India 02 September 2016: Electronics retailer Pai International is planning to raise Rs.500 crore venture capital (VC) funding for its expansion in India. The company has more than 80 stores in Telangana and Karnataka. It expects to have around 100 retail outlets across the country by the end of this fiscal, Pai International Managing Director Raj Kumar .
Speaking at Press Conference to announced their one day six stores to be launch in Hyderabad on 3rd September, “We are soon going to launch our retail outlets in three cities of Andhra Pradesh. We are also going to operate in other South Indian states like Kerala and Tamil Nadu by next fiscal. With the VC funds, the company plans to enter the Western and Northern parts of the country.”
“All the stores are company-owned and we don’t have any franchisees. Till date, we have sourced funds from a consortium of banks. But now, we are looking for VC funding, as the company has decided to open at least 10 stores a year to spread all over the country.”
He expressed industry concerns over the stiff competition from e-commerce players. “We also have a website to sell our products online but we mostly do business from physical outlets. The online selling companies have disturbed the business of retailers in the country. Else, we could have opened roughly around 200 stores by this time,” he said.
“The Bangalore-based company is also foraying into private labels by launching LED Televisions in the coming festive season. It is initially investing Rs.40-50 crore in the private label business. The new generation LED TV panels will be imported from China. This business is a logical extension to further consolidate the diverse set of the brand’s consumer base,” Pai said.
Along with its retail business, Pai International is also handling the distribution of select electronic brands such as Micromax and Kenstar in South Indian states. The 16-year old company has achieved a turnover of Rs.890 crore in the last fiscal. It is targeting a turnover of Rs.1,200 crore this fiscal.