Even as it goes through the process of becoming an independent entity, Big Bazaar, the hypermarket of the over Rs 4,000-crore Future Group, said that it has embarked on an aggressive expansion for the next two years.
Mr Rajan Malhotra, CEO, Big Bazaar, said: “We plan to invest substantial amounts in the next one-and-a-half to two years in order to increase our footprint to 300 by the end of June 2009.” Big Bazaar currently has 80 stores across the country and has already signed property for another 140 outlets. Industry sources said that the company has plans of investing nearly Rs 3,000 crore over the next two years.
According to sources, the company is evaluating different possibilities such as internal accruals, debt and strategic investment possibilities such as getting the funds from private investors and private equity players to fund expansion. In fact, officials in the know say that Big Bazaar could consider an initial public offer to raise the funds.
In-house labels:
Mr Malhotra said that in terms of strategy for the coming couple of years, the hypermarket will put extra focus on in-house labels that are going mainstream. “We will definitely provide more visibility to our private label brands that are now going mainstream,” he said. The brands would be across categories such as home linen, footwear, apparels and consumer durables amongst others. Some private labels that have already seen a mainstream launch are apparel brands Bare and John Miller and home linen brand Dreamline. These will be followed by mainstream launches of well performing food brands such as Tasty Treats and Fresh n’ Pure.
Hive-off plans:
On the Group’s plans to hive off the hypermarket format into an independent entity, Mr Malhotra said, “Yes, we are hiving it off and creating an independent structure. In fact, we have already started the procedure. The issue has been discussed at the recent board meeting and a clear picture should emerge within the next few weeks.”
The company, however, maintained that there would not be any major structural or strategic shift due to the hive-off. “We do not plan to change any strategy as a result of the hiving-off. The idea is to create an independent sustainable environment out of the format, since it already is one of the largest contributing formats to the overall revenues,” said Mr Malhotra. He added, “We at Big Bazaar hope to touch the $2-billion mark by the end of 2009.”
Sale event:
On Big Bazaar’s largest sale event, the three-day sale, from January 25-27 on the occasion of Republic Day, Mr Malhotra said, “This is the biggest promotional offer that Big Bazaar does in the year. Last year, we made Rs 140 crore as revenues during the three days. This year, we hope to touch the Rs 200-crore mark”, reports The Hindu Business Line.
Source: Moneycontrol.com
Monday, January 28, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment