The Hindu Business Line : Reliance Retail to open first outlet in Hyderabad next month

Reliance Retail, on Friday, said that its first basic food and vegetable format outlet would be opened in Hyderabad in September, kicking off its Rs 25,000-crore retail project.

"We will be opening our first store in Hyderabad in September and this will be a very large store with food, vegetables and staples," said Mr Raghu Pillai, President and Chief Executive (Operations and Strategy), Reliance Retail, on the sidelines of a two-day marketing summit, organised by the Confederation of Indian Industry, here. The Reliance Industries' Chairman, Mr Mukesh Ambani, had announced a Rs 25,000-crore investment in the retail sector in June 2006 and said that the new retail company would be listed subsequently.

Pacts with Bengal, Punjab

The company has already signed agreements with the West Bengal and Punjab Governments in tying up for procurements and roll out. Mr Pillai also said that after acquiring Sarkari Bhandaar in Mumbai, the company had been looking at strategic alliances with other co-operatives too, however, none had worked out as of now. He added that even if the company ties up with any co-operative in the future, the focus would be on providing strategic services and consultations to it.

Mr Pillai said that besides targeting the rural market, the major focus of the company would be in the urban areas to have a pan-India foothold as soon as possible, though he refused to divulge details on the number of outlets the company was planning to open by the end of the current fiscal. Reliance Retail was also in talks with a number of global brands that it would introduce into the domestic retail market.

"We are talking to a number of brands and the whole thing will be finalised in the next six months," he said. The basic strategy of the company would be to own supply chains, so that extra costs could be cut to offer products at competitive prices. As part of backward integration efforts to cut down costs, the company was looking at partnering with companies, including those dealing in consumer durables for direct procurements.

On sourcing goods from international markets such as China, he said, "Why not? If we get a better price we will also do that." The company is currently eyeing the ailing Super Bazaar cooperative chain in Delhi and has submitted a Rs 288-crore bid to take over its management. Mr Pillai said that retailing pharmaceutical products was also being considered as an option. "It will be both independent pharma retailing as well as part of the normal retail plans also," he said.

More Stories on : Retailing | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Hansgrohe ties up with Jaquar

Paramount Airways special offer

IIM-K to host seminar on marketing

Revenue generation: CAG finds DD, AIR wanting

Spurt in retail malls revives signage cos

Reliance Retail to open first outlet in Hyderabad next month

Classic Polo exclusive showroom

Arrow opens `largest' store

Titan eyeing mass jewellery market

Lifestyle to open 10 new home stores

Standardised protocol for testing needed: PepsiCo India chief

Worbus plans Rs 750-crore investment

Electric bikes launched in Vizag