Source: IST, ET Now:23 Mar 2010, 1315 hrs
RC Agarwal , Chairman, Vishal Retail, spoke to ET Now
on restructuring and consolidation.
How business is shaping up? Are we indeed seeing a revival in footfalls as well as consumer spending? What has been the kind of same store sales growth for you so far?
We have been getting a sales growth of 30% to 40% since last three months, January, February and March and our per square feet sales growth is 30% to 40% and this is very good sign and going forward, it will increase.
In terms of your debt restructuring, how much of stake are you looking to sell to TPG as well as your secured lenders?
The next CDR Committee meeting will be held on 30th of March and banks are agreeing on all the terms and once that has been finalised, we will disclose the contour of that particular CDR plan.
Have you been able to successfully restructure it on terms such as lower interest rates with your creditors?
Yes, almost. They are doing whatever is necessary for the further operation of the company and banks have made a very good deal and it is very good for the company as well as the new investors coming in.
The worrying part would be the non-CDR lenders. The story is they have approached the debt recovery in tribunal to recover the money. How would you plan to resolve this issue if indeed this is an issue?
All these are rumours roaming around the world. I do not think anybody is against this CDR mechanism. Everybody is on board, most of them are lenders.
Are you not facing any hurdles as far as your non-CDR lenders are concerned?
Yes because this is good for everybody, lenders as well as the company and every lender understands this and they are agreeing on most of the terms.
In terms of a timeline, by when do you expect this entire CDR process to be completed?
It is on the verge of completion. It is just matter of time and some formalities which are being held.
What kind of targets have you set for your company for FY11? FY10 clearly has been the best of years but FY11, can we expect a bit of a turnaround?
We will announce our next plan after the CDR, how the CDR structure will be and which investor will come in. Then within two-three months, we will announce our future planning.
In which case, could you throw some light on your capex and expansion plans going forward?
First, we are going for consolidation, we have reduced our cost, sales are increasing and we have taken control of many things and going forward, company will be doing better in this financial year. We are having best stock turnover ratio in the retail industry right now. After the write off and everything, we are doing a stock turnover issue of only 60 days and that is the best in the country.
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