RELIANCE RETAIL
Growth through Value Creation
• Revolutionize the retailing industry in India.
• Introducing a pan-India network of retail outlets in multiple
formats.
• Ensuring better returns to Indian farmers and manufacturers
and greater value for the Indian consumer, both in quality and
quantity.
• Contribute to India's growth.
• Seamless supply chain infrastructure.
• Aiming to touch almost every Indian customer and supplier.
Products & Brands
• The Company expanded into textiles in 1975.
• Exploration and production of oil and gas to the manufacture of petroleum
products, polyester products, polyester intermediates, plastics, polymer
intermediates, chemicals and synthetic textiles and fabrics.
• Retail business through a subsidiary Reliance Retail Limited.
• Reliance Infrastructure Ltd. is currently establishing infrastructure facilities
• The Company's operations can be classified into three segments namely:
– Petroleum Refining and Marketing business
– Petrochemicals business
– Others (including Crude Oil and Natural Gas Exploration & Production business.
• The Company's refinery at Jamnagar is the third largest refinery at a single
location in the world.
• The Company is:
– The world's largest producer of Polyester Fibre and Yarn
– 4th largest producer of Paraxylene (PX)
– 5th largest producer of Purified Terepthalic Acid (PTA)
– 7th largest producer of Polypropylene (PP)
Reliance Retail
– The Mega Retail Story
• A targeted sales turnover of Rs 90,000 crore (US$ 20 billion) by 2010 with
a planned investment of Rs 30,000 crore over the next 5 years.
• All set to achieve the status of being the flag-bearer of India Retail Inc, in
record time.
• Reliance Industries Limited (RIL), is entering the Indian retail sector in a
real big way.
• Blueprint for 800-odd Towns/Cities: Initial Investment Rs 3,350 Crore
• The Reliance Retail blueprint envisages nation-wide chains of
hypermarkets, supermarkets, discount stores, department stores,
convenience stores and specialty stores.
• The entire Indian retail sector is estimated to be at Rs 1050,000 crore (US$
233 billion) – growing at 5% annually – and the estimated share of
organised retail is only Rs 36,000 crore (US$ 8 billion), at present, albeit
growing at over 30% every year.
• That makes Reliance Retail's proposed investments equivalent to about
10% of India's organised retail market.
• RIL Set To Become World's Largest Real Estate Property Owner
• Retail Will Become Core Business of RIL
• Reliance Industries Limited is the largest and one of the fastest growing
private sector companies in India.
• All of Reliance Group production and services ventures have one common
feature – global scale operations employing state-of-the-art technology in
all fields.
• With domestic market shares ranging from 40-80%, RIL is also ranked
among the top 10 producers globally, for all its major product segments.
• It is one of India's largest business conglomerates with total revenues of
Rs 1,00,650 crore (US$ 22.6 billion).
• It is being speculated within the industry that the ROIs made by RIL in the
retail space will far out-shadow its existing core flagship businesses.
RIL's Retail Project will be through the
following companies :
Major subsidiaries :-
• Reliance Retail Limited,
• Ranger Farms Private Limited,
• Retail Concepts and Services Private Limited,
• Reliance Retail Insurance Broking Limited,
• Reliance Dairy Foods Limited,
• Reliance Retail Finance Limited,
• RESQ Limited,
• Reliance Digital Retail Limited,
• Reliance Service Solutions Limited.
Why Retail For Reliance?
• In the last 15-20 years the retail sector has started catching
the attention of large corporate houses in India.
• Self-sustaining buoyant Indian economy growing at the rate of
8% an year.
• Economy is expanding, the consumption habits and patterns
of people are changing real fast in India.
• Country’s demography – youngest population.
• India’s 300 million – odd middle-class, the real consumers is
catching the attention of the world.
• Change in supply trends provides the greatest challenge to
retailers.
Profile :
• Reliance Retail India (RRL) has revolutionized the retail
industry and will spearhead organized retail revolution.
• Focus on ‘competitive offerings’ to Indian consumers across
several verticals:
– Integrated food and grocery
– Daily household items
– Apparels and footwear
– Electronic goods
– Lifestyle products
– Home essentials and improvements
– Farm implements
– Distribution of energy products and services
– Others
• The company would have a pan India presence.
Retail Plans & Strategies
• Manoj Modi and Hital Meswani, flanked by a core team of trusted
lieutenants and business aides, constitute the top hierarchy in Reliance
Retail.
