Reliance Retail eyes profitable biz
To invest Rs 100,000 crore and double its operating profits in five years.June 08, 2012 | comments ( 0 ) |
Reliance is working towards making retail a significant and profitable business for Reliance in the coming three years. With infusing an investment of Rs 100,000 crore, it aims to consolidate and strengthen leadership position in business.
With respect to the retail division at Reliance, initiatives are being taken at every level to further bring up the business. Reliance Market opened its doors to the people of Ahemdabad and will now be partnering with Kirana and other small shopkeepers. The partnership leverages RR’s supply chain, large assortment of products, sourcing capabilities and ability to supply at competitive price.
With revenues touching Rs 7,600 crore and the retail network spanning across 18 states and 1300 stores, it is also working towards aiding the farmers. It is retailing to connect and create opportunities for millions of farmers and engages with seven million farmers to procure fresh produces.
Commenting on the same, Mukesh Ambani, Chairman, Reliance says, “We have strengthened our portfolio of global brands through several additional partnerships. We have built a sustainable growth model for our retail business. We will continue to invest in partnerships with producers, consumers and brands to significantly expand our stores and offerings across the country. We wish to position Reliance Retail as India's favourite retailer and undisputed market leader with focused business interests. We are investing aggressively in this business to consolidate and strengthen our leadership position in this sector. We are targeting a growth of five to six times in existing revenues and achieve Rs 40,000 to 50,000 crore over the next three to four years. With scale, supply chain integration and continuous learning, we expect this business to be profitable within the same time period and achieve a satisfactory return on capital. Reliance Retail will be one of our important growth engines in the next few years and will have amongst the highest growth rates and earnings potential.”
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