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The Rediff Business Interview/Ajay Piramal

'Bombay needs a world class mall'

First there were shopping centres and bazaars. Then there were the so-called arcades, plazas, complexes, departmental stores, followed by shoppers' shoppes that turned corporates, thanks to higher volumes and higher profits. And then, there were big-time corporates that integrated backward into retailing, all in Bombay, India's most happening metro, and other cities. The concept of shopping, leisure, food and fun, all rolled into one, which has been evolving over the years, has now reached Crossroads, thanks to Ajay Piramal, chairman of Piramal Enterprises. He is all set to launch "India's first mall".

With more than 100 premium shops in its ambit, Crossroads promises to set a standard for retailers in India. Slated for a mid-August 1999 opening, the mega venture in prime-town Central Bombay excites Piramal no end. "Our multi-storey mall will have something to offer for each member of a family. It will provide the finest shopping, games and food, all under one roof, bringing the best of the best to the Indian consumer. Observers of the Indian marketplace would discern a shift of emphasis from manufacturing industry to service industry in cities," he says, in an interview with Syed Firdaus Ashraf. Excerpts. Ajay Piramal's photographs by Jewella C Miranda.

How did you hit upon the idea to promote Crossroads?

We had this pharmaceutical factory Roche which was not viable to be run in Bombay. So, we gave a very successful voluntary retirement scheme to all the staff. And then we were left with this huge space. We could have developed it into some office or residential area.

But when we studied the market, we felt that there is a need in Bombay for a world class shopping-cum-entertainment mall.

Also, we felt that Bombay's economy was shifting from manufacturing to service. So, we decided to go in for a mall. In addition to this, we felt that Bombayites needed a place where everything would be available at one spot, in a world class ambience. Keeping all this in mind, we decided to come up with this project.

Why do you think is Bombay's focus shifting from manufacturing to retail business?

In Bombay and all the metros of the world, manufacturing is becoming an old concept. It is no longer feasible to run a manufacturing industry in cities. The manufacturing industries need more space for expansions. Naturally, the city planners will impose restrictions. The costs are very high and so are power, water taxes, etc.

So, you have to move to a low-cost environment. It is already happening in Bombay. You see, there was a time when there were nearly 250,000 workers in Bombay. Now, only 40,000 have been left. We've to look at the same time at giving alternative employment to Bombayites. And the shift to service industry is an obvious choice.

'At $ 180 bn, retailing is one of the fastest growing industries in India'

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