Mumbai: Close on the heels of deciding to merge itself with S Kumars Nationwide (SKNL), Brandhouse Retail, the retail venture of SKNL, is planning to go public in the next three to four months. “
The board of SKNL has given an approval for Brandhouse to be acquired by the company and then demerge it into a separate entity. The procedure should be over in three-four months and after that we will be listing it,” Brandhouse CEO Tarun Joshi told ET. The company was also open to the idea of diluting a stake to private equity investors, he added.
Earlier this month, the board of S Kumars Nationwide Ltd (SKNL) had decided to buy BrandHouse Retail for a consideration of Rs 12.95 crore. Brandhouse Retails manages exclusive brand outlets for SKNL brands as well as key international brands coming to India. Brandhouse Retail is in the midst of a Rs 400-crore expansion which would see a total of 1,200 outlets being set up by 2010.
The company plans to cross 100 outlets by the end of this fiscal and 400 by the end of next fiscal. “Out of the total of Rs 400 crore which constitutes our capital expenditure plan, we plan to use Rs 100 crore from internal accruals and promoters.
The rest would be funded through a mix of debt and equity,” Joshi said. He, however, refused to divulge the break-up of the debt and equity portion. Mr Joshi said that Brandhouse Retail was also looking at spreading its wings beyond the country in due course of time. “We have got enquiries for setting up exclusive outlets in Middle East and UK,” he said, adding that the company was also looking at setting up stores outside India, especially that of Reid and Taylor.
Spurce : Economic Times