Hindujas e-com biz set to go online

Our Bureau

MUMBAI, Nov. 6

SHOP 24 Seven, a joint venture between Hinduja TMT and the US-based Planet-E-Shop, is due to be launched shortly as India's first integrated, interactive e-commerce initiative.

Shop 24 Seven will use television, Internet and franchise point of the presence outlets for an exclusive range of Indian and imported products beginning with 400 product lines at the time of launch.

The company plans to add product lines over a period of time. Shop 24 Seven is being launched following a detailed all-India market study. The business plan and strategy has been validated by Price Waterhouse Coopers, which has taken a three per cent equity stake in the venture.

Shop 24 Seven has tied up distribution alliances with major MSOs including INCableNet and cable operators nationally and is aiming to reach six million homes. It is currently negotiating to expand the coverage to a majority of cable and satellite homes in the next few months.

In the first phase, Shop 24 Seven will invest Rs 10-crore equity in the project, Mr. Ramakrishna Hinduja, Co-Chairman, Hinduja TMT, said.

Initially, the product mix will be 70 per cent imported and 30 per cent Indian. This mix will be slowly shifted towards Indian goods, the company officials said.

``Retailing is an important part of our strategy. Our retail network business will use both virtual and physical means to reach consumers,'' Mr. Hinduja said.

In the first phase of operations, Shop 24 Seven expects to carve a market share of 3-5 per cent. A delivery chain comprising a call centre, product warehousing, courier delivery has been put in place. Logistics have been tied-up with companies to deliver products.

Arrangements are being worked out with cable networks and distributors to air the channel as well as franchise stores to enhance the distribution network.

``Cable operators are signing up to put up retail outlets,'' Mr. Hinduja said.

Pic.: Mr Eric Mausolf, CEO, Shop 24 Seven (left), with Mr R.P. Hinduja, co-Chairman, Hinduja TMT, and Mr Ludwell Denny, Vice-Chairman, Shop 24 Seven, at a press conference in Mumbai on Tuesday.

Picture by Paul Noronha