Financial Daily from THE HINDU group of publications
Thursday, Nov 13, 2003
Financial Daily from THE HINDU group of publications Thursday, Nov 13, 2003 |
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Corporate
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Manpower RPG plans VRS for group cos; to expand retail biz Our Bureau
New Delhi , Nov. 12 IN a bid to cut costs, the RPG group is considering reducing workforce across its group companies including power firm CESC and tyre company, Ceat. According to Mr Sanjiv Goenka, Vice-Chairman of RPG Enterprises, the company is planning to reduce the total number of workers from the current 50,000 to 42,000 in the next two years through a voluntary retirement scheme across all group companies. The entire proposal would cost about Rs 250 crore. Mr Goenka was speaking on the sidelines of a retailing summit organised by the Confederation of Indian Industry (CII) in the Capital on Wednesday. However, Mr Goenka pointed out that the move would also help the company save about Rs 100 crore every year. RPG has already announced a large-scale restructuring including a VRS at CESC. At the same time, RPG is targeting to expand its retail business in a big way and plans to open 14 new hypermarkets within the next 18 months with a total investment of Rs 200 crore. Each hypermarket will be set up with an investment of between Rs 15 crore and Rs 30 crore. While the National Capital Region would have two hypermarkets by next year, RPG also plans to launch hypermarkets in Kolkata, and Chandigarh. RPG is targeting to increase turnover from its retailing division to Rs 1,200 crore by March 2005 from the present Rs 470 crore. Besides the hypermarket format, RPG has retailing brands such as Food World, Music World and Health and Glow. Meanwhile, RPG is also believed to be in the process of making its first investment in the Chinese market. The company is setting up a carbon black manufacturing facility in China next year. RPG controls the company Philips Carbon Ltd.
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