The Hindu Business Line : Max Retail to open 50 stores

Max Retail, the value retail division of the Dubai-based Landmark Group, on Thursday announced that it would open 50 stores in India over the next four years with an estimated investment of around Rs 250 crore.

"Out of the 50 stores that we plan to open in the coming four years, 10 will be operational by the year ending March 2007," said Mr Vasanth Kumar, Executive Director, Max Retail. The company launched its fourth retail store in Delhi on Thursday, following its launches in Ahmedabad, Indore and Bangalore.

"All stores will have an area of around 22,000 sq ft with investments of Rs 5 crore per store." Mr Kumar said. The next phase of expansion will see store launches in Agra, Lucknow, Hyderabad and Mumbai. "The idea is to make a mark in the value retail segment which targets people between the premium and discount ranges, the market size of which is around Rs 40,000-50,000 crore. We have aggressive growth plans for the chain that will include thrust to sales through marketing. We plan to spend 3-5 per cent of our turnover on marketing," he said.

Max Retail offers a wide variety of clothes catering to men, women and infants. It also offers accessories and footwear, all of which are priced below Rs 600. The company already has 40 Max stores in Dubai.

As far as designing and manufacturing go, 10 per cent of the designs for its Indian stores are sourced from Dubai that is later customised for the domestic consumer. The company outsources its manufacturing to around 150 facilities in the country, apart from what it sources from Dubai.

Max Retail expects revenues of Rs 15-18 crore annually per store, with an annual growth rate of about 14 per cent.