Key facts
- Electronics Mart India is diversifying its store locations beyond Hyderabad due to concerns about AI-related job losses impacting consumer spending.
- The retailer aims to open 20 new stores in the current financial year, with a focus on northern markets.
- Approximately 60% of Electronics Mart India's revenue is currently generated from Hyderabad.
- The company plans to invest around 1.2 billion rupees in its expansion efforts.
- Revenue is projected to increase by approximately 15% this year.
Electronics Mart India, a Hyderabad-based retailer, is planning to expand its store footprint beyond its current stronghold due to growing concerns about potential job losses in the technology sector driven by AI advancements. The company, which derives approximately 60% of its revenue from Hyderabad, is looking to mitigate risks associated with a heavy reliance on the IT industry, which employs a significant portion of the population in its key operating areas.
To achieve this diversification, Electronics Mart India intends to invest about 1.2 billion rupees ($12.69 million) to open 20 new stores in the current financial year. This expansion will include establishing a presence in Kolkata, where it currently has no stores, and strengthening its footprint in and around New Delhi. The company plans to add 20 to 25 stores annually over the next five years, with a strategic focus on northern Indian markets where retail is more fragmented and offers greater growth potential.
CFO Premchand Devarakonda acknowledged that any significant disturbance in the IT industry could impact the business, but stated that the expansion is aimed at "de-risking" the retailer's dependence on any single sector. For the current fiscal year, Electronics Mart anticipates revenue growth of around 15%, in line with market estimates, partly supported by strong demand for air conditioners during the hotter summer season. In comparison to competitors like Reliance Digital (over 695 outlets) and Tata Group's Croma (about 540 stores), Electronics Mart currently operates over 220 stores across six states.