Mumbai, July 24 -- Once a hot retail segment, premium grocery supermarkets, with marquee names such as Nature's Basket and Foodhall, are littered with failed ventures and cautionary tales. Retail veteran Arvind Mediratta is betting he can change that.

Mediratta is launching Fresh Terra this week, with an 8,000-square-foot store at The Hilton in Gurugram, with plans to tap demand among urban Indians with rising incomes who are seeking healthier options.

This cohort is "bored of shopping online", and does not trust the quality and claims made by most packaged consumer goods brands, Mediratta, who previously headed the India operations of German retail giant Metro A.G., told Mint.

"Our model is very different.Our focus is on the centre of...