Spar Hypermarket is all set to resume its expansion drive with 25 stores coming up. The company, which is the outcome of a licensee agreement between Dubai-based Landmark Group’s Max Hypermarkets India and Net�herlands-based Spar International, is eyeing a total of 25 hypermarkets across the nation in the next 3 years.
Spar will invest a total of Rs 400 crore for its expansion plans, of which, about Rs 250 crore will be equity and the rest through debt.
While majority of the 25 stores will be in tier-2 cities in south India, such as Vis�hakhapatnam, Vijayawada and Coimbatore, the company will also be looking at opening stores in cities like Mumbai and Chennai.
At present, Spar operates three stores in India – two in Bangalore and one in Hyderabad. It is set to add its flagship property, a 90,000 sq ft store, in Bangalore next week. The company is targeting about 5-6 stores, mostly hypermarkets by this year end in areas including Pune, Delhi, Mysore and Mangalore.
The new expansion drive is expected to result in an almost 10-fold increase in the company’s revenues from Rs 150 crore in this fiscal year to Rs 1,250 crore by 2012-13. The firm has been clocking a 30-35 per cent year-on-year growth in revenue from its like-for-like sales in its two years of operations.