RPG Group to pump in Rs 2,700cr to set up 4,000 retail stores

Gurgaon, Mar 8 (UNI) The Goenka's-owned RPG Group will infuse Rs 2,500-Rs 2,700 crore for setting up 4,000 retail outlets, including 1,000 Spencers stores, across the country by 2011.

''We will invest Rs 2,500-2,700 crore on our retail expansion plans within the next four-five years. This includes Rs 1,000 crore investment on Spencer's retail venture by 2009,'' RPG Enterprises Vice-Chairman Sanjiv Goenka told reporters at the launch of its eighth Spencer's Hypermarket here.

The funds for the proposed expansion programme will be raised partly through internal accruals and private equity. The group is also mulling a public issue.

However, Mr Goenka did not divulge further details.

''With this Spencer's Hyper store spread over 61,000 square feet, we will also offer specialised categories like international and specialty foods, live cooking, books and music as well as mobile phones,'' Mr Goenka said.

Spencer's has five different retail formats -- Hyper, Super, Daily, Express and Fresh.

''We will replicate these models in other cities including Hyderabad, Chennai, Mumbai, Kerala, Kolkata and the NCR region,'' Mr Goenka said, adding that the ''main constraint is the quick availability of property''.

The total number of stores proposed to be set up by 2009 include 1,500 cellphone shops under 'RPG Cellucom' brand name, 300-400 'Music World' outlets and 60-70 book stores called 'Books&Beyond'.

The 1,000 Spencers stores are also targeted to be opened by 2009.

The group has already invested Rs 320 crore in its retail business to set up 400 retail outlets. Of these, 125 are Spencer's Retail stores comprising eight Hypermarkets, five Super stores, 104 Daily stores, three Fresh stores and five Express stores.

RPG Group has more than 20 companies across seven business sectors, including energy, retail, manufacturing, and technological industries.

UNI