In a retail environment where scale often dominates the conversation, neighbourhood relevance remains a key differentiator. Even as quick commerce, e-commerce and national supermarket chains reshape grocery retail, regional players with a deep understanding of local consumers continue to hold a distinct advantage.

In Hyderabad, Balaji where the retail landscape is evolving rapidly, Balaji Grand Bazar has built a distinct identity by focusing on premium neighbourhoods, personalised service and strong community connect—proving that convenience, trust and customer relationships continue to matter as much as scale.

What began as a 360 sq. ft. family-run store in 1958 has grown into a 22-store supermarket chain, steadily building its presence by focusing on premium residential neighbourhoods, gated communities and a customer-centric retail experience. While the fundamentals of the business remain rooted in service and community engagement, the retailer is now entering a new phase of expansion, targeting premium high streets and Hyderabad’s fast-growing IT corridor.

In an interaction with Business of Food, Sunil Agarwal, Managing Director, Balaji Grand Bazar, discusses the company’s evolution, its expansion strategy and the changing dynamics of modern food retail.

From a Single Store to a Trusted Retail Brand

Balaji Grand Bazar was also among the early retailers in Hyderabad to introduce private labels, helping build customer loyalty while creating a differentiated product offering. This emphasis on quality, value and assortment has remained central to the retailer’s growth journey.

Following the business restructuring in 2018, the company has continued its expansion under the Balaji Grand Bazar (Sunil Agarwal Group) banner. Led by Managing Director Sunil Agarwal, alongside Executive Directors Prateek Agarwal and Darpan Agarwal, the family-run business continues to strengthen its retail footprint while adapting to the evolving dynamics of organised grocery retail.

The Next Phase of Growth

For Balaji Grand Bazar, choosing the right location has become one of the most critical growth decisions. Rather than pursuing rapid expansion, the retailer has built its network around affluent residential clusters where purchasing power and customer loyalty remain strong.

“At the moment, we have a total of 22 stores. Out of these, two are located in premium high-street locations, while 20 are situated in gated communities catering to SEC A, A+ and elite-class customers,” says Agarwal.

These gated community stores currently serve more than 30,000 families across Hyderabad’s premium neighbourhoods, giving the retailer a strong foothold among high-value consumers.

Looking ahead, the company plans to broaden its reach without moving away from its premium positioning. “We are planning to expand into employee hubs located in the IT Corridor and Special Economic Zones, where more than 15,000 employees work. This will help strengthen familiarity with the brand and further expand our reach among top-end customers,” he remarks further.

All staples, pulses, flours, etc., are Balaji Grand Bazar’s in-house brands. In its stores, the company’s own brands contribute more than 30% of its revenue/sales. Major Foods contributes approximately 60% of the retailer’s total sales, driven primarily by its proprietary product line and fast-moving consumer goods (FMCG).

Within this mix, Ready-to-Eat (RTE) foods, beverages, and carbonated soft drinks (CSDs) exhibit the highest inventory turnover and market demand. Millet-based, organic, and wellness products are set to perform even better because of increasing customer awareness and a well-defined target segment.

Fighting Quick-Commerce

The rapid rise of quick-commerce platforms has emerged as one of the biggest challenges for traditional grocery retailers, significantly impacting store footfalls and slowing revenue growth. According to Agarwal, changing consumer behaviour has made convenience-led digital shopping the new norm, compelling brick-and-mortar retailers to rethink their strategies.

“Shopping behaviour has completely shifted from ‘Let me walk to the store’ to ‘Which app should I open?’ Due to the aggressive penetration of quick-commerce platforms, physical retail stores are experiencing nominal, near-flat revenue growth,” he says.

In response, Balaji Grand Bazar has adopted a hyperlocal omnichannel strategy aimed at retaining customers and strengthening neighbourhood engagement. The retailer has introduced dedicated mobile applications for gated communities, offers free home delivery irrespective of order value and has rolled out targeted discount schemes to remain competitive against instant-delivery platforms.

The company is also investing in neighbourhood campaigns and community events to rebuild customer loyalty while continuing its physical expansion across Hyderabad. Its store network is increasingly focused on premium gated communities, enabling the retailer to serve residents within high-density residential clusters.

Margins Under Pressure

Balaji Grand Bazar is currently absorbing higher promotional expenses to retain customers and sustain market share. At the same time, investments in community engagement programmes, experiential campaigns and specialised quantity purchase schemes (QPS) are adding further pressure on operating margins.

“Current operating margins are exceptionally thin, as we are temporarily absorbing higher promotional costs to sustain market share and retain customer loyalty,” he says. Despite the near-term impact on profitability, the retailer believes these investments are essential to strengthening its long-term competitive position.

Curated Category Mix

Beyond grocery, Balaji Grand Bazar has gradually expanded its assortment to include categories such as home furnishings, apparel and neighbourhood food kiosks, although the format varies depending on store size and location.

