Trinethra Retail & Fabmall Consolidate Operations
Trinethra Super Retail, which operates the largest grocery retail chain in Andhra Pradesh, has consolidated its operations with Fabmall India Pvt. Ltd., Bangalore based grocery retail chain.
With both the organizations being big users of technology, CXOtoday attempted to examine how the consolidation between the two entities will impact the existing technologies.
Speaking on this issue to CXOtoday, V. S. Sudhakar, managing director, Fabmall Private Limited, said, “In the grocery retail business, the gross margins are thin and hence operational efficiencies are critical to be successful. Technology plays a vital role in ensuring operational efficiencies.”
“With the consolidation of the two businesses of Fabmall and Trinethra, we can leverage the best practices of both companies and incorporate the best in technology from both companies,” added Sudhakar.
Both the companies use a fully integrated technology solution spanning from the front end POS terminals where the billing happens to the servers in each store to the master server in the logistics hub.
According to Sudhakar, the process of studying the two platforms has already commenced and the best components in each is being scrutinized. “Based on the analysis, we may decide to work with one of the two platforms while incorporating the best features of the other. The target is to move to one integrated platform by April 2005,” stated Sudhakar.
Disclosing additional information, Sudhakar reiterated that the first task is to achieve the integration of the two solutions and migrating the two businesses to one common IT platform. Once this process achieves stability, they would start looking at other technology components. “One of the technologies that we will study at this stage is the emerging RFID standard, which will be a key standard for retail business in future,” revealed Sudhakar.
Among the new entity’s growth plans are expansion into new geographies, with plans to cover two new states before March 2006. In addition, the new entity will also experiment with various retail formats like Hypermarkets.
Says Sudhakar, “With the significant growth in business (we are planning to ramp up from the current revenues of Rs 200 crore to Rs 1,000 crore by 2008), scaling the IT platform will be a major challenge. One of the parameters we are analyzing closely is the future utility value of the current platforms and the enhancements required to make them scale with the growth in business.”
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