Reliance may acquire Subiksha

A rumour which refuses to die is that the Mukesh Ambani-led Reliance Retail is in talks to acquire Chennai-based retail chain, Subhiksha.

Although both have stoutly denied any such plans, analysts say Reliance Retail stands to gain from the South-based retailer’s supply chain and marketing reach, through either a JV or an acquisition.

Subhiksha MD R Subramaniam recently said the company has major expansion plans and is planning an IPO.

While the IPO plan has been on for a few months, it has been postponed because of ‘choppy markets.’ Observers don’t rule out the possibility of Reliance Retail subscribing in the IPO.