News: RIL sets $20 bn target from retail business by 2010

(FE 22/02/2006) Mumbai - Reliance Industries Ltd (RIL) has set a revenue target of $20 billion from its retail venture by 2010, almost thrice the size of the current organised retail business in the country, according to a presentation made by its top management to senior executives recently. The entire organised retail segment is today pegged at $7 billion, just 3% of the total Indian retail industry estimated to be $230 billion in size.

Industry observers feel RIL's figures are on the optimistic side.

It dwarfs India's current numero uno in organised retail chain, Pantaloon Retail India, which has an annual turnover of $240 million from its 84 outlets spread over 30 cities. In fact Pantaloon, an established retail chain, has projected revenues of $2 billion by 2009 compared to RIL's target of $20 billion.

RIL's plans include a pan-India footprint in more than 800 cities and towns with a few thousand retail outlets of multiple formats and categories. The company has now moved into the execution phase with a team of 120 professionals drawn from the industry as well as from other business of Reliance, apart from hiring talent from India and abroad. It recently concluded the initial planning phase for its retail business with the help of some international consulting firms.