Ambuja shelves retail business expansion as slowdown bites

March 8th, 2009 - 6:38 pm ICT by IANS  

Kolkata, March 8 (IANS) City-based Ambuja Realty has shelved plans to expand its retail business due to the global economic slowdown, a top official said.
Ambuja Realty chairman Harshavardhan Neotia said the company had shelved its plan to open 30-40 more outlets of its food and beverages retail venture, Tea Junction, given the deteriorating economic scenario.

“There is no break-through future plan. Earlier we believed Kolkata and Greater Kolkata can take at least 30-40 more outlets. But now we have not put a number to it,” Neotia told IANS.

At present, Ambuja has 16 Tea Junction outlets in the city.

“Let’s do the business properly, then we will look into expansion,” he added.

On the company’s healthcare business, Neotia said its project with Israeli healthcare major Elbit was on hold because “we could not get a large piece of land in the heart of the city”.

Keeping in mind the increasing demand for quality healthcare in the country, Ambuja has joined hands with Elbit to develop and operate a chain of multi-specialty tertiary hospitals in India.

Asked how the company fared in 2008-09, Neotia said: “It was actually a project year for us, profit will be accruing from next year onwards. May be now we will have much less profits than we anticipated.”

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