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The hearty mart Introduction History & Background Hearty Mart is a supermarket at Vishala Circle in Juhapura, a minority dominated area of the city of Ahmedabad. Hearty Mart was started by Nadeem Jafri, a young man belonging to the Syed community. Nadeem is a cousin of Pir Syed Mujahid Hussain Jafri who is the sect head of the Cheliya-momin community from North Gujarat; which runs a network of around one hundred restaurants in and around Ahmedabad and various restaurants in the entire highway belt of Ahmedabad to Mumbai. These restaurants are owned in a trusteeship form, each restaurant having investment of a number of partners.
Nadeem Jafri is the Managing Partner of brand Hearty Mart, a supermarket which he has franchised into a number of stores in the rural and semi urban areas of North and Central Gujarat. Nadeem, by venturing into villages and setting up franchises of Hearty Mart, provided Entrepreneurial opportunities to the youth in the rural areas. By venturing into rural areas he has transferred the technologies prevalent in an urban supermarket into a rural set up thus satisfying the desires and demands of the rural population in these villages. Hearty Mart is basically a food-grocery-cosmetics retail business. All the prominent brands big or small are sold at Hearty Mart. FMCG categories like dental care, cosmetics, confectionaries, break-fast cereals, Chinese sauces and others are readily available here. Defining the brand Hearty Mart, it is a store to serve the daily needs of people in the vicinity.
Nadeem Jafri set up Hearty Mart inspired by Big Bazaar and the Bottom of the Pyramid Philosophy of CK Prahalad. Restaurant was a business that could have been easy to start with for the nature of his family background but he realized that restaurant business was cluttered in Gujarat at that time. Narrowing to retail sounded as a promising business looking into the market share of organized retail (Close to 10% of India’s Total Retail Market.). Hearty Mart was set up initially with the help of financing from a number of investors from Nadeem’s close circle.
Juhapura: A window of opportunities For a decade of 1992-2002, Juhapura largely remained an area which was considered as riot prone and downtrodden. It was deprived of basic amenities and though it became a pre-dominantly Muslim ghetto it was avoided by effluent Muslims.
Post 2002 communal riots the effluent Muslims started shifting their base and moved to Juhapura. This changed the social dynamics of the area and it got all the due attention from various corners. This migration of Muslims with deep pockets brought out a construction and housing boom and there was a steep rise in the real estate prices.
With a booming real estate the area promised development but still it remained devoid of basic amenities like a proper organized retail outlet which can provide convenience of purchase to the residents. Adanis had opened their supermarkets across Ahmedabad but for an obvious reason avoided Juhapura.
It was in this gap lied a huge opportunity for an organized food-grocery store in the area. Thus in early 2004, with the vision of bringing convenience to the locality, Hearty Mart was established at Vishala Circle. With ‘Sabse Khaas Ghar ke Paas’ as a baseline Hearty Mart is positioned as a convenience store equipped to cater to the basic needs like groceries, food grains, cosmetics etc of the locality.
Vishala Circle is situated approximately 12 kms from Ahmedabad airport, and has been named after the theme restaurant Vishala Village; which provides traditional Gujarati cuisine in a village ambience. It is a major landmark in that part of Ahmedabad. It offered a lot of promise, as the area was developing fast. New residential schemes and various commercial complexes like Elecon Tower and Sunrise Complex were expected to come up in coming years. The location was also well-connected by roads.
Rural Franchising: An Innovation Hearty Mart has also forayed into rural-brand franchising and as on date there are 11 stores of Hearty Mart, which are taking care of daily requirements of specific rural-customers in their respective villages. On the guidelines provided by Hearty Mart, a villager is encouraged to start up his own store. Prior to the identification of location, a prospective village entrepreneur is trained at Hearty Mart, Ahmedabad for 4-5 months. After his training is over he needs to find a location for his store in a specific village. In lieu of training provided to a village entrepreneur; a brand royalty is charged every year on the annual sales of the franchise. This has created a win-win situation for all the stakeholders involved: • The organized retail has curbed the menace of selling the merchandise beyond MRP which is prevalent in villages. Thus consumers have gained. • In order to do a better business most of the time villager would move out of his village and shift-base to a city or a town and do smaller jobs. With Hearty Mart franchise he is getting an opportunity to have his own organized retail business at his native. Hence the franchise owner has gained. • Royalty is based on the annual sales of the franchise. So if sales dips royalty also dips this ensures that franchisor is equally concerned with the growth of the franchise and hence it has propagated inclusive growth. The detailed agreement mentioning the role and responsibilities of franchisor-franchisee is signed to legalize the association. After the launch a periodic visit is undertaken by the managers of the company to help and guide the franchise entrepreneurs. The Strategic Diversifications
Hearty Mart Enterprise: It was a vision of two hardworking aspiring entrepreneurs; Wazir Ali and Husain Abbas, to own a company which caters to the growing demands of food, grocery and other food related items in the restaurant sector and hence on 4th January 2005, they started a company named ‘Ashish Enterprise’.
