UK cash-and-carry wholesaler Booker said it expects to make its first profit in India by 2013 with the expansion of its store network in the country.
The firm, which opened its first branch in Mumbai last September, plans to open one store each year until 2013, at which time the company expects to make a profit of GBP1.5m (US$2.2m).
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This year, Booker made a net loss of GBP1.5m in India, the firm said yesterday (20 May).
Booker said customer reaction to the first store has been “good” and that it plans to open 15 partner business centres in India to support the new stores by 2013.
“We plan for a second Mumbai branch and the test opening of a franchise branch in another city with a local partner in the 2011 financial year,” CEO Charles Wilson said. “We believe that outside Mumbai, expansion with partners could accelerate roll-out.”
The firm yesterday recorded an increase in full-year profits, boosted by “strong” Internet sales.
For the 52 weeks ended 26 March, profit before tax increased 21.2% to reach GBP57.2m. Profit after tax amounted to GBP47.6m, a 21.4% increase on last year. Operating profit amounted to GBP66.6m, a 15.2% on the prior year.
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By GlobalDataSales increased 6.5% to GBP3.4bn.
