Aditya Birla Retail to open six hypermarket stores in FY13
An average Dunkin Donut store is likely to be around 1,200 – 1,400 square feet. The cost of setting up one store could range from Rs 60 lakh to Rs 1.2 crore depending on the location
Aditya Birla Retail Ltd is in the process of opening six hypermarket format stores under its brand 'more.Megastores' in the current financial year with an investment of about Rs 90 crore, a top executive said.
The proposed stores will be set up in Bangalore, Delhi and Hyderabad, said Russell Berman, Chief Executive Officer (Hypermarkets division), Aditya Birla Retail.
The company is also experimenting with smaller format stores, he said. The company, part of the $28 billion Aditya Birla Group, has significant presence in the South, and it will launch stores in new cities, including Kolkata, to establish a pan-India presence, Berman said.
"Currently, more than half of our revenue comes from south. But, we will have a pan-India presence and are considering new locations to establish our presence. We will be opening six new stores this year," Berman told reporters after inaugurating a hypermarket outlet.
He said typically, each hypermarket, comprising about 60,000 sft, will require an investment of about Rs 15 crore. And each store will take anywhere between 12 and 24 months to breakeven. According to Berman, the company's current focus is on metros and though Tier-II locations are on its radar, it will take some more time before a full-fledged expansion is considered in smaller locations.
The Aditya Birla Group firm has two stores in small cities - Vadodara and and Nashik.