New Delhi: Delhi-based Vishal Retail said it would open 70 more stores at a cost of around Rs700 crore by end 2008, taking its total number of outlets to 190.
“Inflation has made no impact on our growth plan. We are going to open 70 more stores by the end of the current year and will invest Rs 700 crore for the purpose,” Vishal Retail Chairman Ram Chandra Agarwal told reporters on the side lines of Pure&Play Retail Summit.
The company is also looking to raise Rs200 crore through a private equity investment for the expansion plans, while the remaining fund will be arranged through debt.
“In order to fund our expansion plans we are looking at a debt equity ration of 2:1,” Agarwal said.
Currently, the company is in talks with various private equity firms. However, Agarwal declined to divulge the names of the PEs.
About the measures taken to counter the inflationary pressure, he said, “We are cutting cost on manpower and improving our efficiency by switching to larger warehouses and cost effective supply chains.”
Vishal Retail is also planning to launch loyalty cards to attract customers, particularly females, besides introducing new brands in women’s wear category this year.