The Rs 6,400-crore RPG group is planning to take its retail brand Music World global. The group, which has already identified the retail business as one of its core areas, is launching the brand in the US and UK as the first step.
The group has already obtained the clearance from the Reserve Bank of India (RBI) to set up a wholly owned subsidiary which will set up the chain of retail music stores for Music World in the US and UK. The subsidiary has been tentatively named RMI Global Ltd. Currently there is one Music World store at Chennai. It stocks not only the RPG group brand HMV, but also that of rivals including various domestic and international brands.
The group plans to open Music World stores in Kochi, Bangalore, Hyderabad and Mumbai by the end of 1998-99. "We have built a well-known domestic brand. It makes sense now to spread the brand internationally," said a RPG spokesperson.
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Music World stores which will be launched in the UK and US will stock the entire repertoire of music, both Indian as well as international. The group is currently conducting a study to determine the demand for the product in the two countries. It is also scouting for prospective locations for the Music World outlets. The investment plans will be firmed up based on the study.
Another issue before the RPG group is which company will eventually own the Music World brand. At present the brand is owned by Spencer & Company. The group, however, has put the Spencer brand on the block.
"Modalities like which group company will actually own the Music World brand will have to be worked out," the spokesperson added.
Music World is the second company being set up by RPG group for music abroad. The group already markets its HMV brand in the UK, US and Dubai through RPG Music International.
The group also has two other retail brands, Food World and Health & Glow.
Currently, there are four Health & Glow outlets in Chennai. The group, as a part of its push on the retail segment is planning to take the number to 10 by March, 1999, through diversification to other cities. It has recently opened an outlet in Bangalore.