Ram Chandra Agarwal, the founder of Vishal Retail Ltd, is planing a return to organized retail in two to three months with the brandname V2.
Agarwal, who started out as an entrepreneur selling readymade garments in a 50 sq. ft store at Lal Bazaar in Kolkata, will focus on garment retailing, aiming to eventually get among the top five retailers in India.
“I believe as a business, retail has got big potential as 10 out of top 50 businessmen around the world are from retail business. In our earlier innings, due to some unavoidable circumstances we could not succeed. V2’s USP will be branded-type quality in 50% to 70% less than the branded price, (thus) delivering huge value to customers,” Agarwal said in an e-mailed reply.
In March, the assets and liabilities of debt-strapped Vishal Retail were sold to TPG Wholesale Pvt. Ltd, a subsidiary of TPG VW Ltd, and Airplaza Retail Holdings Pvt. Ltd, owned by the Shriram Group. The TPG-Shriram combine paid Rs.70 crore to Agarwal and could use the brand names Vishal, Vishal Megamart and Vishal Fashion Mart for a period of five months.
The founders will hold about 55% stake in V2, while the remaining 45% will be held by small shareholders, Agarwal said. The initial investment will be in the region of Rs.15-20 crore. The brand will launch eight to 10 stores with a total showroom area of 100,000 sq. ft in the national capital region and Himachal Pradesh. It will be headquartered out of New Delhi with 60-70 retail professionals managing its operations. The target customer is the middle class Indian who earns between Rs.15,000 and Rs.100,000 a month.
A McKinsey report had predicted that by 2025, India’s middle class would have swelled from 50 million to 583 million—about 41% of the population. These households will see their incomes balloon to Rs.51.5 trillion —11 times the level of 2007 and 58% of total Indian income.
Source : Mint News - May 2011. Author Shraddha Nair
Agarwal, who started out as an entrepreneur selling readymade garments in a 50 sq. ft store at Lal Bazaar in Kolkata, will focus on garment retailing, aiming to eventually get among the top five retailers in India.
“I believe as a business, retail has got big potential as 10 out of top 50 businessmen around the world are from retail business. In our earlier innings, due to some unavoidable circumstances we could not succeed. V2’s USP will be branded-type quality in 50% to 70% less than the branded price, (thus) delivering huge value to customers,” Agarwal said in an e-mailed reply.
In March, the assets and liabilities of debt-strapped Vishal Retail were sold to TPG Wholesale Pvt. Ltd, a subsidiary of TPG VW Ltd, and Airplaza Retail Holdings Pvt. Ltd, owned by the Shriram Group. The TPG-Shriram combine paid Rs.70 crore to Agarwal and could use the brand names Vishal, Vishal Megamart and Vishal Fashion Mart for a period of five months.
The founders will hold about 55% stake in V2, while the remaining 45% will be held by small shareholders, Agarwal said. The initial investment will be in the region of Rs.15-20 crore. The brand will launch eight to 10 stores with a total showroom area of 100,000 sq. ft in the national capital region and Himachal Pradesh. It will be headquartered out of New Delhi with 60-70 retail professionals managing its operations. The target customer is the middle class Indian who earns between Rs.15,000 and Rs.100,000 a month.
A McKinsey report had predicted that by 2025, India’s middle class would have swelled from 50 million to 583 million—about 41% of the population. These households will see their incomes balloon to Rs.51.5 trillion —11 times the level of 2007 and 58% of total Indian income.
Source : Mint News - May 2011. Author Shraddha Nair
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