Wednesday, October 31, 2007
My Dollar Store, the Indian version of “Dollar Store” in US and “Poundland” in UK may soon don the stable of India’s largest retailer, Pantaloon Retail.
According to reports on CNBC-TV18 and DNA, Future Group’s investment arm, soon to be listed Future Capital may pick up 25% stake in My Dollar Store for value around Rs.30 crore through their private equity arm, Indivision.
My Dollar Stores has currently 47 stores across India and plans to scale it upto 200 in next 2 years. The chain is originally US based and runs its Indian operations through Sankalp Retail Value Stores. It retails imported products across 23 categories for a single price point of Rs.99.
If the deal materialises, it would mean immediate access for My Dollar Store products to numerous stores of Future Group. Also, it would get the much needed funds for expansion proposes and negotiate better real estate prices owing to Pantaloon’s pan-India presence and experience.
For Pantaloon, it would mean adding another business vertical to its list as it can retail single price imported products which still has a good demand in the market owing to its attractive pricing strategy.