Retail to be mainstay in RPG business

Kolkata, Mar 30 (UNI) With a Rs 1,200 crore investment, the RPG Group expects retail to contribute about 30 per cent of the company's overall turnover in the next two years.

"We are going to invest Rs 1,200 crore in retail business till 2011. With a major thrust on food and cell phone business, retail is expected to contribute between 25 and 30 per cent to the Group's overall turnover in the next couple of years," RPG Enterprises Vice-Chairman Sanjiv Goenka today said.

Speaking to reporters after unveiling the first store of Spencer's, the supermarket chain, in the city, Mr Goenka said the company had targeted a retail business of Rs 450 crore in March, 2011 with an annual turnover of Rs 5,000 crore.

At present retail business contributed only five per cent of the Group's overall turnover of Rs 11,000 crore.

Announcing that the company had a target of 2,000 Spencer's stores all over the country by 2009, he said three outlets would come up at Durgapur in West Bengal, Jaipur and Lucknow next month.

In reply to a question, Mr Goenka said the major part of the Rs 1,200 crore proposed investment in retail business would come from internal accruals while the rest would be mobilised either from Initial Public Offering or public placement and private equity.

" There are three options we can go for, though nothing has been firmed up yet. But whatever option we take it will be in the next 12 months time," he said.

The two stores opened in Kolkata today were in the Spencer's Daily catergory of 3,000-5,000 square feet with a current stock of about 5,000 products, including fresh fruits, vegetables, personal and home care products, food and grocery.

UNI