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Imminent retail boom will usher in major changes

R. Ramabhadran Pillai

The sector offers employment opportunity to educated youth

KOCHI: After a silent revolution that ushered in multifarious changes in telecom, it is apparently the retail sector that may witness a transformation. The wind is already blowing and the entire scenario is set for a rapid change in the months ahead.

While the local traders are afraid of being wiped out in the huge retail wave set to lash the Indian shores, international giants such as Wal-Mart are said to be eying the large consumer market in India. Indian companies too have realised their strengths and have launched initiatives before the foreign giants start exerting their influence on the internal retail segment.

Reliance has already launched a chain of retail outlets in Andhra Pradesh and is planning to extend the activity to other States. The company will open its outlets in Kerala in January, according to Anil Kumar, Head of Reliance Retail, Kerala.

Mr. Kumar said good opportunity awaited the people of Kerala in the opening up of the retail segment. Neither heavy industries that polluted the environment nor projects that needed large tracts of land were suitable for Kerala. A well-spread retail chain would go hand in hand with Kerala's economy, he said.

The State's strength lies in its human resources. The growth of retail sector would provide an opportunity to employ hundreds of youngsters. "The employability of those who have passed 10th class and 12th class will increase. Children of low income groups will be beneficiaries", he said. Reliance Retail was planning to recruit 8,000 people in one year in Kerala, he said.

Quoting surveys conducted in Kerala, he said there had been 100 per cent increase in the number of students who had completed secondary education in the last five years. Thus, offering employment to this category would serve a social purpose, he said.

The company started the recruitment drive, but was finding it difficult to get experienced candidates for higher cadres. Once this sunrise sector achieved the projected growth, it would effectively reduce unemployment by 5 per cent in the country, he said. The company would recruit more than 8 lakh all over India by 2010.

Trinetra Super Retail Limited, a food and retail chain which started operations in Kochi, was keen on expanding its activity to various other locations in the State. The group is planning to become the largest retail chain in Kerala, according to a top executive of the group. The group, established in 1986, bought over Fabmall India Private Limited, a Bangalore-based retail chain in 2004. Starting with a modest turnover of Rs.158 lakh, the group moved up to a level of Rs.17,000 lakh by March, 2006, according to company sources. This perhaps indicated the potential of the retail sector.

The growth of the retail sector would spur development in allied sectors like logistics and cold storage. It was pointed out that the retailers were keen to ensure an efficient food supply chain and it would result in tie-ups with transporters. A chain of suppliers would support the retail giant and this situation was expected to provide a splendid opportunity for the local suppliers.

The rise of the retail sector will also reflect in the cargo traffic to various places, according to experts. Apart from the internal traffic, the cargo movement from abroad may move up because of the demand for international brands. The Gulf Air freighters operating from destinations in the Gulf countries to South India were recording growth, according to Rajeev Nambiar, the airline's General Manager. Though the consignments cater to different sectors, the consumer market could be considered as the driving force behind the growth, according to experts.

Notwithstanding the winds of change in the sector, many among the established traders are apprehensive of their future.

The traders under the banner of Kerala Samsthana Vyapari Vyavasayi Samithy chalked out a path of agitation against the opening up of the sector.

About 5 crore retailers presently earn a living out of the trade and they have a bleak future according to the Samithy.

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