The Hindu Business Line : Pantaloon Retail hopes to double turnover

Mr Kishore Biyani, Managing Director, Pantaloon Retail, said the company is expected to cross the Rs 2,000-crore turnover mark next financial year. It has identified the lifestyle segment as an area of growth as margins in this division are higher than in the value segment. To this effect it has set up a store called Fashion Station in Mumbai.

Among its various plans the company hopes to increase its current 2 million sq.ft. of retail space to 3.5 million by June 2006. In the next three months, the company is adding another 4 lakh sq.ft. of retail space and is opening stores in smaller towns such as Durgapur and Sangli and areas such as Kandivali and Vashi in Mumbai.

The company's growth plans, he said, would be funded through internal accruals of Rs 100 croe and debt of Rs 50 crore. The company already has a capital investment of Rs 1,150 crore.

According to Mr Biyani, the company's success rested on the company "addressing the consumer's needs at various levels". Regarding the Indus League acquisition, he said, the brand had been rejuvenated with the launch of a line of products and sales at all stores were increasing. He said the brand would account for Rs 130 crore in business in the year ended June 2005.

Mr Biyani added that the Kshitij Venture Capital Fund, a real estate venture capital fund, would be managed to create a productive asset and create value for investors. He added that the fund was an exciting idea, and would indirectly provide a boost for Pantaloon's retail ventures.

Of some of the acquisitions effected during the last three quarters, Mr Biyani said that returns from these would reflect in the balance sheet only later.

However, the association with Pantaloon Retail had led to some visible changes in speed of execution and greater visibility for Planet Sports, in which Pantaloon had acquire a substantial stake.

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