Consumer durables major Videocon Industries has acquired Planet M, the music and entertainment retail arm of media house Bennett, Coleman & Co, for Rs 200 crore.
The acquisition has been done by NEXT, Videocon’s retail chain for consumer electronics and home appliances.
Videocon Chairman V N Dhoot said Planet M, which has a huge brand equity, fits in well with the group’s retail ambitions. Dhoot said the group plans an over six-fold increase in Planet M’s turnover from around Rs 150 crore now to around Rs 1,000 crore.
Asked whether the turnover target was a bit too ambitious, Dhoot said, “Watch out for our next move. We will invest Rs 500 crore and have 1,000 Planet M stores all over the country.”
With 150 stores across 42 cities, Planet M is one of the leading players in organised music retail. Dhruva Chandran, NEXT CEO, said Planet M offers a unique opportunity for Videocon's retail foray to tap products and services demanded by the new-age Indians.
A majority of Planet M’s turnover comes from the music and home entertainment business. However, the music retail chain has also emerged as one of the leading sellers of iPod and console games like Microsoft’s X box. Chandran said NEXT will launch a range of new IT products through Planet M stores.
Bennett, Coleman has sold Planet M as the media group wants to shed its non-core retail assets.
Last year, Videocon made its maiden debut in retail through NEXT. Apart from leading consumer durable brands NEXT also sells its private labels under the same brand name in more than 500 stores in 180 cities. With Planet M in its kitty, NEXT Retail aims to clock a turnover of Rs 2,000 crore by the next year.
According to a Ficci-PwC report, the Indian music industry is expected to post an annual growth of around 30 per cent every year to Rs 8,700 crore in another four years.
The other major players in music retail include RPG Group’s Music World, Mumbai-based Rhythm House and Groove.