Jubilant Retail, a division of Jubilant Group, is set to expand its retail presence in the South. On the anvil are Rs 2,500 crore expansion plans to set up 50 hypermarkets and 250 supermarkets across three southern states – excluding Kerala, as organised retail is banned in the state.
“The investment will be funded through internal accruals and debt. However, Jubilant Group could look at equity dilution in its retail subsidiary, Jubilant Retail, at a later date,” Dinesh Malpani, CEO, Jubilant Retail, said. According to him, the company will generate revenues of about Rs 8,500-10,000 crore during the five-year period.
The proposed expansion will begin with the company setting up seven hypermarkets in Bangalore alone, followed by more hypermarkets and supermarkets in tier I cities in the first phase.
The company is also looking to launch its private label for apparel. The label will be sold exclusively in its hypermarkets.
Jubilant Retail had acquired Monday-to-Sunday supermarkets from Kochi-based Amalgam Foods in 2002. The company is now in the process of re-branding it. “The re-branding exercise will be completed within a month. The store will now figure under the Total brand architecture,” said Malpani.
At present, Jubilant Retail, under the Total Mall brand, operates two Monday-to-Sunday supermarkets and two hypermarkets, both in Bangalore.