The observation of the Reliance executives is in tune with Azim Premji’s private equity firm valuing Subhiksha for about Rs 2,300 crore against annual (FY 2007-08) sales of Rs 2,305 crore. Azim Premji, it may be recalled, had paid Rs 230 crore to I-Venture for 10 per cent stake in Subhiksha’s equity in September, 2008.

While, most retailers, following economic slowdown are facing cash crunch due to declining footfalls and customer spendings, Reliance Retail, is not witnessing any such problems. Not only, it has superior parantage than most others, but also has no major debt-payment obligations like others. (While, both Subhiksha and Vishal are highly leveraged, even the retailers like Pantaloon Retail (Future Group) and Shoppers’ Stop are leveraged more than the previous year).

To fight out the slowdown, Reliance Retail, though is fine tuning its growth strategy. It will now focus on ’speciality’ format more than its ‘value’ formats.

“We will shift to a slightly lower gear, but will still keep growing. The speciality format is just coming out of pilot phase. Now, we will scale it up,” said the executives.

Reliance Retail, after having established about 750 stores of ‘value’ formats comprising Reliance ’Fresh’ (convenience), ‘Super’ (mini hypermarket) and ‘Mart (hypermarket) in about 27 months, will now focus on ’speciality’ formats that until now were still in a nascent stage. Reliance Retail’s speciality formats include, Reliance Trendz (apparel), Digital (consumer electronic & durables), Footprint (footwear), Jewels (jewellery), Wellness (health and wellness), TimeOut (books, music, leisure), Homeliving (homeware and furnishings), Vision Express (Eyewear), iStore (Mac products), Office Depot (stationery and office products).

The last three formats of the company are in alliance with international retailers, who are giants in the field and geography of their operations. These alliance are based on either franchisee or partnership (joint venture) arrangements. Reliance Retail has also formed a joint venture with the UK-based Marks & Spencer for selling fashion and homeware in India under single brand retail policy guidelines of the Indian government.

“Our intention is to change the way people shop by offering them more than what is available in the neighbourhood stationary shops. We are focusing more on the franchisee model to partner with the individuals or the smaller stationary stores with an average area of 300 sq ft to 500 sq ft,” said Amit Nigam, COO, OM Daily Needs.

According to Vivek Nanda, MD, OM Daily Needs, “the company is now executing an ambitious expansion plan to open more than 100 franchise-based convenience stores and 100 Canvas Stationary Marts mostly in Delhi and the NCR by the end of this financial year.”

Apart from retailing, Nandas are also into logistics, supply chain management, software and technology.

“The proposed Reliance Retail-Avery Dennison JV will combine the global resources of Avery Dennison with local market knowledge and resources of Reliance Retail to strengthen existing supply chain network and enhance merchandising capabilities.”

Avery Dennison Corp, the Pasedana (US)-based, global giant in pressure sensitive technology, with $6.3 billion in 2007 sales, employing over 30,000 persons across 60 countries worldwide, according to an ET report, is soon entering into a 49:51 joint venture with India’s fastest growing retailer Reliance Retail. Founded in 1935, Avery Dennison was ranked 382nd on the prestigious Fortune-500 list of 2007.

This is tune with Reliance’s shift of strategy that emphasizes on stitching partnerships with global leaders in retail who besides providing domain expertise can ensure quick growth. In recent times, Reliance Retail, among others, has inked joint venture agreements with global majors Marks & Spencer, Apple, Vision Express, and Office Depot.

Besides offering the products and services of Avery Dennison through stores of Reliance Retail, the Joint Venture is expected to also offer the same to institutional business customers in India through indirect channels. The join venture, according to sources, will also roll out standalone specialty stores across the country.

Avery, known the worldover for its pressure sensitive material under ‘Fasson’ brand and office consumer products under ‘Avery’ brand, also provides price marking and brand identification material to retail and apparel industries through its retail information services segment and offers a variety of specialty products including performance films, postage stamps, battery labels through its ‘Specialty Converting Businesses’ division.

Avery Dennison is already present in India through its manufacturing facilies at Gurgaon, Rajnandgaon (Pune) and Bangalore and sales and distribution network operating from the six metro cities of Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata. Having began its operations in India with the setting up of its first factory at Gurgaon in 1997, Avery Dennison acquired the business of Bangalore-based Paxar in 2007. It set up its third 28-acre manufacturing facility at Rajnandgaon (Pune) in January of this year. It has invested over $30 million and employes over 1,200 people in India.

As Avery Dennison has an impressive range of products and services catering to retail industry, including price marking and product identification material as well as RFID (Radio Frequency Identification) products, the proposed JV could meet the growing in-house requirements of Reliance Retail.