As a result, stores typically offer a focused range of home furnishings and apparel, alongside micro food kiosks serving local favourites such as chaat, tiffins and beverages, wherever permitted under society guidelines. While customers have responded positively to these additions, Agarwal notes that sales remain constrained by the limited selling space and restricted product assortment.

Hyderabad Remains Focus

Balaji Grand Bazar is prioritising deeper market penetration within Hyderabad and Secunderabad before pursuing expansion into new geographies. While the retailer had earlier outlined plans to expand beyond the city, its immediate focus remains on strengthening its presence in premium residential catchments.

The company plans to add two to three new stores during the current financial year, with most of the expansion centred on premium gated communities. Agarwal says that the immediate operational strategy is strictly focused on consolidating our presence within the twin cities of Hyderabad and Secunderabad.

Customer-First Growth

Convenience, agility and personalised service are set to define Balaji Grand Bazar’s next phase of growth. The company is continuously fine-tuning its product assortment to reflect evolving consumer preferences while introducing localised promotional campaigns designed to resonate with neighbourhood communities. The emphasis is on remaining responsive to demand without losing the personalised touch that has defined the brand over the years.

Digital convenience is equally central to the company’s roadmap. App-based home delivery, doorstep card-swiping facilities and multiple digital payment options are being deployed to simplify the shopping journey and bridge the gap between traditional retail and the speed of modern commerce.

“We consistently optimise our product assortments, introduce dynamic consumer promotion schemes and provide rapid, app-based home delivery with frictionless pay-at-the-doorstep payment solutions to ensure maximum convenience for the consumer,” Agarwal conveys.

Rather than competing with quick-commerce players on speed alone, Balaji Grand Bazar is betting on a combination of technology, local engagement and customer service to strengthen long-term loyalty and sustain future growth.

The post Balaji Grand Bazar (Sunil Agarwal Group): Neighbourhood Retail, Premium Ambitions appeared first on Business of Food.

The First Trolley Is Through the Checkout

On 14 August 2026, on the eve of India’s Independence Day, Carrefour opened the doors of its first consumer-facing store in India at H&S Mall, Boulevard Walk, Greater Noida West. Nearly 12 years after exiting India, the French retail giant is back—but this time the battlefield is not wholesale. It is the Indian food basket. The timing is almost theatrical. As Indian consumers entered one of the year’s biggest Independence Day shopping periods, Carrefour chose the moment to put its first 50,000-plus-sq.-ft. store in front of them, stocked with more than 15,000 SKUs across fresh produce, grocery, bakery, household essentials and personal care, alongside locally sourced merchandise and exclusive international products.

But the more interesting story for India’s food industry is not simply that Carrefour has opened a hypermarket. It is what Carrefour believes an Indian food retailer needs to offer in 2026—and whether its global food-retail playbook can be localised sufficiently to win here. The first customer response, according to Vipin Bhandari, CEO, Carrefour India, has been encouraging. “The response has been very good. Customers are happy and appreciative of the experience in the store, the assortment and, of course, the prices,” he said. That short assessment captures the three things Carrefour now has to get right in India: experience, assortment and price. Underneath all three sits food.

Carrefour’s India Proposition Starts with the Food Basket

When Carrefour and Apparel Group announced their strategic franchise partnership in September 2024, Patrick Lasfargues, Carrefour’s Executive Director of International Partnership, made the positioning clear: food would be the focus, while non-food would represent a smaller part of the proposition. The partners also planned to source food products from India and introduce Carrefour private labels into the market.

The first store gives that strategy its physical form. The 15,000-plus-SKU assortment brings together fresh produce, grocery, bakery, household essentials and personal care, with the food proposition combining Indian sourcing with products from Carrefour’s international ecosystem. That balance is critical. Imported products can create discovery and differentiation, but Indian grocery economics will ultimately depend on local sourcing, competitive pricing, availability and replenishment. Carrefour has already indicated that it intends to source extensively in India. Lasfargues said the company would be competing on the same sourcing terrain as other retailers because all competitors are sourcing within the country, while acknowledging that India’s manufacturing and selling costs are lower than in many other markets. The partners have also spoken of potentially exporting from India within five years.

That makes the Indian food operation potentially more than a retail distribution business. If Carrefour builds sufficient scale, India could eventually become part of its global sourcing architecture, creating a second dimension to the India strategy beyond selling to Indian households.

The Private-Label Opportunity

For Carrefour, perhaps the biggest food opportunity in India lies not merely in imported products but in private labels. Private labels are deeply embedded in the Carrefour model, with the company saying in its India launch discussions that private labels accounted for 37% of turnover in France, pointing to the enormous headroom it sees in India.

The global strategy is becoming even more aggressive. Carrefour’s Carrefour 2030 plan places private labels and food transition at the centre of its value proposition, with the Group targeting private labels at around 40% of food sales by 2026 and aiming to grow private-label sales 1.5 times faster than national brands in Europe. For India, the opportunity is obvious but not straightforward. Private labels can give Carrefour greater control over price architecture, margins, differentiation and assortment, but Indian consumers have strong relationships with national FMCG brands, while regional brands can dominate individual categories and geographies. The winning private-label strategy therefore cannot simply transplant a European assortment; it will have to be built around Indian price points, Indian pack sizes, Indian taste preferences and Indian consumption occasions.

