Retail chain Shoppers Stop today said it will invest up to Rs 400 crore to expand presence in India by opening new stores across formats in the next four years.
The firm that currently operates departmental stores under 'Shoppers Stop' brand, 'Hypercity' hypermarkets and several speciality format stores such as HomeStop, Crossword Book Store, Mothercare, Estee Lauder and MAC in 19 cities, plans to expand presence to 25 cities in the next three years.
"We will invest between Rs 375 crore and Rs 400 crore in the next four years to open new stores across formats," Shoppers Stop managing director Govind Shrikhande told reporters here.
He said Rs 200 crore would be invested on about 25 new Shoppers Stop departmental stores in existing as well as new cities across India and the remaining would be invested on other formats.
The company today announced the launch of its 43rd Shoppers Stop store in India. It currently runs 10 Hypercity, five HomeStop and 76 Crossword stores among others.
Commenting on the progress of allowing FDI in multi-brand retail in India, Shrikhande said, "We have always welcomed FDI in multi-brand, but the conditions on that are not yet clear. Once there is more clarity on this we do see a lot of foreign investment coming in in segments like home, electronics and hypermarket."
Recently, a Committee of Secretaries had proposed allowing of up to 51% FDI in multi-brand retail with a minimum investment of USD 100 million.
Asked if the Shoppers Stop is in talks with any foreign retailer for a joint venture or partnership, he said, "We are currently not talking to anyone, but once the FDI rules are clear we would definitely like to explore opportunities."
On the issue of high cotton prices and 10% excise levied on branded apparels in the year's Budget, Shrikhande said the firm's volumes had suffered. However, he expressed optimism that things would getter better as the excise rates are expected to get lower.
Shoppers Stop scrips were trading at Rs 412.90 per share on the BSE in the afternoon trade, down 4.64% from the previous close.