India's RPG ties up with Woolworth to sell toys
KOLKATA, India, June 7 (Reuters) - Spencer's Retail, part of the diversified RPG group, on Saturday announced a tie-up with British retailer Woolworths Plc WLW.L to exlusively sell its toy brand Chad Valley via its outlets.
Sanjiv Goenka, vice-chairman of the group, said India's toy market was expanding by 30 percent on an annual basis and Spencer's with 1.1 million square feet area in 65 Indian cities, would double its floor space to 2.2 million square feet in the next year and spread its network to 71 cities.
"Out of 1 billion Indians, 160 million are children below seven years while another 190 million are between seven and 14 range. So we hope to capture that market with children's products," Goenka told reporters in the eastern city of Kolkata.
India's fast-expanding retail market has drawn the attention of local firms as well as global heavyweights, including Wal-Mart Stores, Tesco and Carrefour (CARR.PA) and the share of big retailers in India's growing market is expected to quadruple to 16 percent by 2011/12, a government think-tank said last month.
Goenka plans to open 300 new outlets in the current fiscal year that began in March and said it will tie up with three international firms. It has 400 outlets and plans to invest 12 billion rupees in the next 18 months funded through internal accruals.
"Three similar tie-ups will happen in this fiscal, but I am not naming the companies yet. They would be three different products," Goenka said.
The family-controlled RPG group owns stake in Phillips Carbon Black (PHIL.BO), makers of a vital raw material for tyre industry, and tyre maker, Ceat Ltd (CEAT.BO)
It also owns technology firms Zensar Technologies (ZENT.BO), RPG Life Sciences and RPG Cables. (Reporting by Sujoy Dhar; Editing by Ben Tan)
