July 18, 2018
The outlet, spread over 50,000 sq ft, will cater to a wide customer base of more than 50,000 registered members, including smaller retailers, hotels, corporates, as well as state-run entities
LOTS, a part of the US$50 billion Thai conglomerate Charoen Pokphand Group, will open an ecommerce platform in the coming weeks and up to 15 wholesale outlets over three years
Besides operating retail platforms, LOTS will run cold chain network, logistics infrastructure as well as farmland to support fresh agricultural production to set up an integrated operation
LOTS’ operations in Delhi will create 5,000 direct and indirect jobs over the coming five years. The investment bodes well with the ‘Make in India’ initiative to drive indigenous manufacturing
LOTS Wholesale Solutions, an unit of Thailand-based large retailer Siam Makro Public Co Ltd, is targeting investment of more than US$145 million in India over the coming five years. The announcement came on July 18 coinciding with the launch of LOTS’ first Indian outlet in New Delhi. The outlet, spread over 50,000 sq ft, will cater to the company’s wide customer base of more than 50,000 registered members, including smaller retailers and manufacturers, hotels, educational institutes, hospitals, corporates, as well as state-run entities. The company, a part of the US$50 billion Thai conglomerate Charoen Pokphand Group, will open an ecommerce platform in the coming weeks as well as up to 15 wholesale outlets over the next three years. Besides operating retail platforms, LOTS will run cold chain network, logistics system as well as farmland to support fresh agricultural production to set up an integrated operation.
LOTS’ outlet was inaugurated by India’s Minister of Food Processing Industries, Harsimrat Kaur Badal. “The arrival of the multinational companies such as CP Wholesale in India…shows the popularity of Brand India in the world. Days are not far for India to become the Global Food Market and Global Food Factory,” Ms Badal was quoted in a report by The Economic Times. The company’s activities have been encouraged by Government of India allowing 100 per cent foreign direct investment (FDI) in the retail space. Charoen Pokphand will currently focus on business-to-business (B2B) cash-and-carry stores in India. It’s operation in India will heavily rely on technologies to offer seamless supply to customers. LOTS’ operations in Delhi will create 5,000 direct and indirect jobs over the coming five years. The investment also bodes well with the ‘Make in India’ initiative to drive indigenous production and manufacturing.
The company had announced its India plans through an agreement signed with the Ministry of Food Processing Industries during the World Food India 2017 event which attracted FDI worth US$11.3 billion. The investors who signed agreements during the event came in from the USA, the UAE, Germany, the Netherlands and France. Together with the Indian Government spending for the sector, the total investments signed reached US$18.8 billion. Meanwhile, since 2014, the Government has started 10 Mega Food Park in the country as part of a strategy to set up 42 Mega Food Parks with an investment of around US$2.4 billion. In order to make India a resilient food economy and the Food Factory of the World, the Government has made Food Processing a major thrust area of ‘Make in India’. The initiatives come as India’s food and beverage industry is expected to increase to US$1.1 trillion by 2025.