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Dairy Farm's
core strategy is
to focus on
international
food retailing
and drugstore
operations.
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DAIRY FARM AND RPG ANNOUNCE 26th August 1999 - Dairy Farm International Holdings Limited and RPG Enterprises announced today the establishment of a joint venture with Spencer & Company Ltd. to operate FoodWorld supermarkets in India. Spencer is a member of the RPG Group, one of India's leading business conglomerates. Spencer entered into a technical assistance agreement with Dairy Farm in September 1995 to establish and operate FoodWorld supermarkets in India. The original agreement anticipated the establishment of a joint venture and Dairy Farm is now to invest an initial US$6 million for a 49% stake in the joint venture with Spencer. The joint venture will acquire the 29 FoodWorld supermarkets that are currently operated by Spencer in Chennai, Bangalore and Hyderabad. The necessary approvals have been received from India's Foreign Investment Promotion Board. "We are delighted that the original technical assistance agreement with Dairy Farm has now culminated in a joint venture agreement," said Mr. Sanjiv Goenka, Vice Chairman, RPG Enterprises. "I am confident that with this alliance, FoodWorld will build on its status as a pioneer in organised retailing in India. It will continue to set new standards of customer service and supply chain innovation in the areas of food and fast-moving consumer goods retailing." "We are very pleased that this joint venture provides Dairy Farm with an excellent opportunity to establish itself in its key supermarket format in a promising growth market," said Ronald J. Floto, Group Chief Executive of Dairy Farm. "The FoodWorld operations are redefining retailing in India with high standards of customer service, display and convenience." This arrangement builds on an existing 50/50 joint venture between the RPG Group and Dairy Farm that operates eight Health & Glow drugstores in Chennai and Bangalore. Dairy Farm is a leading food and drugstore retailer in the Asia-Pacific Region. At the end of 1998, the Group and its associates operated 1,871 outlets, principally supermarkets, convenience stores and drugstores, employed some 74,000 people in nine countries and had 1998 sales of US$6.6 billion.  a FoodWorld supermarket in Chennai. For further information, please contact:
Full text of this and other Group announcements can be accessed through the Internet at "http://www.irasia.com/listco/sg/dfi".
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