Reliance is not content with its massive plans to become a retail major in the country. The company is working on strengthening its procurement and supply chain efficiencies to emerge as a key supplier and exporter as well reports the Economic Times.
The company, as a way of practising its procurement tie ups, had earlier supplied fruits and vegetables to Big Bazaar. Ready to roll out its first stores- five large-format stores (5,000-10,000 sq ft) in size in Hyderabad in the third week of October, it is keen to continue supplying to other retail players here.
The company will soon receive a major consignment of goods from China, which will include electronics, apparel, stationery and also FMCGs. Sources say these goods will not just be for the retail venture and could be supplied to other buyers as well. Procurement is a separate division from retail and there will be cost advantages as the company builds up farm linkages, said a source.
Reliance is setting up rural business hubs in Punjab, Haryana, Himachal Pradesh, Uttaranchal and West Bengal. These hubs, which will come up in the next six months or so, will not only be procurement centres for grains and milk, but also house schools, medical care centres, apart from having weather and soil specialists to help farmers produce better yield.
Reliance is also keen to buy capacities, including food processing and FMCG manufacturing ones. It is learnt to have acquired a few flour processing capacities in Punjab and is scouting for others in India and abroad.