Savemax plans to expand in northern region

Retail firm Savemax plans to expand in the five northern states by financial year 2015-16 with a capital expenditure of Rs 300 crore.

The firm would also add two more stores in the NCR region - Kundli (Delhi) and Karnal (Haryana) - by the end of this year, said Savemax MD & CEO Vaibhav Singhal.

"We would expand in the five northern states and open new centres. We are planning a capital expenditure of Rs 300 crore by that time," Singhal told PTI.

The company, which is currently operating three stores in Delhi, is looking at Haryana, Madhya Pradesh, Chhattisgarh, Uttar Pradesh and Punjab for expansion.

"We are expecting a turnover of Rs 125 crore this fiscal," he said. The company clocked a turnover of Rs 55 crore last financial year.

Savemax is currently operating three stores in the NCR, two at Dwarka and one at Kalkaji.

The company is traditionally a rice exporter and had ventured in the retail sector in December 2011.

Its business model is based on both - business to business (B2B) and business to consumer (B2C) - concepts.

Apart from cash and carry, it also sells items on wholesale price to corporate purchasers as hotels, restaurants, caterers, wedding planners, hospitals etc.