Reliance in talks with HP for rural business hubs

NEW DELHI: Reliance Industries (RIL) is in talks with the Himachal government for striking a joint venture to run rural business hubs in the state.

According to sources, the company is also exploring options to take over state government unit Himachal Pradesh Horticultural Produce, Marketing and Processing Corporation (HPMC).

Interestingly, RIL has also turned its focus on various Himachal government units such as HPMC, which have sufficient in-built capacities, that can double up as retail space for the company.

RIL sources confirmed that they have already identified 25 locations in the state. The business hubs in Himachal will be based on a similar model as that of Punjab.

As against Punjab, where the company’s business arrangement with the state government is based around milk and wheat, it will be vegetables and apples in case of Himachal, sources added.

When contacted by ET, RIL spokesperson said: “The firm is evaluating various options and will be using the JV for the rural agri-retail business.”

Subsequently, the company will also be looking at using the state governments infrastructure and facility as a marketing tool. This is where HPMC may come handy for the company, as it has a strong retail and distribution network, not just in Himachal but in other parts of north as well.

The RIL joint venture with Himachal Pradesh will be a part of a series of such deals that the company has lined up with various state governments, Punjab being the first. The company is also learnt to be in talks with some central government outfits as well, primarily for warehouses.

In fact, apart from some state governments, RIL has initiated talks with the railways as well, for warehouses on key routes on a commission basis and for refrigerated containers for managing its supply chain.