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RPG plans mega retail expansion to boost revenue
Wednesday, 12 November 2003, 20:30 IST
NEW DELHI: RPG Enterprises, a Kolkata-based diversified business conglomerate, plans a major expansion of its retail business across the country with a view to double revenues generated from the sector by 2005.
The company's retail business generated revenues to the tune of 
4.7 billion in the fiscal year ended March 31, 2003, said Sanjiv Goenka, vice chairman of RPG Enterprises.
"We expect to generate revenues to the tune of 6 billion in the current fiscal year and this will increase to 12 billion by the end of 2005," Goenka told IANS on the sidelines of a retail industry seminar here.
As part of retail expansion plans, RPG Enterprises proposes to set up 14 hypermarkets with a total investment of over 2 billion over the next one and a half years in different parts of the country.
"After the successful opening of our first hypermarket, Giant, in Hyderabad in 2001, we are planning to go for a nationwide expansion with 14 more hypermarkets by 2005," said Goenka.
According to the RPG official, each hypermarket, which is a huge bulk store selling everything from hardware to garments to food at discounted prices, will be set up with an investment of between 150 million and 300 million.
Goenka said while the Delhi region would have two hypermarkets by next year, one each in Gurgaon and Noida, plans were also afoot to launch Giants in cities like Kolkata, Chandigarh, Bangalore, Chennai and Pune.
"Investment on setting up a Giant in any part of the country will typically depend on the size of the store and the real estate cost."
He said while "hypermarkets of Giant nature," which target small retailers and institutional buyers are quite developed abroad, RPG Enterprises had unveiled a new format in the Indian context.
"There is a huge opportunity out there and this is the format where international competition will come in the next few years. We are going for a very focused expansion in the segment."
RPG Enterprises already has three retail brands, besides the hypermarket format - Food World, Music World and Health and Glow.
Goenka said the group was also planning to expand its basket of "private label products" retailed through the Giant hypermarket and Food World supermarkets in different parts of the country.
"We retail 200 items under our private label product category and we are planning to treble the number by end of next year. This segment will account for 15 percent of our revenue in the retail segment," he said.
"Currently, we source all our private label items from within India. But now we have decided to source goods from China and Malaysia as well and sell it here under our brand name."
Source: IANS
4.7 billion in the fiscal year ended March 31, 2003, said Sanjiv Goenka, vice chairman of RPG Enterprises.
"We expect to generate revenues to the tune of 6 billion in the current fiscal year and this will increase to 12 billion by the end of 2005," Goenka told IANS on the sidelines of a retail industry seminar here.
As part of retail expansion plans, RPG Enterprises proposes to set up 14 hypermarkets with a total investment of over 2 billion over the next one and a half years in different parts of the country.
"After the successful opening of our first hypermarket, Giant, in Hyderabad in 2001, we are planning to go for a nationwide expansion with 14 more hypermarkets by 2005," said Goenka.
According to the RPG official, each hypermarket, which is a huge bulk store selling everything from hardware to garments to food at discounted prices, will be set up with an investment of between 150 million and 300 million.
Goenka said while the Delhi region would have two hypermarkets by next year, one each in Gurgaon and Noida, plans were also afoot to launch Giants in cities like Kolkata, Chandigarh, Bangalore, Chennai and Pune.
"Investment on setting up a Giant in any part of the country will typically depend on the size of the store and the real estate cost."
He said while "hypermarkets of Giant nature," which target small retailers and institutional buyers are quite developed abroad, RPG Enterprises had unveiled a new format in the Indian context.
"There is a huge opportunity out there and this is the format where international competition will come in the next few years. We are going for a very focused expansion in the segment."
RPG Enterprises already has three retail brands, besides the hypermarket format - Food World, Music World and Health and Glow.
Goenka said the group was also planning to expand its basket of "private label products" retailed through the Giant hypermarket and Food World supermarkets in different parts of the country.
"We retail 200 items under our private label product category and we are planning to treble the number by end of next year. This segment will account for 15 percent of our revenue in the retail segment," he said.
"Currently, we source all our private label items from within India. But now we have decided to source goods from China and Malaysia as well and sell it here under our brand name."
Source: IANS