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Reverse logistics to tap overseas markets under is expansion plan

The expansion plans were formalised after the six-year-old company turned profitable in January, said founder Hitendra Chaturvedi.

, ET Bureau|
Updated: May 29, 2014, 03.45 AM IST
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The expansion plans were formalised after the six-year-old company turned profitable in January, said founder Hitendra Chaturvedi.
The expansion plans were formalised after the six-year-old company turned profitable in January, said founder Hitendra Chaturvedi.
MUMBAI: Refurbished electronics retailer Reverse Logistics Corporation will begin selling its range of branded computing, communication and home appliances in markets like Africa and West Asia.

The expansion plans were formalised after the six-year-old company turned profitable in January, said founder Hitendra Chaturvedi.

“We want to be the world's largest reverse logistics company," said the 44-year old entrepreneur who quit Microsoft to set up the venture which sells products under the brand name GreenDust.

The company refurbishes damaged or defective electronic product that are sold after adding a profit margin on both an online portal and through a network of offline stores, “We have run successful pilots in Africa and Middle East where we sold refrigerators, washing machines, mobiles and LED televisions,” said Chaturvedi. Other target markets include Russia, Central Asia and Southeast Asia.

To reach global customers the company has set up a workshop in Dubai, which will be the hub for seconds sourced from the US. Offices will be also set up in the US and Hongkong, with hiring expected to be completed in the next six months.

The company’s decision to tap overseas markets is led by the size and scope of the business, with reverse logistics estimated to be worth $350 billion (Rs 21 lakh crore) in the US compared with $12 billion (Rs 72,000 crore) in India.

“Overseas refurbished electronics is a big industry but there brands themselves certify these products whereas here the warranty is being provided by GreenDust,” said Ashish Jhalani, founder of consultancy e-tailing India.

The company has partnered with e-commerce players like Amazon, Homeshop18, Fashionandyou besides OEMs like LG, Haier, Godrej, Phillips, Samsung, Voltas and Carrier to source defective or returned products.

“In India, it is better to be selling the product a second time as it helps address a broader base of consumers at lower price,’ said Sandeep Murthy, cofounder of Lightbox Ventures who invested in the company in 2010.

With a target of over $200 million (Rs 1,200 crore) in gross sales for fiscal 2015, Chaturvedi believes his company “has gone past the tipping point.”

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