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Fabmart hopes to break even in 5-6 months
Our Marketing Bureau
Hyderabad: Contrary to the perception about dot.coms, the Bangalore based virtual supermarket, Fabmart.com is all set to break-even in about five to six months' time, according to its executive director Hari Menon. Speaking to newsmen on the eve of the launch of another `Computer Store', the sixth in a row, Mr Menon said, "We expect to reach break-even point on gross operating costs and by end of the second year of operations we will achieve full break-even." In a strategic move to expand the consumer base, Fab Mart has proposed to add few more product-specific stores to its virtual store chain in the coming two to three months' time. "We are working to add `watch stores' on our virtual supermarket while gift, garments and consumer stores are to follow in the next three months," Mr Menon told presspersons here. On Wednesday, the company has announced the addition of the sixth store to its chain, Computer Store, which will offer a range of computer products including hardware, software, consumables, besidescomputer furniture and books. Fabmart has received two rounds of venture funding from Reliance and Crecil Caps to the tune of Rs 25.50 crore. As per the estimates the company is expected to report Rs 3.5 crore as turnover during the current year and targeted to post Rs 30 crore by the end of the second year of operations, he added. The company is working on the zero-inventory model since it will out source all the products and services. "We depend on the retail profit margins like any other retail shopkeeper", Mr Menon explained. lCopyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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