Videocon plans Rs800-crore retail expansion
21 Jul 2008
Hyderabad: Videocon Retail, a subsidiary of Venugopal Dhoot-promoted Videocon Industries, is planning to spend Rs800 crore in expanding its retail presence across the country.
This investment will be spent on its electronic retail format Next Retail and mobiles, music, entertainment and lifestyle chain Planet M over the next three years.
Videocon acquired Planet M, the music and leisure format store from Bennett, Coleman and Co in November 2007.
It has so far launched 80 revamped Planet M stores and plans to take the number of outlets to 1,500 from the present 200 in the next three years. Simultaneously, Next outlets will be ramped up to 650, from the existing 400.
According to Saurav Dhoot, director, Videocon Retail, Videocon, said the company was looking at offering company-labelled telecom products including mobile pouches, phone insurance and extended warranties at Planet M stores. It was also in talks with a few general insurance companies.
Apart from retailing mobiles and IT products, the company plans to launch laptops, mobile phones and gaming solutions under the Videocon brand.
Videocon Retail's revenues stood at Rs800 crore from Next and Rs100 crore from Planet M in 2007-08. The company is targeting revenues to the tune of Rs1,500 crore and Rs400 crore respectively from the two formats, in 2008-09 he said.
Videocon recently entered into a joint venture with Japanese consumer durables majors Mitsui and Hitachi. In the JV, Mitsui will play a role of major partners while Hitachi will hold a minority stake.
The venture will provide back-end support for Videocon`s retail businesses such as Next and Planet M and will also cater to external clients.
The JV will start commencing by the third quarter of 2008-09.
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