Reliance Retail kick-off from AP

A store every week in Andhra from August 1.

Reliance Industries' organised retail foray "" under Reliance Retail, a wholly owned subsidiary "" will kick off with a food and beverage store in Hyderabad on August 1 this year, followed by a store every week in Andhra Pradesh.

Sources said there would be three types of stores in all. The first, food and beverage stores, would be spread over 2,000 sq ft, and sell packaged foods, beverages, fruit, and vegetables.

The second type would also sell food and beverages, along with staple like rice, lentils and sugar. Their size would vary from 2,000 to 4,000 sq ft. The third type would be hypermarkets, occupying 4,000 sq ft and more. These would sell everything, from food and consumer durables to apparel.

To begin with, Reliance would remain in an investment mode and own all its outlets. With time, however, it might consider having franchisees.

A Reliance spokesperson confirmed that the roll-out would take place in Andhra Pradesh, but refused to disclose details. He also declined to reveal the future plan.

While Reliance did not say why it was beginning its retail foray in Andhra Pradesh, industry experts said this was on account of the state being among the top three in the country in terms of retail off-take.

Reliance Industries Chairman Mukesh Ambani had last week said that Reliance Retail would invest Rs 25,000 crore over time, of which Rs 10,000 crore would come as equity.

The venture would encompass an appropriate mix of formats, from neighbourhood convenience stores and supermarkets to speciality stores and hypermarkets.

Ambani also said that Reliance Retail would be targeting a pan-India presence, covering 1,500 cities and towns.

Business Standard has learnt that Reliance Retail will be looking at raising money through an initial public offering after a few years. A source close to the company said it would opt for the float once Reliance Retail reached the "critical size."

Reliance is also in talks with restaurant chains that may open outlets within these stores, catering to specific tastes in different regions. However, the company declined to reveal the names of chains it was in talks with.