IndiaRetailBiz

West Bengal in general and Kolkata in particular, which formed an integral and important part of Reliance group’s retail rollout, is firmly out of Reliance’s future plans; at least for the next calendar year 2008. This was made clear by Bijou Kurien, President & CEO (lifestyle division), Reliance Retail, who was speaking on sidelines of a function in Kolkata on 1st December, 2007.

Interestingly, Reliance had earmarked Rs. 2,500 crore or about 10% of the Reliance Retail’s first phase capital outlay of Rs. 25,000 crore. Reliance had planned to set up 100 Reliance ‘Fresh’ supermarket stores, five Distribution Centres (DCs), and several Collection Centres, among others, as a part of initial agri-retail infrastructure in West Bengal.

While, Reliance has planned to set up 30 hypermarket stores across the country in 2008, there will be none in Kolkata or in any other part of West Bengal. Currently, Reliance is operating one hypermarket store called Reliance Mart in Ahmedabad, which was opened over three months ago, on the 15th August, 2007.

Reliance has been delayed in launching its second store of this format, which was announced to be launched in Jamnagar (Gujarat), where the group has made its biggest investment in two oil refineries.

Reliance had decided to put its West Bengal plans on the back burner following the attacks on two of its ‘under construction’ ‘Fresh’ stores in Kolkata, which were due to open before Durga Puja, by political activists belonging to All India Forward Bloc (a ruling Left constituent) and Trinamul Congress in separate incidents.

All India Forward Bloc, a partner in the CPI (M) led state government, is vehemently opposed to entry of big corporates like Reliance in retail business. Even the CPI (M), which welcomes Reliance and other organised retailers in the state, wants them to refrain from doing retail of agri-products. It also favours them to open their retail stores beyond city limits.