This is where Carrefour’s local merchandising and sourcing organisation becomes critical. The company is not simply importing a ready-made European assortment and putting a Carrefour sign above it. It is building a local category and sourcing organisation that has to determine what an Indian Carrefour basket should look like.

Fresh Could Be the Real Battleground

If price brings customers into a grocery store, fresh can determine whether they return. India’s modern grocery market has become increasingly sophisticated around fresh fruits and vegetables, dairy, bakery, meat, ready-to-eat and other high-frequency categories. Fresh also has the potential to differentiate a physical hypermarket from a quick-commerce basket, where consumers increasingly use convenience platforms for top-up purchases.

Carrefour’s global strategy places fresh prominently alongside price, loyalty, choice and private labels. Its Carrefour 2030 plan also envisages reallocating store space towards growth categories and fresh food, reflecting the continuing importance of the category to the physical-store model. For the Greater Noida store, fresh therefore becomes an important test. A 50,000-plus-sq.-ft. store cannot survive simply by being a large grocery warehouse; it needs a compelling reason for customers to visit, browse, buy fresh products, complete their weekly shop and return. That makes the physical experience part of the food proposition—not an add-on to it.

A Global Food Giant, But India Is a Different Grocery Game

The scale of Carrefour’s global food operation is difficult to ignore. At the end of 2025, Carrefour had 15,719 stores in more than 40 countries and served around 80 million customer households annually through its stores and e-commerce platforms. Its 2025 gross sales were €91.484 billion, while its reported net sales were €82.102 billion.

Its latest reporting shows how quickly that global network continues to evolve. Carrefour had 15,415 stores as of 30 June 2026, with the network spanning hypermarkets, supermarkets, convenience, cash-and-carry and other formats. Its first-half 2026 gross sales reached €43.85 billion, underlining the scale of the food-retail engine now being brought into India through a local franchise partnership.

For a company of this scale, India is not simply another country launch. It is one of the world’s largest and fastest-changing food-consumption markets. But size alone will not confer an advantage. The Indian grocery market has its own formidable ecosystem: Reliance Retail’s multi-format food business, DMart’s value proposition, Tata Trent’s Star network, regional supermarket chains, independent neighbourhood stores and a rapidly expanding quick-commerce industry. The consumer can now choose between a weekly hypermarket trip, a neighbourhood supermarket, an online grocery basket or a 10-minute top-up. Carrefour has to earn its place among all of them.

Day One at Carrefour India

The Biggest Challenge: Price Without Becoming Just Another Discounter

Carrefour’s own India messaging repeatedly emphasises quality at affordable prices. That is an attractive proposition, but also one of the hardest to execute. Indian grocery retail operates at relatively tight margins. In an interview following the India partnership announcement, Lasfargues acknowledged that prices and margins in India are lower than in Europe and that revenue at an equivalent store count would therefore be lower.

This is where scale matters. Carrefour needs enough purchasing power to negotiate with Indian suppliers, enough private-label penetration to create differentiated economics, enough store density to spread supply-chain costs and enough customer frequency to keep inventory moving. The first Greater Noida store is therefore not just a store-opening exercise; it is the first unit in a potential food-retail economics experiment.

The equation Carrefour has to solve is deceptively simple: low prices, fresh quality, international assortment, private labels, high inventory turns and repeat visits. The difficulty lies in delivering all of them simultaneously. That is what will determine whether the 50-store ambition becomes a scalable food-retail model or remains a limited international-brand presence.

The Man Leading the Grocery Comeback

That makes the appointment of Vipin Bhandari as CEO, Carrefour India, particularly relevant to the food story. Bhandari joined the business quietly some time before the launch and has been part of the team building the India platform. His background is unusually aligned with the challenge ahead. He previously served as Managing Director of Max Hypermarkets India, which operated SPAR in the country, and earlier held senior roles in Indian large-format retail.

Working alongside him is Saurabh Bansal, Chief Merchandising Officer, who joined Carrefour in September 2025 after serving as Executive Director and Chief Merchandising Officer at Spencer’s Retail, with earlier experience at Walmart and Snapdeal. The merchandising organisation also includes Raghu Tiwari, Category Head – Apparel & Fashion, and Deepak Gandhi, Category Head – General Merchandise, while Amritraj Kaur, Head of Marketing, brings experience across FMCG, grocery, CRM and omnichannel retail.

The team extends across sourcing, supply chain, operations, category management, finance, HR and store operations. For a food business, that organisational build-out matters almost as much as the store itself. Carrefour is effectively recreating its retail engine in India before attempting to scale it, with the first store providing the operating data from which the subsequent network can be shaped.

Apparel Group Enters India’s Food Fight

For Apparel Group, Carrefour represents a very different business from the international fashion, beauty and food-and-beverage brands that have driven much of its Indian expansion. The group’s India portfolio includes global brands across fashion, footwear, beauty and F&B, while Carrefour brings an entirely different operating rhythm: high-frequency purchasing, fresh-food management, replenishment, inventory turns, large supplier ecosystems and a much larger weekly household mission.

