M&M plans realty play in retail space

NEW DELHI: Mahindra & Mahindra (M&M) is joining the retail rush but as an infrastructure provider rather than a service provider. Unlike Bharti or Reliance, M&M is looking to sell retail space as part of its realty projects. Speaking to ET, Arun Nanda, executive director and president, infrastructure development sector, said: “Like our SEZ projects, M&M can create the infrastructure and sell space for retail. We have already built a small retail space for our customers at Mahindra World City in Chennai and we can provide the support infrastructure as well, like we do with our SEZ customers. But we are not going into mall management at this point of time.”

Unlike real estate majors who are not only building retail spaces but also managing the malls, M&M will build retail spaces as part of SEZs and is already the necessary earmarking space for that. The company feels it can replicate its SEZ model in retail as well.

Like the SEZ model, where the developer offers both infrastructure and support services to companies, M&M would also offer the same to retail chains. “Which means if a big-ticket brand like Wal-Mart wants to set up shop in our retail space, we would build the infrastructure for them, offer them back-end services and support, but that’s it,” said Mr Gandhi. “We wouldn’t tie up for actual retail services nor would we run the malls for them.”

M&M has already built a retail space at Mahindra World City, which includes a bank, an ATM, a food court, a florist, a bookshop and a giftshop. That retail infrastructure is for the captive consumers who work in the companies that have taken up SEZ space. “When we get into this business in a bigger way, our logistics company can handle the logistics for retailers and Subh Labh can do the sourcing as well,” said Mr Gandhi.
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