Determined to add 200 new stores within a span of five years, V-Mart is investing around Rs 200 crore. These stores will be established in different parts of the country by 2020.
With this investment directed to capitalise on smaller towns, thecompany is targeting over four-fold jump in revenue to touch Rs 2,500 crore by 2020. In FY 2013-14, the company had a revenue base of Rs 574.96 crore.
"We will have around 300 stores in the next five years with a revenue of around Rs 2,500 crore by then," said Lalit Agarwal, MD and Chairman, V-Mart Retail.
"We have clear vision that smaller towns will be our growth drivers as they have very high potential and aspiration level is growing up", added Agarwal.
Presently, the company is operating through 109 stores in 91 cities. Of the total stores that the company has, 56 are in tier III clusters, 35 are in tier II towns and 18 in tier I cities.
V-Mart is present at district level markets including Purnia, Saharsa, Madhubani, Motihari, Basti, Gonda, Lakhimpur, Bahraich and is in process to expand its base in the Eastern regions of Bengal and Orissa.
"Presently, the tier III clusters contribute between 55 to 60 per cent of our revenue and we strongly believe that it would go up to 75 per cent in next three years," revealed Agarwal.
He said in order to drive up sales further, the company would enhance its in-house labels, while also increasing offering on existing brands. Currently, it has 21 in-house labels, which contributes around 25 per cent of the sales.
"We would increase the ratio to 50 per cent from the existing 25 per cent in the next three years. We would add more labels and expand the depth of the existing ones," he continued.