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| RPG enterprises to enter coffee chain business |
| Press Trust of India / Chennai Sep 18, 2009, 18:04 IST |
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Kolkota headquartered RPG Enterprises said it would enter the coffee chain business by setting up a Joint Venture with an US Company.
The US company would have 20 per cent stake in the Aubonpain range of coffee chains, while we will have 80 per cent in the business, which will start in the next few months, he told reporters here.
Initially, six 'standalone' coffee chains would come up at Bangalore by the last week of October or in the first week of November. "Once these coffee chains have been set up, it will be of separate entity", he said.
He said RPG also proposed to increase their overall trading area in the apparel industry space. "We are at 10 lakh square feet of trading area today and will get to 12 lakh square feet by March 2010. Total investment in retail business (including loss funding and capex) will be confined to Rs 260 crore during this year (2009-2010)," he said.
He said the company has been able to reduce costs by Rs 100 crore a year through consolidation of banking, regional regional centres, distribution centres and by reducing the number of people and stores.
RPG operates 264 retail stores under the brand "Spencer's Retail".
Goenka said RPG would invest Rs 700 crore to set up a tyre plant in Gujarat to manufacture all range of tyres. But he declined to divulge details of the plant's total capacity.
The Group's overall turnover stood at Rs 14,500 crore, including Rs 1,000 crore from retail space, he said, adding they have not fixed any targets due to the prevailing market conditions.
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