Subhiksha announces 40-crore investment plan in AP

Hyderabad, Sept 20 (UNI) India's first-of-its-kind discount retail chain Subhiksha today announced a Rs 40-crore investment plan in Andhra Pradesh, planning to roll out 80 stores over the next four months.

In Hyderabad it will operate in all four verticals Telecom, Supermarket, Fruits&Vegetables and Pharmacy. After the pilot phase over the last three months in the State, the Company prepares to open 55 stores in the State, Subhiksha Managing Director R Subramanian said following the launch of the first store in the city.

Mr Subramanian said the Company in the last month had announced 600 store national roll out over five states with a planned outlay of over Rs 300 crore. Claiming that it still made ''only three to four per cent margin after allowing a 10 per cent discount on all goods'', the company by 2007, would open its Telecom Service Centres at its stores in the State, he added.

The company expects to post Rs 900 crore turnover in the current financial year and Rs 2000 crore in 2007-2008, he said. By the time it opens 1000 stores across India, the company, which has 24 per cent investment from ICICI Venture, will go public with an IPO sometime next year, he added.

UNI DB KVV 1620