HSA to rope in RIL for retail venture in Yemen

HYDERABAD: Yemen-based Hayel Saeed Anam Group (HSA) is planning to rope in Mukesh Ambani-led Reliance as partner for its retail venture. The $3.3-billion company already has a partnership with RIL for setting up a refinery and is looking at extending this synergy into retail sector.

HSA Group commands over 60% of the economy in Yemen and is present in almost all sectors including manufacturing, real estate, telecom, food products and petrochemicals. "We were in talks with other retailers including Tesco and Wal-Mart for possible tie-ups. Our plan is to use their expertise in operations management and supply chain. Considering Reliance's retail success here, we have decided to hold discussions with them," Shawki Ahmed Hayel, executive director of HAS, said, on the sidelines of a press conference.

This would be the first big retail venture in Yemen. "We are looking at leveraging on Reliance's experience in front-end operations in India. We are also ready to offer them equity participation," he told reporters on Thursday.

Reliance' founder Dhirubhai Ambani started his career in Yemen 50 years ago. "Our chairman and Mr Ambani knew each other well and it had also helped us forging ties with each other for setting up a refinery in Yemen," he said. The Yemenese company along with RIL is setting up a refinery at an investment of $532 million. "It will have a capacity of 80,000 tonne and will be ready in three years. Besides RIL, some local companies and IFC have also got equity participation in the project," he added.