Aditya Birla Group acquires 25 per cent stake in VMart
10 Jul 2008
Mumbai: The Aditya Birla Group has acquired a 25 per cent stake in Delhi-based VMart Retail Pvt Ltd for an undisclosed sum, to help fund its expansion plans, the discount-retailer's managing director said.
The acquisition was made by Aditya Birla Group company, Naman Investments. VMart hopes to gain expertise and support in expanding the retail chain through the stake sale.
V-Mart, which is into retailing of grocery, apparel, footwear and menswear, has 26 stores across the country and plans to expand it to 50 by the end of this year at an investment of Rs5 crore.
The retailer hopes to double its revenue in 2008-09 from last fiscal's Rs100 crore.
V-Mart would continue to have its own management and continue to function independently, its managing director said, adding he would continue to lead the company.
"This is a purely financial investment agreement taken with a view to expand the reach of our chain," he said.
The Aditya Birla Group operates about 270 stores in two retail chains: the South India-based Trinethra, which it acquired in 2006, and More, which it launched in 2007.
