Raymond to invest Rs 100 cr in 300 new stores by 2011

MUMBAI: Textile firm Raymond will pump in Rs 100 crore to open about 300 stores across the country by the end of March 2011 as part of its expansion plans. The apparel-maker���s ���The Raymond Shop��� will come up in smaller class IV and V cities. (Watch)

���We are investing Rs 100 crore to set up precisely 289 Raymond shops, but we expect to do more than 300. This expansion plan is for the period between April 2009 and March 2011,��� Raymond president, FMCG & retail, Aniruddha Deshmukh, said.

Raymond���s chairman and MD Gautam Singhania, said funding for the project would be split equally between the company and franchisors/franchisees.

Raymond expects its potential turnover to exceed Rs 200 crore from these stores on an annualised basis.

The company is penetrating into India���s hinterland by setting up 1,500 sq ft stores in towns, such as Bijapur, Mandya, Ahmednagar, Bellary, Ghoti and Bhandara.

With the addition of about 300 store, the total number of the outlets of the company will go up to 800.
���There is a huge aggression in what we are doing. We have been exceeding all the targets we set for the stores in a small town,��� Mr Singhania said.

The company aims to enhance its retail space by 50% by 2011, adding more than 4.5-lakh sq ft to existing floor area.