Spoilt for choice

Mumbai, Nov. 3: Pantaloons has rolled up its sleeves and is ready for foreign competition in the retail arena.

The Kishore Biyani-owned retail chain is launching stores, upgrading the existing ones and also investing in the new format stores it has recently set up.

The company has outlined investment plans of over Rs 220 crore for the next two years. It is planning a rights issue to part-finance the ambitious plans that include strategic acquisitions as well.

To begin with, Pantaloons is planning to set up 13 more stores by 2006-07. These will include three formats ?Pantaloons, Big Bazaar and Food Bazaar ? with sizes ranging from 10,000 to 65,000 square feet.

According to draft letter of offer for its rights issue, Pantaloons will continue to look at inorganic ways for growth, apart from opening new stores and upgrading existing ones.

The company has been in the spotlight for making strategic investments or acquisitions.

Last fiscal, it poured Rs 23.22 crore as strategic investments in Galaxy Entertainment Corporation and Planet Sports.

The company is now planning to earmark around Rs 75 crore to expand through the inorganic route this year and inthe next.

In an effort to enhance its position as a leading retail entity, Pantaloons is planning to venture into new formats even as it wants to ramp up investments in existing ones. The plan is to launch such formats directly or through strategic tie-ups.

Recently, Pantaloons joined hands with Liberty Shoes for setting up a chain of stores that will retail footwear and other accessories. The new company is planning to set up large format footwear stores in the country with each store covering 5-15,000 square feet.

A subsidiary called Home Solutions Retail (India) has been set up to offer solutions in home products, including furnishings, furniture and consumer durables.

The investment plans of the Biyanis have been announced at a time when the government is planning to allow entry of foreign players into retail, an idea not palatable to the Left parties.

Despite the differences, domestic players are not leaving anything to chance. Like the Biyanis, others in the industry are investing heavily to attain critical mass before the entry of overseas gaints. It is estimated that close to 280 malls are now under construction in the country.