ABFRL to add 350 stores, invest Rs 270 crore in fiscal 2018-19

Aditya Birla Fashion and Retail (ABFRL), the retail arm of Aditya Birla Group is planning to scale up its operations and will add 350 stores across all formats with an investment of Rs 270 crore (approx $40 million).

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The fashion division saw a surge in its profit witnessing a five-fold jump to Rs 113 crore (approx $16.8 million) for the quarter ended March 2018 and reported revenue of Rs 1764 crore (approx $261.7 million).

With strong growth last fiscal and board approval for the proposed fund raise of up to Rs 1,000 crore (approx $148.3 million) the company is all set for its next phase of expansion. The company will also shut down its loss making stores and focus solely on profitability this fiscal.

"We will add 350 stores in FY19 across formats with capital expenditure of Rs 270 crore. We plan to add around 300 stores under Madura and various other brands while adding around 50-60 Pantaloons stores in FY19. Investment for these stores won’t be much as most of it will be done through the franchisee route," Ashish Dikshit, managing director at Aditya Birla Fashion and Retail, told the Financial Express.

"In 2017-18 we have shut around 4-5% of our stores and in 2018-19 we will look at shutting 3-4% of our loss-making stores," he added.

Aditya Birla Fashion and Retail is India's leading fashion retailer with 2,465 brand stores which includes 275 Pantaloons stores, 4,982 multi-brand outlets (MBOs) and nearly 4,054 point of sale in department stores across the country. The company also has a strong online presence on all leading e-commerce websites. 

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