GreenDust to expand overseas operations, sell more products
Mar 12 2014
The firm currently handles reverse logistics for all the leading brands of consumer durables, refurbishes the returned products and sells them through its warehouse stores and discount stores. Started four years back, the company currently has 220 discount stores, mainly in tier-II and III cities and 10 large warehouse stores in the outskirts of metros.
“For us the way forward is to expand the number of categories and reach. We are getting into categories like medical equipments — these could be both rejected units and products used by large hospitals. With the help of the manufacturers we will refurbish these products and supply to smaller hospitals at lower rates. Other categories, include apparels, shoes, fashion products and two-wheelers,’ said Hitendra Chaturvedi, founder and CEO of GreenDust.
As far as reach is concerned, the company is increasing its discount store count to 1,000 in three years. The company has also opened its offices in Dubai and Hong Kong in order to establish itself in the West Asian and South East Asian markets.
In order to fuel its expansion, the company will go back to its investors. In 2010, a consortium of VC funds, including Kleiner Perkins Caufield and Byers, Sherpalo Ventures and Reliance Venture Asset Management, had invested in the company. The reverse logistics company had raised a series B round of investment from Vertex Venture Holdings in 2012.
“It is a profit-making model and our franchisees are getting higher margins retailing refurbished products compared to those retailing new products. Reverse logistics is not the core competency of the brands and it also incurs cost to the company. So these articles are sold to us at a discounted rate. These products are refurbished and sold at our discount stores or warehouse stores at 25 to 40 per cent discount with warranty,” said Chaturvedi.
The company also tries to keep costs low while selecting the real estate for stores.