India’s second largest housing finance company in the private sector, Dewan Housing Finance Corporation Ltd (DHFL), has announced its plan to purchase 19.9 per cent stake in Wadhawan Food Retail Pvt Limited.
Wadhawan Food Retail is the retail arm of the Wadhawan Group, which operates more than 90 food and grocery stores, and six home décor stores across the country.
“The food and grocery segment accounts for 63 per cent of the total retail expenditure. Out of this, 11 per cent is in organised retailing. This represents a big opportunity for us to invest in Wadhawan Food Retail, which has huge expansion plans of opening 1,500 stores in the next four to five years,” said Kapil Wadhawan, vice chairman and managing director, DHFL.
He said DHFL will be able to increase its points of presence through the locations where Wadhawan Food Retail opens stores.
Wadhawan Food Retail currently has five established brands under its umbrella. The company operates Spinach, Sangam Direct and Maratha Co-operative in Maharashtra, Sabka Bazaar and The Home Stores in northern India, and S Mart in southern India.