Pantaloon plans to set up NBFC

Floats retail JV with Gini & Jony in kidswear segment.

Pantaloon Retail India plans to set up a non-banking financial company (NBFC). The company is looking at entering the insurance and credit side of the retail business. The retail major already has private equity and asset management services.

"The asset management service is already active. The new proposal is for a company that will focus on other areas as well," said Kishore Biyani, managing director.

In addition to this, the company also announced an agreement to set up a retail chain for kidswear under the Gini & Jony Apparel brand. Pantaloon would have a 50 per cent stake in the joint venture.

Harish Mehta, chief financial officer, Gini & Jony, said, "We are looking at major expansions in the retail space, and Pantaloon is the best brand to partner with."

"In organised retail, there is a gap as far as children wear is concerned. Our aim is to fill this gap with our JV," said Biyani.

Pantaloon has also picked up a 33 per cent stake in Capital Foods and Capital Foods Exports each. These companies manufacture and market ready-to-eat food items under the Smith & Jones and Chings' Secret brands.