Pantaloon, Liberty in footwear JV

Pantaloon Retail (India) and Liberty Shoes on Friday announced that they would set up a joint venture company to launch a chain of footwear stores across the country.

Pantaloon, which owns department stores and hypermarkets, will invest Rs 12.75 crore for a 51 per cent stake in the joint venture. Liberty Shoes will hold the remaining 49 per cent stake.

The new company will target a turnover of Rs 350 crore by the third year of operations.

The company plans to open 45 stores by 2008, each of which will cover 10,000-15,000 square feet and sell Liberty along with other brands of shoes, Pantaloon said in a statement.

"We are looking at tapping the organised retail footwear market that represents 8 per cent of consumers' fashion spends in the country," said Kishore Biyani, managing director, Pantaloon, in the statement.

Pantaloon share prices rose 3 per cent to Rs 1,747.30, while Liberty's rose 10 per cent to Rs 362.50.

Pantaloon has also forayed into the home retail business with the launch of its first home furnishings store called 'Mela' in Mumbai.

The store is part of a bouquet of home stores across price points that will be launched by a new subsidiary, Home Solutions Retail India Ltd.