Multibrand consumer electronics and home appliances retail chain Vivek Ltd is planning to add another 28 retail outlets focusing on Tamil Nadu, with a total investment of around Rs 25-30 crore. After the completion of the expansion project the company is expecting its turnover to be in the range of Rs 900-1000 crore as against Rs 435 crore last year, said B A Srinivasa, Chief Executive Officer of Vivek Ltd.
The company, which has around 47 stores in 19 cities, is expecting to increase it to 75 stores in the next three years. “We have presence in 18 cities in Tamil Nadu and in one city in Karnataka. Our target is to expand the presence to 75 stores, in next three years, focusing on spreading in more cities in Tamil Nadu,” he said. The company is also looking at possibilities of an Initial Public Offering (IPO), in the future. “We want to grow faster than the market growth and an IPO will help us. Our policy is to wait and watch the market environment and come up with the public offering at an appropriate time,” said Srinivasa.
The investment for the target of 28 stores in next three years would be met through a mix of internal accruals and borrowings. It would also go for a fund raising prior to the launch of IPO, and the details are yet to be decided, he added.
Vivek and Company, which was incorporated as Vivek Ltd in 1994 started operating under a corporate set up with plans for expansion, since then, said Srinivasa. The company has around 1,500 employees at present.
