In a significant business move, Magson Retail and Distribution Limited (MAGSON) has announced the acquisition of two franchise stores previously operating under the Franchisee Owned Franchise Operated (FOFO) Model. The Financial Investment and Business Development Committee approved this decision, which will bring the Adani Shantigram, Ahmedabad, and Infocity Mall, Gandhinagar stores under direct company ownership.

Strategic Transition from Franchise to Ownership Model

Magson Retail's decision to terminate the franchise agreements for these locations marks a strategic shift towards greater operational control and brand consistency. Previously operated by franchisees, the Ahmedabad and Gandhinagar stores will now be directly managed by Magson Retail, ensuring a unified customer experience and streamlined business operations.

The two acquired stores are located at:

• Shop No. 112, 113, Shoppers Plaza, Adani Shantigram, Nr. Vaishnodevi Circle, Ahmedabad – 382421, Gujarat, India
• 36, Super Mall-1, Infocity, Nr. SBI Infocity Branch, SG Road, Gandhinagar – 382007, Gujarat, India

With this move, Magson Retail aims to strengthen its direct retail presence, allowing for better operational oversight, enhanced customer engagement, and improved brand consistency across all locations.

Impact on Magson Retail’s Business Strategy

The transition from the FOFO model to a company-owned model aligns with Magson Retail’s long-term expansion strategy. By bringing these stores under its direct management, the company aims to:

• Ensure brand uniformity across all outlets.
• Improve store performance through centralized operations.
• Enhance customer service by implementing company-wide policies.

The company has confirmed that all necessary regulatory disclosures under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 have been made, ensuring compliance with SEBI norms.

Future Prospects and Growth Plans

Magson Retail's move indicates a potential shift in its business model, focusing on greater direct store ownership rather than franchise operations. This could set the stage for further acquisitions and expansions across other locations in India.

With strong market demand in the retail sector, this acquisition is expected to contribute to Magson Retail’s growth and profitability, making it a key milestone in the company’s expansion strategy.

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