• Targets 90,000 Crore Turnover by 2010
• RIL has set a revenue target of Rs 90,000 crore (US$ 20 billion) from its
retail operations by year 2010, almost 10 per cent the size of the current
organised retail business in the country.
• RIL's plans include a pan-India footprint of its stores, across multiple
formats and categories, in more than 800 cities and towns, and in record
time.
• Multiple Formats with Investment of Rs 30,000 Crore
• A low cost pan-India supply-chain model that will involve massive
economies of scale.
• The strategy is to set up a chain of hypermarkets, supermarkets, discount
stores, speciality stores, and convenience store formats in 800-odd cities
and towns across the length and breadth of the country at an investment
of around Rs 30,000 crore (US$ 8 billion).
• First Phase: 1,575 Outlets by March 2007
• In the next 2-3 years, Reliance Retail plans to establish a pan-India
presence of all its formats, targeting not only the major metros and cities,
but also the 2nd-tier towns and semi-urban and even rural centres.
• F&B to Generate 40% Sales Revenue, Direct Employment to Over 5 Lakh
• The food and beverages category will account for as much as 40% of the
total revenue generated from the Reliance Retail venture.
• About 23 CEOs across multiple functions and categories will oversee the
retail operations.
• RIL has roped in leading retail consulting firm, Technopak Advisors, and
management consulting firm AT Kearney.
7 Formats of Reliance Retail
• Reliance Fresh
• Reliance Mart
• Reliance Digital
• Reliance Trends
• Reliance Wellness
• Reliance footprint
• Reliance jewels
Reliance Fresh
Reliance Fresh Supermarkets
Reliance Fresh
• Opening new retail stores into almost every metropolitan and regional
area of India.
• Plans to invest 25000 crores in the next 4 years in their retail division and
plans to begin retail stores in 784 cities across the country.
• Rs 25,000 crore venture and it plans to add more stores and have a pan-
India footprint by year 2011.
• The super marts will sell fresh fruits and vegetables, staples, groceries,
fresh juice bars and dairy products and also will sport a separate enclosure
and supply-chain for non-vegetarian products.
• Provide direct employment to 5 lakh young Indians and indirect job
opportunities to a million people.
• Plans to train students and housewives in customer care and quality
services for part-time jobs.
• Reliance Fresh recently (24th Jan, 2007) opened several "Fresh" outlets in
Chennai, New Delhi, Hyderabad, Mumbai, Chandigarh, Ludhiana
increasing its total store count to 40.
• According to Deccan Herald, the company is planning on opening new
stores with store-size varying from 1,500 sq ft to 3,000 sq ft.
• Following the concept of a neighbour store.
Reliance Mart
Reliance Mart, the first hypermarket of Reliance
Retail
Reliance Mart
• Planning to come up with mega retail stores by sewing up real estate deals
fast.
• Signed deals for over 50 million sq ft through franchise and direct route.
• Envisions a target of 100 million sq ft by 2011 to open its hypermarket
business.
• Chosen Ahmedabad for its first hypermarket whereas the second and third
hypermarkets will come up in Jamnagar (Gujarat) and Gurgaon (Haryana)
in September 2007.
• Jamnagar and Gurgaon would have the hypermarkets ranging between
1,65,000 – 2,00,000 sq ft.
• The hypermarkets will offer a comprehensive array of digital, food, and
other lifestyle products. Reliance Mart is a part of the Reliance Group’s
$5.5 billion ‘farm to fork’ retail initiative, with the targeted revenues of
$23 billion by March 2011.
• Since October 2006, Reliance Retail has set up more than 200 convenience
and neighbourhood stores under the ambit of the Reliance Fresh Chain
Reliance Digital
Reliance Digital brings iApple store to India
Reliance Retail goes Digital with new consumer
durable format
Reliance Digital
Reliance Retail introduces its first pilot
Consumer Electronic store - Reliance Digital
• Reliance Retail and Apple have partnered to announce an exclusive
marketing and distribution deal.
• In major cities in India, Reliance has planned to build up a 10 iStores by
Reliance Digital that will showcase Apple products.
• This tie up is the first alliance for Reliance Retail with an International
brand.
• Later this month, the company plans to launch the first of these stores in
Bangalore.
• The products include Macs and iPods. Apple iPhone, probably will also be
available when launched in the country.
