News: Reliance Retail to launch store in Hyderabad

(ACERC 04/07/2006) New Delhi - Reliance Industries' organised retail foray under Reliance Retail, a wholly owned subsidiary, will kick off with a food and beverage store in Hyderabad on August 1 this year, followed by a store every week in Andhra Pradesh. The first, food and beverage stores, would be spread over 2,000 sq ft, and sell packaged foods, beverages, fruit, and vegetables. The second type would also sell food and beverages, along with staple like rice, lentils and sugar. To begin with, Reliance would remain in an investment mode and own all its outlets.

The rollout will take place in Andhra Pradesh, but refused to disclose details. Reliance Retail would invest Rs 25,000 crore over time, of which Rs 10,000 crore would come as equity. The venture would encompass an appropriate mix of formats, from neighbourhood convenience stores and supermarkets to speciality stores and hypermarkets. Reliance Retail will be targeting a pan-India presence, covering 1,500 cities and towns. Reliance is also in talks with restaurant chains that may open outlets within these stores, catering to specific tastes in different regions.