Aditya Birla Retail mulls IPO, charts growth plan

Written by Press Trust of India | Mumbai | Updated: Nov 30 2009, 06:02am hrs
Aditya Birla Retail, the countrys second-biggest supermarket operator, is considering an initial public offer (IPO) and will time it as soon as the company starts spinning profits.

We will definitely be open to an IPO, but it will be closer to the time of profitabillity... around 2012 or maybe even before that when we sight profitability, Aditya Birla Retail Ltd (ABRL) CEO, Thomas Varghese, said.

He said the company had still not determined the amount of equity it would dilute.

We want to get the maximum value for the equity that we have and that we will get only when we are able to show profitability and demonstrate long-term growth potential, Varghese said.

The company, which operates over 650 supermarkets and three hypermarkets across the country, is also open to bringing financial investors on board.

We are not opposed to diluting our stake marginally to give it to a private equity player as long as his background profile meets our own aspirations. We want a passive financial investor, he said.

Varghese has charted out an ambitious growth plan for the company over the next 5-6 years and plans to make Aditya Birla Retail a $2-billion entity by 2015-16. We are resizing the supermarket business. Our network will have about 1,600 or 1,700 supermarkets by 2015-2016 hopefully. And we should have 80-100 hypermarkets by then, Varghese said.