While biggies like Tata and Amazon are heating up the online grocery space, on the other hand, many new players like YRL Stores are making a plunge into the sector through brick-and-mortar stores. Writes Payal Gulati
When compared to many other sectors, that of food and beverage certainly provides many more opportunities. And that explains why YRL has decided to make its presence felt here. As Munish Arora, Director, YRL Groups, puts it “Food and grocery retail in India is a lucrative business opportunity. With a market size of USD 294 billion, the category is expected to grow at about 15% per annum over the next decade and is expected to dominate the market with more than 66% share of the overall retail industry by 2020.” In fact, the grocery business was a different entity altogether a decade ago and the changes that shoppers can witness now are phenomenal. And it’s because retailers have been quick to respond to the changing needs of the customers and give them reasons enough to visit a store time and again. It is with this perspective in mind that YRL is aiming to become the best of the modern ‘kirana’ stores to serve local communities.
“YRL is a modernized neighborhood food and grocery store that is driven by local communities and serves a modern, personal and Indian shopping experience to everyone,” says Parmvir Singh, Director, YRL Groups. To attract and retain the customers, the company is passing on the bulk buying discount to them that make the products cheaper than what is being offered by the competitors. “We also have a utility card program for customers in which they have to maintain a balance of Rs 5,000 and can enjoy a discount of Rs 25 per day at our stores. We are also entering into tie-ups with some petrol pumps and the same offer can be availed there as well,” informs Mohit Bajaj, Marketing Head, YRL Groups.
The Right Partner
For the potential investor, YRL is the right partner to sign up with. The company has four plans for investors – Rs 5 lakhs store for rural India and Rs, 15 lakhs, Rs 25 lakhs and Rs 1 crore stores for urban India. “We will fill in the grocery for the same amount invested by the franchise partner. Besides, 7% fixed salary would be given to the store owner on a monthly basis. We will bear all the operational expenses, including rent, electricity, etc. Also, we will provide the franchisees with the right training and other marketing and promotional support,” adds Arora.
“We are also coming up with pathology labs within a couple of months where the services would be provided at a nominal rate to all our existing customers,” adds Singh. The company currently has 30 franchise stores. “In April we are planning to add another 50 stores. We aim to touch 1 lakh outlets in the long term,” states Singh. The company is aiming to make YRL a brand that will be within reach of everyone. “The money will then follow,” say the directors.
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