Spencer's demerger from CESC after Q3 FY14, to pump in Rs 50 cr

The demerger of Spencer's, the RP Sanjiv Goenka Group's retail arm, from CESC would not be carried out before the third quarter of 2013-14.

 

"All focus is on profitability and we are targeting to become quarterly EBITA positive during October-December quarter and only after that we will come out of CESC," Spencer's president and CEO Mohit Kampani told PTI here.

 

There were various options before the company to raise capital, but these would be evaluated once the company turned EBITA positive, Kampani said on the sidelines of a retail seminar organised by the MCC Chamber of Commerce and Industry.

 

The company was looking at inviting a strategic global retail investor without ruling out placing shares with PE funds or having an IPO.

 

Group chairman Sanjiv Goenka had recently said that the demerger model was certain for unlocking value and it was only a matter of time.

 

Kampani said that last year there were no expansion of hyper markets, but in the current fiscal the company was aggressively expanding with 12 new hyper markets in 10 cities at an investment of close to Rs 50 crore.

 

The company was also creating a back-end at Dankuni to service the eastern region and new stores were planned in cities like Raipur, Ranchi and Dhanbad.

 

With this Spencer's will add close to three lakh sq feet of retail space to the existing space 9.5 lakh sq feet.

 

Spencer's has 25 hyper markets among 130 stores across the country.

 

Meanwhile, the mall of the group at Park Circus including a hyper market was expected to be inaugurated during Durga puja on October 5.