RPG group to set up JV with leading international food chain

The Harsh Goenka-spearheaded RPG group is close to finalising a joint venture with a leading international major to set up a coffee shop-cum-specialty-food chain in the country.The RPG group will hold a majority 51 per cent stake in the joint venture.

The JV will be run under the brand name of the international major and the agreement is expected to be inked shortly adding that the first chain of 15-20 outlets would be set up in Bangalore.

The RPG group plans to set up 250 such outlets in other major metros and cities over time.However the identify of the international major could not be known. The RPG group is a highly-diversified conglomerate with interests in tyres, retail, IT, power, telecom and power transmission and plantations.

The business plan for the venture is presently being fine-tuned.The business' concept would be more or less similar to those of other chains such as Barista or Cafe Coffee Day but the JV would give a strong focus to food offerings unlike other chains.

Spencer's in talks with global retailers for JV

Spencer's Retail, promoted by the Rs 11,500 crore RPG Group, is in talks with international retailers for a possible joint venture in India.Spencer's is also planning to introduce new formats and could explore the JV route to launch them.

"The new JV will not be in food retail since our existing formats function in that area. We are talking to couple of international players. The new venture will be consolidated by the group. Hopefully, we will be able to take a call on the new venture in a couple of months time,'' said Goenka.

Spencer's currently has 250 outlets across 40 cities. The company would
open 500 stores in the next 12 months and 600 stores an year after, he said. The company is planning to invest Rs 1,100 crore to expand its network of stores.

The company will use a mix of internal accruals, debt and equity to fund expansion plans."We will take a call on the initial public issue in the next 6 months," he said. The company expects a turnover of Rs 2,500 crore to Rs 3,000 crore a year in the next two years. Currently, its sales stand at Rs 750 crore.

RPG group to merge 2 entities with KEC

The Rs 11,500 crore RPG Group on Monday said two group companies, RPG Transmissions (RPGT) and National Information Technologies (NITEL), would merge with another group firm KEC International.

While both KEC International and RPGT are engaged into setting up of power transmission and railway electrification businesses, NITEL is in the business of building and operating of telecom infrastructure.

The move was to make KEC International the largest telecom and transmission tower manufacturing company in the world and to achieve different operational synergies between them.

The investment division of KEC, comprising investments in the shares of RPGT, will also be demerged into a separate company. Elaborating the swap ratio, he said, RPGT shareholders will get four equity shares of KEC International for every nine shares they hold in RPGT.

On the other hand, for every 15 shares, NITEL shareholders will get two equity shares in KEC. Post-demerger of the investment division in KEC, for two shares in KEC, shareholders will get equal number of shares in the proposed new company.

Read more in The Economictimes article.

RPG group to invest Rs 12000 cr in power

The RPG group has earmarked an investment of Rs 12,000 crore for power and Rs 450 crore for carbon black as two of its thrust business focus areas over the next 2-3 year.

The investment of Rs 450-crore has been earmarked for its carbon black business and has identified three states where it is assessing the project’s prospects.

Asked whether the group was considering a gas-based power project, he said non-availability of gas precluded such a project. “I would love to set up a gas-based project, but then, where is the gas?” he asked.The group was also expanding capacity at its CESC plant whose efficiency, he said, had reached new highs since the group took it over.

Read more in The Business Standard article.