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Purvita Chatterjee

Mumbai, Oct.2 Mukesh Ambani’s Reliance Retail plans to enter non-banking finance business (NBFC), besides insurance broking and travel services.

These businesses will be set up, in the near future, as independent companies in the context of Reliance Industries venturing into a range of services as part of its retail operations.

“We have to be legally compliant in getting into these services in the context of our retail operations and have decided to float separate companies for each of these services,” said a top Reliance official.

Reliance Retail Insurance Broking Ltd, Reliance Retail Finance Ltd and Reliance Travel will be the three new entities floated by Reliance Retail, a wholly owned subsidiary of Reliance Industries. Catering to customers who visit its stores, the retail company will offer services ranging from personal loans, insurance products to creating theme-based holidays .

Reliance Retail Finance Ltd will function along the lines of an NBFC and will offer personal loans and sales finance to buy goods. “The company would offer sales finance to buy goods on EMI with a zero per cent interest from our Reliance stores,” said the Reliance official. Besides, there are also chances of offering credit cards under the Reliance brand as part of the same operations but along with a partner with the business. “There is no way we can get into the credit cards without tying up with someone. We are in talks with some potential partners in this business,” said the Reliance official. Reliance Retail has floated an independent financial services division to provide retail loans to customers at the point of sale.

Expanding its gamut of financial services, the retailer is planning to enter the insurance sector as distributor of insurance schemes on behalf of other insurance companies.

“We intend giving insurance policies across categories and would be marketing for the other insurance companies. However, to enter the insurance broking business we have to be legally compliant first. The purpose is to be bring insurance products which are convenient and offer the best of value to our customers,” added the Reliance official. The company would give spot insurance covers for goods bought across various categories.

In the case of Reliance Travel, the retailer is eying the masses with its theme based holiday packages within the country. “We have already applied for an IATA licence to get into the travel business. The purpose is to function like any other travel agency catering to domestic inbound destinations,” said the official. The range of services offered by Reliance Retail would all be provided within the confines of its stores across the country.

More Stories on : Retailing | Diversification | NBFCs | Travel & Places | Insurance | Reliance Industries Ltd

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