New Delhi, Apr 19: The country's leading discount retailer Vishal Retail Ltd plans to invest Rs 3,000 crores over the next three years to expand its network, start a logistics company by the second quarter this year and acquire more production facilities.
The company plans to add almost 10 million sq ft of retail space by March 2011. ''We will raise the money through debt and equity ratio of 2:1 of which first round will be available by June (FY08),'' CEO Vishal Retail, Manmohan Agarwal told UNI. The company will also start a logistics subsidiary called VRL Movers to address the issue of supply chain management.
''Initially it will address the need of our company and later it will also facilitate business outside. The logistics arm of Vishal should be functional by second quarter this year,'' Mr Agarwal said.
Vishal currently runs more than 100 supermarkets to hypermarkets spanning around 2 million sq ft in 69 cities from Jammu to Jaipur.
The company plans to add up to 1.5 million sq. ft this year and would raise around Rs 200 crore in coming months through a preferential issue to fund short-term expansion plans.
The company has three plants in the country with a combined capacity six million pieces per month.
Vishal has also tied up with Hindustan Petroleum Corp Ltd (HPCL) to open its own stores at select outlets.
Mr Agarwal said the company is planning to increase the headcount by 20,000 in 2008-09. The group is also looking for franchisees to join hands with and grow under a common banner.