WB: Reliance plans to invest in retail business

Kolkata, May 31: After Tata Motors, Jindal Steel and Infosys, Reliance Industries under the Chairmanship of Mukesh Ambani now plans to set foot in Bengal by opening a chain of Retail stores of agro products under joint venture across the state this year.

However, unlike Tata Motors or the Jindals, the Reliance Industries in order to enter into the retail business in the Marxist ruled state, plans to join hands with Mr. Harsh Neotia, Chairman of the Gujarat Ambuja Group for the obvious reason of his close association with the ruling Left Front leaders, particularly with Chief minister Buddhadeb Bhattacherjee Though no formal agreement in this regard had so far been signed between Mr. Neotia and the Reliance Industries, informed sources told UNI that a formal meeting between Mr. Ambani and Mr. Neotia had already taken place to discuss the preliminary aspects of the mega deal.

Under the proposed agreement, the sources said, a total amount of Rs. 3,000 crores would be invested in the project which was also likely to generate about 40,000 employment for the local youth within the next two years.

To discuss further details about the mega project Mr Ambani is likely to come here next month and hold a meeting with chief minister Buddhadeb Bhattacherjee, the source said adding that, however, the exact date of Mr Ambani's visit was yet to finalized.

Under the project as many as 22 agro retail stores would be set up in different cities and towns of the states where the Ambuja group had its presence, the sources said adding that in each of these stores large portion of raw materials would be procured from the local farmers at attractive prices.

This would not only help the local agrarian economy to flourish, but would also bring about a positive chance in the demand and supply pattern of the locality.

Elaborating the reason of real estate giant Ambuja Group's proposed diversification into the retail business, the sources said since the Reliance Group had already made similar tie ups in some other states including Gujarat and Maharashtra in order to utilize the available infrastructural facilities of the local player, they were looking for a capable partner in West Bengal too to fulfill heir long standing ambition in this regard.

Since Mr Neotia and his group was able to fulfill all the necessary criteria for the tie up, the Reliance Industries had opted for the deal also keeping in mind his close rapport with the front leaders to overcome any possible opposition from any quarters.

However, it is yet to be seen how the project would take off opening a new window of opportunity for thousands of unemployed youth in the state, as promised by the new Left Front government.

UNI