Safal eyes franchise model to expand footprint country-wide
Safal, the fruit and vegetable division of Mother Dairy, is planning to ride the franchisee model to take its footprint across the country.business Updated: Dec 16, 2010 22:41 IST
Safal, the fruit and vegetable division of Mother Dairy, is planning to ride the franchisee model to take its footprint across the country.
The company will make available Safal products such as ketchups, jams, pickles and frozen vegetables in local stores across Punjab, Haryana, Chandigarh and UP.
“We wish to expand beyond the Delhi-NCR region and will have Safal branded retail outlets in cities such as Bangalore, Agra, Mumbai and other places across UP, Haryana and Punjab,” Sunil Bansal, chief operating officer-horticulture business for Mother Dairy Fruit & Vegetable told Hindustan Times.
The company will first test the franchisee model in Delhi-NCR and later replicate it in other cities. “A large number of Safal stores through franchisees will take the brand closer to the consumer,” he said.
The company plans to open around 100 franchises across Delhi-NCR region over a year. An average Safal retail outlet is spread across 400 sq ft and each outlet entails an investment of around Rs 7 lakh. The company would continue with the present size format.
The company intends to make Safal branded products — ketchups, jams, pickles etc — across Punjab, Haryana, Chandigarh and UP by early next year.
At present Safal operates over 400 retail outlets across Delhi-NCR. It recorded a sales turnover of Rs 400 crore during the last fiscal and expects to close the current financial year with sales turnover of around Rs 500 crore.
“Over the last three years we have been growing at a compounded annual growth rate of around 25%,” Bansal revealed.