But the partnership gives Carrefour something it lacked in its first India innings—a local partner with established experience in bringing international brands into Indian retail environments. When the partnership was announced, Apparel Group operated more than 2,300 stores across 14 countries and 85-plus brands, with more than 250 stores across India. The food partnership is therefore also a strategic bet by Apparel Group to build another large consumer business around India’s expanding consumption economy.

From Five Wholesale Stores to 50 Food Stores

Carrefour’s first India story began in 2010 with five cash-and-carry stores in Delhi, Jaipur, Meerut, Agra and Bengaluru. The company exited in 2014 after failing to build sufficient scale and finding no partner for the consumer-retail expansion it wanted. The new plan is dramatically different. Carrefour and Apparel Group initially targeted five stores in Delhi-NCR during the first phase, followed by an ambition to build 50 stores across North India over five years, with formats ranging from approximately 8,000-sq.-ft. supermarkets and gourmet stores to around 30,000-sq.-ft. hypermarkets.

The first store is already larger than the original compact-hypermarket blueprint, at more than 50,000 sq. ft. That could be deliberate. A large-format first store allows Carrefour to test the widest possible food assortment, fresh departments, international products, private-label architecture, bakery, household categories and customer experience under one roof. But the eventual network will need more than flagship-sized stores. The 50-store strategy will only work if Carrefour can identify where a hypermarket makes sense, where a supermarket is better, and where a smaller proximity or speciality format can capture a different food mission.

The Quick-Commerce Question

No food-retail story in India can ignore quick commerce. Carrefour and Apparel Group were already considering e-commerce as part of the India plan, with Lasfargues saying the partners would decide whether to start online immediately or later and potentially consider quick commerce. But he also noted that Carrefour’s European experience showed the economics of quick commerce could be challenging.

That tension is important. Carrefour’s competitive advantage is its physical food-retail infrastructure; its disadvantage is that Indian consumers have become accustomed to extremely fast fulfilment. The answer may not be to replicate a 10-minute grocery model. Instead, Carrefour could use the hypermarket as a fulfilment and assortment engine, combining large-basket shopping with scheduled delivery, click-and-collect and other omnichannel services as the network develops.

Carrefour already describes its stores globally as increasingly serving multiple omnichannel functions, including order preparation, pickup, returns and exchanges. India will provide another test of how that model works in a market where speed has become a consumer habit.

Food Transition Comes to India?

There is another dimension that could become increasingly relevant as Carrefour builds its India business: food quality, transparency and health. Carrefour’s 2030 global strategy places the “food transition” at the centre of the business. The company aims for 50% of its food sales by 2030 to come from products contributing to a healthier diet, while expanding transparency around its own-brand food products.

How much of that philosophy will be translated into India remains to be seen. But it potentially opens another area of differentiation for Carrefour: not simply selling more food, but helping consumers make more informed food choices through sourcing, labelling, private brands and product transparency. For India’s rapidly evolving middle-class consumer, that could eventually become as relevant as price.

India Could Become More Than a Sales Market

The most intriguing long-term possibility is that Carrefour could eventually view India not merely as a market in which to sell food, but as a food-sourcing base for the wider Carrefour network. Lasfargues said Carrefour was looking to export from India within five years.

That ambition could create opportunities for Indian food manufacturers, processors, farmers and private-label suppliers to move from being domestic vendors to becoming part of a global retail supply chain. For Carrefour, India could offer competitive manufacturing, agricultural diversity, processed-food capabilities and an enormous supplier base; for Indian producers, the attraction would be access to Carrefour’s international markets.

But that will require Carrefour to build supplier relationships, quality systems, traceability, packaging standards and scale. The retail rollout and the sourcing strategy could therefore develop together, potentially making Carrefour’s India operation relevant not only to Indian consumers but also to the wider global Carrefour supply chain.

The Food-Retail Test Begins in Greater Noida

Carrefour’s first India store is ultimately a very large experiment. The company has arrived with an enormous global food-retail heritage, but it is entering a market where consumers are already spoilt for choice. It has a powerful international assortment, but Indian grocery retail is won category by category. It has global private-label expertise, but Indian shoppers remain highly brand-conscious. It has the scale to source globally, but its stores will have to compete on intensely local price points.

And it has chosen food as the centre of the proposition.

That makes the Greater Noida store more than Carrefour’s comeback address. It is the first laboratory for Carrefour 2.0 in India, where the business will test whether its combination of price, assortment, fresh food, private labels and international sourcing can generate the frequency and economics required for a national-scale business.

The early customer response, according to Bhandari, is already positive on the three fundamentals that matter most: experience, assortment and price. The next test is whether that response translates into repeat grocery missions, bigger baskets, strong fresh-food performance, private-label adoption and profitable store economics. If it does, Carrefour’s first 50,000 sq. ft. could become the foundation of a much larger food-retail platform.

