News: RPG Retail plans 2,000 Spencer's outlets over 2 years

(BL 31/03/2007) Kolkata - RPG Retail has firmed up plans to augment the number of Spencer's retail outlets across the country from 125 at present to 2,000 within the next two years. The company's retail rollout plans would necessitate an investment of Rs 1,200 crore. While most of this amount would be generated through internal accruals, RPG Retail proposes to raise a portion of the funds required by way of "an IPO or private placement or private equity", according to Sanjiv Goenka, Vice-Chairman of the RPG Group. Fund raising Speaking to newspersons shortly after the inauguration of the first Spencer's Daily retail outlet in Kolkata on Friday, Goenka said the "first tranche" of the funds required would be raised "within the next 12 months". He said RPG Retail would provide direct and indirect employment to around one lakh people within the next two years. According to him, the Spencer's retail stores rollout would be spread across five formats - Spencer's Hyper, Spencer's Super, Spencer's Daily, Spencer's Express and Spencer's Fresh. Sourcing for the products that are retailed was being done through the company's "consolidation centres", Goenka said, adding that there were no plans to diversify into any kind of backward integration ventures. A tie-up has been forged with Flurys, the legendary tea room and Swiss Confectionary of Kolkata, whereby 11 Flurys outlets will be launched in the premises of Spencer's Dailies in the city within the next six months. Goenka said RPG Retail, comprising Spencer's Retail, RPG Cellucom, Books & Beyond and MusicWorld, was expected to count for a turnover of Rs 600-700 crore, or around 5 per cent of the RPG Group's turnover, during the fiscal 2006-07. RPG Retail, by 2011, is expected to account for 25-30 per cent of the Group's turnover. Sales from food retail would comprise a major chunk of the revenue of RPG Retail. Plans for Bengal With regard to West Bengal, Goenka said plans had been firmed up to set up 20 Spencer's retail outlets in the State by September 2007. One hypermarket would be opened in Durgapur by mid-April while a few others would be opened at Rashbehari Avenue and South City complex in South Kolkata, among other venues.