Coromandel International Ltd is eyeing a break-even for its agri-retail business in the current financial year. The company proposes to add another 360 centres to expand its agri-retail chain Gromor to about 1,000 stores by 2014, said A. Vellayan, Executive Chairman, Murugappa Group.
The retail business expects to clock a turnover of about Rs 1,200 crore in the current financial year and aims to achieve a break-even, said Kapil Mehan, Managing Director, Coromandel International. Last year, the agri-retail chain clocked a turnover of Rs 900 crore, he said.
Mehan said the company expects to invest additional Rs 35-40 crore in expanding the agri-retail business over the next three years. Presently, it employs about 2,000 employees in the agri-retail business.
The Murugappa Group primarily sells agri-inputs like seeds, organic manure, agro-chemicals and fertilisers, plant protection equipment and farm advisory services through the agri-retail chain – Gromor stores.
The agri-retail business, set up in 2007-08, mainly operates in states of Andhra Pradesh and Karnataka.
“We are evaluating options to expand our agri-retail network to network to Maharashtra and Tamil Nadu,” Vellayan told reporters here. These retail stores also market veterinary feed and insurance products.
“Agri-retail, water soluble and organic fertilisers and farm mechanisation services are the three key areas for the company going forward,” Vellayan said.