PANAJI: In a major development for the Goan retail industry, Mumbai based Godrej Nature’s Basket (GNB), a grocery and fresh food chain of the Godrej group, entered into an equity partnership with local Magsons chain of supermarkets.
News of the equity collaboration came in on Thursday after a joint press conference in Mumbai addressed by Avani Davda, managing director, GNB and Kirit Maganlal, founder and chief executive officer, Magsons Group.
Later speaking to The Navhind Times, Davda, said that the partnership would help the company penetrate into the Goa market and upscale its grocery business.
She disclosed that the equity alliance is important to the company looking to break into smaller, regional markets. Although reluctant to reveal the amount of the stake, Davda indicated that, it is not more than 26 per cent.
“Magsons is a well-known brand in Goa. We like the way the group it is doing business and feel the alliance will benefit both the partners,” said Davda.
She added that the alliance is “win-win for both partners as it would help improve revenue and margins as well as provide Magsons the expertise of crafting great shopping experience for consumers.”
Speaking on the strategic alliance, Maganlal said, “We are delighted to partner with GNB in its endeavour to expand across key regions. This collaboration is aimed at accentuating the shopping experience of our consumers in Goa.”
He said that, employees across Magsons stores will immensely benefit from the expertise and legacy of Godrej.
Started in 2005, Godrej Nature’s Basket is omni-present in India’s retail business. The company sells fresh fruits, vegetables, groceries, meats and bakery products. It operates through physical stores across India and also has a growing online presence. In 2017-18, the company’s turnover was Rs 330 crore.
“For 2018-19 the company is looking at a turnover of Rs 450 crore that could even increase to Rs 500 crore post the tie-up with Magsons,” said Davda.
GNB is targeting three times growth by finacial year end 2020 through asset-light model.
Meanwhile, the Magsons Group in Goa is ever expanding. It operates 11 stores and achieved a turnover of Rs 50 crores at a gross margin of around 15 per cent in 2017-18.