After successfully working for 3 years, they realized that for further expansion they would require funds, manpower and vision. Thus in the year 2008 they joined hands with an upcoming retail company and Hearty Mart Enterprise was formed. Hearty Mart Enterprise caters to over 300 restaurants across length and breadth of Gujarat and over 150 restaurants in and around Ahmedabad. It is creating private labels for the super market business and the hotel supplies as well.
• The Product Range:
Chef ki Pasand: The product range was launched after a meticulous consumer research ‘taste ka test’ which was conducted amongst the select chefs and cooks of prominent restaurants. There were different options of recipes offered to them to have their views. The best recipe was then selected and was branded as ‘Chef Ki Pasand’. ‘Chat Masala’, ‘Chana Chhole Masala’, ‘Kitchen Queen Masala’, ‘Chaas Masala’, ‘Kasuri Methi, ‘Kashmiri Mirch Powder” and other items in this product category comes under this brand name.
Lutf: The range of sauces and vinegar is launched under this brand name. Goodtime: Packed spices, dry fruits and tea comes under this brand name.
o Hearty Mart Tea Packers:
In order to meet the growing demand of providing tea to the restaurants, a new offshoot ‘Hearty Mart Tea Packers’ was floated in the year 2009-10. The company has its own tea brand ‘Day Break’. This is a separate company owned by an entrepreneur in partnership with Hearty Mart Enterprise. It is being supported and guided by Hearty Mart Enterprise.
o Hearty Mart (Surat) Enterprise:
In Surat in the year 2009-10, a new company ‘Hearty Mart (Surat) Entreprise’ was formed on the lines of Hearty Mart Enterprise, in order to cater to the local restaurants of the region and service them. Two Entrepreneurs were trained at Hearty Mart Enterprise for one year and then they were sent to Surat with this business.
o Hearty Mart Logistics:
An off-shoot of Hearty Mart Enterprise, ‘Hearty Mart Logistics’ was floated in the year 2009-10. As the name suggests it is a supply chain company which would transport the merchandise from Hearty Mart Enterprise to the franchise network of Hearty Mart Super Market and other retailers. It has the potential to be a super stockiest of related product mix like confectionaries, biscuits and food items and can provide the same to other distributors and retailers. An independent entrepreneur is running this company under the guidance and supervision of Hearty Mart Enterprise.
o Hearty Mart Farm Services:
It is a farm consultancy which caters to the farming sector. The idea with this project is to provide guidance to the farmers so that their farm yields increases by effectively controlling the input cost. Hearty Mart Enterprise intends to market the produce and ensures that the farmer earn better returns. An agronomist from within the community is the project head of Hearty Mart Farm Services.
Entrepreneur: Awards & Appreciation A first generation entrepreneur, Nadeem Jafri is an MBA from IMS Indore. He had previously worked for companies such as The Bhaskar Group, AT&T, Indian Express, Grey Worldwide and Bennett Coleman. Though the jobs were an invaluable learning experience, he always felt the need to do something for his community. It took one visit to Big Bazaar at Phoenix Mill Compound Mumbai in the year 2002 that inspired him to do something in organized retail business. With the family roots connected to village community access to manpower seemed easier for him and this boosted his confidence to take the plunge. Awards & Appreciation: In the 3rd India International Innovation Summit, 2010 held at Taj Lands End, Mumbai on 11th February 2010 Nadeem Jafri was conferred with the prestigious “Star Entrepreneurship Award” for his contribution in the field of rural retail and encouraging rural entrepreneurs. Future Plans
By way of targeting a rural community and providing them with a franchise and then creating a business of hotel supply to their urban counterparts, Hearty Mart is successful in creating a unique value chain. In order to further strengthen this value chain Hearty Mart has floated a consultancy firm Hearty Mart Farm Services under the leadership and guidance of a prominent agronomist. The immediate focus area in near future is to develop farms under this consultancy firm. Due to lack of skills, knowledge and other resources it has been observed that farmers have started leaving their farms, this insight gave birth to the idea of Hearty Mart farm services. With this consultancy the company is planning to launch a model farm of Green house near Dholka which would help the community farmers in understanding the nuances of modern and organic farming and thus guide them in their farming endeavors. Hearty Mart would purchase back the farm produce and market it for the farmers. And since most of the franchise owners have their own farms this would open a new revenue stream for them. This would also help Hearty Mart to create its private label at an economical cost since the input cost would go down. This way modern skills and knowledge would be introduced in their farming domain and it would further strengthen the company’s bond with its franchises.
