bought 15 outlets of Mumbai’s co-operative Maratha Stores. The Home Store offers home and lifestyle products and present in nine major cities while Sabka Bazaar sells food and grocery items has 35 stores in Delhi-NCR.
The acquisitions slips nicely into Spinach’s fold as Wadhawan Food Retail had plans to open 1,500 stores in 90 cities. Currently it has 23 Spinach stores in Mumbai. It gives a good hold in the northern and Mumbai market and initially would retain the same brands as they are well-known in their respective regions and own clientele. .
The Home Store was also in need of funds to expand and looking for Rs.150 crore funding from venture capitalists to expand its operations nationally with 100 outlets. Besides this it is establishing 3 hypermarkets in northern India for Rs.15 crore.
Now, Wadhawan Retail (a retail venture of Dewan Housing Finance) would spruce up the acquired outlets to take on Reliance Fresh and Food Bazaar. Spinach earlier bought HLL’s home-delivery retail business, Sangam Direct in Mumbai.
As unorganised retailing picks pace in India, small and medium sized retailers will consolidate to scale up their operations and meet capital requirements. Also, they could then meet with problems of rising real estate prices and lack of quality space availability.
Find this article at: http://www.labnol.org/india/corporate/spinach-retail-buys-out-sabka-bazaar/580/
Tags: aditya birla, merger, reliance retail, takeover, Corporate, India
Reader Comments
DEar Sir
Could you please give us your full contact address with tel/fax
e-mail id etc. so as to communicate with you in regard to
our supply of Desk/Table Lamp, Floor Lamp supply.
We are Importers of various lighting fixtures. So, pls do the
needful asap.
Tks
MURLI
Written by Murlidhar on 06.26.07
sir
i would like to say that i have some space to give on rent to
SABKA BAZAR on main 100 ft road hardavepuri near big appal store near hot spot opp mahalaxmi hospital shahadra delhi-110093.so please do
contact me for this.num – 9899999652/9873343434
Written by Sanjay Chouhan on 07.03.07
dear sir i have a good space for your company to open a outlet. i have a plot on the main road in the commercial market in south delhi and that place is called asia’s most populated area.the area of plot is 2700 sq feet on one floor. it is a three side open plot and can be made according to ur requirements.subhiksha 6 ten stores are already opend in this area. if intrested just call me on 09990351243.
Written by manoj garg on 03.10.08