Reliance Industries chairman Mukesh Ambani today laid out a comprehensive blueprint for a organised retail thrust that promised to create a million jobs, address inefficiencies in the country's rural logistics chain and trigger, in his words, a socio-economic transformation on an unprecedented scale.Over Rs 25,000 crore would be invested by a new company, Reliance Retail, which would have a pan-India footprint covering 1,500 cities and towns, Ambani said. "Conceptually, Reliance is creating a virtous cycle of prosperity by bringing farmers, small shopkeepers and consumers in a win-win partnership," he added.Reliance Retail would need an equity investment of Rs 10,000 crore over time, he said at the company's 32nd annual general meeting in rain-swept south Mumbai today. Parent Reliance would hold a 100% stake in this company, save for employee stock options, Ambani said today.Contrary to belief, Reliance may not be bound by format in its retail roll-out. "There will be an appropriate mix of formats from neighbourhood convenience stores, supermarkets and speciality stores to hypermarkets," Ambani said. Nor will it be targeted at a single segment. "There will be an array of Indian and international brands catering to both mass markets and luxury segments," he said. Ambani revealed that the initiative already had 2,000 young professionals working on it. "This would soon swell to around 10,000 professionals," he said. They would then be joined by 500,000 young boys and girsl over the next few years, recruited and trained in customer service, behavourial traits, product knowledge and technology aspects.Ambani was possibly referring to a growth via franchise model similar to that employed by telecom company Reliance Infocom when he ran it. Reliance Infocom was taken over by younger bother Anil Ambani following a business split between the brothers.Ambani claimed Reliance Retail would offer competitive prices to Indian consumers across several verticals. Expanding, he said they would include food and grocery, FMCG, apparel and footwear, electronics, lifestyle, home essentials and improvements, farm implements and inputs, distribution of energy products and services, distribution of travel services, entertainment and leisure, health and well being products and services and educational products and services. He also said Reliance Retail would deliver better returns to Indian farmers and producers by connecting them directly to Indian and global consumers. "We will develop partnerships with small retailers to enlarge their consumer offerings and income."Building a world class supply chain and logistics and information technology infrastructure across the country would be a key thrust area in the retail foray, Ambani said.Ambani said the retail initiative had the following key elements.1. "A retail engagement that first partners with farmers, logistics operators, small shopkeepers and enhances their purchasing power."2. "An retail offering that delivers unmatched affordability, quality and choice in products and services to consumers"3. "A network that is unprecedented in scope and unparalleled in execution."
