Mumbai, June 26: With consumers increasingly relying on online grocery stores and delivery websites/apps to purchase daily supplies, the Tata Group has decided to enter into the market space by buying out Gurgaon-based GrocerMax. The reports come just a few days after news about Amazon India buying out online grocery store Big Basket did the rounds. Also Read - Tanishq Withdraws Ad: Netizens Call Out 'Bigoted Trolls', Chetan Bhagat Says 'Those Attacking Tanishq Can't Afford It Anyway'
According to a report by Economic Times, Tata is buying out GrocerMax’s management team and technology infrastructure and the new venture will shut down in Gurgaon and set up shop somewhere the Tata Group’s grocery business has a presence. The new team, it said, will help setup the online platform for Trent Hypermarket co-owned by Tata Group and British retailer Tesco, to compete against rival Amazon’s Big Basket in the online grocery store market. Also Read - IPL Title Sponsorship: BCCI to Announce VIVO Replacement on August 18, Tata Group Frontrunners to Bag Rights
The Tata Group already has 42 stores under their Star banner, in three format- Dailies, Market and Hyper. Tesco, meanwhile, is the world’s third largest retailer, with 6,800 stores worldwide. The retailer rakes in about £3 billion in sales from its online business alone. Their Indian business, however, is a small part of the humongous profits pie. In India, the food and grocery section alone accounts for 50 per cent of the retail business, although the bulk of the profits come from personal and home products, reported ET. Also Read - Tata Sons Likely to Take Over Air India by End of August
GrocerMax was founded two years ago by Gaurav Juneja and K Radhakrishnan. It’s a hybrid platform for groceries and it stocks only 10 per cent of the products, and sources the rest of them from supermarkets and provisional stores in real time. Tata’s buy over of the company has not yet been confirmed by either side.