The plans of automobile major Mahindra and Mahindra to foray into the retail sector pushed up its stock to Rs 814 ending 7.6 per cent higher with volume traded touching 6,67, 706 against two week average of 1,91,240.
The company’s shares ended close to 8 per cent on Thursday boosted by the news of the automobile major’s move to diversify into the retail space.
Mahindra Retail is expected to roll out a chain of multiple-format lifestyle stores across the country, in a year’s time. The company already holds licences to distribute kids’ apparel, toys and furnishings of companies including Walt Disney, Mattel, Lego and Woolworths’ Ladybird in India.
According to reports, the retail venture would be a Mahindra Group business, although the company may consider taking on strategic investors at a later date.
India’s retail industry is estimated at about Rs 35,000 crore and is forecast to nearly double by 2015. Reliance Industries, Tata group, RPG group, Bharti Enterprises and Aditya Birla group have already entered the retail space.