New Delhi: Retail chain V-Mart plans to pump in Rs40 crore in the next five months to add eight more stores to its existing 54 stores across the country.
The company, which has a retail space of around 3,75,000 square feet plans to add another 80,000 square feet with the opening of these stores.
“We are planning to open 8 more stores and increase our retail space by adding another 80,000 square feet area by March 2009. We have earmarked around Rs40 crore for the purpose, out of which Rs25 crore have already been invested,” V-Mart Managing Director Lalit Agarwal told PTI.
The company would be opening these stores in Tier II and III cities.
“We are looking at smaller towns like Bhatinda, Muradabad, Azamgarh and Saharanpur,” Agrawal said.
The company owns 13 private labels in its apparel category, which includes both formal and casual wears and accounts for about 70% of its total business.
“We are more focused on the apparel sections. It accounts for about 70% of our business and the rest comes from FMGC and other accessories. At present we are happy with our current portfolio. We have no plans to expand it,” he said.
When asked about the source of funding this expansion, Agarwal said, “Recently we have raised some amount by divesting 25% stake to a private equity arm of Aditya Birla Group. We will utilise Rs 40crore from there.”
He, however, declined to divulge how much the company had raised from Aditya Birla Group to fund its expansion plans.