• Earn around Rs 100,000 crore revenues in the next five years.
• 10-15 per cent of which will be contributed through retailing of consumer
durables at its Reliance Digital stores and hypermarkets.
• One-stop shops for all technological solutions.
• Their own consumer durable private labels.
• Fighting for a share of the $5.6-billion domestic market, which is
dominated by South Korean brands LG and Samsung and Japan's Sony.
• Most competitive prices.
• Pre- and post sales services through its in-house RelianceresQ vertical.
• Offer finance schemes for consumers for which the retail majors are in
talks for tie-ups with several financial institutions, Citi Financial being
one of them.
• Offering customers RelianceOne, a common membership and loyalty
programme across all its formats.
• An investment of Rs 25,000 crore.
• Reliance Digital is the second format of stores
• Built around Reliance Retail’s core philosophy – consumer centricity
and a hassle free store experience.
• Offer over 4,000 products spread across 150 brand along with
countless solution bundles.
• Highly skilled and trained staff.
• Open 7 days a week from 10:00 am to 9:00 pm.
• Follows the philosophy of ‘Earn Anywhere, Spend Anywhere’.
The next four formats
• Reliance Trends
• Reliance Wellness
Reliance footprint
•
Reliance jewels
•
Reliance Trends
Reliance Trends store plans a century in 3
years
Reliance Trends
• Ambi mall offers some of the best (100+) Indian and International brands .
• Democratizing fashion and making it attainable to the masses.
• Offering solutions to common maintenance problems through its state of
the art innovative products.
• Product Quality has been ingrained into the DNA of Reliance Trends and is
integral to its mission of “Grahak Devo Bhava”.
• Some of the quality standards that are being followed are American
Association of Textiles, Chemists & Colorists, American Standard, ISO & BIS
test methods.
• For the first time in organized retail, Reliance Trends is introducing a Made
to Measure tailoring service, offering customized fits at reasonable prices.
• Reliance Trends is offering a homogeneous mix of private labels and
brands across men’s, women’s and children’s categories.
• The DNMX range has been developed with a clear focus on the youth of
India, offering them exclusively crafted fashion garments like Denims, T
shirts etc.
• Sparsh range of Indian wear for women, offers the finest collection of
Salwar Kurtas, Churidars and a fast evolving Mix n Match range of
garments. An exclusive label.
• Panda , has been developed for infants and toddlers.
• Frendz range of garments would compliment the wardrobes the growing
generation of boys and girls.
• Apart from these private labels, the store is also offering some of the most
renowned brands in the country like Lee, Wrangler, Peter England , John
Players, Black berry’s, Gini n Jony , Liliput , Indigo Nation , Biba and
designer labels.
• Continuing the tradition of reaching out to the middle class of the country,
the current offering from Reliance Trends is easily affordable to the Indian
consumer.
• Taking forward the vision of Shri. Mukesh Ambani, Chairman and
Managing Director, Reliance Industries Ltd. Reliance Trends delivers
unmatched affordability, quality and choice of products and services to
the consumer.
• The beginning of transforming Indian retailing with benefits for the
Consumer.
Reliance Wellness
Reliance enters wellness format; opens outlet in
Hyderabad
Reliance Wellness
– the fifth format
• Hyderabad has become the launch pad for Reliance Retail's newest foray -
Reliance Wellness.
• The chain of 1,200 stores, to be set up in 51 cities over the next 3 years,
will offer a range of health and lifestyle products.
• Targeting the country’s Rs 38,400-crore health and medical products
market and the Rs 16,000-crore personal care and beauty care products
market.
• Retails both domestic and international brands in the health and personal
care section as also books on health issues.
• Attract and retain customers.
• Planning to open its second store in Bangalore soon.
• Home to some 5,000 products in different categories, including general
nutrition, sports nutrition, skin and personal care, books, music and
pharmaceuticals.
• Houses an optical shop backed by a qualified ophthalmologist to test and
prescribe lenses.
• Comprises a pharmacy, offers medicines and remedies in allopathic,
ayurvedic and homeo medical systems.
• Introducing a ‘Medical Compliance Program’ for customers who are on
long-term medication.
• Free health insurance cover under RelianceOne, the customer loyalty
programme.
• Consultant doctors would be available at the stores.
Reliance footprint
Reliance footprint brings ASICS store in India.
