It plans to launch another three outlets in the suburbs by the year-end. Music World, the country's largest music and home video retailer is part of the Rs 8,500 crore (Rs 85 billion) RPG group.
The music industry size in India is estimated at Rs 700 crore (Rs 7 billion), while the Mumbai music market is estimated at Rs 180 crore (Rs 1.8 billion), of which Planet M has a share of Rs 25 crore (Rs 250 million), and Rhythm House, the largest standalone music store in the city has a share of Rs 8 crore (Rs 80 million).
The rest of the market is serviced by small retailers."We are looking at gaining a strong foothold in Mumbai as well," said Sanjay Gupta, general manager, operations and market, Music World.
"Mumbai is a large market and there is enough space for more players." Music World has 20 per cent market share in the 14 cities where it is present.
The stores will offer a range of products and services - from CDs, VCDs and DVDs to iPods, MP3 players and digital cameras. In addition, the store will also offer a consumer request log service, which will enable customers to place requests for products not unavailable immediately, Gupta said.
In addition to the stores in Mumbai, the company is also planning to set up stores in Pune where it already has an existing store.
"We are planning to consolidate its presence in Maharashtra this year," said Gupta. Most of the expansion he said will be through their tie-ups with Hyundai Dialogue stores and Sony World.
At both these outlets, Music World offers a small selection of its catalogue.The company, which saw its turnover touching Rs 73 crore (Rs 730 million) last year has also been witnessing a massive growth in the home video and DVD segments.
Nearly 30 per cent of the company's turnover comes from the sale of movie VCDs and DVDs. Its sale of VCDs grew by 50 per last year, while DVD sales doubled. The home video market in India is estimated between Rs 150 to Rs 175 crore (Rs 1.5 to 1.75 billion)
Commenting on the trend, Gupta said, "As many entry-level users are starting out with DVDs, many more movies, especially international ones are available in DVD formats which are pressed India. The phenomenal demand for VCDs and DVDs cannot be ignored."