Corporate giant RIL today formally entered the organised retail business through its ‘Reliance Fresh’ format of stores in Hyderabad. It allayed the fears of petty traders saying that the company was no threat to them, reports PTI.
RIL officials claimed that the company’s retail format for selling vegetables, fruits and groceries, ‘Reliance Fresh,’ in fact, offers an opportunity to push cart vendors and small traders (like kirana merchants) to meet their requirements at competitive rates. This is a win-win situation for all, they added.
“They will benefit from us… The argument that they will be affected is not supported by numbers,” RIL President and CEO (Operations and Strategy) Raghu Pillai told reporters just before the inauguration of the first Reliance Fresh retail outlet in the upmarket Banjara Hills here.
Reliance Fresh, 11 outlets of which were inaugurated today, marks the front-end of the company’s much larger farm-to-fork agriculture initiative, that involves setting up farm product sourcing centres, supply chain and finally retailing.
The neighbourhood format has been designed keeping the needs of homemakers in mind and stocked with a wide variety of vegetables, fruits, eggs, dairy products and groceries and priced competitively, Pillai said.
“We are not harming small retail players… The market is growing by 8 per cent which is 24-25 billion dollars (nearly Rs 1,12,500 crore) every year… We are aiming at revenues of only 25 billion dollars in four years… Even if the market grows by 100 billion dollars by 2015, organised retail would be still less than 10-12 per cent of retail trade,” he said.