Electronics Mart India to invest ₹1.2bn opening 20 stores beyond Hyderabad
INFY•Electronics Mart India, with 60% of revenue from Hyderabad where Infosys has major offices, will invest 1.2 billion rupees to open 20 stores beyond Hyderabad to mitigate AI-related job loss risks in IT. The company expects 15% revenue growth this year, driven by air conditioner demand in a hotter summer.
1. Diversification Strategy
Electronics Mart India has identified a concentration risk in Hyderabad, which contributes about 60% of its revenue and hosts major IT employers like Infosys and Wipro. The company aims to reduce dependence on tech-driven consumer spending by targeting new markets.
2. Expansion Investment
The retailer will allocate 1.2 billion rupees this financial year to launch 20 new outlets, including up to seven stores in Kolkata and additional locations around New Delhi. This follows its 2022 entry into the National Capital Region.
3. AI Impact on Demand
Growing adoption of artificial intelligence in the IT sector has raised concerns about potential job losses at firms such as Infosys, which could dampen household spending in tech hubs. Management views diversification as a proactive hedge against sector-specific downturns.
4. Financial Outlook
Electronics Mart India projects roughly 15% revenue growth this year, supported by robust demand for air conditioners amid higher summer temperatures. The company plans to add 20-25 stores annually over the next five years, focusing on underpenetrated northern markets.
