RPG Enterprises investing Rs.15 bn to open 325 new storesNovember 18th, 2008 - 5:44 pm ICT by IANS
New Delhi, Nov 18 (IANS) Kolkata-based RPG Enterprises Tuesday said it will invest Rs.15 billion in its retail business to open 325 Spencer’s stores across the country by end-2009.”We will open 325 stores in 15 months with an investment of Rs.1,500 crore (Rs.15 billion),” RPG Enterprises vice-chairman Sanjiv Goenka told reporters here on the sidelines of India Economic summit.
The retail sector is certainly not as robust as it was predicted six months earlier. However, there is little impact as compared to the rest, he said.
The group’s retail arm, Spencer’s, is currently growing at 60 percent despite the shutdown of 56 stores in the last few months.
Commenting on Finance Minister P. Chidambaram’s suggestion to the industry to cut prices, Goenka said: “We need liquidity injection in the companies to ease the tension.”
There is a problem of demand and liquidity, and banks are not lending to the industry though they have funds, he added.