NEW DELHI: K. Raheja group company HyperCity Retail (India) is likely to invest about Rs 400 crore to set up 20 branded hypermarkets by 2010 for expanding its retail network across the country.
“In the next three to four years we will set up 20 HyperCity stores across India,” HyperCity Retail Vice-Chairman B. S. Nagesh said. The company has already signed 20 properties for the purpose, he added.
Asked about the investments, Nagesh said typically a single HyperCITY store could cost about Rs15-20 crore.
He said the company, which opened its first store about nine months back in Mumbai will set up the second one also there and gradually roll out across other major metros.
Already, the single store at Malad in Mumbai has touched a turnover of about Rs130 crore, he added.
The company along with its sister concern Shoppers Stop had recently signed a franchise agreement with UKs leading retail chain Home Retail group to develop the Argos retail format stores in India.
Argos would be providing its brand, catalogue and multi-channel expertise and IT support to the joint venture.
The business would be launched toward the end of the year under ‘HyperCITY-Argos’ brand name, initially in Mumbai region.
Shoppers Stop operates 20 department stores in India while HyperCity is the hypermarket format of K. Raheja Corp.
Home Retail Group is UK’s leading home and general merchandise retailer with sales of over 5.5 billion pounds in the last financial year. It sells products under two complementary retail brands, Argos and Homebase.