Sources say as ABRL is finalising plans on the rollout of the retail chain network by using its own brand name, it makes sense to replace the Trinethra brand from the stores to coincide with its overall plans.
ABRL had taken over Trinethra Super Retail in January this year. The latter was using the Trinethra brand in Andhra Pradesh and Tamil Nadu and the Fabmall brand in Kerala and Karnataka. The new retail brand would be prominently using the parent firm's brand name and logo, the sources said.
An Aditya Birla group spokesperson declined to comment.
The objective of the new brand name was due to high recall value, quality and goodwill associated with the Birla brand, the sources said.
Trinethra was started as a partnership firm in 1986, which was converted into a public limited company in 1998 as Trinethra Super Market. In 2003, the company changed its name to Trinethra Super Retail. It earned a revenue of Rs 240 crore in FY06. Trinethra also had an in-house brand, Quality First, under which it sold staples such as rice, wheat and pulses.
Sources said the company would rope in private equity players in the next round of financing within a year. After reaching a particular scale, the company would also come out with an initial public offer, they added.
Apart from launching its own network, the company is also looking at picking up equity stake in the supply chain companies so that it can have control over its vendors. "This is one of the ideas floating around with the top management and we would soon take a call on it," an ABRL executive said, requesting anonymity.
Aditya Birla Retail, Reliance and Wal-Mart Bharti have announced plans to enter the lucrative $300 billion retail sector in the country and will be competing with existing players such as Pantaloon Retail, Tata-owned Trent and Shoppers' Stop.
