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CavinKare enters retail business; eyes Rs 100 crore biz

By Adam Devey Smith | Vjmedia Works | October 21, 2014

The company would set up 50 Cavin's Parlours in the next three months and by March 2015, these would be 100. It is betting big on dairy products and pickles

FMCG major CavinKare is expecting around Rs 100 crore from the retail segment, which it entered today. The ChrysCapital-backed company is looking at setting up around 100 retail outlets known as Cavin's Parlour.

CK Ranganathan, Chairman and Managing Director, CavinKare Pvt Ltd, said these would be outlets plus distribution centres from where the stock could be accessed by another 100 small retail outlets in the area.

The outlets will be set up and run by distribution partners. Each outlet would require an investment of around Rs 7 lakh and the break-even period would be a month only if the margins were decent, according to him.

The company would set up 50 Cavin's Parlours in the next three months and by March 2015, these would be 100.

"By next year, we will have a significant presence in the south, and in the following year we will go pan-India,” he added.

It is betting big on dairy products and pickles. "The focus will be market places, where people come for shopping,” said Ranganathan.

He said getting into the retail business was an attempt to establish itself as one of the largest food and dairy companies in the country and also to take its products closer to the consumers.

"We are in the process of developing several new products for these categories that will be rolled out in a phased manner,” said Ranganathan.
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