Promart to add 170 stores; aims at Rs 700 cr turnover by FY'14
New Delhi, Dec 11, 2012 (PTI): 17:42 IST
Multi-brand retail chain Promart today said it will open about 170 showrooms across the country by next fiscal as it targets Rs 700 crore revenue by 2013-14.
The company, which was acquired last year by Apple Group and Vemb Lifestyle from Provogue India, will also invest around Rs 50 crore next year to expand operations, mainly in smaller cities.
"Since we acquired the brand, we are expanding it very aggressively. Our aim is to offer branded fashionable products in smaller cities at an affordable rate. We will have around 200 stores by the end of next fiscal," Promart Retail India Chief Executive Officer Punit Agarwal told PTI here.
The company has 32 outlets, which will be expanded to 100 showrooms by March 2013, he added.
On sales turnover, Agarwal said: "We are expecting Rs 450 crore sales in this fiscal. Our target for 2013-14 is a revenue of Rs 700 crore."
The company had clocked a sales turnover of Rs 70 crore in 2011-12, he added.
When asked about investments for the expansion, Promart Retail India Managing Director Ashish Garg said: "This year we are investing around Rs 100 crore and it will be around Rs 50 crore in 2013."
The company does not have any plans to raise capital from any source and will depend on internal accruals, he added.
Promart Retail India today opened its first showroom in the National Capital.
"We will open most of our stores in very small cities. Our target locations are Tier II cities to Tier VI towns," Agarwal said, adding that the company offers 20-60 per cent discounts throughout the year.
The company sells brands like Adidas, Arrow, Lee Cooper, Lotto, Provogue, Pepe, Puma, Spykar and Wills Classic. It also has three in-house brands -- Tramorp, Profussion and Protees. Its products are available between Rs 49 and Rs 1,899.
Talking about employee strength, Garg said: "When we complete our this phase of expansion drive, we will employ over 1,000 people by 2013-14."
At present, the company employs around 180 people, who are all permanent staff, he added.
Asked if the company will tie up with any multi-national retailer coming into the country after relaxation of FDI in retail, Garg said: "We are open to forming a JV if the offer is a lucrative one. However, that is not a priority and we are not approaching anyone."