Mumbai : Benefit fashion and lifestyle solutions retailer V-Mart Retail plans to devote up to Rs 70 crore to open up around 40 suppliers in 2020-21, a major firm formal stated. The firm currently has 260 suppliers in just about 195 areas across the country, mostly in tier-2 and three towns.

“Even as we are conversing about the economy witnessing a slowdown in consumption, it is a non permanent phase. Fairly, this is the finest time for organised retail gamers to be existing in this market,” V-Mart Retail Chairman and MD Lalit Agarwal instructed on the sidelines of Retail Leadership Summit 2020 here.

He stated the firm will devote in increasing its network and will include around 40 suppliers to choose the rely to 300 stores in future fiscal.

“We will be investing Rs 60-70 crore for this expansion. We will use the cash for maximizing our again-finish assist as well as for revamping some of the present suppliers to fulfill the modifying requirements of the buyers,” Agarwal added.

About growth expectation for the existing fiscal, he stated the firm is hoping to near the yr with around twenty for every cent growth in topline.

“Our strategy to broaden in the underneath served tier-2 and three marketplaces has aided us in our growth. Also, because 70 for every cent of our choices are private labels, (it) has contributed in margin advancement, even with the slowdown,” he added.

In 2018-19, V-Mart posted a revenue of Rs 1,433.75 crore.

A report by KPMG, launched through the summit, stated private labels have the probable to acquire into self sustaining makes with a loyal purchaser base and expand outside of the captive system.

“Involving 2019-22, private labels are envisioned to expand 1.three-1.6 instances speedier than e-commerce platforms and continue on to produce 1.eight-2 instances greater margins than exterior makes,” the report stated.