Parsvnath plans to open 5-10 retail stores

New Delhi: Real estate company Parsvnath outlined plans for an aggressive retail foray and said it would open five-ten stores in a mix of formats including hypermarket, convenience stores, food joints and very large stores during the current fiscal.

The company said it is in talks with major retail chains to explore the possibilities of a foreign or a domestic collaboration for setting up these retail formats, but did not divulge the names (of potential partners) or the investment estimates for the proposed retail foray.

“We will do the front-end but we will not do cash and carry. We are in talks with various players for different formats. The retail business is growing phenomenally and this is likely to continue,” Mr Pradeep Jain, Chairman of Parsvnath Developers Ltd, said on the sidelines of a conference here to announce the company’s fourth quarter and fiscal 2008 results.

He said that the company was looking at the hypermarket concept, as also small formats such as convenience stores. “In addition, we will be going for food joints (coffee and eateries), and very large formats stores,” he added.

Mr Jain said that the company would set up these stores in Delhi and Mumbai but did not divulge the other locations being considered. Parsvnath had announced its foray into retail sector in November 2007 and has already incorporated a subsidiary Parsvnath Retail Ltd.

Over the last few months the market has been rife with speculations that French retail giant Carrefour has initiated discussions with realty players including DLF, Parsvnath and MGF for a prospective partnership.

Under current guidelines, foreign direct investment up to 100 per cent is allowed in the wholesale cash-and-carry, but it is not allowed in the multi-brand retail.

In single brand product retailing, it is limited up to 51 per cent.