AV Birla group enters retail business; first outlet to open in Pune soon

18 May 2007

Mumbai: The AV Birla group has entered the retail segment with the Aditya Birla Retail brand name and will open its first outlet in Pune this month itself.

The retail venture, involving investment of Rs8,000-9,000 crore, will have two formats — hypermarket and supermarket.

The retail venture, being made via a listed AV Birla group company, will not have any tie-up. The company, however, is looking for acquisitions to add value and has acquired leading South-based super market chain Trinethra in January, but is not keen on tying up with any JV partner as of now.

Its retail stores would be christened ''More''. The first outlet will be opened in Pune this month. However, the group has clarified that the Pyramid acquisition talks were only speculative.

"The business will, however, not be funded by any of our listed companies," group chairman Kumar Mangalam Birla said, adding a debt-equity mixture will be used to fund the venture.

"We also have the option of tapping the vibrant capital market," he said.