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Monginis plans 50 outlets by end this year

04 Feb 2010

After a recent store launch in Indore, Mumbai-based leading bakery chain, Monginis now plans to open 50 more outlets across the country by end of the year 2010. The company also plans to double its retail distribution from the current retail network of 15,000 stores across the country.

Elaborating on the Monginis' expansion plan, Zoher Khorakiwala, CMD of Monginis Pvt Ltd, said, “After Indore, the cities where we are planning to roll out our exclusive cake shops are Kanpur, Lucknow, Raipur, Chennai and Bangalore. We are currently looking out for suitable franchising partners for these locations and it will take some time for us to decide on Monginis’ manufacturing franchisee.”

For opening new stores, on an average, Monginis is looking at the locations with the minimum carpet area of 200 sq ft. “Apart from opening more stores, our strategic business unit (SBU) is setting ambitious plans for the retail distribution expansion. Today, our packaged products are being retailed in the retail outlets of limited number of cities and we wish to increase our distribution in the retail network of all the metro cities and other developing towns. The retail expansion plan involves appointing more number of distributors and retailers,” he added.

In addition to traditional and modern trade channels, the company is also active on on-line trade. Recently, it has launched an e-commerce site, www.monginis.net, where customers can easily place their orders. “Going by the changing convenience-driven shopping habits among customers, we feel that the online business is very important,” said Khorakiwala.

Moginis marked a turnover of Rs 214 crore in the last fiscal and has set a target to achieve five percent of this turnover in the next two years only through its online business. Further, through its retail expansion, company expects to grow at the rate of over 20 percent year-on-year. Besides, the cake major is also ready to extend its portfolio into ready-to-eat (RTE) foods segment.

By Juhi Sharma