Research work done Hearty mart is a very unique model and provides wide array of research interest , the subject is wide and only reseched ta Nascent stage , but the work on it has already lead to few substantial paper and research work.
Research work is primarily carried out by Dr Munish Alagh ( Post Doctoral fellow at IIM A) in areas of economics , fracnhise model ,social entrepreneurship. Nadeem jafri who is also the propreito of Heart mart has always helped in providing the information and is carruing out individual research work based on it in lines of of a case study.
A book is on its way which will open up the new windows about Hearty mart and provide an over all prespective of what “ The Real Hearty Mart story is all about”.
ARTICLES AND PAPERS ON HEARTY MART • September 2011Development of Social Spaces through infrastructural development-Commodity Vision, Journal of Taksashila Academy of Economic Research Limited, January 2011 • Social Entrepreneurship-Profits or/and Community-By Munish Alagh and Jatin Christie in Creating Wealth through Strategic HR and Entrepreneurship-C Gopalakrishnan, Nina Muncherji and Upinder Dhar,Excel Books,2009. • Case Study on Hearty Mart Supermarket-Business Venturing Sustenance and Growth, Collection of Cases by participants of 29th FDP, IIM Ahmedabad,February2008, Jointly with Ms.Thenmouzi and Mr.Abraham Babu. PAPERS PRESENTED:
2011-
• Organisational Determinants of Retail Franchising into Rural Areas - A Case Study of Chilea Community-Munish Alagh and Jatin Christie, a paper presented in Ninth Biennial Conference on Entrepreneurship(February 16 – 18, 2011) 2009 • “Role of Proxemics in Entrepreneurship – A case study of Hearty Mart- super market“presented in 8th Biennial Conference-EDI 2009, by Munish Alagh and Jatin Christie 2008- • presented at 12th Nirma International Conference on Management(NICOM 2009)Social Entrepreneurship – Profits or/and Community, by Munish Alagh and Jatin Christie • Creating a Supermarket Brand – ‘Heartymart:Case Study/ by Hemant Trivedi& registered with ECCH 2008-09
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References
edit<Development of Social Spaces through infrastructural development-Commodity Vision, Journal of Taksashila Academy of Economic Research Limited, January 2011 • Social Entrepreneurship-Profits or/and Community-By Munish Alagh and Jatin Christie in Creating Wealth through Strategic HR and Entrepreneurship-C Gopalakrishnan, Nina Muncherji and Upinder Dhar,Excel Books,2009. • Case Study on Hearty Mart Supermarket-Business Venturing Sustenance and Growth, Collection of Cases by participants of 29th FDP, IIM Ahmedabad,February2008, Jointly with Ms.Thenmouzi and Mr.Abraham Babu. PAPERS PRESENTED:
2011-
• Organisational Determinants of Retail Franchising into Rural Areas - A Case Study of Chilea Community-Munish Alagh and Jatin Christie, a paper presented in Ninth Biennial Conference on Entrepreneurship(February 16 – 18, 2011) 2009 • “Role of Proxemics in Entrepreneurship – A case study of Hearty Mart- super market“presented in 8th Biennial Conference-EDI 2009, by Munish Alagh and Jatin Christie 2008- • presented at 12th Nirma International Conference on Management(NICOM 2009)Social Entrepreneurship – Profits or/and Community, by Munish Alagh and Jatin Christie • Creating a Supermarket Brand – ‘Heartymart:Case Study/ by Hemant Trivedi& registered with ECCH 2008-09
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