Hypercity to set up 55 stores

K Raheja Corp-promoted retail venture Hypercity Retail (India) plans to set up 55 stores across the country by 2015, many of which will be large-scale stores called hypermarkets.

The company will set up three hypermarkets this year, according to Andrew Levermore, chief operating officer, HRPL. The aim is to become a $100-million company in eight years.

While the first hypermarket will come up in Mumbai in April this year, the second at Ahmedabad will be ready in July. Contenders for the third location are Pune and Mumbai.

"We will be targeting the middle class and our hypermarkets and supermarkets will be located in Tier I and II cities," said Levermore.

While a vast majority of stores will be hypermarkets, spanning an area of 70,000-1,50,000 square feet, some will also be supermarkets, half the size of a hypermarket.

The stores will stock a wide range of goods, ranging from food and grocery, apparel, durables and home furnishings. The company will invest "in the range of $10 million in its expansion in the next couple of years", said Levermore.

Hypercity will source 70 per cent of merchandise from India while the rest, including electronic items, food products and sports equipment, will be imported.

It will also have 100 per cent private apparel labels, having already developed three labels for men, women and children.

"We will have international labels in crockery and linen that would be exclusive to Hypercity for use in India," he said. The company will also develop private labels in food later, said Levermore. It will source 95 per cent of food and grocery from the local mandis but is looking at working directly with farmers in the long term.