Subhiksha's promoter R Subramanian said that Subhiksha has not got any fresh outlet from this acquisition. "Both companies are in the same business and with very similar plans to grow. That is why we acquired it," he said.
The merger of the two companies is subject to approval from regulatory bodies. Subramanian said that his company will be investing Rs 800 crore in the current financial year to expand its network and also add consumer durables to its product offering. Apart from food and grocery, Subhiksha is also India's largest mobile retailer, according to a company release.
In a release issued today, Subramanian, said, "This transaction will ensure that Subhiksha has access to capital and will continue to be on the fast track of growth. It will also enhance value for our stakeholders and help us achieve our objective of becoming a $5 billion company." At the end of the current financial year Subiksha proposes to expand its retail network to 2200 from the present level of 1480 outlets. "We expect the turnover to be Rs 4,500 crore from Rs 2,300 reported in the last fiscal," said Subramanian.