Reliance says not seeking retail partner

AHMEDABAD: Reliance Industries has no immediate plans to involve a foreign partner in its retail venture and sees no threat from Bharti group's wholesale tie-up with Wal-Mart, a top company official said.

"We are not scared of competition. We are ahead of them. Our great challenge is to satisfy our customers. And that is the only benchmark," Raghu Pillai, president and CEO of Reliance Retail told reporters on Tuesday at the launch of a hypermarket in western India.

Last week, Wal-Mart, the world's largest retailer, and Bharti Enterprises announced a much-delayed agreement to form an equal joint venture for wholesale and back-end supply chain management. Pillai said Reliance was not pursuing a tie-up with a foreign firm at present.

"Either way, no foreign investment for the time being," he said when asked if Reliance was seeking a foreign partner, or if it had been approached by any firm for a stake.

India allows foreign single-brand retailers to take up to 51 percent in a joint venture with a local firm, while multiple-brand retailers like Wal-Mart are limited to cash-and-carry, or wholesale, and franchise deals.

Opening up the fragmented industry, which is dominated by family-run shops, has triggered political concerns and protests by small shop owners who fear massive job losses. Protests have largely been targeted against Wal-Mart, although Reliance Retail stores have been attacked.

Pillai said Reliance would go ahead with its plans to roll out retail stores across the country. "We take the protests in our stride. Reliance is an Indian company, in India, paying Indian taxes, and we will open our shops everywhere," he said.

REUTERS The hypermarket format is the latest to be unveiled by Reliance Retail, which last year unveiled its fresh food format store Reliance Fresh, followed by consumer electronics store Reliance Digital.

The company already operates 240 Reliance Fresh outlets around the country and one Reliance Digital store in NCR. It plans to open 350 new Reliance Fresh outlets by this month end.

The hypermarket would house various new services under one roof like in-house tailoring, shoe repair outlet, watch repair, laundry service, photo shop and bakery among others. It would also provide home delivery service to its customers.

The store would also house a health and wellness store providing pharmaceuticals to the customers. Commenting on Bharti-Wal-Mart tie-up, Pillai said: "Reliance is not worried about competition."

"Reliance is company which has never been scared of competiton. We believe in setting our own benchmark...we are not worried about Bharti's tie-up with Wal-mart," Pillai added.