Leading Indian industrial conglomerate Reliance Industries has announced plans to invest USD5.6 billion over the next few years in the country’s fast growing retail sector. Reliance has set up a subsidiary, Reliance Retail Ltd, with equity capital of USD2.24 billion.

The new company will open a spectrum of stores from c-stores to supermarkets to specialist outlets. According to Reliance chairman, Mukesh Ambani, "Organised retailing will be an overarching theme of the expansion and growth of Reliance in the near-term future." Reliance’s retail push will include a massive development of distribution and logistics, the absence of which has held back a truly nationwide retailer in India. Mr Ambani said Reliance Retail would have a presence in India’s 1,500 cities and towns, with shopping formats from convenience stores, supermarkets and hypermarkets. The speed and scale of the roll-out has required huge recruitment. Already, 2,000 professionals have been employed and management strength will rise fivefold in the next few years. In addition, 500,000 young people will be taken on for shop-front and other services jobs. “Reliance is creating a virtuous circle of prosperity by bringing farmers, small shopkeepers and consumers in a win-win situation,” he told shareholders at the company’s annual general meeting in Mumbai.

The move comes at a time when global giants such as Wal-Mart Stores and Metro have been lobbying the Indian government to open its retail industry to foreign investment. However, opposition from communist coalition partners and domestic businesses has forced the government to move slowly.

Source: Planet Retail -www.planetretail.net