Bennett, Coleman picks up 3.3% stake in SKC Retail

Bennett, Coleman & Co (BCCL), publishers of The Times of India and the Economic Times, has acquired a 3.3 per cent stake in Chennai-based SKC Retail Limited for a consideration of approximately Rs 10 crore.

SKC Retail, which is currently not listed on the stock markets, operates its business under the brand 'SKC', and has 13 showrooms in four states. The company has spent over Rs 65 crore on its expansion in Hyderabad, Bangalore and Pune where it has opened four stores so far.

A senior official of SKC Retail said the deal with BCCL was based on standard investment procedures, but did not rule out expanding it into a full-fledged advertising contract at a later date.

"We have been in expansion mode since the first quarter of fiscal 2006, and added over 200,000 sft in just Hyderabad, Bangalore and Pune over the past 120 days. These are locations where The Times of India has a substantial and growing presence. A strategic tie-up with BCCL in these locations would help add value to our efforts in aggressively penetrating these markets," the official added.

For the financial year ended March 2007, SKC Retail saw revenues touching Rs 179 crore on a topline CAGR of 88 per cent. Revenues in 2007-08 are expected to cross Rs 260 crore.

Companies in which BCCL has picked up equity holding over the past year include Emaar MGF, Mantri Realty, Wasserstein India & Co, Abbee Consumables and Mumbai-based Clinical Research Institute. BCCL's investment division Private Treaties, is known to have invested in at least 130 companies so far.