Vishal Retail is all set to enter the small format retail segment with the launching of 2000 such stores in metros and mini metros by 2009-2010. Vishal will adopt franchise business model for expansion. "We launched our first small format store at Indore last week. We are now planning to have 250 such stores across the country by end of the current fiscal and then take the numbers to 2,000 by end of 2009-10," revealed Ambeek Khemka, Group President, Vishal Retail. The group hopes this venture in small format retail will generate around 25% of the overall retail turnover. The turnover can be somewhere around Rs.180-200 crore this fiscal, added Khemka. "The FMCG stores would be called 'Vishal Daily Mart', while the apparel stores would be known as 'Vishal Fashion Mart' and the durables and IT stores would be called 'Vishal Technomart'," said Dipankar Guha, Head (Franchise Operations), Vishal Retail. As a business strategy, Vishal Retail will be investing 2 per cent of the topline for marketing and branding campaign, and rest will be made by the franchisees. Vishal Retail is currently operating 137 mega-mart stores (hypermarkets) spanning an area of 2.44 million sq. ft. in 20 states across 89 cities in the country. During FY 2008, Vishal had earned a net profit of Rs.40.6 crore against the total turnover of Rs.1,013 crore (up 67% over previous year).