Because in India, the battle for the grocery basket is ultimately won one household, one shopping mission and one fresh aisle at a time.

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Ahuja brings more than two decades of leadership experience across the retail, FMCG, consumer goods, and technology sectors. Throughout his career, he has built a strong track record in sales leadership, business strategy, commercial excellence, and market expansion, working with some of the world’s leading consumer brands.

Prior to joining DMart, Ahuja spent more than 10 years at Zydus Wellness, where he held several leadership roles across the business. Most recently, he served as Senior Vice President – India and Subcontinent (Sales), leading the company’s sales strategy and commercial operations across key markets. During his tenure, he played an important role in driving business growth, strengthening distribution networks, and enhancing market execution.

Before Zydus Wellness, Ahuja held leadership positions at Apple, Mars, Godrej Consumer Products Limited, Dabur, Philips, PepsiCo, General Mills, and DCC. His diverse experience spans multiple consumer categories and business functions.

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The disagreement stems from a recent government clarification categorizing snacks as either extruded or non-extruded. Extrusion is a food processing technique involving the pushing of ingredients through a machine to achieve a desired shape, commonly used in the production of many ready-to-eat snacks. Examples of extruded snacks include finger snacks like PepsiCo’s Kurkure, Prataap Snacks’ Yellow Diamond puffs and rings, and ITC’s Bingo Mad Angles. On the other hand, biscuits and potato chips are classified as non-extruded snacks. Industry experts estimate that extruded snacks contribute 25-30% to the total salty snacks market worth Rs 47,000 crore, with the remaining share coming from non-extruded snacks.

While food companies have been paying a 12% GST on snacks overall, the GST Intelligence body is now insisting on an 18% GST for extruded snacks and maintaining the 12% rate for non-extruded snacks, according to reports.

Sources within the food industry have revealed that the aforementioned companies, along with a few others, have received notices totaling approximately Rs 1,000 crore in terms of additional GST to be paid by them. However, there has been no official confirmation of this report as of yet.

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Lay’s Shapez Heartiez will satisfy the demand for exciting and crispy snacks in the fast-growing potato-based pellet chips market. This new snack embodies Lay’s commitment to quality and delivering the ultimate crunch. With Shapez Heartiez, Lay’s continues to be a beloved brand, always bringing new and exciting experiences to its customers.

Lay’s Shapez Heartiez brings a sweet twist to snacking with its new Caramel flavor, a first for Lay’s, alongside the classic Masala flavor. With this diverse range, there’s a Heartiez chip for every taste preference! Saumya Rathor, Category Lead – Potato Chips, PepsiCo India, said: “The unique heart-shaped pellets and vibrant packaging invite consumers on a delightful journey, showcasing Lay’s commitment to innovation and expanding their product range to meet consumers’ evolving preferences. By diversifying our offerings with exciting concepts like Shapez Heartiez, we ensure that Lay’s remains at the forefront of redefining the snacking experience for our valued consumers.”

You can find Lay’s Shapez Heartiez at pocket-friendly prices of INR 5, 10, and 20. It’s easy to get your hands on them – they’re available at all retail stores and online shopping platforms.

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The survey revealed another stark finding about the trust among local retailers regarding Paytm. It indicates that trust in Paytm has decreased among 68% Indian kiranas after RBI restrictions. While 42% kiranas have already started using other payment apps, another 20% respondents indicated their intent to use other payment apps in the near future. Of the retailers who have started to use or are planning to use other payment apps, a majority of 50% retailers chose PhonePe, 30% are inclined towards Google Pay and 10% towards BharatPe.

Kirana Club Founder & CEO Anshul Gupta said, “Covid-19 pandemic prompted neighbourhood kirana stores to increasingly adopt digital payments. Over time, they have also realized the convenience of accepting digital payments as they do not have to go through the hassle of giving change to customers and money gets transferred to their bank accounts immediately. While the ban imposed by the regulatory authority might lead to disruption at kirana stores, they are not much worried because there are alternate payment options available. Our recent survey also indicates that kiranas across states have already started using or plan to use other payment apps to ensure smooth business operations.”

The growth in cashless transactions at grocery and local kirana stores is also indicated in the survey which shows that around 71% retailers in both, Uttar Pradesh and Jharkhand use Paytm QR code to accept payments from customers. A similar trend is seen among retailers in Rajasthan, Bihar, Madhya Pradesh, and Haryana with 70% kiranas using the payment mode for business. The number of retailers using Paytm QR codes is slightly low in Maharashtra (57%) and Chhattisgarh (65%) as compared to other states.

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Breaking away from the monotony of traditional grocery retail, Fresh Signature introduces a pioneering concept with 17 live food experiences, blending curated live food stations with a diverse product array. Customers can indulge in a sensory journey exploring Fresh Dairy & Ethnic Sweets, Zero Waste Organic Zone, Turkish Delights, Patisserie, Premium Dry Fruits and Nuts, Ethnic Snacks, Live Khakra, Fudge and Chikki, an Ice-cream Sundae Parlor, a Noodle Bar, a Health Café, Artisanal Honey bar and much more.

