Madhumita Mookerji

Kolkata: Vishal Retail plans to raise around Rs 2,400 crore over the next three years to fund its expansion plans.

The mass market retailer aims to increase its retail space from two million square feet now to about 10 million square feet in three years. It will also increase its staff strength from 12,000 to 70,000. The company is targeting a turnover of Rs 1,800 crore in 2008-09 as against Rs 1,000 crore in the last fiscal.

The retailer plans to raise two-third of Rs 2,400 crore through debt and the remaining through equity. It will raise Rs 200 crore in this quarter through a preferential allotment, revising its earlier plans to raise Rs 300-500 crore through either a follow-on offer or via qualified institutional placements (QIPs). It had raised about Rs 110 crore through an initial public offer last year,which was also used for expansion.

“Vishal Retail will use speciality stores and its hypermarkets as instruments of growth for the future,” Manmohan Agarwal, CEO, Vishal Retail said. The retail chain may also experiment with various formats such as franchisees, speciality formats and cash and carry stores.

Plans are also afoot to raise the number of its hypermarts from 103 now to 190 by the end of the calendar year.

Vishal hypermarts are spread over 25,000-30,000 sq feet area and are generally located on the outskirts of cities.

The company is also planning to increase the count of its Fashion Marts and Corner Stores. Currently, there are three Fashion Marts — one in Mumbai and two in Delhi.

The retailer is on the lookout for highstreet locations for starting more speciality format stores.

Vishal Retail also has two Corner Stores in Delhi, which are semi-convenios located at HPCL petrol pumps.

Meanwhile, the company’s new wholly-owned subsidiary VRL Movers, set up to handle logistical issues, will go onstream this year.

Source : DNA