Date:30/03/2007 URL: http://www.thehindubusinessline.com/2007/03/30/stories/2007033002071100.htm

Back Heritage Foods forays into Bangalore with fresh@

Our Bureau

Opens three retail outlets; plans Chennai entry soon

FRESH ONE: Mr S. Jagadish, Vice-President, Heritage Foods - Retail division at a`fresh@'" store at HAL 3rd Stage in Bangalore on Thursday. — G R N Somashekar

Bangalore March 29 Hyderabad-based Heritage Foods India Ltd has made a Bangalore foray with three fresh@ outlets in the city.

The `daily needs' store chain, each of about 3,000 sq.ft, would offer home delivery as one of the services to distinguish itself in an already-crowded retail market in the country.

Speaking to presspersons here after the launch, Mr S. Jagdish, Vice-President, Heritage Foods, Retail Division, said that almost 50 per cent of the company's projected Rs 300-crore revenue (by 2007-08) would be contributed by the home delivery business.

Heritage Foods will leverage its distribution network of 2,900 agents already existing for its dairy products to strengthen its home delivery model for the retail chain of stores. The company has also set up a call centre and an e-portal to enable online shopping. Home delivery is for a minimum ticket value of Rs 200, Mr Jagdish said.

Presence in Chennai

Heritage already has12 fresh@ stores in Hyderabad and plans to have presence in Chennai in a couple of months' time, Mr Jagdish said.

The company has currently invested about Rs 100 crore in the retail division.

Explaining the retail chain's business model with a strong back-end operation, Mr Santhosh Unni, Head, Operations and Marketing, Heritage Foods, Retail Division, said, "We have already established our credibility with farmers and they will drive our business now."