IndiaRetailBiz

Reliance Industries Ltd (RIL), the Mukesh Ambani-led owner of Reliance Retail Limited, which incurred a loss of about Rs 800 crore on operations of its 1,432 fuel stations during 2007-08 is looking at converting about 700 to 800 of them into shopping malls and multiplex halls. This will mean an investment of about Rs. 5,000 crore from the group, says a Business-Standard report.

The company which already owns about 500 fuel station properties may even look at buying properties from its dealers, who have lost out heavily on fuel dispensing operations due to heavy subsidy being offered by the government to customers through fuel pumps owned by PSU oilcos.

While, the company may offer Rs 2 to 4 crore for the property, it may invest additional 4 to 6 crore on setting up malls/ multiplexes. Reliance Infrastructure Limited, a group company, is likely to be entrusted with development of these properties.

Besides, general merchandise formats like Reliance Fresh and Reliance Super, the retailing company may also include speciality formats like TimeOut, FootPrnit, Jewels, and Wellness, among others, at these outlets.

As far as multiplexes are concerned, the group as reported earlier, is already in talks with Yash Raj Films and Adlabs founder Manmohan Shetty to develop a mega entertainment retail joint venture which besides developing content will distribute and exhibit the same through Reliance communication infrastructure and retail malls.