Subhiksha to invest Rs 1,200 cr

Mumbai, Jun 29 | Updated: Jul 1 2008, 05:13am hrs
Food and grocery discount retail chain, Subhiksha, will invest around Rs 1,200 crore by 2010, a top company official said.

We will be having around 3,000 stores by 2010 and we plan to invest around Rs 1,200 crore in the period, Subhikshas promoter, R Subramanian said. The funds would be raised through a mix of equity and debt, Subramanian said. At present, the chain has around 1,480 stores.

We will be present in around 250 cities by 2010, he said, adding that each store will be of an area of 15,000 sq ft to 20,000 sq ft.

In a move to further accelerate its growth plans, Subhiksha is also acquiring a majority stake in a Chennai-based listed company, Blue Green Constructions and Investments Limited, he said.

The respective Boards of Subhiksha and Blue Green are also meeting on Monday to consider a merger of the two companies. The merged entity will be called Subhiksha Limited and is expected to list its shares on the NSE/BSE apart from the MSE where its shares are currently listed.

This transaction will ensure that Subhiksha has access to capital and will continue to be on the fast-track of growth. It will also enhance value for our stakeholders and help our objective of becoming a USD five billion company by 2011, Subramanian added.

We are planning an entry into consumer durables to further enhance Subhikshas value proposition to the Indian consumer. The company plans to have a two million sq ft of retail space in this segment in the next year, he added.

PTI