Multi-brand retail chain V-Mart is planning to add 200 new stores by 2020 and the company is investing around Rs 200 crore for this.
With this investment directed to capitalise on smaller towns, the company is targeting over a four-fold jump in revenue to touch Rs 2,500 crore by 2020. In FY 2013-14, the company had a revenue of Rs 574.96 crore.
"We will have around 300 stores in the next five years with a revenue of around Rs 2,500 crore," said Lalit Agarwal, CMD, V-Mart Retail.
"We have a clear vision that smaller towns will be our growth drivers as they have very high potential and aspiration level is growing up", added Agarwal.
Presently, the company is operating 109 stores in 91 cities. Of the total stores, 56 are in tier III clusters, 35 are in tier II towns and 18 in tier I cities.
"Presently, the tier III clusters contribute between 55 to 60 percent of our revenue and we strongly believe that it would go up to 75 percent in next three years," revealed Agarwal.
He said in order to drive up sales further, the company would enhance its in-house labels while also increasing offering on existing brands. Currently, it has 21 in-house labels, which contributes around 25 percent of the sales.
"We would increase the ratio to 50 percent from the existing 25 percent in the next three years. We would add more labels and expand the depth of the existing ones," he added.