Reliance footprint
• Reliance Footprint, the multi-brand footwear specialty store chain of
Reliance Retail, will invest Rs 200 crore to set up 100 stores in the country
by the next fiscal with a floor area of between 5,000 sq. ft. and 7,000 sq.
ft.
• ASICS is a Japanese sports footwear brand and Reliance Retail has
exclusive dealership rights to it in the country. There is just one ASICS
mono-brand store in Kochi.
• The footwear specialty store from Reliance Retail are in Chennai,
Hyderabad, Kochi, Noida, Ludhiana, Mangalore, Mumbai, Jaipur, Jullunder,
Vizag, Nasikh, Ahmedabad, Vadodara and two stores in Bangalore. the
footwear specialty store from Reliance Retail.
• Stores offer over 50 international, national and Reliance brands.
• Reliance Footprint is planning to grab an 8 per cent share of the footwear
market which is projected to reach Rs 20,000 crores by 2015.
Reliance footprint
• It aims to be the largest multi-brand footwear destination in India, offering
shoes, handbags, accessories and luggage.
• Reliance Footprint is positioned in the mid-market segment, offering 45-
50 brands in each of its stores.
• It achieved a break-even this year and was aiming at Rs 2,000 crore topline
in the next five years.
Reliance jewels
Reliance jewels
• The average size of a Reliance Jewels store ranges between 3,000-6,000 sq
ft and the company adopts a mix of rented and company-owned stores for
expansion.
• Reliance Retail Ltd plans to open 85 stores of its jewellery retailing
business -- Reliance Jewels -- across India over the next three years.
• The multi-format retailer, which operates 15 Reliance Jewels outlets, has
charted a road-map designed to give a greater focus on metros and larger
towns.
• A five-year plan for expansion, which drills down to (penetration at) the
town level.
• RRL operates jewellery stores in Ahmedabad, Bangalore, Dhanbad,
Gurgaon, Hyderabad, Jalandhar, Jamnagar, Jamshedpur, Jodhpur,
Ludhiana, Mumbai and New Delhi.
• funding requirements are met from internal accruals.
Reliance jewels
• "The size of the opportunity is large because the jewellery market in India
is around Rs 1,00,000 crore and branded retailers make up only three to
four per cent of this,"
• Reliance Jewels store offers a wide range of unique designs in gold,
diamond and wedding jewellery in Kolkata filigree, Rajkot antique,
Junagadh polki, Rajasthani kundan, Amritsari jadau, Hyderabad ruby and
emerald collections.
• The stores also offer an exclusive range of diamonds and have a separate
trousseau room for guests who want to customise their ornaments.
COMPETITOR MAPPING :
The major names that have or will dominate the retail space are namely:
– BAL-MART: (Wal-Mart Bharti retail Joint Venture),
– The Future Group,
– ITC,
– RPG Enterprises,
– Raheja’s,
– Piramals,
– Tata’s,
– Carrefour,
– Target,
– Metro,
– Sears and
– Tesco
First Cluster of Reliance Retail Stores
• Opened on 3rd Nov,’06
• In Andhra Pradesh (21), Jaipur (7), Chennai
(12)
Reliance retail opened 9 ‘fresh’ stores
in NCR, target 1 trillion in revenues
• Moved into National Capital region (NCR) on Jan 29 ‘07.
• In Noida, Greater Noida, Gurgaon, Ghaziabad and Faridabad.
• Within the next 3 months, Reliance wants to take the tally of
these ‘Fresh’ stores to 100 in the Delhi- NCR region.
• Believed to have invested about Rs. 1,100 crore in this region.
Predicted Future
• Expects to launch 1,000 stores before the year end.
• Occupying an aggregate retail
space of about 1,10,000 square feet
• Offer quality horticulture, grocery and dairy products at
competitive prices.
• Also makes supplies at wholesale prices to push-cart vendors
and small kiryana merchants through its wholesale format
“Rangers Farm.”
Conclusion
• RIL's retail foray is sure to have far reaching social and
economic implications
• RRL will be able to achieve as much as 5% market share by
2010 instead of earlier target of 6.8% market share in the next
three years.
• The company plans to have 150-200 malls up and running by
December 2008 and 500 all over the country by 2010.
• Reliance also plans to have 100 million sq ft of retail space in
the next three to five years and targets Rs 12,000 per sq ft per
year for hypermarkets.
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
"Growth has no limit at Reliance. I keep
revising my vision.
Only when you can dream it, you can do
it."
