Date:08/08/2008 URL: http://www.thehindu.com/2008/08/08/stories/2008080857031700.htm

Business

Arvind to expand Megamart chain

Special Correspondent

Oracle to provide merchandising, inventory management solution

— PHOTO: G. R. N. SOMASHEKAR

SOFTWARE DRIVES BRAND: J. Suresh (left), CEO, Arvind Brands and Retail, and Ronan Gilhawley, Vice-President and Head of Oracle Retail, Oracle Asia Pacific, at a press conference in Bangalore on Thursday.

BANGALORE: Arvind Brands, planning to invest equivalent of $100 million over the next three years to expand its Megamart chain to 250 outlets, will deploy Oracle software to upgrade its merchandising and inventory management.

Besides its two largest stores in Chennai and Pune, it has 93 smaller stores with a turover of Rs. 100 crore last year.

Arvind Brands-Retail, CEO, J. Suresh, told reporters here on Thursday that “Oracle created a product based on Megamart customers’ buying patterns and forecast future trends; it will give us a headstart as we expand”.

The expansion was being internally funded, he added. Megamart’s Chief Operating Officer, K. E. Venkatachalapathy, said, “The Indian retail market was the fifth largest in the world by industry estimates and expected to grow from $330 billion to $427 billion by 2010. The share of organised retail could increase from 4 per cent to 22 per cent by then, requiring a planned and informed management”. Information technology spending by the Indian retail segment had crossed $255 million.

Oracle’s Asia Pacific Head-Retail, Ronan Gilhawley, said, the Oracle Centre of Excellence in Bangalore with 400 staff, was creating retail business products for other nationwide chains, including those of the Aditya Birla group.

“Savings in inventory, identifying more fast moving merchandise and better coordination with vendors are what retail needs and our producers are designed for that,” he said.