Bhartiya
Udyog Vyapar Mandal (BUVM), the biggest national-level association of
mom and pop kirana stores, comprising over 17,000 state-
and district-level associations across 27 states, is planning to form
co-operatives throughout India, thereby helping its
members benefit from a common sourcing and shared infrastructure (logistics,
storage and billing) platform. The association will negotiate directly
with manufacturers such as Unilever and P&G and do away with any
middlemen cutting into their profit margins.
The move will immensely benefit neighbourhood stores, which are already
hit by retail biggies that are luring away the consumer with considerably
low price tags.
BUVM secretary general Vijay Jain told Economic
Times, "We are
on the verge of finalising plans to set up state-level co-operative societies.
To begin with, these societies would be jointly owned by around 2,000
small retailers in each state."
The association already has a co-operative
society named Care Co-operative Society, which is mainly into housing.
Increasing the scope of Care Co-operative Society is also being seen
as an option. The co-operative society would start with members who own
provision stores, but may soon include other retailers into its gamut.
If the proposal goes through, state level co-operative societies would
not only boost the purchasing power of the members, but also improve
their goodwill. The co-operative society would go for collective buying,
following the Wal-Mart model, say the members. The middlemen would be
removed, directly boosting the profitability of the members.
In suburban
Mumbai, around 3,000 shopkeepers had come together about a month ago
for a pilot project. "A consortium has already started
in the suburbs by an association called Kutchi Vyapari Association. Now
many shopkeepers are willing to follow the model and more shopkeepers
are interested in the co-operative society concept," said a spokesman
for Bombay Suburban Grain
Dealers Association.
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