Shopping centers or malls in India have seen a massive transformation from being mere shopping destinations to entertainment zones, believes Mukesh Kumar, Chief Executive Officer, Infiniti Mall
Kumar's views mirror the conclusions made by property consultant ANAROCK in a recent report that food and beverages, along with entertainment, now make up for 40 percent of a mall's space, against 15-17 percent until a few years ago.
In a freewheeling chat with Moneycontrol, Kumar said the footfalls in Infiniti's malls are expected to rise by 20-22 percent in the current financial year compared to last year. In the previous fiscal, the metro work in Mumbai’s western suburbs Andheri and Malad restricted the growth in footfalls to nearly 10 percent.
Raheja Constructions-owned Infiniti Mall opened its first property at Andheri in Mumbai in 2004, followed by another one at Malad in the same city in May 2011.
Infiniti Mall (Andheri) is spread across 310,000 square feet with 65 stores, a six-screen multiplex (PVR Icon), food court, family entertainment center and restaurants besides shopping.
Infiniti Mall (Malad) is one of the biggest malls in Mumbai and is spread across 1.20 million square feet with more than 180 shopping brands, multiplex, 36 food outlets and a Family Entertainment Centres (FEC) spread over 60,000 square feet.
Kumar who began his journey in retail with the launch of Infiniti Mall, Malad in 2011 said the company is in talks for finalising land parcels in metro cities-- Delhi, Gurugram and NCR (National Capital Region).
The company is also looking at extending its presence to Tier II cities--Pune, Coimbatore, and Indore.
Excerpts:
Q: What is your take about the changing mall concept in India? Now that e-commerce is picking up do you see enough traction to malls?
A: The entire landscape of malls has changed. These malls are no more a shopping destination ---people come to just hang around, socialise, meet friends and we have been noticing that people are opting for malls for hanging around. It’s like a one-stop-- come around, park your car, meet friends, watch a movie, and eat. So malls are playing a very important role and it’s not just about shopping.
Also, we are allotting more space for entertainment movies, food. We do events, we do marketing reach out to a larger audience which also helps us to get traction.
Q: You spoke about traction, so what is the kind of growth in footfalls are you expecting?
A: Last year was a little difficult year because of the Metro work that was going on in the western suburbs. But we have crossed that stage, now there has been a healthy growth of about 20 percent so far compared to last year.
Typically, after a dull season, September, October, and November witnesses a pick up because of the festive season. Last year, the growth was only 10-12 percent. This year we are hoping for 20-22 percent growth in footfalls and it may also be on the higher side.
Q: You have 2 malls in Mumbai. What are your expansion plans, would you also be looking at other metro cities?
A: We have been trying to sign some MoUs (memorandum of understanding) in the metros. In the metros, we already have 2 malls in Mumbai. Now we are looking at Delhi, Gurgaon (Gurugram), and NCR. We are also looking at Tier II cities, it could be Pune, Coimbatore, Indore.
In fact, we are evaluating all the markets and have also shortlisted a couple of land parcels. Discussions are underway and hopefully, we should be able to announce it in the next couple of months.
Q: Which model would you be looking at for building malls? Will you be buying the land outright for building malls?
A: We are open to anything. It could be a joint development, it could be outright or it could be a joint venture. As long as it is a viable proposition we are ready to look at any model. We are not restricting ourselves to one model.
Q: How many more malls can we see from Infiniti?
A: We are targeting another 2 malls in the next 3-4 year’s time. In case we get better property then we can build more malls.
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