RIL set for massive expansion in its retail segment

Mumbai, Aug 15 (UNI) Mukesh Ambani-promoted Reliance Retail (RR) has mooted a massive retail networking plan targetting about 1500 cities across the country by the end of 2010.

This was revealed by Raghu Pillai, CEO (Operations&Strategy), Reliance Retail to Mumbai journalists in Ahmedabad on Tuesday during the launch of a hypermarket 'RelianceMart', the latest intiative by Reliance Industries Ltd (RIL).

Apart from its existing three formats--Reliance Fresh, Reliance Digital and Reliance Mart. Relaince Retail will be introducing 'Reliance Town Centres' as the fourth format across the country, which will include malls, health centres, vocational training centres, etc under a single roof.

Dismissing the argument that Reliance Retail plans are only limited to Tier-I cities. Pillai set the record straight, saying ''Our expansion plans involves launching about 700 retail outlets in Tier-II and Tier-III cities, while 1500 retail outlets will spring across the rural heartland''.

The CEO pinpointed that at present Reliance has rolled out its first hypermarket at Ahemedabad, and expects a topline of Rs 1,000 for a sq ft each month. In addition, the company will launch one more hypermarket at Jamnagar taking the total tally to two in Gujarat.

Consequently, New Delhi, Hyderabad, Bangalore, Chennai, Jalandhar, Jaipur and Pune will also see Reliance hypermarkets. For a pan-India presence, the company will open 30 hypermarkets by the end of the year and another 500 by the end 2010, added Pillai.

Pillai said Reliance planned to launch speciality stores in apparels, health and wellness and footware categories at its Reliance Town Centres. ''The first of these centres will be launched in Delhi by the end of this year,'' he added.

On expansion plans, a senior Reliance official said Reliance Fresh outlets will be increased from 239 to 360 by the end of 2007.

While, Reliance Digital will also be expanded across to six Tier-I cities, including one at Vashi in New Bombay in the next four months from the existing one located at Noida in the National Capital Region of Delhi.

UNI