V Mart Retail Pvt Ltd, a value chain that is largely spread over Northern and Western India, has recently sold a 25 percent stake for an undisclosed sum to Naman Investments, a private equity arm of Aditya Birla Group. V Mart has taken this step for funding its expansion plan and gain expert guidance and support from the AB Group.
V Mart is into retailing of garments and footwear and has approximately 26 stores across the country and aims to launch nearly 100 new outlets within two years. The retailer plans to closely follow the policies on merchandising, logistics and store management that are followed by Aditya Group.
Operating through a chain of mid-size value retail stores in the area ranging from 6000 to 12000 square feet, V Mart mainly focuses on Tier II and III cities. Catering to the middle and lower-middle segment of the society, the retailer has concentrated on the thriving apparel business.
V Mart registered a turnover of approximately Rs1 billion in 2007 and aspires to achieve a growth of 50 percent this year. Launched in 2004, the company is growing at an annual scorching pace of 40 percent.
After the success of V Mart, the Company opened V Galz stores, a fashion studio exclusively for women, which houses stylish garments and accessories. V Galz targets the fashion savvy girls by providing trendy outfits at reasonable prices.
The diversified Aditya Birla Group also operates in two retail chains, one in South-India based Trinethra, which it acquired in 2006 and the other More, which was launched in 2007.