New Delhi: The Rs 650-crore Pantaloon Retail (India) is planning to diversify into different retail formats from the present Big Bazaar, Food Bazaar, Pantaloon and Central stores.

The retailer now has plans to enter beauty and grooming and fresh service segments after opening a clothing and accessories store, Fashion Street.

Kishore Biyani, managing director of Pantaloon Retail, said the company will launch a chain of beauty parlours called `Star aur Sitara'' in the next few months. The parlours will be positioned at the mass-end of the market and the company is targeting the middle class with its prices and offerings.

The beauty parlours will provide hair-cutting and styling services for both men and women.

The new services will be priced at a `discount'' compared to the existing market rates, in line with the Big Bazaar''s concept of a discount store. The offerings will also include special packages aimed at segments of the beauty market such as wedding makeovers. Besides, Pantaloons has plans to launch events around its salons to attract customers. The company is in the process of hiring personnel with experience in the beauty business to run its salons and parlours.

Initially the outlets will some up in Ahmedabad and Bangalore and both these outlets would be located within shopping malls.

A couple of months ago Pantaloon Retail had announced setting up exclusive retail stores for books, music and stationery items. It also floated a subsidiary to spearhead the new retail format.

The company is now planning to launch stores with a total area of 15,000-20,000sq ft. The first store is expected to come up in the next two months. In addition to the independent formats, the company is planning to set up stores inside its discount chain, Big Bazar.

New stores will come up at the malls being built by Kshitjj Venture Capital Fund, promoted by the Pantaloon group. Kshitjj Venture Capital Fund is planning to build 16 malls across the country. The fund has already signed properties in Baroda and Indore.

Pantaloon Retail is planning to focus on expanding retail business aggressively and for this it is investing close to Rs200 crore a year to set up new outlets.

The company would be raising close to Rs225 crore from the rights issue, which is due in the next couple of months.