Vishal Retail to set up garment unit in Gurgaon

Delhi-based Vishal Retail Ltd is planning to set up a new garment capacity in Gurgaon with an estimated investment of Rs 10 crore. The existing unit of Vishal Retail has the capacity to produce 1.5 lakh garment pieces per month and is also based in Gurgaon.

Talking to Business Standard, CMD of Vishal Retail, S. Ramchandra Agarwal said, "To facilitate our growing business, we are planning to set up another plant with a capacity of 5 lakh pieces per month." Vishal Retail Ltd, which recently made its foray in Gujarat, plans to open 200 new stores all across the country by 2010 with an estimated investment of Rs 1200 crore.

The expansion would increase company's captive requirement in multifold justifying the need for an expansion.

Talking about the expansion in retail chain, Agarwal said, "By March 2010 we aim to open 200 more stores in various parts of the country. Each store requires an investment of Rs 5-6 crore." The company's projected turnover for March 07 is Rs 700 crore and by 2010 we aim to touch Rs 5000 crore mark, Agarwal further said.

Currently, the retail chain has 34 Vishal Megamart stores all across the country.

By March 2007 we aim to open 26 new stores in the country, he further said.

Vishal has a strong presence in the north and is now making inroads in the west. "North has been exploited now we plan to come massively in west. For the current year, we have about 19 projects in the west," said Deepu Gupta, west zone head of Vishal Retail who was in the city recently for opening the first store in Gujarat at Ahmedabad Zodiac Square.

The store is spread in an area of 37,000 sq feet. Another megamart stores will come up in a short time at C.G. Road. The group also opens to open stores in Bapunagar and Gandhinagar in a couple of years.

Also, we plan to open three stores in Surat and two in Rajkot, Gupta further said. The group also plans to open more megamart stores in Goa, Nasik, Pune, Belgaum and Bangalore.

"We are regarded as the fastest growing retail chain. Going by the number of stores that we plan to open in by 2010, this roughly translates to one store every week," he added.

However, Vishal Retail is yet to make its presence felt in Mumbai. "The real estate prices have skyrocketed in Mumbai and we are at various stages of negotiation for setting up our first outlet there," according to Gupta.