Videocon retail arm Next acquires music chain Planet M for Rs200 crore

Mumbai: Next, the retail arm of consumer electronics major Videocon industries, has acquired music and entertainment retail chain Planet M for Rs200 crore.

Next, which bought 100 per cent equity in Planet M from media house Bennett Coleman & Co, said it would invest Rs1,000 crore to open 500 stores over the next 18 months. Bennett, Coleman is selling Planet M as it wants to shed its non-core retail assets.

Videocon chairman V N Dhoot said Planet M, which has a huge brand equity, fits in well with the group''s retail ambitions. He said the group plans an over six-fold increase in Planet M''s turnover from around Rs150 crore now to around Rs1,000 crore.

"Watch out for our next move. We will invest Rs500 crore and have 1,000 Planet M stores all over the country," he added.

The company aims to clock a turnover of Rs2,000 crore by the next year, leveraging the Planet M brand to tap the young generation.

One of the leading players in the music industry, Planet M has 150 stores across 42 cities in the country. While a major portion of its turnover comes from the music and home entertainment business, the chain also sells iPods and console games like Microsoft''s X-Box.