Chennai: Textile firm Arvind Mills said on 22 January that it will invest Rs400 crore to expand its retail business in the country in the next four years.
The company would be investing Rs300 crore in large format retail centres and Rs100 crore in small stores, according to the CEO (Retail Division) of Arvind Brands.
As part of its expansion plans, Arvind Mills plans to open 30 large retail centres (Megamart outlet) and 200 small format stores (Megamart) across 100 cities in the country by 2012. Around Rs8-10 crore would be invested in each outlet and the funding would be through the company’s internal accruals.
The value of retail market in India was worth about Rs11,000 crore and was estimated to grow at the rate of 30-40%, the CEO (Retail Division) said.
Arvind Mills is targeting a turnover of Rs2,000 crore by 2012 in the retail sector.
The company launched its first ‘Megamart Outlet Centre´ on 22 January. It was expecting the second Megamart outlet in Pune by May, followed by Hyderabad and Bangalore.
About 8 outlet centres and 125 small format stores would be opened by the end of next financial year. The company, presently, has 75 stores across the country.
Megamart is also now set to move to tier-II and III cities, with openings planned soon in Tamil Nadu’s Nagercoil, Tiru nelveli, Vellore and Trichy.
According to Sanjay Lalbhai, managing director of Arvind Mills, though the retail division’s contribution to the company’s turnover was presently only around 8%, it was expected to touch 50% by 2012.