The acquisition of 40 per cent stake in Blue Green Constructions and Investments, a non-banking finance company (NBFC) listed on the Madras Stock Exchange (MSE), provides the right platform for Subhiksha to enter the consumer durables space.
“We want to enter the consumer durables space in a big way, and Blue Green also had similar plans. Though they have not opened any outlets, they have identified some properties and built initial systems. They needed funds, and we thought that it was a good strategy to buy them,” R Subramanian, managing director of Subhiksha, told media.
Subramanian said Subhiksha would invest Rs 800 crore in FY09 to expand its network and add consumer durables to its product portfolio. “It will also enhance value for our stakeholders and help us achieve our objective of becoming a $5 billion company,” he added.