Landmark Group to pump in Rs 100 cr on retail chain

Firming up $50m investments to strengthen presence

Landmark Group will pump in Rs 100 crore to set up its Max chain of retail stores in India. The company presently has a presence in India with its 'Lifestyle' stores and this will be the group's entry into value retailing.

Addressing a press conference in Bangalore on Friday, H Ramnathan, director, Landmark Group said by July 2006, the company will set up four stores. The company is looking at the major metros initially and in phase II will consider the mini metros. "For raising the required capital, we have chalked out equity and debt route," he added.

Landmark Group is also firming up $50 million of additional investments in India. Through the investments, 'Lifestyle' stores will be extended from the present eight stores to 20 stores in three years.

In addition to this, the company will launch 'Max Hypermarts' stores in the southern states starting with Bangalore and will also expand 'Home Centre' to other metros.

Explaining the group's foray into value retailing, Ramnathan said that the store format which offers contemporary fashion at an affordable price is a successful format in West Asia. "Through this, we will virtually create a new segment of value retail in the Indian industry and will have 30-40 per cent price differentials compared to 'Lifestyle' stores," he added.

"By offering Indian customers the same depth of quality and style that Max offers in West Asia, we aim to replicate our overseas success and expertise in India. Despite the rapid growth in the Indian retail industry, there is an opportunity in the mid-market segment that we plan to meet with Max," said Ramnathan.

"The Landmark Group plans to launch 50 Max stores in India over the next 5 years. The first store is expected to commence operations in the first quarter of 2006," he added.

According to Vasanth Kumar, president, Max Retail Stores, the value retailing or mid-market segment retailing in India is valued around Rs 40,000 crore of which organised component is only 2-3 per cent.

It is this segment that Max will cater to which is estimated to grow at 14 per cent over the next three years.

The core target audience for Max will be the young adult in the age group of 22-35 years who is aspirational and exposed to the West.

"The launch of the brand is well timed as today's discerning Indian consumer wants to look fashionable in line with international styling and trends, while remaining price conscious," he added.

Working with its in-house team of designers who have several years of experience in the retail fashion industry, Max will source its merchandise from India and overseas.

"The same quality of products available in the Max stores overseas will be available to the Indian consumer. The same international standards of design and layout will apply to the Indian stores," said Vasanth Kumar.

Launched in early 2004 in West Asia, Max has already set up 27 stores in three countries.