Vishal Retail to invest Rs 700 cr for expansion

New Delhi, June 29 (PTI) Delhi-based Vishal Retail today
said it would open 70 more stores at a cost of around Rs 700
crore by the end of this year, taking the total number to 190,
while playing down the chances of high inflation dampening its
expansion plans.
"Inflation has made no impact on our growth plan. We are
going to open 70 more stores by the end of the current year
and will invest Rs 700 crore for the purpose," Vishal Retail
Chairman Ram Chandra Agarwal told reporters on the side lines
of Pure&Play Retail Summit here.
The company is also looking to raise Rs 200 crore through
a private equity investment for the expansion plans, while the
remaining fund will be arranged through debt.
"In order to fund our expansion plans we are looking at a
debt equity ration of 2:1," Agarwal said.
Currently, the company is in talks with various private
equity firms. However, Agarwal declined to divulge the names
of the PEs.
About the measures taken to counter the inflationary
pressure, he said, "We are cutting cost on manpower and
improving our efficiency by switching to larger warehouses and
cost effective supply chains."
Vishal Retail is also planning to launch loyalty cards to
attract customers, particularly females, besides introducing
new brands in women's wear category this year.