new delhi leading rice exporter lalmahal group on thursday joined the list of firms jumping into the retail bandwagon announcing plans to invest about rs 1000 crore for a pan india roll out of 500 retail outlets in three years the company on thursday opened first set of 14 stores under the brand lm 365 in the national capital kicking off its expansion plans the organised retail sector in india is still in its nascent stage seeing the potential we have decided to enter the retail market and will roll out 500 stores in the country in the next three years this will entail an investment of about rs 1000 crore lalmahal group managing director prem garg told the media he said the company was mulling over a public offer it however would be funding its initial expansion through internal accruals and debt at 2575 ratio ipo is in our mind we are planning to dilute about 25 per cent stake it can come by around march 2009 he said without divulging further details the company has incorporated a new subsidiary lalmahal retail ltd lmrl for its retail venture in the first phase the company would open 125 outlets in the city by may he said adding in the second phase we will open 60 stores in the ncr some of which could be hypermarkets lm 365 outlets would be of 1000 sq ft to 4500 sq ft in size selling food grocery bakery fruits dairy and pharmaceutical products these stores will also provide valueadded services like courier facilities and travel desks where train and flight tickets can be booked without any extra charge lalmahal retail ltd ceo vikas srivastav said