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9, December 2006 Pragati Maidan, New Delhi.
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Diversified corporate house RPG Group will invest an estimated Rs 130 bn on tyre, retail and power businesses in the next couple of years. RPG, manufacturer of CEAT tyres, would invest Rs 600 crore in setting up a new radial tyre plant to ramp up capacity, Group Chairman Harsh Goenka told reporters here. `The company is expanding its radial capacity and has planned a substantial investment of Rs 6bn to set up a new plant,` he said. However, the group is yet to finalise the location and the capacity of the new plant, Goenka said, adding the project would be financed through a mix of debt and equity. `We will take a decision on the capacity and location in the new few months,` he added. RPG is also upbeat about the fast growing power sector and has plans on the anvil to set up a 2000 MW thermal plant. `The plant could come up in West Bengal, Jharkhand or Orissa and we expect to sign a purchase agreement for coal with one of the state governments next fiscal,` he said. The plant would be set up within the next three years, Goenka said, adding that the total cost could be to the tune of Rs 100bn. Besides, the group has outlined an investment of Rs 10bn on its retail venture Spencer's, he said. Asked about a possible partnership for the power project, Goenka said it could explore the possibility for value addition to the business. On transmission and distribution business, carried out by KEC International, Goenka said that the company has an order book of Rs 30bn. After serving the developing markets, it has now made a foray into developed markets like US where it has entered into a joint venture. `We have secured a small order in US and hope to bag another soon,` he said. Goenka also said the group would make about Rs 10bn investment in promoting its Spencer's malls across the country for expanding its retail network. `The companies are making good profits and with a mix of debt and equity, we should be able to finance these expansions,` he said. RPG, which clocked revenues of close to Rs 100bn in 2005-06, hopes to end the current fiscal with about 25 per cent growth.
Date: 23-Feb-2007
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