Hyderabad-based is looking to diversify away from the technology hub as concerns grow that potential AI-triggered job losses could hurt consumer spending, a top executive said.
The retailer gets about 60% of its revenue from Hyderabad, which hosts offices of global companies such as JPMorgan Chase and Eli Lilly, and Indian IT majors Wipro and Infosys.
Around a fifth of its stores in Hyderabad are located in neighbourhoods where the majority of the residents are software employees.
The retailer, which sells products from brands including Sony and OnePlus, has over 220 stores across six states, mostly in the southern states of Andhra Pradesh and Telangana, and entered the National Capital Region in 2022.
By comparison, billionaire Mukesh Ambani’s Reliance Digital has more than 695 outlets and Tata Group’s Croma about 540 stores. Privately held Vijay Sales operates more than 170 stores, according to their websites.
Electronics Mart plans to invest about ₹120 crore ($12.69 million) to open 20 stores in the current financial year, including up to seven in Kolkata, where it currently has no presence, while deepening its presence in and around New Delhi.
“If there is any disturbance in the IT industry, definitely there is going to be an impact on our business,” CFO Premchand Devarakonda told Reuters.
Growing AI adoption has raised concerns about job losses in the technology sector, a key driver of consumption in cities such as Hyderabad and Bengaluru.
“We need not really worry immediately,” Devarakonda said, adding the expansion was aimed at “de-risking” the retailer’s dependence on any one sector.
Electronics Mart plans to add 20 to 25 stores annually over the next five years, with a focus on northern markets where fragmented retail offers scope for growth.
For the current year, the company expects revenue to rise about 15%, in line with LSEG estimates, helped in part by strong demand for air conditioners in a hotter summer.