Big Apple to invest Rs 45 cr on stores in India

Grocery retailer Big Apple said on Friday it will invest Rs 45 crore (Rs 450 million) to more than double its stores in Delhi and NCR as part of its plan to have a pan-India presence by 2008-09.

"We would invest Rs 45 crore to set up 65 new stores in Delhi and NCR to take up the total number to 100, which would be further increased to 140 by the end of this fiscal," Big Apple Managing Director Munish Hemrajani told PTI on the sidelines of a retail conference in New Delhi.

The company would primarily expand its presence in Delhi and NCR in 2007-08 and would diversify to other locations in the next fiscal, he said. As a part of the plans, the company will set up stores in Karnataka and Gujarat in the next fiscal.

"Initially,

we will tap Gujarat and Karnataka and would take a call on where to expand based on our experience in these two states," Hemrajani said. The company plans to open around 200 stores in Gujarat while another 50 in Karnataka, he added.

"While our stores in Karnataka will be primarily restricted to Bangalore, in Gujarat the company would spread its outlets to various location," the managing director said. The company currently earns an annual turnover of Rs 2.5-3 crore (Rs 25 to Rs 30 million) and expects to break-even in the next three months with 100 stores operational.

Big Apple also plans to raise funds through private placements for the expansion, Hemrajani said, but did not disclose further details on the same.