Indo Rama promoters enter US retail business

NEW DELHI: Promoters of polyster manufacturer Indo Rama have entered the booming retail industry through franchise agreement with US-based 'Office 1 Superstore' to sell office supplies in the country.

They have floated a separate company for the venture - Indo Rama Retail Holdings - and already opened two stores in the National Capital Region, besides lined up investment of Rs 20-25 crore for the office supplies retail venture, Vishal Lohia, Executive Director of Indo Rama Retail Holdings said.

"By the end of this year we would be opening 8-10 stores," he said, adding that the first few stores would be owned by the company and later it would rope in partners.

Through the tie-up with Office 1 Superstore, Indo Rama has got an exclusive right over the global brand name in India and right to appoint more franchisees.

The company will be selling stationery and other office supplies including computers through its retail outlets.

Apart from the brand name, the Indo Rama Retail Holding would also benefit from the hand holding that Office 1 will provide.

"Instead of reinventing the wheel, we decided to go for the tie-up as it would get us knowhow about the business," Lohia said.

Apart from knowledge about the business, Indo Rama would also be sourcing products from Office 1's central warehouse in China. As a part of the global chain it would also be tapping the customers of Office 1 in other countries in Indian market.

The company would also be selling some of the Office 1 branded products in India but many of them would be sourced from the Indian market.