The grand launch witnessed the presence of renowned personalities along with prominent names from the retail and food industry, influencers, food vloggers, and socialites. Pastry Chef and the ‘Macaron Queen of India’, Pooja Dhingra, famous for her Le 15 Patisserie, graced the special preview of the store on February 2, 2024. Fresh Signature houses ‘The Patisserie’ at this store. Bollywood icon and health & fitness diva Shilpa Shetty also attended the launch event and showcased her association with the healthy quick noodles brand WickedGud, featured at the live noodle bar within the store.

Reliance Retail currently operates 141 Fresh Signature stores, each spanning 3,000–5,000 sq. ft. of retail area, across the country. The brand sets itself apart with a commitment to quality and convenience, offering a wide assortment of everyday grocery essentials, including rice, pulses, flours, edible oil, chocolates & confectionaries, biscuits, processed food, juices & beverages, home & personal care products, along with international cuisines ingredients and local ethnic snacks. The hallmark of each Fresh Signature store is the availability of fresh and high-quality fruits and vegetables sourced from the best farms, both locally and globally. Reliance Retail plans to expand this concept to other locations and delight customers pan-India in the coming months.

Avinash Tripathi, Vice President and Concept Head, Freshpik & Fresh Signature at Reliance Retail, took to his LinkedIn account to acknowledge the momentous occasion. In his post, he expressed sincere appreciation for his team’s dedicated efforts in successfully executing the project. “Ditch the Dull and Elevate your Grocery Game with our Experiential Supermarket, Fresh Signature @ Infinity Mall Lokhandwala, in a Brand new avatar! A store that captures and caters to the day to day needs and essence of Indian Customers with 17 Innovative Experiences! Explore the extraordinary where grocery shopping meets culinary inspiration.”

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From empowering local farmers to pioneering Eri-Silk cultivation, the brand’s visionary approach not only fosters a mutually beneficial ecosystem but also positions them at the forefront of positive change in the region.

As they secure incubation support from NABARD and SDAU, Hearty Mart Farm2Market’s journey exemplifies how businesses can drive impactful transformations for both themselves and the communities they serve.

Hearty Mart has garnered considerable acclaim for its distinctive business approach, notably for introducing contemporary retail and sophisticated bakery experience to tier-2 and tier-3 locations in Gujarat. Undoubtedly, the brand has become synonymous with venturing into untapped markets and strategically investing in areas typically considered less favourable for business development. Another key illustration of this strategy is the lesser talked about Hearty Mart Farm2Market, emblematic of the brand’s commitment to fostering entrepreneurial fervour in urban spaces.

The concept of Farm2Market took root in 2017 when a group of fruit farmers approached the leadership of Hearty Mart with a proposal to utilize surplus fruit produce. What began as a localized initiative soon evolved into a broader outreach to the agricultural community, extending beyond fruit juices to encompass various agricultural products. Hearty Mart, already a prominent player in the HoReCa (Hotels, Restaurants, and Catering) sector in Gujarat, recognized the potential of robust backward integration.

As discussions progressed within the leadership, they became increasingly attuned to the concerning trend of local farmers selling their lands and migrating to urban areas due to an unstable income. This realization fuelled the vision of incorporating farmers into the Hearty Mart family, laying the foundation for Hearty Mart Farm2Market.

Reflecting on this venture, Nadeem Jafri, Founder and Chief Mentor, Hearty Mart, explained, “with Farm2Market, we aimed to establish a robust backward integration channel for our companies. Through Farm2Market, we seek to directly source grains from farmers and distribute them to retail customers through our supermarkets, as well as to Hotels and Restaurants via our HoReCa division.”

He further emphasized, “Our goal is to create a sustainable source of income for small farmers in Gujarat, providing market linkages, connecting them with resources and experts to exponentially increase their income. In doing so, we aim to foster a mutually beneficial scenario for all stakeholders involved.”

In Bakar Ali and Maherban, Hearty Mart discovered two enterprising farmers who were actively seeking avenues to enhance the income streams of farmers in their region. As fellow farmers, they possessed an intimate understanding of the challenges associated with securing fair prices in the market.

Subsequently, the Hearty Mart Farm2Market warehouse was established in Jadar, Idar, located in the Sabar Kantha district of Gujarat—a region renowned for the cultivation of Castor, Cotton, Soybean, and Wheat. They forged a strategic partnership with Ihsedu Agrochem Pvt. Ltd., wherein the latter committed to supplying castor seeds to Farm2Market-affiliated farmers at a price below market rates, while also purchasing the produce from these farmers at a premium compared to market prices. This innovative arrangement propelled Farm2Market to gain substantial traction within the region.

Presently, Farm2Market operates in 43 villages across Gujarat, collaborating with over 2000 farmers and 2 Farmer Producer Organizations (FPOs) and has 2 selling points beyond the warehouse in Jadar, Idar. This expansive reach underscores the successful integration of Hearty Mart’s vision with the entrepreneurial spirit of local farmers, fostering a mutually beneficial ecosystem that addresses the challenges faced by farmers in the pursuit of fair and sustainable livelihoods. Yet, their visionary aspirations extend beyond conventional trading.

