IndiaRetailBiz

Reliance Industries Limited (RIL), the flagship company of Mukesh Ambani-led Reliance group, has identified retail as one of the five main areas of growth for future. Apart from retail, core areas of conventional energy and hydrocarbons as well as as rural transformation and innovations (like non-woven fibres for wallpaper and paper for currency), have also been identified as the main areas of growth by the company, according to Mukesh Ambani, Chairman, RIL, who was addressing shareholders at the 35th Annual General Meeting (AGM) of the company held on the 17th November, 2009 in Mumbai.

“Our efforts would be on expanding the edifice created by Reliance Retail at the customer end and reinforcing supply chain and logistics,” said Chairman Mukesh Ambani.

Referring to “short breather” taken by retail business, Ambani assured the shareholders that Reliance Retail will return to “expanding coverage” by reaching out to “new cities, new markets and new strategic alliances.”

Reliance Retail, the retail initiative of the Reliance group, was launched three years ago. Reliance unveiled first cluster of convenience format retail stores under the brand name of ‘Reliance Fresh’ at Hyderabad in November, 2006. Today, Reliance Retail, is serving over five million loyal customers across 86 cities in 14 states, through 900 plus stores that are operating under several (convenience supermarket, mini-hypermarket, hypermarket, and specialty) formats and 15 brand names.

The retail company, which is a wholly owned subsidiary of RIL, is still in its growth phase and has incurred a loss of over Rs 450 crore during the financial year 2008-09. According to recently published results for the period ending 31st March, 2009, while Reliance Fresh had the maximum negative reserve of Rs 276.77 crore, Reliance Hypermart had the negative reserves of Rs 54.32 crore.

Reliance Retail has also entered into business partnerships with several well known global retailers and brands like Marks and Spencer, Office Depot, Pearle Europe, and Hamleys, among others.