Spencer's Retail plans Rs.1500 crore business expansion, eyes 250 new stores and int'l retail tie-ups
RPG Group company Spencer's Retail has laid out an ambitious expansion plan, seeking to invest Rs.1500 crore ($375 million) in rolling out 250 retail stores during the current fiscal year and entering business tie-ups with international firms in various product categories in the next six months.
Punj Lloyd unit bags $280 million construction project in SingaporeAccording to Sanjeev Goenka, vice chairman of the RPG Group, the number of Spencer's retail stores would increase to 650 from the present 400 within the current fiscal year.
The expansion would help Spencer's earn revenue of Rs.1800 crore ($450 million) during the current fiscal year (2008-09), up from Rs.1000 crore ($250 million) it earned a year earlier (2007-08).
The funds for the expansion would be raised from a mix of debt and internal accruals.
"It will be from internal accruals or public money, which could be either private equity or an IPO (initial public offering). But as of now, for next couple of quarters, it will be entirely through our own funding," Goenka said.
According to Goenka, Spencer's Retail would also enter into "multiple" tie-ups with international firms across various product categories. "It will be in apparel. It could be in cafes. It could be for kids," he said.
Private labels in apparel, in particular, have helped maintain margins and increase sales, Goenka said.
"We have over 450 products in private labels and this range is increasing every day. We will need to increase it more aggressively to maintain margins and we do believe there is scope for it as customers become loyal to brands," he said.
Spencer's Retail would also be rolling out new fashion labels that are contemporary and chic, Goenka said. "Fashion is a significant segment of the country's retail industry as it has influenced lifestyle in a big way. With consumers' new look-good and feel-good attitude, fashion offers huge potential to tap the untouched markets," he said.
Spencer's Retail, which currently operates 400 stores across 65 cities in India under different formats like Supermarket, Hypermarket, Express and Dailies, covering a retail trading area of 2 million square feet, competes with other retail chains like Future Group's Big Bazaar, A.V. Birla Group's More and Reliance Industries' Reliance Mart.
- 1 Film premiere of The X Files: I Want to Believe
- 2 UPA Govt. wins trust vote by huge margin, to go ahead with India-US nuclear deal
- 3 Bollywood actress Shilpa Shetty launches fitness video
- 4 Miss Universe Dayana Mendoza
- 5 India among top 3 entertainment and media markets: PwC
- 6 Post trust vote victory, India Govt. to move forward with reforms, nuclear deal
- 7 BSE Sensex jumps 838 points as market pins hope on reforms
- 1 Reliance posts 13 percent jump in net profit for Q1 FY09 on high oil prices, volumes
- 2 Tech Mahindra's net profit jumps 52 percent in Q1 FY09, bags $700 million BT deal
- 3 Bharti Airtel's net profit jumps 34 percent in Q1 FY09, total revenues up 44 percent
- 4 Left sees red after trust vote defeat, expels Speaker from party
- 5 India among top 3 entertainment and media markets: PwC
- 6 Ford posts $8.7 billion loss in Q2, pins hope on small cars
- 7 Post trust vote victory, India Govt. to move forward with reforms, nuclear deal
|
- 1 Reliance posts 13 percent jump in net profit for Q1 FY09 on high oil prices, volumes
- 2 Amazon profit doubles, beats estimates
- 3 Samsung Electronics' 2nd-quarter net profit surges 51 percent
- 4 Tech Mahindra's net profit jumps 52 percent in Q1 FY09, bags $700 million BT deal
- 5 Ford posts $8.7 billion loss in Q2, pins hope on small cars
- 6 Bharti Airtel's net profit jumps 34 percent in Q1 FY09, total revenues up 44 percent
- 7 Apple 3Q profit jumps 31 percent
|
|
