Private equity arm of Aditya Birla Group, Naman Investments, has picked up a 25 per cent stake in Delhi-based retail chain V Mart Retail. The Economic Times reported that the investment would be around Rs 60-70 crore, which would value the company at somewhere around Rs 250 crore.
V Mart had started its operations in 2004 and the company’s chairman is Lalit Agarwal. The retail chain caters to the middle and lower-middle segment of the retail market, and earns most of its revenues from apparel business. V Mart had reported revenues of Rs 100 crore in FY08 and plans to target revenues Rs 250 crore in 2008-09. SBI Capital Markets Limited were the advisors to V Mart for this deal. This is a strategic investment on part of Aditya Birla Group.
Last year Aditya Birla Group had acquired Andhra Pradesh-based retail chain Trinethra Super Retail Ltd, which operated around 172 retail stores. Aditya Birla Group had also picked up nearly 5 per cent stake in Core Projects & Technologies, an IT solutions provider. It also has a stake in Bombay Stock Exchange (BSE).
Aditya Birla Retail Ltd (ABRL) operates its retail stores under the brand name of ‘More’. The company operates more than 430 supermarkets across the country and plans to expand this 500 by end of this year. The company also plans to open up 12 hypermarkets this year. Aditya Birla Group plans to invest Rs 10,000 crore in retail business and open nearly 1,500 supermarket and 100 hypermart stores over the next five years.
V Mart Retail currently operates 22 stores across 17 cities in northern and western region, including Delhi, Punjab, Ajmer, Mumbai, Bhopal, Rajkot, Vadodara, Kohlapur and covers 3.25 lakh sqft of the retail space. V-Mart plans to open 24 new stores across the country with an investment of Rs 50 crore this year. It has also decided to launch ‘V-Galz’ -fashionable studios for ladies, which would showcase apparels and accessories for them. It plans to open 100 such stores in the country.