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June 22, 2001
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Money > Reuters > Report June 22, 2001 |
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RPG group plans huge retail expansionRPG Enterprises plans a major expansion in its retail business where it aims to increase monthly sales nearly six times to Rs 2 billion in the next four years. RPG Enterprises already has three retail brands -- FoodWorld, MusicWorld and Health&Glow -- and its current monthly turnover from these outlets is Rs 350 million. The Calcutta-based group currently has 61 FoodWorld stores, 13 MusicWorld outlets and 18 Health&Glow shops. The retail arm of the RPG group -- which has companies in chemicals, finance, tyres, tea, information technology and the entertainment sectors -- accounts for about five per cent of its Rs 75 billion annual turnover. "We are expanding rapidly and open a new retail outlet almost every week. Now, we are venturing into a fourth retail format, the hyper market which will be a huge bulk store with discounted prices," RPG Vice-Charmain Sanjiv Goenka told a news conference. "The first hyper store, which will sell everything from hardware to garments to food, will open in Hyderabad. If that is successful, we will look at Bangalore for our second store," Goenka said. RPG officials said sales would rise as they increased the number of retail outlets across the country. "We aim to double our FoodWorld stores, nearly double our MusicWorld stores and sharply increase our Health&Glow outlets to around 30-35 by the end of 2003, early 2004," RPG's president and CEO (retail) Raghu Pillai said. Industry officials say India's retail business is poised to grow at a rapid pace over the next few years. In May, the Confederation of Indian Industry had forecast that the country's retail industry would be worth $300 billion by 2010 if the economy grew at six to seven per cent. The CII, in a joint report with consulting firm Mckinsey & Co, estimated the current size of India's retail industry at Rs 180 billion, with the groceries segment accounting for about 50 per cent.
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