Reliance Retail not for inorganic growth
Reliance Industries, which has chalked out huge plans for retail space, is not looking at merger and acquisition route for growth.
By PTI |
MUMBAI: Reliance Industries, which has chalked out huge plans for retail space, is not looking at merger and acquisition route for growth.
The Mukesh Ambani-led company would instead like to grow organically in the nearly USD 400-billion market, a top executive said on Wednesday.
Speaking at the ongoing India Retail Forum here, Reliance Retail President and CEO Raghu Pillai said: "There is a very high premium you have to pay to the seller in the absence of a large number of assets. Besides, the acquisitions do not really add any value."
"Organic growth is going to be the way in the mid term over the next three to five years," he said.
Sanjay Badhe, Senior Vice-President of Aditya Birla Retail, which runs `more' chain of outlets, also echoed similar feelings.
According to Pillai, though the organised retail has started off in the metro cities, the companies will now go to tier II and III cities.
The rising cost of real estate poses a challenge to the fast-growing sector, he said.
The Mukesh Ambani-led company would instead like to grow organically in the nearly USD 400-billion market, a top executive said on Wednesday.
Speaking at the ongoing India Retail Forum here, Reliance Retail President and CEO Raghu Pillai said: "There is a very high premium you have to pay to the seller in the absence of a large number of assets. Besides, the acquisitions do not really add any value."
"Organic growth is going to be the way in the mid term over the next three to five years," he said.
Sanjay Badhe, Senior Vice-President of Aditya Birla Retail, which runs `more' chain of outlets, also echoed similar feelings.
According to Pillai, though the organised retail has started off in the metro cities, the companies will now go to tier II and III cities.
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The rising cost of real estate poses a challenge to the fast-growing sector, he said.
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