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INDIA BUSINESS WORLD - OCTOBER 2006
THE MONTH THAT WAS...

 

 

RELIANCE MAKES A FARM FRESH ENTRY INTO RETAIL

   RELIANCE Retail (RRL), the wholly owned subsidiary of Mukesh Ambani-led Reliance Industries (RIL) will open its first retail showroom in Hyderabad on November 3 with a pilot store called 'Reliance Fresh'. The company will also introduce its own brand Reliance Select, for packed staple foods. These would be followed by general merchandise and specialty products.


   Commenting on the unveiling of the brand, Mukesh Ambani, chairman and managing director, RIL said, "This is the first small step in our attempt to build and forge strong and enduring bonds with the millions of farmers and transform our relationship with the consumers to a new level. We are starting on a pilot journey of listening to customers and learning from them. We still strive to continuously delight our customers."


   By November, RRL plans to add another half-a-dozen such stores in Hyderabad. After Hyderabad, the company plans to launch its retail stores in cities like Ahmedabad, Mumbai and Delhi simultaneously. Overall, the company plans its multi retail stores across 1,500 cities in India in the next few years.


   RRL plans to generate revenues of $ 20 billion by 2010 from its retail operations. The company faces stiff competition from other corporate houses like Aditya Birla Group, Bharti, Tatas, RPG, ITC and Essar amongst others. International players are also up to grab Indian retail pie.


   For pricing, RRL would adopt three pricing categories depending upon the quality like the premium, middle and the lower ones. It is also learnt that vegetables like potatoes and onions would be sold at same price across the year.

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