UK retailer Booker group taps into the Kohinoor man

Booker Group, Britain’s largest cash-and-carry player, which started India operations three years ago, has formed an equal-stake joint venture with Kohinoor Foods’ promoter Satnam Arora to open wholesale stores in India.

Booker opened its first store in Kandivali, Mumbai, in 2009, and soon after felt the need for a local partner’s expertise.
Through the tie-up with Kohinoor Foods, the basmati rice producer and distributor, it is looking to gain local know-how.
Under the new entity, Booker Satnam Wholesale Pvt Ltd, the retailer last week opened a store in Pune, said Zunaid Bangee, chief executive officer of Booker India Pvt Ltd, the wholly owned unit of the UK retailer. This is the second store of Booker in India and specialises in fast moving consumer goods, grocery and staples, fresh foods and beverages, personal care, tobacco and home-care products, primarily selling to mom-n-pop stores, caterers and restaurants. Bangee said Booker already caters to 7,000 customers in Mumbai.

The wholesaler operates 172 stores in the UK with annual sales of nearly £3.8 billion ($6 billion). India is the only overseas market the wholesaler has ventured in. It has invested £3.5 million in India till date.

Bangee said Booker now has a five-year growth plan for India, under which several outlets will be opened across the country.
The company is already in the process of opening its second store in Mumbai.

In his interactions with the international press, Booker’s chief executive Charles Wilson last year expected the India business to break even by 2012. He had also hinted at opening 15-20 outlets in India by 2013.

“India is a huge market. There is a huge potential for us and enough place for other retailers,” Bangee said. “We are not banking on FDI opening up in the sector. Our model is purely cash and carry.”