New Delhi: Real estate developer Suncity Projects Ltd is planning to enter the retail segment with a chain of toy stores.
Suncity, jointly promoted by footwear manufacturer Action Group, the Essel Group, which owns Zee Telefilms Ltd, and Odeon Builders, will open at least a dozen toy outlets in multiple cities, according to a person close to the situation, who asked not to be named.
Another person familiar with the situation said the company will sell toys imported from China, Indonesia and Japan among other countries.
The first such store, of around 3,000 sq. ft, will open in the company’s Crossriver Mall in East Delhi in the next three months, he said.
A spokesperson for Suncity confirmed that the company is “planning to get into retail”, but she declined to give further details saying its proposed venture is only at “planning stage right now”.
Suncity has aggressive plans to invest around Rs10,000 crore over the next five years in real estate projects.
It is also planning to come out with an initial public offering of shares towards the end of 2009.
Suncity is part of a growing number of small and big Indian companies joining the ranks of branded retailers.
This industry is expected to swell to $43 billion (Rs1.71 trillion) by 2010 from about $9 billion this year, according to a McKinsey & Co. study.
Suncity owns two malls covering a shopping space of about 300,000 sq. ft in the Capital, and has five more malls in cities, including Jaipur, Bareilly in Uttar Pradesh, and Mohali, near Chandigarh, that are under planning or under construction.
The same people said the toy stories will be opened in each of Suncity’s malls.