Forecasting tremendous potential in the local market, Indian company Pantaloons Fashion & Retail says it will scale up its network over the next 12 months.

The company, now owned by Aditya Birla Nuvo Limited, will invest Rs175 crore (around US$35 million) to open 12 stores in one year.

“Our the target in the short term is to open at least one store a month, although we have a line of sight for 15 stores,” said CEO Shital Mehta.

Around 60-70 per cent of the new stores will be in smaller cities, says Mehta. Each store will cost an investment of up to Rs15 crore.

Pantaloons currently operates 75 stores in 35 Indian cities.