Promart to ramp up retail operations in Gujarat
Will add 20 more franchisees in Gujarat at an investment of Rs 10 crore
In an attempt to tap the value segment in Gujarat, Promart is set to focus on opening up more stores in tier-2 and tier-3 towns in Gujarat. While it already runs around eight stores, both owned and franchised, Promart is adding 20 more franchisees in Gujarat at an investment of Rs 10 crore.
"Promart only focuses on Tier II to Tier VI cities and this is a part of the overall business strategy that the company has decided on. Small format stores (average size of 1000-2000 sq ft) helps the company save capex and inventories. In Gujarat, we plan to launch 20 franchisees in the coming months with a total investment of Rs 10 crore. We are looking to clock in a turnover of Rs 45-50 crore through these 20 franchisees," said Punit Agarwal, CEO, Promart.
While for the existing eight stores, Promart has already made an investment of Rs 20 crore, a franchisee would require an initial investment of Rs 10 lakh with an area of approx 750-1000 sq ft.
The company has targeted a turnover of Rs 15-20 crore for the already existing stores in Gujarat for 2012-13.
Promart has currently eight stores in Gujarat, namely Ahmedabad, two in Vadodara, Vapi, Rajkot, Silvassa, Anand and Nadiad, while another store will be operational at Law garden in Ahmedabad, which is expected to open next week.
Nationally, apart from Gujarat, it has also signed 50 franchisees pan India and has set foot in states like Maharashtra, Himachal, Jammu and Kashmir, Punjab, Haryana and Rajasthan via the franchising route. The cities where Promart stores will open this year are Jabalpur, Chittorgarh, Ajmer, Alwar, Kota, Jaipur, Dwarka, Haridwar, Karnal, Barabanki and Jalandhar.
Meanwhile, the company's total turnover is Rs 70 crore and Gujarat contributes 15-20% to the total business.