Tata group's Croma in cost-cutting mode to bolster bottomline

MUMBAI: With a view to beat the on-going recession, Tata group's electronic and consumer durables mega-stores, Croma, is implementing several cost-cutting measures like re-negotiation of rentals, controlling administrative expenses and investing in IT solutions to bolster its bottomline, a top company official said.

"We are trying to save costs wherever feasible to increase our profits. We have successfully re-negotiated rentals on 70 per cent of our properties, mainly stand-alone stores," Infiniti Retail's CEO and Managing Director, Ajit Joshi, told media.

Infinity Retail, a 100 per cent subsidiary of Tata Sons, owns the Croma brand.

As far as rentals are concerned, the company follows two revenue-sharing models, one, where it gives fixed rentals as decided by the landlord and the other, where it gives a minimum rental or some percentage of revenue share.

"We are also trying to control our administrative costs. Besides, we are investing in IT by implementing ERP solutions which not only helps us to save costs but also helps us to analyse and spend appropriately on marketing," Joshi said.