MUMBAI May 28 India's top 10 food retailers are
estimated to have accumulated losses worth $2.20 billion in the
fiscal year ended March 2014, as they scaled up operations and
refined their business models, according to a report by ratings
The companies, which the report estimated generated $3.98
billion in revenue during the same period, include Wal-Mart's
Indian operations which run the Best Price Modern
Wholesale stores, Metro Cash & Carry India, Aditya Birla Retail,
Bharti Retail Ltd, Reliance Fresh Ltd which is a part of
Reliance Industries, and Trent Hypermarket Ltd which
is a part of Tata Group-controlled Trent.
Competition from local mom-and-pop stores, which constitute
90 percent of India's $500 billion retail market,
price-sensitive customers, and low margins remain the core
challenges to the growth of organised food retailing in the
country, the report said.
Food and grocery account for two-thirds of the retailing
market and organised food retail contributes 2 percent to this.
Crisil, however, does not expect any consolidation in the
sector as most companies are at an advanced stage of investment
and backed by deep pocket promoters.
($1 = 59.0250 Indian Rupees)
(Reporting by Nandita Bose; Editing by Subhranshu Sahu)