Trent Eyes Break-Even This Fiscal

Trent Ltd, a Tata group company, is planning to break even in its retail operations this fiscal, chairperson Simone Tata said in the company's forty-ninth annual general meeting today.

"Despite tough market conditions, we have recorded a growth of 85 per cent in the first four months of the current fiscal and if this trend continues we will be able to make cash profit in our retailing business," Simone Tata revealed.

The company recorded a turnover of Rs 22 crore in the April to July period and is expecting to achieve a turnover of Rs 80 crore by the end of March 31, 2002.

 

Trent, which runs the Westside chain of outlets is planning to open 20 stores in the next three years time.

"The setting up of a store requires a capital expenditure of about Rs 2 crore or more depending on the size and location of the outlet," Tata said.

Trent invested around Rs 53 crore in 2000-01, as compared to Rs 46 crore in the corresponding period last year.

Responding to shareholders query about international chains like Marks & Spencer entering the Indian market, Tata said: "At this stage, there is no proposal to enter into a joint venture with other companies. Also there is no anxiety relating to competition from other retail chains."

As part of its expansion strategy, the company which is planning to enter the grocery-retailing segment, is looking at opening 100 grocery stores in the western and northern regions of India.

"We will be investing around Rs 40 crore to set up the food retaining chains," Tata disclosed.

The Tata group of companies holds about 25 per cent stake in the company and has no plans to hike the stake further.

Trent pays about Rs 6.1 lakh as royalty to Tata Sons, the holding company of the Tata group for using the Tata brand name.

The Trent retail chain started in 1998 with the takeover of a retail outlet in Bangalore, owned by UK-based Little Woods Ltd.