Joining the bandwagon of big corporate houses entering India’s burgeoning organised retail market, real estate major Parsvnath Developers announced its foray into the sector with hypermarket format.
The company has incorporated a subsidiary Parsvnath Retail Limited for its new venture, and is joining hands with an existing retailer to start operations in the next two months.
“We have formed a subsidiary to get into retail business, with a hypermarket format to begin with. We are also in advanced stage of talks with a major retailer to provide logistics support and other onshore experience,” said Parsvnath Developers Chairman Pradeep Jain.
He, however, declined to name either the retail partner with which it was in talks with, or the details of investments and number of stores it plans to set up. “Our board of directors will meet soon to discuss the future course for the new business and exact details will be worked out after the meeting,” he said.
The company, which owns 14 million square feet of space in 50 cities in India, has also appointed a consultant to advise it on the finer aspects of the new venture, he added.
Big corporate houses led by Reliance have been rolling out western-style retail stores in the country, whose retail market is estimated to be worth $328 billion.
According to industry body FICCI, organised retail sector is likely to increase its share from the current 4 per cent to over 20 per cent by 2010, by when the overall retail sector will grow to $430 billion.
– Bengaluru Bureau
