Business

RPG companies go in for production cut

KOLKATA: A few companies in the Rs. 14,000-crore R. P. Goenka group have gone in for production cuts in the wake of the global financial meltdown. The companies include tyre manufacturer Ceat and carbon black maker Phillips Carbon Black Ltd. (PCBL).

Confirming this, group Vice-Chairman Sanjiv Goenka told The Hindu that sales have slowed down in retail outfits like Spencer’s, but the group was carrying on with its business plans and is not planning any job cuts now. He said that Spencer’s would enter into a new tie-up with an U.S. apparel company later this week.

“However, in this scenario we will not open stores unless we are sure of everything. Costs, location everything assumes added importance now,” he said.

Earlier, Mr. Goenka announced the signing of an agreement with S. P. Global Solutions, a subsidiary of Singpaore Power, among Asia’s leading power utilities, for improving Kolkata’s power distribution network.

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