RPG group to invest Rs 13,000 crore in ventures
RPG group plans to invest Rs 13,000 crore over the next three years in its power, tyre and retail ventures.business Updated:
RPG group plans to invest Rs 13,000 crore over the next three years in its power, tyre and retail ventures, Group chairman Harsh Goenka said at a media conference to announce the acquisition of US-based ThoughtDigital for $24.9 million.
ThoughtDigital has been acquired through the US arm of Zensar. It was owned by SOA Software, a New York-based company specialised in systems integration.
Goenka said that the RPG group will invest close to Rs 10,000 crore to set up a 2000 MW power plant and another Rs 600 crore for a new tyre plant. It will also invest Rs 1,000 crore in its retail venture.
Group chairman Harsh Goenka said, "We are in talks with West Bengal, Orissa and Jharkhand governments to set up the plant. We will be signing a purchase agreement for coal soon," he said.
The group’s power venture CESC Ltd had a paid up share capital of Rs 83 crore in 2005-06. The RPG group owns a 40 per cent stake in the company. In the year 2005-06, the turnover of the company was Rs 2,589 crore and profit after tax was Rs 177 crore.
In the tyre business, the group will set up a new radial plant with a total investment of Rs 660 crore. "We are expanding the capacity substantially," Goenka said. The group has outlined a Rs 1,000 crore expansion plan for its retail business Spencer.
"We will be opening new shops and ramping up our business and expanding the retail network across the country," Goenka said.
First Published: Feb 24, 2007 16:39 IST