Bakar Ali articulates their broader goal, stating, “We don’t want to merely engage in trading; we aim to catalyse a transformative shift in the agricultural landscape of our region. To realize this, we’ve been diligently piloting Eri-Silk production for the past two years, and the outcomes are indeed promising.” Farm2Market introduced a distinctive initiative by cultivating Eri-Silk in Sabarkantha, Gujarat, leveraging Castor leaves as a key element in the silk cocoon development process.

This innovative solution delivers a host of socially impactful outcomes. Primarily, it pledges to diversify the agricultural panorama by introducing Eri Silkworm-based silk production to a region currently limited to the cultivation of a few crops. The successful adoption of Eri-Silk cultivation not only broadens the spectrum of crops in the area but also generates fresh employment opportunities, especially for older individuals and women. Eri-Silk cultivation proves less labor-intensive than traditional crops like castor, offering a more accessible avenue for employment. Moreover, utilizing castor leaves as silkworm feed maximizes resource utilization, given the abundance of castor leaves in the region.

This innovative approach has not only garnered attention within the agricultural realm but is also making waves in business circles. Farm2Market’s pioneering efforts have been recognized through their recent incubation at the NABARD-assisted SDAU (Sardarkrushinagar Dantiwada Agricultural University) incubation center. This strategic partnership not only validates their innovative vision but also positions them to scale this initiative to the next stage. The incubation support holds the promise of catalyzing a substantial shift within the agricultural landscape of Gujarat. As they embark on the next phase of growth with the support of NABARD and SDAU, Hearty Mart Farm2Market’s journey serves as an inspiring narrative of how visionary businesses can drive positive change, fostering a resilient and prosperous future for both the business and the communities they engage with.

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Following the substantial allocations to the health, education, and infrastructure sectors in the previous budget, there is a growing expectation from the retailer’s community to be the focal point. Despite the National Retail Policy still being in the drafting stage, retailers are hopeful for positive measures in the upcoming budget, such as higher sales targets, increased consumer footfalls, and improved profit margins facilitated by lower taxes and business-friendly initiatives.

In anticipation of the forthcoming budget, numerous retailers have articulated their expectations and ideas, aiming to foster a more vibrant and prosperous retail landscape in India.

What are the expectations of the retailers for the upcoming budget? 

Speaking to IMAGES Group, Aastha Almast, the Co-Founder of The New Shop highlighted some of the expectations that she seeks from the new budget that is coming in Feb. She points out that the retail sector in India is eagerly looking forward to more liberalized Foreign Direct Investment (FDI) norms, especially for Multi-Brand Outlets (MBOs) and retail franchises. There is a collective desire for enhanced accessibility to MSME loans under the Startup India/StandUp India Scheme, as retail store franchises play a pivotal role in fostering entrepreneurship, particularly in Tier 2 and Tier 3 cities. This expansion is expected to generate a substantial number of employment opportunities.

Furthermore, retailers are optimistic about the prospect of lower interest rates for borrowing, particularly for franchises associated with established retail brands. This financial facilitation is seen as a crucial factor in supporting the growth and sustainability of retail enterprises, contributing significantly to the economic development of the country. 

Adding to it, Kunaal Kumar, Director, of Modern Bazaar further gave some bullet points about the retailer’s expectations from the budget. 

1. Reduced GST Rates: Decreasing Goods and Services Tax (GST) rates on essential commodities and imported food products aims to enhance affordability for consumers, thereby stimulating increased sales. This reduction in GST rates is intended to make these goods more accessible to the general consumers, promoting sales and ensuring that essential items remain within reach for a wider segment of the population.

2. Better Import Policies: Streamlined, easier, and cost-effective processes for imported goods are vital for retailers like Modern Bazaar specializing in imported food products. The aim is to simplify and expedite the importation of goods, making it easier for businesses. By implementing more cost-effective import procedures, financial burden can be reduced from the shoulders of both retailers and consumers, while bringing in goods from other countries. These enhanced import policies can also benefit retailers dealing in imported food items by cutting through bureaucratic complexities and ensuring a smoother, more seamless importation experience.

3. Support for Infrastructure Development: Recognizing the pivotal role that infrastructure plays in the success of retail business, financial Incentives can be included in the budget for revitalizing retail spaces and enhancing logistics to boost supply chain efficiency. These incentives can address the evolving needs of the retail landscape, ensuring that businesses stay competitive in today’s dynamic market.

4. Promoting Sustainable Practices: The budget can also add incentives and subsidies for embracing eco-friendly practices in operations. This offers both encouragement and motivation for the adoption of environmentally conscious operations. The goal is to make this transition to sustainable ops more accessible and financially feasible for retailers who are committed to reducing their environmental footprint.

By embracing these ideas, there can be a positive impact on the overall competitiveness and sustainability of retail businesses

With the promotion of industrialization in Tier 2 and Tier 3 cities as well as villages advocating Vocal for Local, what initiatives are required from the govt to make the retail landscape smoother for retailers to expand in such cities, towns, and villages? 

