Suumaya Industries Infuses Money in 1-India Family Mart
- BY BEx Bureau
- Sep 14, 2021
- 11 Mins Read
Suumaya Industries Ltd, which is an emerging diversified conglomerate group, through its 100 per cent fully-owned subsidiary Suumaya Retail Ltd has acquired a minority stake in Nysaa Retail Private Limited, which operates stores under the brand name 1-India Family Mart.
This investment will enable Suumaya Industries to strengthen its foothold in the women's ethnic wear segment in the smaller towns along with value retailing of men's and kid's wear in BCD towns or rural India, the two companies said in a joint statement.
This strategic partnership will help Suumaya increase its geographical footprint in tier-2, tier-3 and tier-4 towns in India. Besides this, it will also help 1-India Family Mart in developing its own private label in the fast-growing women's apparel category.
Suumaya Industries has over three decades of experience in the textile industry and has well positioned itself as a highly creative brand for exquisite fashion and worlds finest collection of Indo-Western Designer Kurtis for women. This collaboration will build on each other's synergy and make us more competitive in the industry. The 1-India Family Mart founders have more than 2 decades of rich experience in the retail industry and have seen the entire retail cycle. The investment paves the way for the potential of a wider strategic alliance between Suumaya 1-India Family Mart, Ushik Gala, Chairman Managing Director of Suumaya Industries Limited said
Value retail chain startup 1-India Family Mart is backed by private equity firm Carpediem Capital. The deal is a win-win as 1-India Family Mart can attract increasing footfall due to a strong assortment of products offered at optimal prices with well calibrated store positioning. A high footfall conversion rate of 45 per cent can be leveraged to expand Suumayas market penetration. Suumayas deep entrenchment in the womens ethnic wear category will thereby enhance 1-India Family Marts product portfolio.
We are well placed in the value retail sector in India. Amongst the top 3 value retail companies in the Indian retail space with strong assortment of products and extensive presence in tier-2, tier-3 and tier-4 cities with over 100 stores pan India. Besides the private label products offered at stores, we have a strong back-end infrastructure including distribution centres. This will give a strong leverage to Suumaya Industries and boost their retail presence of the women ethnic wear as well as going to strategically help in building our women's ethnic private label portfolio of 1-India Family Mart. Suumaya is going to be a very reliable sourcing partner for us in other segments too such as mens and kids wear, Jay Prakash Shukla, Co-Founder CEO, 1-India Family Mart said,
The deal is a win-win as 1-India Family Mart can attract increasing footfall due to a strong assortment of products offered at optimal prices with well calibrated store positioning. A high footfall conversion rate of 45 per cent can be leveraged to expand Suumayas market penetration. Suumayas deep entrenchment in the womens ethnic wear category will thereby enhance 1-India Family Marts product portfolio.
India retail is valued at INR 51 trillion in 2019, growing at a CAGR of 9 - 11 per cent. An increase in the market share of value e-retailers has demonstrated better profitability and value creation within the Indian retail landscape. Value retail constitutes 60 per cent of the overall apparel retail market. Growth in value retail is primarily driven by organised value retail. With the rural per capita consumption growing at 4.3x by 2030, compared to 3.5x the urban area, trend shows that companies are also pivoting towards the bottom of the pyramid with a leaner cost structure. Value retail is also mostly insulated to online distribution as opposed to high-cost structures.
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