RIL places order for 5 Boeing cargo planes

Reliance Industries (RIL) has ordered five cargo aircraft from Boeing to provide logistics support for its retail market foray. RIL will use the aircraft to transport perishables within the country across centres and also to source materials overseas.

A industry source said the delivery of aircraft would coincide with the launch of the company's retail market operations. The aircraft will be placed under the logistics arm of group company, Reliance Logistics.

However, considering the size of the proposed retail operations, Reliance management may also consider creating a separate company to take care of massive logistic requirement, which will involve movement of goods between 300-odd cities covering almost all major states.

A RIL spokesperson refused to make comment on cargo aircraft order placement by the company.

Sources confirmed that for time being RIL will continue with only five cargo aircraft. However, once its retail operations stabilises, RIL may consider acquiring more aircraft depending on the infrastructure available at various locations across the country.

Once the number of locations within the cities and a number of cities in various states are finalised, RIL is expected to give final touches to its logistic plan, which will involve much more than acquisition of cargo aircraft, said the source. The logistic operations would also involve massive investment in road transport, added the source.

RIL is expected to invest in fleet of trucks of various types and sizes for safe and assured inter-state transport of goods, said the source.

Goods movement from various centres would monitored by the company with the help of satellite, the source said.