President - IT Special Projects, Supervalu. Plans $50-m investment in five years

Supervalu, the third largest US retailer after Wal-Mart and Kroger, will be investing $50 million in the next five years, but not in its core business. Though it is aware of the potential of India's retail business, it is more keen on leveraging the country's talent pool to strengthen its supply chain technology with the help of its software development centre at Bangalore.

The $46-billion retail chain had opened its development centre in the city a month ago with 50 professionals. It plans to scale it up to 300 by the year-end.

Most of them would be engaged in the centre's research and development lab working on newer solutions that will help its business partners bring in supply chain efficiencies, said Mr Tony Jolley, Vice

The company leverages its supply chain technology not only for its 2,500 outlets but also markets it to about 2,000 independent stores in the US.

Supply chain stream accounts for 20 per cent of its total revenue of $46 billion.

Only last year, Supervalu acquired Albertson's retail properties, which propelled the company to emerge as the third largest grocery retailer in the US.

"The combination of these two leading companies blends the best of each to create a national grocery retailing and pharmacy powerhouse," Mr Jolley told Business Line.

Mr Jolley, who was here to attend a meeting, said Supervalu had no immediate plans to enter India, but did not rule out the move in the long run. Sourcing could be another potential interest, like retail itself. He said,"We are open to it ... When Walmart and others are opting (for India), why not" he said, adding, however, it was not on the radar at present. Would Supervalu tap the huge commercial opportunity for its supply chain solutions from Indian players such as the Reliance and Bharti groups which have entered the retail business in a big way

Said Mr Anilesh Seth, CEO and President, Supervalu India, the main focus would be to improve upon business tools for captive needs. But it could look at opportunities by striking a strategic association to develop software packages for them.