Mumbai: Delhi-based Vishal Retail said on 8 August it plans to invest Rs200 crore to set up 40 additional stores mostly in northern India.
“In addition to 53 stores that we have at the moment across 41 cities, we want to put up 40 more in the current fiscal year entailing Rs200 crore investment,” Vishal Retail managing director Ramchandra Aggarwal said.
The company would use the entire proceeds of Rs110 crore that it had raised through Initial Public Offer towards expansion and garner the remaining Rs90 crore as debt from domestic financial institutions.
“We are in the process of tying up the debt portion and this will be done shortly,” Aggarwal said. Around 60% of the 53 stores run by the company are situated in the northern region and the rest are almost equally divided between east, west and south.
“We are going to set up most of the upcoming stores in northern part concentrating on a particular region. It helps to reduce supply-chain management and advertisement costs. It is always a safe and better bet too,” he added. The company has tied-up with a Delhi-based institution to train its staff.