The Hindu Business Line : Reliance Ind plans to enter agri sector

Retail venture
The proposed retail outfit, Reliance Retail, will market agri-horticultural products across the country.
The company is working on the final blueprint for its entry into retailing

Jamnagar , March 18

Reliance Industries is planning to make an entry into agri-horticulture and the processed food sector.

A group subsidiary Jamnagar Farms Pvt Ltd has taken the first strides in this direction by initiating export of fruits and mango pulps on a pilot basis in 2005-06. In the next step, the proposed retail outfit, Reliance Retail, will market agri-horticultural products across the country. Exports initiatives will also be strengthened.

Jamnagar Farms has set up a 1,700-acre agri-forestry, agri-horticulture farm in a previously arid zone near the refinery. The farm uses the recycled wastewater from the refinery for irrigation purposes. Though initially taken up as part of the plan to improvement environment, the company has now become a profitable proposition and has prepared a roadmap for expanding farm production in other states.

Discussions are at an advanced stage for setting up such farms in Andhra Pradesh, Karnataka and Maharashtra. With the investment in Jamnagar having touched Rs 10 crore during the past three to four years, sources said the foray in the agri sector was expected "to breakeven in seven years with an expected return rate of 30 per cent''.

Apart from mango which will constitute the bulk of the produce, 29 other products have been identified for the purpose. Jamnagar Farms currently owns Asia's biggest mango orchard spreading over 450 acres.

Retail blueprint

"We expect a mango crop of 3,500 tonnes from Jamnagar alone in the next three years,'' a company official said.

In the agri-forestry sector, the company is taking up teak wood and other high value long gestation plantation work.

Reliance Retail is working on the final blueprint for its entry into retailing. While work is on to identify the locations for setting up retail stores in the country, company sources confirmed that the rollout would be on the lines of Reliance Infocomm which launched mobile telephony in 440 cities across the country.

"We do not believe in adding 10-15 stores in a year. If it is Reliance, it has to be a mega format,'' a company official said, adding, that Reliance Retail is expected to place a firm plan for retailing before the RIL board within six months.

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