Spencer's Retail plans Rs.1500 crore business expansion, eyes 250 new stores and int'l retail tie-ups

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India's booming retail market, estimated at about $300 billion, is growing at a brisk pace of 30 percent per annum, driven by rising middle class incomes and an increase in demand for branded products.

Largely dominated by more than 15 million unorganized retail stores across the nation, organized retailing, selling through company-owned network stores, remains a rarity, currently totaling about $8 billion or less than 5 percent of trade in the country.

However, according to AT Kearney, revenues from organized retail are expected to triple to about $ 24 billion by 2010, a reason why retail giants like US-based Wal-Mart Stores Inc., Germany's Metro AG, France's Carrefour and UK's Tesco Inc. are exploring ways of entering the fast growing market.

However, Indian rules currently allow 51 percent foreign direct investment (FDI) in retailing by companies that sell only a single brand like Reebok, Nike, Nokia or Benetton or Mark & Spencer (which recently finalized a joint venture with India's Reliance Industries).

On the other hand, multi-brand retailers, such as Germany's Metro AG or US-based Wal-Mart Stores Inc. (which has entered into a wholesale business tie-up with India's Bharti Group) are only permitted to run cash-and-carry or wholesale operations or to offer backend support to Indian retailers.

ABOUT RPG GROUP

RPG Enterprises is a $3.4 billion business conglomerate, operating more than 20 companies and spanning across 7 business sectors viz., Retail, Technology, Entertainment, Power, Transmission, Tyres and Specialities.

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