NEW DELHI: Two years after it exited most businesses in India, UAE-based Chhabrias of the Jumbo Group are now re-establishing their business interest in the country. The group is entering the retail market, through their UAE-based flagship company Jumbo Electronics and all set to unveil its multi-brand electronics retail chain called Jumbo. The first such store would be in Delhi in the next three months.
Though there’s no official statement on Jumbo’s entry into India as yet, an industry source said the group has appointed the former marketing chief of Electrolux India, Ajay Kapila, as its country head who until now was in a senior position with Jumbo in the Middle East. He was roped in mid-2005 when Videocon acquired the assets of Electrolux in India. Mr Kapila could not be contacted for comments but it is understood that he has formed a small team and preparing to open the first outlet. Unlike other retailing chains in the durables sector, Jumbo would be involved in only electronics — audio/video, telecom and IT. It would not sell appliances such as refrigerators, air-conditioners and washing machines.
Sources in the consumer electronics industry inform that its medium term plans include opening about 20-25 stores in the next 1-2 years. While the industry is abuzz with speculation about how Jumbo is routing its investment in the retail business in India, a source told ET that the Chhabrias could be capitalising on their NRI status to route their investments. It has even formed a new company Jumbo Electronics Corporation Pvt Ltd. However, this could not be officially confirmed.
The Chhabrias in 2004-05 sold most of their businesses in India which included Mather & Platt Pumps, Mather & Platt Fire Systems, Hindustan Dorr-Oliver, Dunlop India, Falcon Tyres, Gordon Woodroffe and Shaw Wallace. While the group still has a controlling stake in Narmada Gelatines, it had been looking for investors and even sold 2% stake in the open market in February-March 2007. Multi-brand consumer durable retailing in the country is still fragmented. The only large organised player is Viveks, which operates a regional retail chain in the south. Barring Viveks, consumer durable is the mainstay of city-based retailers. However, big corporate names are planning to establish national chains.
Currently, the biggest player is the Dhoot-promoted Next which operates on a franchisee network and has more than 100 stores. This apart, Tatas through their venture with Woolworths, Reliance Retail and Pantaloons’ Kishore Biyani are also setting up shops. In addition, few international players are also exploring ways to enter the market. Jumbo would be the first national player with a specialised electronics retailing pedigree.
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