News: Ambani in Rs 2000 crore West Bengal retail plan

(DNA 14/06/2006) Mumbai - At a time when Reliance Industries' retail plans are facing stiff resistance from the government and farmers in Punjab, its retail initiatives are making big headways in West Bengal.

Mukesh Ambani's Reliance group is in talks for a partnership with key real estate players like Kolkata-based Harsh Neotia for Reliance's proposed retail supermarkets, hypermarkets and speciality stores that will dot across West Bengal.

"We have had a couple of discussions on the retail idea. Things are yet to be firmed up," Harsh Neotia told DNA Money.

Meanwhile West Bengal government sources confirmed that Mukesh Ambani will meet chief minister, Buddhadeb Bhattacharya on June 22 to finalise land acquisitions.

The picture will be clearer in the last week of June and official announcement for Reliance's proposed Rs 2,000 crore investment is likely to be made in the first week of July by the state chief minister. Sources said Reliance will acquire 30 lakh square feet of warehousing space, estimated at around Rs 500 crore, which would be part of the supply chain in infrastructural backbone for its retail ventures.

This infrastructure would enable the company to procure from farmers at remunerative rates through buy-back agreements. It is learnt that Reliance is looking to source its requirement of potatoes, tomatoes and select vegetables from West Bengal.

Some 60 outlets are on the drawing board which will sell agro products and export them too.

Apart from Reliance, Bharti group and Daburs too are foraying into retail ventures even as the issue of foreign direct investment (FDI) in retail is hotting up with the centre facing a storm over the issue.