RIL to invest in crores in retailing sector

Mumbai, Jun 27: Mukesh Ambani controlled Reliance Industries Ltd (RIL) will invest over Rs 25,000 crore, in dollar terms US$ 5.6 billion, in the burgeoning retail sector over the coming years.

Addressing the shareholders at the AGM of the Company today, RIL Chairman Mukesh Ambani said the Reliance had already set up a subsidiary 'Reliance Retail Ltd' to venture into retailing which would have an authorised equity capital of over Rs 10,000 crore (in dollar terms US$ 2.24 billion).

The new company would endeavour to sell everything from food to clothes to travel services in a mixture of neighbourhood convenience stores, supermarkets and speciality stores.

''Organised retailing would be an overarching theme of the expansion and growth of Reliance in the near-term future,'' the elder Ambani said.

He outlined three new business fronts such as urban infrastructure and special economic zones, new businesses in life sciences and healthcare and cross-border acquisitions in existing and new businesses.

The Reliance group had split last year after a spat between Mukesh and his younger brother Anil who now controls Reliance Communication Ventures Ltd., Reliance Capital Ltd. and Reliance Energy Ltd.

Mr Ambani also said Reliance had discovered oil in its exploration block in the Krishna Godavari basin off India's east coast where the company has already found the country's largest gas field. ''This discovery signifies a large geological play that could result in future discoveries,'' he said but gave no detail about the size of the find.

He also said the company till now had created 1,218 retail fuel outlets in two years.

UNI