Kolkata-based Spencer's Retail is scouting for international lifestyle brands, and is in talks with several global firms dealing in apparel, footwear, luxury retail and lifestyle products.
Spencer's Retail, a part of the Rs 10,000-crore (Rs 100-billion) RPG Group, at present accounts for 8 per cent of the group's turnover through Music World, RPG Cellucom for mobile retailing, Books & Beyond and Spencer's Retail for groceries.
The company said it was in talks with several international brands but was yet to zero-in on any as most of the big international brands were already in the process of tying up with domestic retailers such as the Murjani Group, Arvind Mills, and others.
"We are looking at firms with whom we can attain critical mass, but most of the big ones have already concertised plans," Sanjay Gupta, vice-president (business development), Spencer Retail, said.
Gupta, however, did not reveal the names of the international brands they were in talks with. The company said it was open to both forming a joint venture with the brands or signing licensing agreements.
While most apparel retailers in the country are focussing on their private labels for growth, RPG said it would join hands with an already established brand rather than promote its own label.
"Promoting your own brand is an expensive proposition. It will make sense for us to get international brands to India as we already have a lot of domain knowledge in the field of retail," Gupta said.
RPG has also lined up aggressive expansion plans for its retail business. The company, which currently has 400 stores, plans to open 2,000 stores by 2009, and to further scale it up to 5,000 by 2011.
"We are really not worried about competition from companies such as Reliance Retail and the Bharti-Wal Mart combine. We believe, as the retail industry in the country gets more and more organised, there will be space for everybody," Gupta said.
The company had earlier said it planned to invest Rs 1,000 crore (Rs 10 billion) by 2009 and Rs 1,500 crore (Rs 15 billion) thereafter for expansion. The company plans to fund this through both its own fund and capital issue, said Sanjeev Goenka, vice-chairman, RPG Group.
While Spencer's Retail and Music World have been present in the country for over 10 years, RPG Cellucom and Books & Beyond started only in 2007.
Ruia added that till recently there was a lack of clarity on the special economic zone rules and therefore, the interpretation of the rules took time.
"After January 11, we took two months to complete various formalities. It has been our stance that we first complete formalities and only then function as an SEZ".
The company paid the customs duty claim a couple of weeks back, but its officials were subsequently arrested.
