The Hindu Business Line : Reliance Fresh aims to become end-to-end food retailer

Mumbai, Feb. 27 After spinning off Reliance Fresh as an independent company, Reliance Industries is planning to make its foods vertical an end-to-end business with a fresh impetus on all its categories ranging from fresh fruits and vegetables to having its own FMCG brands for general trade.

Speaking to Business Line, a senior official from Reliance Fresh said, “We will continue to have fruits and vegetables as one of our categories in spite of the protests in several States and our business will be extended beyond retail to having our own FMCG brands for general trade.”

In the recent past, Reliance Fresh has introduced its own brand, in categories such as milk and ghee. “There is tremendous size and opportunity in the foods business as most of the players are still small in size except, perhaps, Amul. We have been in the FMCG business with Dairy Pure for the past four-five months and see huge opportunity for growth in this area.” In the foods business, the retailer has consciously segregated its vegetarian and non-vegetarian items by having a separate brand of stores under Delight for the latter. “We understand the sensitivities of our customers and have kept the non-vegetarian and vegetarian businesses separate. There is a separate distribution centre and staff to cater to the non-vegetarian stores and now we are poised to open our first Delight store in Thane in Maharashtra,” said the Reliance official. There are 15 Delight stores already operational in Chennai and Delhi.

M&S speculation

On the recent report of a proposed joint venture with M&S (Marks & Spencer), the Reliance official said, “There are all kinds of speculation which we would not like to comment on.” However, market sources indicated that Reliance Industries is in talks with M&S and an announcement may be on the anvil.

According to sources close to the company, “M&S has not exactly done well in the foods business and it is but natural for it to tie with a giant like Reliance to enter the food retailing business. However, it cannot form a joint venture as the retail laws do not allow it. It has to be a franchise agreement and not necessarily a joint venture.”

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