The multi-brand discount retail chain, Promart Retail is upbeat with future plans, even as it is looking to break even by end of this financial area. The retailer is targeting a turnover of Rs 450 crore by 2012-2013. Promart plans include expansion into rural areas, cutting down on supply chain cost to manage inventory better, and open 100 stores. Currently there are five Promart stores. As per reports in the media, Asish Garg, MD Promart has said that they had already invested Rs 40 crore in the business, infused another Rs 60 crore now, and will invest another Rs 50 crore next year. Most of the equity infusion would be used for customer service, warehousing, technology and infrastructure. He also revealed that the business format of Promart was to provide a platform for brands to offload their stocks at a discount without diluting their brand image.
Promart was acquired by VEMB Lifestyle and Apple Group of Companies from apparel retailer Provogue India. The expansion plans of the Gujarat based retailer include launching its operations in towns such as Jamnagar, Anand, Bharuch, Rajkot, Surat and Vapi over the next two months. The next phase of expansion will be into tier II, III, IV cities across northern, southern and western India, taking the total count up to 100 stores by 2013.