The Hindu : Kerala / Kochi News : A friend in your neighbourhood

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Friday, Nov 07, 2008
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Kerala

Kerala - Kochi

A friend in your neighbourhood

R. Ramabhadran Pillai

The Mithra chain, an initiative in the cooperative sector,
has opened 15 shops
in three years

— Photo: H. Vibhu

FRESH AND PURE: A Mithra outlet in the city.

KOCHI: The arrival of multinationals in the retail sector delighted many a shopper as it widened their choice. The new fashionable retail outlet at the corner of the street offered a joyous shopping experience for families that had already bade goodbye to traditional food habits. Globalisation had reached the doorsteps and the small neighbourhood shops trembled with fear. The shopkeepers protested with all their might, but retailing was gaining strength with the sustained support from a consumerist society.

Taking the bull by the horns was one of the strategies for the local shops. Some of the organised chains did seize the opportunity. They spruced up their premises and offered an enchanting fare that could match any MNC in the business. As the scene was hotting up, there emerged an unconventional player, the Mithra Supermarkets.

The new entity was born out of the enterprise of a group of people in Ernakulam.

The Ernakulam District Cooperative Bank was doing well and those at the helm decided to take the plunge. The idea of launching a new agricultural producer company was mooted by M.M. Monayi who led the bank. It was a new initiative, which had much of the spirit of the cooperative society minus politics. Thus the Mithra Agricultural Producer Company Limited was born three years ago.

The successful functioning of the supermarket proved beyond doubt that a new set-up can effectively withstand the so-called onslaught of MNCs in the retail. As the retail boom was spreading wings, Mithra too flourished thanks to a visionary leadership and good support from the people. Fifteen outlets were established in a span of three years. The sixteenth shop is getting ready.

Started with a share capital of Rs.20 crore out of which Rs.14 crore is loan from the district cooperative bank, the Mithra chain is set to grow. Four more outlets are being planned for opening in the coming months.

The Mithra group is offering employment to more than 400 workers. It has its own central godown at Nettoor and a bakery at Muppathadam where bread and various other food items for distribution in the network are made.

The challenges are many, but there is social commitment behind the running of the retail business, says Mr. Monayi who is the chairman of the company. More than 30,000 items are being traded at the malls. Bulk purchase is required to get better margins and that is possible only if the business enlarges. But the Mithra chain has set a fine model for others to emulate.

Protecting the consumer interest is of prime importance. Care is taken to adhere to health and hygiene at the bakery; no harmful colouring matter is used. Mithra makes soaps that use pure coconut oil and without animal fat, generally found in several brands, he says. The environment-friendly carry bags are made by 30 Kudumbasree units.

As a trustworthy consumer outlet offering employment to educated youth, Mithra is set to scale new heights. The company is expected to reach the break even point in two years when it will launch mega plans for expansion.

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