Pantaloon to spend Rs360 cr on space expansion

Pantaloon to spend Rs360 cr on space expansion

Mumbai: Future Group company, Pantaloon Retail India (PRIL) is planning to invest Rs360 crore this year to add up to 2.4 million sqft retail space at the existing operations.

“We have a capex plan of Rs360 crore to add up to 2.4 million sq ft of retail space...that is in the Pantaloon Retail balance sheet and not in the subsidiaries. That’s the plan for the balance 7-8 months (of this financial year)," Pantaloon Retail India Ltd’s managing director Kishore Biyani, told reporters at the company’s 22nd AGM on Tuesday.

The company’s financial year starts in July.

While Future Group operates 15 million sqft of retail space across India, Pantaloon Retail with its multiple lifestyle and value chains runs around 13 million sqft.

Pantaloon Retail is also looking to hive off its value retail chain Big Bazaar into a separate subsidiary, which may eventually go for an IPO.

“We are looking at subsidarisation of Big Bazaar into a separate company... if we need capital, probably we can raise capital (through a public issue)," Biyani said.

He said the company will open 155 Big Bazaar stores by 2014, increasing its total network to 275 stores.

PRIL also plans to deploy a part of the Rs500 crore, raised through a QIP issue last week, into expansion and for debt reduction.