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India’s second biggest supermarket operator is planning to start three additional megastores over the next three months at Mumbai, NCR and Hyderabad
Aditya Birla Retail Ltd (ABRL), India’s second biggest supermarket operator, is eying a total turnover of Rs1,600 crore this fiscal and hopes to turn earnings (interest, taxes, depreciation, and amortisation) or EBITA, positive by 2012.
“We are targeting revenue of Rs1,600 crore in this financial year. We are looking at 30%-35% growth,” said Thomas Varghese, chief executive, Aditya Birla Retail Ltd.
The Aditya Birla group’s multi-format store company is also ramping up its hyper-market brand ‘more.MEGASTORE’ and would soon launch three new stores at Thane, National Capital Region (NCR) and Hyderabad.
“We are completely astounded by some of our hyper markets in Bengaluru and Indore which have out-performed the competition. In the next three months, we have three more hyper markets coming up at Thane, NCR (Rohini) and Hyderabad (Saroornagar),” said Mr Varghese.
“ABRL has 15- 20 such properties in its bank where it plans to open the hyper markets. It hopes to see these properties on ground in the next 24 months. “We plan to put up 6 to 10 hyper-markets within this financial year and our aim is to put 10to 12 hyper markets every year. Currently we have five hyper markets,” he added.
Talking about the revenue-share deals, Mr Varghese said, “The trend (of revenue-share deals) will be more popular in metros where the shopping centre owners are assured of higher revenue so that the up-side is better. The owners are even protected by minimum guarantee.” ABRL has this kind of arrangement at some of its hypermarkets. However, the official declined to divulge the locations.
ABRL is planning to ramp up its total mall area to 10 million sq ft over the next five-six years. “We hope that in five-six years, we will be a company with 10 million sq ft. At the moment, we have close to 2 million sq ft,” said Mr Varghese.