Trent to invest Rs 2,000 crore for 50 Star Bazaar hypermarkets

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Amidst rising inflation and high real estate costs, the retail arm of the $9.7 billion Tata group, Trent Ltd, is setting aside a fresh investment budget to spearhead its retail expansion plans in India. Noel Tata, managing director, Trent Ltd told FE, "We plan to invest Rs 2,000 crore in setting up 50 'Star Bazaar' hypermarkets in India, in the next five years. We feel we owe commitment to our consumers in fulfilling their needs by offering a wide array of products at exceptionally affordable prices and offer savings due to great discounts. Due to high real estate costs, we would maintain the expansion pace for the long term."

Trent Ltd has launched its fourth Star Bazaar flagship store of 75,000 sq ft at Andheri, Mumbai with already existing stores at Dahisar, Bengaluru and Ahmedabad.

According to Tata, "We have set up seven Sisley premium fashion apparel retail stores in India and now plan to set up 15 Sisley stores in the next four years. This is to meet the growing demand for premium fashionable apparels in India. Also, the Sisley brand has taken off well in India." It was in September 2007 that Trent Ltd had entered into a partnership with the Italian fashion group, Benetton for the Sisley's commercial expansion plans in India.

Trent Ltd plans to double the number of Westside stores from the present 31 across 20 cities measuring 15,000 to 30,000 sq ft in Tier II cities. In 2005, Trent acquired 76% stake in Landmark bookstore chain that offers vast assortment of books, music, movies and stationary. In May 2008, Trent bought the remaining 24% stake in Landmark from the Ramaiah family to be the sole owner of the bookstore chain. Landmark plans to add five larger format stores this year to the existing 10 large, 6 hotel and one airport stores.

The Trent stock was up 2.16% on the Bombay Stock Exchange on Friday to close at Rs 437.50.

Tata said, "In 2006, Trent Ltd formed an alliance with DLF Universal Ltd through either one or more of its brands of Westside, Landmark and Star Bazaar has agreed to anchor the next 12 DLF malls across various cities of India with 27 stores totaling to a million sq ft of space."