RPG to use Spencer to boost retail biz

The RPG Group has drawn up an ambitious roadmap for a sixfold jump in its retail business to Rs 3,000 crore by 2008-09 under Spencer's brand, post breakup with its overseas partner dairy farm international.

The strategy includes multi-fold initiatives including greenfield expansion, acquisitions, overseas footprint, raising overseas funds and new managers.

Unveiling the future strategy the vice-chairman of RPG Enterprise Sanjiv Goenka told reporters that the company intended to raise money from the market by diluting upto 20% of the proposed retailing company that would be in place in the current fiscal after the completion of the formalities of break-up with DFI.

"We are in the process of forming a separate company for retailing. That is expected by this year. We might dilute upto 20% to raise funds that could be either through IPO, private placement or in combination," Goenka said.

The retailing business of RPG would be consolidated under two brands, he said adding that while Musicworld would continue to be the entertainment segment, for the rest Spencer's brand would be used.

The company had conciously decided to drop all the brands like Giants, Foodworld and Health & Glow, used in the past with the JV partners, since the company found out following a survey that Spencer's has a strong image among the consumers, Goenka said.

From now on all the hypermarkets, supermarkets and small stores will be under Spencer's brand.