Biba plans Rs 40-cr investment in pan-India expansion

Mumbai-based retailer Biba Apparels plans to increase its store-network to over 100 in the next two years and has earmarked an investment of Rs 40 crore for the purpose.

"We plan to set up 110 stores pan-India by 2011. These will be set up in the metros, Tier II and Tier III towns," Biba's director Sanjay Bindra said.

The stores will be spread across 1,200 sq ft and would be self-managed ones, Bindra said.

The Tier II and Tier III cities were "a preferred destination to do business on account of very minimal competition," he said, adding that a lot of brands were still not present in these areas.

"Besides, customers here look for more options and better items," he said.

Costs of real estate, advertising and hoardings were also low and hence, it made sound business sense to enter these untapped areas, he said.

In 2009-10, the company intends to set up a minimum of 30 stores with each store entailing an investment of Rs 40-60 lakh and spread across 1,000 sq ft each, he said.

"By May-June, we plan to set up three stores in Mumbai, in places like R-Mall, Crossroads and Satara Mall, Palm Beach. In Delhi, our plan is to have three-four stores this year," Bindra said.

The company has already made its presence felt in Delhi and Mumbai and other metros and would continue to expand in these cities, he said.