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To give a fresh impetus to its retail initiatives, the $35-billion Essar Group is incubating five new start-ups.
Further, the Group has rechristened its retail company as Impact Retail.
Essar Retail, known for operating the largest chain of mobile outlets under ‘The Mobile Store’ brand, will be adding more consumer focussed start-ups as part of the business.
Essar Group had acquired Impact Retail’s chain of X Cite electronics stores, a franchisee of Kuwait’s Alghanim Industries in 2009 and the new name of its retail company has been derived from it. Impact Retail will now gain from the services of new tech-based start-ups, which are being incubated to expedite its retail operations.
Alok Gupta, Chief Architect and CEO, Essar Retail, told BusinessLine: “We have changed the name of Essar Retail to Impact Retail as we want to give consumer focus to our retail business. The purpose is to change to a B2C company and have also recently got five new start-ups under our fold.’’
The five new start-ups have businesses ranging from mobile wallets to courier services and include names like Mypacco, Fed Fastest, Litmus and Am Trust Mobile Solutions.
“Fed Fastest is a joint venture, while Mypacco is into courier. Litmus is about customer rating.
“Amtrust is into giving warranty and insurance for consumer electronics. Today, we have five start-ups in addition to the Mobile Store,” added Gupta.
These start-ups are also expected to help Essar Group’s existing mobile retail chain, which has over 700 outlets, to engage in omni-channel strategy where there would be need of technology-based services when it comes to logistics and courier services.
He, however, did not disclose the financial dealings with these start-ups.
Observes, Pinaki Ranjan Mishra, Partner & National Leader – Retail, Ernst & Young, “Such start-ups can help in giving support to the existing retail business, especially when it enters the e-commerce space in terms of deliveries. It seems like a support system which can help its retail operations.”
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