Max Hypermarket embarks Rs 1000-mn investment

Hyderabad: Max Hypermarket India, a subsidiary of the Dubai-based Landmark Group and promoter of the Spar food retail chain, is looking at investing Rs 100 crore in developing supermarkets and hypermarkets in three southern States and Maharashtra by end of 2009.

“We have already invested Rs 100 crore in developing one hypermarket and two supermarkets. The fresh investment will be for developing another four hypermarkets and supermarkets,” Mr Viney Singh, Managing Director, Max Hypermarket India Pvt Ltd, said after the inauguration of the company’s first supermarket in the city.

The company’s other supermarket and hypermarket are located in Bangalore. Mr Singh said that apart from Maharashtra, Max Hypermarket plans to open stores in Karnataka, Tamil Nadu and Andhra Pradesh.

He also said that the supermarket size varies from 20,000 sq. ft. to 30,000 sq. ft. and the hypermarket size ranges between 60,000 sq. ft. and 100,000 sq. ft.

The Spar supermarket is a result of a licence agreement entered in August 2007 between Max Hypermarkets India and Spar International, which is said to be the world’s largest independent food retail chain.“The licence enables Max Hypermarket to gain access to Spar’s best practices in international retailing, technical expertise and international experience, while we are responsible for business operation from capex outlay to day-to-day operations,” Mr Singh said.

Mr Nigel Rex Bird, Chief Operations Officer of the company, said that around 20 per cent of the products available at the stores are imported.
“Also, each store will cater to different market needs depending on the location as tastes in each region vary,” he said.