Reliance Retail, a subsidiary of Reliance Industries, plans to invest Rs 2,000 crore to add 3 million sqft retail spaces in 2010-11.
This is as per a top official of the company. Reliance Retail recorded sales of Rs 4,500 crore in the financial year ended March 2010. It operates nearly 1,150 stores in 86 cities across 14 states which span just over 4.5 million sqft space across India. In 2009-10, the company added around 1 million sq ft retail space.
The company has also focused greatly on its plan of luxury brands to India with Reliance Brands. The last two months have seen the launch of Hamleys and Diesel stores. Reliance Retail is now in talks with US fashion brand Kenneth Cole and Italian bag maker Mandarina Duck to open their exclusive outlets in India.
“We will add around 30 hypermarkets and 250 speciality stores this financial year. Around 1.5 million sqft will be added in hypermarkets while 1.5 million sqft will be in speciality stores and Reliance Fresh”, a Reliance official said.
“The company will focus on expanding Reliance Mart hypermarkets and its specialty retail formats – Reliance Trend, Reliance Digital, Reliance Jewels, Reliance Footprint, Reliance Time-Out and Reliance Wellness.” said the official.
This follows in wake of the Reliance Industries Chairman, Mukesh Ambani’s words at the 36th AGM claiming that Reliance Retail, Reliance Industries’ (RIL) retail arm will see a 10-fold growth in revenue over the next five years to become a Rs 45,000-crore entity.
Looking at the developments on retail fronts, Reliance Industries is investing a lot and expects very good returns from investments too. This should eventually benefit RIL Shareholders. RIL is definitely going to be a front runner of emerging Indian economy. These kind of plans make the Reliance Industries a stock to buy for long term core portfolio.
