ABOUT THE COMPANY

RELIANCE RETAIL MARKET

INDUSTRY : Retail

FOUNDED : 2006

HEADQUATERS : Reliance Industrial

Nirman point,
Maharastra,
Mumbai
NUMBER OF STORES : 3,751 stores across 750
cities

KEY PEOPLE : Mukesh Ambani

(Chairman) & V Subramaniam
(CEO)

REVENUE : 450 billion

OPERATING INCOME : 7 billion (per annum)

PARENT Limited : Reliance Industrial

 RELIANCE RETAIL MARKET

VISION OF RELIANCE RETAIL

With a vision to generate inclusive growth and prosperity for

farmers, vendor partners, small shopkeepers and consumers,
Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to
lead Reliance Group’s foray into organized retail. Since its
inception in 2006, Reliance Retail Limited (RRL) has grown
into an organization that caters to millions of customers,
thousands of farmers and vendors. Based on its core growth
strategy of backward integration, RRL has made rapid
progress towards building an entire value chain starting from
the farmers to the end consumers.

Reliance Retail continued to expand presence of its value and

specialty formats. During the year, Reliance Retail opened 90 new
stores spanning across ‘value’ and ‘specialty’ segments. In store
initiatives, wider product choice and value merchandising enabled
the business to achieve robust growth during this period.

Its persons in the optics business is in partnership with Grand

Vision. 51 new stores where added during F Y-11 taking the total
presence to 100 stores across key markets in the country. The retail
chain offers single brand optical products including Vision Express
frames, lenses, contact lenses, sunglasses, solutions and accessories.

For the very first time, consumers in India got the opportunity to
experience Hamleys, which is considered to be the world’s most
wonderful toy shop. The brand was launched in India with opening
up of two stores during the year.

The store by Reliance Digital is a one-stop-shop for all Apple

products and service.

Reliance brands also announced exclusive listening arrangement

with two leading International brands:

Steve Madden, a leading designer wholesaler and retailer of fashion

forward footwear and accessories for women men and children.

Quicksilver, a leading outdoor sports Lifestyle company to launch

their core brands ’Quicksilver’ in the ‘Roxy’.

Across India, Reliance Retail serves over 2. 5 million customers

every week. Its Loyalty programme,

“Reliance one”, has the patronage of more than 6. 15 million

customers.

A subsidiary of Reliance industries of India that is headed by

Mukesh Ambani, Reliance Fresh is primarily a Supermarket that
strives to provide all the essential household commodities under one
roof.

In addition of fresh fruits and vegetables, the store also sells staple
food items dairy products, packaged food products, baby products,
electrical goods and the likes. The size of a typical Reliance Fresh
store varies between 3000 and 4000 square feet and it can easily
letter to an area of 2 to 3 km in its vicinity.

In the present day there are 560 outlets of Reliance Fresh across the
country, and their next 4 to 5 years the company plans to invest Rs.
25, 000 crores in this venture.

BACKGROUND

• Reliance Fresh is convenient store format is governed by the

Mukesh Ambani and is the most important part of Reliance
Industries retail business. Reliance Limited has planned to
invest more than Rs. 25, 000 crores in the retail division.
• It also comprises more than 560 Reliance Fresh stores all over
the country. The outlet sells fresh fruits, staples, dairy
products, fresh juice bars, groceries and vegetables.
• A distinctive Reliance Fresh outlet is around 3000 to 4000 sq.
feet and accommodates catchment area of one to three
kilometers.
• The super marts will sell fresh fruits and vegetables, staples,
groceries, a fresh juice bars and dairy products also will sport
a separate enclosure and supply chain for non-vegetarian’s
products. Besides, the stores would provide direct
employment to 5 lakh young Indians and indirect job
opportunities to a million people according to the company.
• The Company also has plans to train students and housewives
in customer care and Quality Services for part time jobs.
• Each store is said to be within a radius of 1 to 2 km of each
other, in relation to the concept of neighbor Store.
• However, this is only the entry roll-out that the company has
planned. Bangalore is said to have 40 stores in all by the end
of the year. In a dramatic change due to circumstances
prevailing in UP, West Bengal and Orissa. It was mentioned
recently in Newz Dailies that; Reliance Retail is moving out
stocking.
• Reliance Retail has decided to minimize its exposure in the
fruit and vegetable business and position Reliance Fresh as a
pure play super market focusing on categories like food,
FMCG, home consumer durables, IT, Wellness and auto
accessories, with food accounting for the bulk of the business.
• Though Reliance Fresh is not exiting the Fruit and Vegetable
business altogether, it has decided not to compare with local
 vendors partly due to political reasons, and partly due to its
inability to create a robust supply chain.
• This is quite different from the what the form had originally
planned. When the first Reliance Fresh store opened in
Hyderabad last October not only did the company set the
store’s main focus would be fresh produce like fruits and
vegetables at a much lower price but also forecast the length
about its farm to fork theory. The idea the company spoke
about was to source from farmers and sell directly to the
consumer removing middleman out of the way. Reliance may
exit some businesses if the business does not increase by
March 2008.

OBJECTIVES

The chief objectives of Reliance Fresh store are: -

1) To provide customers first-rate household products at affordable

rates.
2) At that the same time the company spares no effort to safeguard
the interest of the farmers and manufacturers.
3) The producers get a chance to sell their products directly to the
American desert and that too at the best price.
Thus, it is a Win-Win situation for all the merchandiser producer
and consumer.