Univercell Telecommunications, a Chennai-based mobile retail chain, is planning to increase its presence by adding 100 outlets this year, each with an investment of Rs 25 lakh. The expansion plan is currently focused on south India as part of its strategy to have a stronghold in the region.
The company, at present, has around 400 stores, with a majority being in south India. Plans are to increase the number of stores (each with a carpet area of 600-1,000 sft) to more than 500 in 2012, D Sathish Babu, founder of Univercell, said, adding that the expansion would be funded through internal accruals.
Univercell requires at least 500 stores in south India in order to claim a significant presence in the region. The company is gearing up to open a majority of these or all of them in the beginning of the festival season, which starts in September.
The company, which clocked a turnover of Rs 860 crore last year, is expecting it to touch Rs 1,400 crore in the current financial year. It is also looking at an initial public offering (IPO) to raise funds.
“We would be looking at an IPO, may be after a year or so. That was our plan for quite some time and we are planning to do it once we achieve a considerable business,” Babu said, adding that the company was currently making profits.
The company had seen a fund infusion by private equity company Peepul Capital almost four years ago. It has initially invested $22 million (around Rs 100 crore), according to earlier news reports.