Indian retail giant Pantaloon Retail is to spin off its Bazaar food retail business into a wholly-owned subsidiary in order to drive growth at the unit.
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Speaking following a meeting of the board of directors, Pantaloon MD Kishore Biyani said today (30 October) that the move would increase the focus on the unit, which will operate the Big Bazaar and Food Bazaar banners.
“The company’s value retail business, led by its format divisions, Big Bazaar and Food Bazaar, has gained tremendously in size and scale and emerged as a market leader in modern retail. The management believes that it now demands a focused approach for further growth and expansion,” Biyani said.
Biyani revealed that the company intends to increase the number of Big Bazaar outlets it operates from 119 currently to 275 stores by 2014.
“In order to enable the same, the board approved the revised proposal to drop down Big Bazaar, Food Bazaar and related formats into a wholly owned subsidiary with a view to enable capital infusion,” he said.
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By GlobalDataThe move is subject to shareholder and regulatory approval.
