CHAPTER-1
INTRODUCT
ION
“MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART :- A COMPARATIVE
STUDY”
7.1 BRIEF PROFILE OF COMPANY
V-MART PVT LTD
V-MART
Type Hypermarket
Founded 2002
Maiden store Ahmedabad
Industry Retail
Products Apparels, Non Apparels,
Department, Grocery
store
Key People LALIT AGARWAL,
Madan
Agarwal,
Hemant
Agarwal
Punchline ‘Sabse sasta,Sabse Acha’
Retail Space 8.20 Thousand Sq Mtr
Advantage tier II & tier III cities
Currently228 outlets
PART-A
ABOUT INDUSTRY
V-Mart Retail Ltd retails readymade garments accessories etc. and is engaged in
the business of 'Value Retailing' through the chain of stores situated at various
cities in India. The company operates its retail stores under the V-Mart brand.V-
Mart is one of the pioneers in setting up stores across various small Indian towns
and cities including Sultanpur Ujjain Motihari. The company primarily operates in
Tier-II and Tier-III cities with a chain of 'value retail' departmental stores offering
apparels general merchandise and kirana catering to the entire family. The
company has established stores in Metro Tier-I Tier-II and Tier-III cities which
are primarily located as standalone stores in high-street areas and shopping hubs
of such cities. The average size of the store is approximately 8000 Sq. Ft. It
follows the concept of value retailing' to target the strata of the population
belonging to the expanding aspiring class' and middle class' based on customer's
socio-economic conditions purchasing power demographic details and customer
trends.V-Mart Retail Ltd was originally incorporated as Varin Commercial Private
Limited on 24th July 2002 in West Bengal. In October 2003 the company opened
it's first store by the name of 'V-Mart' at Ahmedabad Gujarat and currently own
and operate 62 stores spread across 53 cities and 10 states and union territories
with a total area of 5.06 lac Sq. Ft. Its stores are located in New Delhi Gujarat
Uttar Pradesh Bihar Punjab Chandigarh Haryana Jammu and Kashmir Rajasthan
and Madhya Pradesh. The name of the company was subsequently changed to V-
Mart Retail Private Limited on 11th July 2006. Its name was further changed to
V-Mart Retail Limited upon conversion into a public limited company on 11th July
[Link] February 2013; the company successfully concluded the pubic issue of
equity shares aggregating to Rs. 36435 million. The initial public offer of the
company was subscribed 1.19 times. While the qualified institutional buyers'
portion in the offer was subscribed 1.52 times the non-institutional investors and
retail investors segments were subscribed 1.39 and 0.79 times
[Link] the financial year ended 31 March 2014 the company opened
23 new stores under the brand V-Mart spread over an area of 712256 sq ft.
During the year 3 stores were closed due to lower footfall poor sales and
nonprofit making. During the year under review the company implemented a
space policy at the stores with an objective of allocating space to the line of biz
which has the higher propensity to generate better returns on the space
allocated. The company continued to strengthen its back-end and front-end
processes during the year by taking various initiatives. The three core focus
areas for the company were supply chain management capability building and
investment in infrastructure.
During the year the company took on lease premises for a new
warehouse. During the year under review the company organised
various events so as to be in constant touch with the customers and
get a better understanding of their [Link] the financial year
ended 31 March 2015 the company opened 19 new stores under the
brand V-Mart spread over an area of 1.71 lacs sq. ft. During the year
the company also completed the transition to a new warehouse and
corporate office keeping into account the existing and future
[Link] the financial year ended 31 March 2016 the company
opened 17 new stores under the brand V-Mart spread over an area of
1.48 lacs sq. ft. The company closed two stores during the
[Link] the financial year ended 31 March 2017 the company
continued with its existing approach to endeavor to establish its
growth pattern in the Retail Industry with a chain of stores under the
'V-Mart' brand in the north and eastern part of India. During the year
the company opened 20 new stores under the brand V-Mart which
were spread over an area of 1.80 lacs sq. ft. The company closed two
stores during the [Link] the financial year ended 31 March 2018
the company opened 31 new stores under the brand V-Mart which
were spread over an area of 2.4 Lac sq. ft. The Company closed 1
store during the year. During the year under review the company
continued to focus on enhancing the capability of the organisation.
During the year the company ventured into Tier-IV towns for the first
[Link] the year 2019 the Company 44 new stores and closed
one store. With this addition the cumulative count of the company's
stores increased to 214 spread over an area of 18 Lakhs sq. ft. V-
Mart added three new states i.e. Assam Meghalaya and Himachal
Pradesh to expand the footprint to 17 states.
EXISTING STORES – STATEWISE DISTRIBUTION
STATES STORE COUNT (2021)
DELHI 06
UTTAR PARDESH 156
GUJARAT 35
BIHAR 45
PUNJAB 09
MADHYA PARDESH 09
RAJASTHAN 04
HARYANA 04
CHANDIGARH 03
JAMMU AND KASHMIR 02
UTTARAKHAND 09
JHARKHAND 14
TOTAL 296