Addressing the challenges of establishing retail outlets in Tier 1 and Tier 2 cities, Astha says, ‘‘The allocation of prime real estate in prominent public spaces, such as transit hubs and tourist spots, needs to be earmarked for Indian retail setup. This strategic allocation aims to provide retail businesses with optimal visibility and accessibility, fostering growth and success, especially when you are emerging or expanding to a particular area.’’

Expanding businesses to Tier 2 and Tier 3 cities not only serves commercial interests but also becomes a catalyst for significant socio-economic development. One crucial aspect is the generation of employment opportunities within these cities, contributing to their overall growth and progress. By creating job opportunities, businesses play a pivotal role in enhancing the standard of living for residents and fostering a more robust local economy. Additionally, as retailers establish their presence in these cities, it directly contributes to an increase in the purchasing capacity of households. This, in turn, ensures that a wider array of products and services becomes accessible to the local population, promoting economic inclusivity and contributing to the overall prosperity of these communities.

But for such development to take place, there needs to be easy access to the financial backing. Emphasizing the role of such financial support, Aastha said ‘‘Recognizing the catalytic role of retail store franchises in driving entrepreneurship, particularly in Tier 2 and Tier 3 cities and beyond, financial support is deemed essential. By extending loans and incentives, the budget has the potential to not only fuel economic activities but also create a substantial number of employment opportunities, contributing to the overall development of these regions.’’

Kunaal further adds that to facilitate retail expansion in these areas, the government could take several initiatives: 

• Improved Infrastructure: Development of roads, electricity, and internet connectivity to make these areas more accessible and business-friendly. 

• Local Talent Utilization: The govt can introduce programs to train the local populations for the retail sector that not only increase the employment ratio in the region but also create a skilled workforce. 
• Tax Incentives: Offering tax breaks or subsidies to retailers who set up stores in Tier 2, and Tier 3 cities, and villages can further promote the retail environment in the regions. 
• Ease of Doing Business: Simplifying the process of obtaining necessary permits and licenses can help retailers set up new stores in these areas in a shorter period, fast-tracking retail development in these regions.

• Enhancing safety measures: By recognizing safety concerns and enhancing protective measures in Tier 2 and Tier 3 Cities and villages can further aid the retailers in establishing their stores at these locations. 

What are your expectations in terms of incentives, regulations, and digitization from the upcoming budget?

The upcoming budget could aid the retail sector in many ways. Talking about the cumbersome process of obtaining permissions and licenses to establish retail operation, Aastha said, ‘‘ The government should promote a single-window clearance system for licenses, especially for franchisees. This streamlined approach aims to expedite the approval process, alleviating the challenges faced by local entrepreneurs who undergo financial setbacks during the gestation periods while awaiting license approvals.’’ 

By facilitating a more efficient and centralized system for obtaining necessary permissions, the government can significantly contribute to reducing business-related delays and fostering a more conducive environment for entrepreneurship, ultimately promoting economic growth.

Moreover, Kunaal says that strategic investments and incentives are crucial for fostering E-commerce and Digital Payment Systems. This facilitates the seamless integration of cutting-edge technologies into retail operations. In today’s rapidly evolving market, digital infrastructure plays an eminent role in harnessing the full potential of e-commerce and modern payment methods. To empower this transition towards a digital future, both financial investments and enticing incentives are necessary initiatives. 

In addition to it, tax advantage for digital transformation is another expectation from the room. Incentives for retailers investing in AI, IoT, and Big Data Analytics are another requirement for the retailers. Recognizing the pivotal role of these technologies in reshaping the retail landscape, these incentives can foster an environment where retailers of all sizes can embark on a journey of digital transformation. By tapping into these tax benefits, retailers can strategically leverage technology to stay ahead in an increasingly digital marketplace.

Financial Support for SMEs is another key factor to stimulate growth and expansion in the retail sector. Specialized funding options and lower-interest loans are designed to encourage the sustainable growth and expansion of SMEs within the retail sector. By offering funding avenues with reduced interest rates, the budget empowers small and medium-sized retailers to invest in their businesses, seize growth opportunities, and navigate the path to expansion.

The budget stands as an expansive opportunity for retailers to propel their businesses forward. It serves as a substantial financial landscape, offering the means for strategic investments, growth initiatives, and transformative endeavors.

Within this vast expanse of the budget, retailers have the potential to allocate resources judiciously, fostering innovation and competitiveness. It provides a canvas upon which businesses can paint their vision, whether it be the implementation of cutting-edge technologies, expansion into new markets, or the enhancement of customer experiences. As retailers delve into this expansive budgetary realm, they are encouraged to consider it not merely as an accounting exercise but as a strategic road map for success. It is an invitation to envision the future, allocate resources effectively, and embark on a journey of sustainable growth. In this vast expanse of possibilities, the budget becomes a catalyst for innovation, resilience, and the overall prosperity of retailers.

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