Subhiksha, the Chennai based, a decade old, no frills, food, grocery, pharma and telecom, discount retail chain is gearing up to open 180 neighbourhood, convenience retail stores in the eight cities of the state of Maharashtra including Pune, Nasik, Aurangabad and Nagpur, Kolhapur, Sholapurand Sangli. Of these the lion’s share will go to Mumbai, which will have 100 of the 180 stores planned. 80 of the 100 Mumbai Subhiksha stores are slated to go on strean by mid-January, 2007, reports PTI.
The rapidly-growing retail chain has already crossed the 450-store mark across five states in the country and is currently occupying retail space of more than one million square feet.
“We are targeting a 1,000-strong retail network by end-2007. We are looking at providing customers across the country with a viable smart shopping option,” R Subramaniam, Managing Director, Subhiksha Trading Services, said today. At an average cost of Rs. 50 lakhs per outlet, Subhiksha will invest Rs. 500 crores to expand its network to 1000 outlets. Subhiksha, is targetting a turnover of Rs. 3,500 crore during 2007.
“With the implementation of our expansion in Maharashtra, we will complete our 600-store target. We will shortly activate Phase II of our expansion plans by foraying into the north and east including Chandigarh, Punjab, Madhya Pradesh, Uttar Pradesh, Haryana and West Bengal” he said. Phase II involves Rs 200-crore investment in opening 400 stores.
The rapidly expanding chain, which claims to be the biggest chain in the country, is following the carpet bombing strategy for its expansion, wherein, to create maximum impact, it simultaneously launches a cluster of stores in a given geography.
It may be recalled that only a few months back Subhiksha to finance its ambitious expansion drive had raised Rs. 300 crore. It has also recently raised Rs. 80 crore through the rights issue. Currently, ICICI venture Capital holds 24% in the equity capital of Subhiksha.