The Hindu : Business : Pillai to quit RPG group's retail business

Online edition of India's National Newspaper
Tuesday, May 10, 2005

Business

Business

Pillai to quit RPG group's retail business

Staff Correspondent

CHENNAI: The head of the RPG group's retail business, Raghu Pillai, has decided to quit. He is expected to leave the group by the end of July. Sumantra Banerjee, President and Chief Executive (Power), RPG group in Kolkata, will replace Mr. Pillai for the interim period.

Mr. Pillai has been with the RPG group since mid-1990s. Under him, the group had launched India's first supermarket chain (FoodWorld), first hypermarket (Giant) and other chains (Health & Glow, MusicWorld).

Mr. Pillai's exit comes even as the market is agog with speculations about a change in the management of RPG's FoodWorld. The RPG group had reportedly struck a deal to part ways with Dairy Farm International, its partner in FoodWorld supermarkets, by selling its stake. The RPG Group has 51 per cent holding in the supermarket chain. The joint venture came into being before the Government disallowed FDI (foreign direct investment) in retail. Hence Dairy Farm will need to look for a local entity to buy the RPG stake in FoodWorld. The two partners have also reportedly agreed to an equal division of FoodWorld stores in the South and Pune between them.

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