Aditya Birla Retail Looking To Raise PE Funding
Aditya Birla Retail Ltd. may sell 10-15% stake in the company to PE players to expand its retail business. It is also open for funding from a foreign strategic retailer.
The Aditya Birla Group forayed in the retail sector in 2006, by acquiring Trinethra (South India based chain of stores. It launched its own brand ‘More’ in 2007.Currently, Aditya Birla Retail has 632 supermarkets and six hypermarkets. It plans to take the number of hypermarkets to 100, while shutting down some of its loss-making super markets. It shut down 70 supermarkets in this financial because of high rents and low sales.
‘More’ offers a range of products in processed foods, home and personal care, fruits and vegetables, general merchandise and apparels. It has 13 private labels in various categories with 320 SKUs in the FMCG segment.
Transaction Reference: Hindu Business Line
Aditya Birla Retail is planning to invest Rs 1,800 Cr over the next 8-10 years to scale up its retail business. It aims to open one store per month at an investment of Rs 20 Cr.
It is also planning to start its own wholesale cash and carry operations in the next two years. Wholesale cash and carry operations provide small retailers and business owners a wide range of products at wholesale prices. Bharti-Walmart and Metro are the other players in this segment. Carrefour and Tesco are also planning to start their operations in India.
According to IBEF, the overall retail sector is expected to rise to $833 bn by 2013 and to $1.3 tn by 2018, at a compound annual growth rate (CAGR) of 10%. Also, organised retail, which is pegged at around $8.14 bn, is expected to grow at a CAGR of 40% to touch $107 bn by 2013.
RPG Group owned Spencer’s Retail is also looking to raise PE funding for expansion.
Recent Deals in retail
TPG Capital Inc is investing $54 Mn in Vishal Retail.
Aditya Birla PE Fund has also invested in V Mart Pvt. Ltd in July’08.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 05/03/10 | Aditya Birla Retail - Looking For PE | Private Equity | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 19/01/12 | M&A | Sudar Garments Limited | George Street London Brand | - | Completed |
| 18/01/12 | Private Equity | L Capital Asia Fund | FabIndia Overseas Private Limited | - | Planned |
| 19/12/11 | Private Equity | Flemingo Duty Free Shops Private Limited | - | Planned | |
| 09/12/11 | Private Equity | Looking For | Manappuram Jewellers Limited | 19.16 | Planned |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Aditya Birla Retail Limited | Aditya Birla Group | "More. Centre", Sahar Airport Road Andheri (East) Mumbai-400099 Maharashtra |
Big Bazaar Vishal Retail Limited V-Mart Retail Limited Future Value Retail Limited |
www.morestore.com |
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