Micky Jagtiani-owned Max Hypermarkets, which operates Spar-branded superstores, plans to expand its presence to new geographies and open 25 hypermarkets by 2012. This will result in a 10-fold increase in the company’s retail space—from 120,000 sq ft currently to 1.2 million sq ft.
Managing director Viney Singh said the company is expecting revenues to rise proportionately, from Rs 150 crore currently, to Rs 1,250 crore by 2012.
The company, currently, operates three large-format stores—two in Bangalore and one in Hyderabad—and is set to open its flagship property, a 90,000 sq ft store, in Bangalore next week.
Mr Jagtiani, who controls the Landmark Group, one of West Asia’s largest retail chains, owns fashion retail chain LifeStyle and Max Hypermarkets in India. Max is the licencee for the Spar franchise in India. A Dutch brand, Spar International, is one of the world’s largest retailer of food, with presence in over 33 countries.
“We will now open 6-7 stores each year through 2012. These are all large-format stores with an average size of 50,000 sq ft,” Mr Singh said.
Singh said the company is investing Rs 400 crore, of which, about Rs 250 crore will be equity and the rest debt, to fund the expansion.