Kurien: Expansion plan

Jamshedpur, Dec. 27: Come New Year, and the residents of the state will get to taste Reliance Fresh vegetables.

Reliance Industries Limited has decided to launch outlets of its retail chain — Reliance Fresh — in Ranchi, Jamshedpur and Dhanbad. Called “Fresh”, the first Reliance outlet of vegetables, fruits and groceries in the state will come up in the capital early next year.

“We have plans to start operations in Jharkhand soon since there are no major players in this sector in the state,” said Bijou Kurien, CEO of Reliance Retail at a panel discussion in XLRI.

Even as the company is looking to gain the initial advantage, its officials are guarded about the strategy and refused to comment on the actual investment in the state.

The company has, however, started hiring officials within the state and an office has already been set up in Ranchi. The real estate plans for the company has also fallen in place in Jamshepur. The retail corporate has sought a space in the proposed mall that will replace the existing building of Basant Cinema.

Sources said the stores in the three cities would be a part of the pilot stores being set up to test local tastes and spending habits before taking the final plunge.

The project beneficiaries would not be only consumers, but Jharkhand farmers and workers in poultry farms, who will be required to back the supply chain of the stores.

Reliance Fresh stores is the front-end of RIL’s “farm-to-fork” project, which involves procuring farm products through agro-hubs, establishing a supply chain and providing logistics and finally retailing the products.

“We will use advanced agricultural products grown here and involve farmers in our supply chain,” said Kurien.

The company would, however, not remain confined to agricultural products. It will also spread wings to consumer durables, hyper-markets, music, pharmacy, speciality stores and lifestyle products.

Sources said the company aims at acquiring a total of 100 million square feet of retail space nationwide by 2010-11, with store sizes varying anywhere between 3,000 sq ft and 50,000 sq ft depending on the format.

Sources added that apart from Reliance Fresh, which is already on the cards, the company will later expand into garment and bookstore business in the state.

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