The $24 billion diversified Aditya Birla Group today announced its entry into domestic organised retail market with an investment of up to Rs 9,000 crore over three years to set up 1,000 supermarkets.
The group, which has interests in telecom, cement, textile and aluminium, had in January acquired control of the Trinethra supermarket chain in its run up to the retail foray.
Its retail stores would be christened 'More'. The first outlet will be opened in Pune this month.
"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.
While ruling out the franchisee model for the business, Birla said that the group would be setting up 1,000 super markets over the next two years of about 10,000 sq ft each.
The retail outlets will be in two formats -- hypermarket and supermarket, Birla said.
"We will offer variety, cost-effectiveness and a comfortable and world-class shopping environment to our customers," he said, adding that the group would go it alone in the business.
"We will be hiring thousands of youngsters to man our outlets," Birla said, adding that "we will form direct linkages with farmers."
Investments in back-end functions will be done in a spirit of partnership with vendors and suppliers to eliminate costs in supply-chain, he said.
The group, which has interests in telecom, cement, textile and aluminium, had in January acquired control of the Trinethra supermarket chain in its run up to the retail foray.
Its retail stores would be christened 'More'. The first outlet will be opened in Pune this month.
"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.
While ruling out the franchisee model for the business, Birla said that the group would be setting up 1,000 super markets over the next two years of about 10,000 sq ft each.
The retail outlets will be in two formats -- hypermarket and supermarket, Birla said.
"We will offer variety, cost-effectiveness and a comfortable and world-class shopping environment to our customers," he said, adding that the group would go it alone in the business.
"We will be hiring thousands of youngsters to man our outlets," Birla said, adding that "we will form direct linkages with farmers."
Investments in back-end functions will be done in a spirit of partnership with vendors and suppliers to eliminate costs in supply-chain, he said.