Mahindra Retail (part of the $11-billion Mahindra & Mahindra group) that owns the speciality retail chain, Mom & Me, is not keen on diversifying into any other retail category. “We have the blinkers on. We want to be in this niche space,” says Mr Anand Mahindra, Vice- Chairman and Managing Director, Mahindra Group.
The stores, that are built around the needs of pregnant women, young mothers, infants and children, sell ethnic fashion for women, infant apparel, traditional Indian toys, kids footwear and travel products.
“Being present in this space is our strength, and we want to build on it,” he said in a recent interaction with
Mr Mahindra, who was here in connection with the opening of a showroom of Mahindra FirstChoice, a company that trades in pre-owned cars, said the ‘Mom & Me' retail concept has been very successful. From a mere 11 stores in 2009-10, the company has scaled it up to 42 stores in 23 cities in 2010-11.
To a question on when the venture is likely to break even, Mr Mahindra said everyone in the retail business is still learning the ropes, “and so are we.” He said the company is learning from every store it opens. It applies all the learning when it opens the next store.
He did not wish to disclose how much the group would invest in the coming years, but said that the target was to cross the 100-store-mark by the end of the current financial year. Though as of now, all the stores are owned and operated by the company, he said the franchisee model is not ruled out.
ICICI Ventures has close to 10 per cent equity exposure in the venture. And, currently there is no active plan at this stage to take in any more PE investment. “We may explore this at an appropriate time, but good financial partners are always welcome in such long-term projects,” said Mr K. Venkataraman, Managing Director, Mahindra Retail.