Pantaloon expects Rs 5000 cr from JVs

Kishore Biyani-promoted Pantaloon Retail India Ltd (PRIL), part of the Future Group, is targeting a revenue stream of Rs 5,000 crore by 2010 from joint ventures. The group is planning to invest Rs 500 crore in the same period in the joint ventures.

This will be a ten-fold return on investment in four years.

"We hope to invest Rs 500 crore in these joint ventures till 2010 and reap Rs 5,000 crore," said Ved Prakash Arya, director - operations & COO, Pantaloon Retail.

The company is looking at this giant revenue stream to flow in from seven key areas where it has entered into joint ventures and taken equity stakes.

For instance, the latest is the initiative with Lee Cooper. "Basically, we recognise that we do not have the expertise in certain areas that are better handled by those in the segment. So, we have identified some key segments and have forged alliances that fit in with our plan to reach the consumer where they are, with what they need," said Arya.

The segments identified broadly include footwear, lifestyle, kidswear, food, entertainment and health. There are others such as mobile and beauty where the group has initiated on its own with ventures such as Star n' Sitara saloons.

For footwear it has 51 per cent stake in a joint venture with Liberty India and already has six stores under the banner of Shoe Factory.

"Here we stock not only just brands, but also imported footwear and other brands. This segment is roughly valued at around Rs 20,000 crore and we want to be part of it," he said. For kidswear, it has tied up with Gini & Jony and is looking to take a major position in the Rs 7,000 crore segment.

In the foods segment, it has tied up with Pan India Food Solutions that has under its banner food outlets such as Bombay Blues, Copper Chimney and Noodle Bar among others. These will help PRIL create food courts where the company seeks to establish malls. For foraying the entertainment space, it has forged an alliance with Mumbai-based Galaxy Entertainment that runs a bowling company, video arcade and sports bar.

In the arena of health, PRIL has looked at the area of preventive care with fitness where it has tied up Talwalkars and it already has its venture Indus Clothing that takes care of yoga and fitness wear. It has also entered into a joint venture with the Manipal Group and hopes to set up pharmacy chains, pathology labs and "we are also looking at the consulting space with Manipal," said Arya.

In lifestyle segment, it has a joint venture with Planet Retail India Ltd that has under it ventures such as Marks & Spencer and has exclusive distribution license for brands such as Puma, Wilson and Speedo among others. PRIL has also got an alliance going with Etam for lingerie and inner wear and with Goldiam International Ltd and retails its jewellery brand Ola.