TPG Wholesale Private Limited and Shriram Group have completed the acquisition of debt-ridden Vishal Retail Ltd. While TPG has acquired the wholesale and franchise undertaking of Vishal Retail, Airplaza Retail Holdings Pvt Ltd, a part of Shriram Group, has acquired the retail undertaking of Vishal.
TPG will invest Rs.2,000 mn into TPG Wholesale to fund the turnaround of its business and its future growth. These transactions are the result of Vishal Retail’s debt restructuring, which started in November 2009 under a CDR process led by SBI, on behalf of certain lenders of Vishal Retail. These transactions have been approved by the Board and shareholders of Vishal Retail and accepted by bank creditors.
TPG Wholesale will operate the back-end sourcing, merchandising, logistics and franchise operations, while Airplaza Retail will operate retail shops alongside other franchisee partners currently operating Vishal branded stores. TPG Wholesale will be the franchisor to Airplaza Retail and the existing franchisee partners of the business.
The Vishal Megamart branded retail operations will comprise over 150 stores throughout the country operated by both Airplaza and over 20 other franchise partners. A majority of stores are in tier II and III towns and cities around the country. The store offerings comprise everyday apparel, food & grocery and general merchandise lines.
Puneet Bhatia, MD, TPG Capital India, said, “TPG brings a wealth of experience in managing and operating a multitude of businesses from across the world, including a track record of turning around and transforming a number of portfolio companies. TPG will leverage its resources and know-how and extend all kind of support to the new management to bring the business back onto a growth path.”
Gunender Kapur, CEO, TPG Wholesale, said, “Along with strong investors, Vishal Retail now has an enviable pool of top domestic and international industry talent and experiences to tap into. Despite the challenges, we are confident of rebuilding the financial and operational health of the business relatively quickly. Our vision is to offer nothing short of the highest-quality value experience for our customers.”
Arun Duggal, chairman, Shriram Group, said, “We are delighted that the restructured Vishal will be able to continue and grow its operations for the benefit of its customers, employees, suppliers and the communities where its stores are located. Vishal has a strategic fit for Shriram Group because its stores are located in small cities which are also our serving areas.”
– IndiaRetailing Bureau
