Guardian Lifecare to raise Rs 1,000 mn for expansion

New Delhi: The retail pharmacy chain Guardian Lifecare plans to offload stake in favour of private equity firms to raise Rs 100 crore for funding its retail expansion. The company is planning to open 150 new stores across the country by March 2009.

“Major expansion plans are on the anvil, with an investment plan of over Rs 100 crore. We intend to make a foray into the western Indian market. Currently, we are growing at the rate of almost two new stores every week. Our employee strength too shall double in a year’s time,” said Mr Ashutosh Garg, Chairman and Managing, Guardian Lifecare.

“We are talking to various private equity players to sell a part of our stake and raise Rs 100 crore for expansion,” he added.

Mr Garg said the fund raised would be used to take the number of its outlets in the country to around 260 in the next 12 months, from 106 at present.

About 12-15 stores would come up in hospitals that Guardian Lifecare has tied up with.

Other stores would be set up equally in the rest of the three formats of the company High Street Stores, Mall Stores and Personal Stores.

Franchisee licensing:

Besides expanding its footprint, the company also plans to bag master franchisee licence of an international beauty brand for India.

“We are talking to a few international brands and would close in on a deal in the next four weeks,” Mr Garg said without naming them.

Currently, Guardian has presence in six States and 13 cities and hopes to close the fiscal 2007-08 with a turnover of Rs 65 crore.