Reliance Industries Ltd on Tuesday unveiled an ambitious Rs 25,000 crore (Rs 250 billion) retail initiative to set footprint in 1,500 towns and cities across India and offer a variety of products and services, ranging from food and grocery to health and education.
"Organised retailing will be the overarching theme of the expansion and growth of Reliance in the near-term future," RIL Chairman Mukesh Ambani told shareholders at the company's 32nd annual general meeting.
Outlining the contours of the 'next big idea', Ambani said the company envisioned kicking off a 'retail revolution' across the country involving farmers, small shopkeepers, consumers and the youth.
He said RIL will develop opportunities in agriculture and food processing to support the retail business which is likely to employ one million people.
"A new company, Reliance Retail Ltd, would spearhead this revolution. RIL has a 100 per cent stake in RRL," he said, adding that it would entail an equity investment of Rs 10,000 crore (Rs 100 billion) which would gradually be scaled up to Rs 25,000 crore (Rs 250 billion).
Simultaneously, the company would open up 'three broad fronts' which include tapping opportunities in urban infrastructure and special economic zones and new economy businesses like life sciences and healthcare.
Besides, the company would scout for cross-border acquisitions in existing and new businesses, he said.
The products that would be offered on retail front would be food and grocery, FMCG items, consumer durables, lifetsyle products and services, farm implements and inputs, distribution of travel services, health and well-being products and energy products and services, Ambani said.
"Reliance Retail would develop partnerships to bring the best of luxury brands from all over the world to India," he added.
On the company's partnership with Chevron for refining business, he said it would help RIL optimise crude supply, product offtake and marketing from the refinery as well as collaborate in other areas of the energy value chain.
"In its own way, the Chevron relationship is a forerunner to the emergence of Reliance as a significant global player in the energy sector," he said.
In the area of fuel retailing, he said the company had opened 1,218 outlets over the last two years, adding that RIL was committed to delivering a strong consumer value in the petro retail sector.
Ambani said the company was undertaking a 'fundamental transformation' in its polyester business that would entail going beyond manufacturing scale to create a differentiated polyester portfolio.
"Reliance is now building the next generation polyester business," he said, adding that the company will move to providing solutions to the packaging, paper and construction industries besides the textile industry.
"In addition to making apparel grade polyester, Reliance will develop a whole range of technical and performance polyesters," Ambani said.
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