The Hindu : Business : Reliance eyeing global partners

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Tuesday, May 20, 2008
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Reliance eyeing global partners

Special Correspondent

To expand existing retail formats

NEW DELHI: Mukesh Ambani-owned Reliance Retail is scouting for international partners for its retail business in addition to the joint ventures already announced for various store formats. The company announced its focus on rapid expansion of the existing and other new formats during the current financial year.

Stating that Reliance Industries Ltd. (RIL) recognised the importance of “strategic alliances” as key to drive its retail business, the company said it had established joint ventures with international partners in apparel, optical and office products businesses during 2007-08, according to annual report sent to the shareholders. It said the company would continue to seek synergistic opportunities with other international players. Drawing parallels with the urban and industrial prosperity brought in by sectors such as IT and communications, it said its retail business would bring about prosperity in the rural part of the country.

Infrastructure

In his letter to the shareholders, RIL Chairman, Mukesh Ambani, said that Reliance Retail continued its roll-out of stores during the last fiscal. “With 590 stores in 57 cities, spanning 13 States, and over 3.5 million sq. ft. of trading space, I am confident that our newest business will scale the same heights as all our other businesses have,” he noted. The Indian retail industry is pegged at $300 billion and growing at over 13 per cent annually. Of this, at present, organised retailing is about 5 per cent and is expected to grow to 10 per cent by 2011. It said Reliance Retail had embarked on an implementation plan to build state-of-the-art retail infrastructure in India, which includes a multi-format store strategy of opening neighbourhood convenience stores, hypermarkets, specialty and wholesale stores across India.

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