Spencer’s has initiated stake sale talks with a foreign retailer on hopes that foreign direct investment will be opened up in multi-brand retail. Company Vice Chairman Sanjiv Goenka said the dialogue was at a preliminary stage.
“There is a possibility that FDI may be allowed. We are looking at the option of partnering a foreign player. It may involve equity, too,” Goenka said after the annual general body meeting of CESC Ltd, the holding company of Spencer’s.
Goenka ruled out raising funds from private equity players. According to Goenka, the retail venture was clocking higher revenues and positive margins. The new stores are also making profit on a standalone basis.
“We plan to scale up our business by three times over the next two-and-a-half years. The real estate has mostly tied up,” he said.
