News: Reliance Retail will straddle 1,500 towns

(DNA 28/06/2006) Mumbai - Organised retailing is “the next big idea” at Reliance Industries, declared chairman Mukesh Ambani.

Announcing the setting up of a 100% wholly owned subsidiary Reliance Retail, Ambani said Reliance will “spearhead this revolution as an overarching theme of the expansion and growth of Reliance.”

The ambitious plans, which he unfolded a wee bit today, will make available under one roof a slew of items from apparels and footwear, to groceries, farm implements, entertainment, travel services, consumer durables, food and grocery and the works.

Reliance Retail will spend more than Rs 25,000 crore on the initiative.

For Reliance Industries, the investment in equity alone will be to the extent of Rs 10,000 crore over time, the chairman told shareholders at the company’s first annual general meeting since the de-merger of power, telecom and finance businesses in February this year, following a bitter feud between the two Ambani brothers.

The retail venture already has 2,000 professionals to implement plans for organised retailing. The number would soon swell to about 10,000 as the initiative progresses.

Mukesh said Reliance Retail will have a pan-India footprint covering 1,500 cities and towns.