Godrej Nature's Basket has picked up a minority stake in Goan retail chain Magsons group as the grocery and fresh food store operator aims to clock a revenue of Rs 500 crore by the end of the current fiscal year.

After shutting some stores in Delhi-NCR and Hyderabad last year, the retailer is now working on a strategy to bolster regional presence. The deal with Magsons, for an undisclosed amount, is part of that strategy.

The Goa-based Magsons runs about 11-12 stores in the region and has a turnover of around Rs 50 crore.

Godrej Nature's Basket aims to grow its revenue through expansion by partnering with local retailers. The retailer has also been working on cutting costs by not just reducing store size but also increasing focus on assortment. It is also working on growing it's omnichannel pie to cater to an increasing number of cities.

Godrej Nature's Basket recorded a revenue of about Rs 330 crore in the last fiscal year 18 and has set a revenue target of Rs 1,000 crore by the fiscal year 2021-22.

The company presently have 32 stores across Mumbai, Pune and Bengaluru, and plans to end fiscal 2019 with about 45-50 stores in select markets in the south and west of India.

With a significant growth expected in the daily grocery and retail space, the Godrej group has been approached by several foreign retail chains for a potential joint venture or partnership and the company said it was open to such tie-ups within the permitted foreign direct investment norms in the country.