Wednesday, June 24, 2009

Pantaloon's May sales up 14 pc, to open nine malls by Dec-end

Kishore Biyani-led Pantaloon Retail India has clocked over 14 per cent year-on-year sales growth in May from its value, home and lifestyle retailing segments against the year-ago period.

The Future Group firm, which has chalked out ambitious expansion plans, also plans to open nine additional Central malls by December 2009, it said in an investor update.

The BSE-listed company's three segments put together generated sales worth Rs 619.27 crore last month, against Rs 540.66 crore in May 2008, up by 14.54 per cent.

India's largest listed retailer saw sales jump almost 30 per cent at Rs 6,719.29 crore from July-May 2009 in the three segments compared with the year-ago period.

Future Group founder and CEO Kishore Biyani said he plans to roll out 10 new malls, which will add 1.5 to 1.7 million sq ft to the company's existing retail space of 14 million sq ft.

Biyani will fuel the expansion using Rs 367.5 crore it raised last month through preferential allotment of shares and warrants.

Pantaloon Retail would inject close to Rs 250 crore within the next year-and-half for setting up 10 Central malls in the country, he said.

"We plan to expand Central in some of the country's other consumption centres such as Ahmedabad, Bangalore, Surat, Mumbai, Vizag, Jaipur, Thane, Raipur and Nashik," he said.

The retail major has also sought to raise additional long term funds of up to Rs 1,000 crore in one or more tranches through issuance of securities to various investors.

Besides, the supermarket operator will also roll out six Big Bazaar and eight Food Bazaar stores stores by July-end.

Biyani also plans to set up six eZone and two HomeTown stores by next month-end despite negative sales in its home retailing segment.

Home Solutions Retail (India), an unlisted entity and a wholly-owned subsidiary of Pantaloon Retail India (PRIL) runs the home retailing (and home electronics) stores - Home Town, Furniture Bazaar, eZone, Electronics Bazaar, and Collection i.

The company's same store growth in home retailing fell 28.27 per cent in May at Rs 40 crore, continuing a six-month losing streak that began in November 2008.

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