Reliance is betting big on BtoB business, being carried through ‘Rangers Farm’ cash and carry wholesale format.
‘Rangers Farm’ stores stores mainly sell fresh vegetables and farm produce in bulk to small merchants and push cart vendors. While, Rangers Farm stores service the needs of Reliance ‘Fresh’ stores on one hand, they help small time shop keepers and vendors to realise benefits of the supply chain efficiencies, on the other.
Cash & Carry business has huge potential in India, where 97% of estimated 12 million retailers are very small in size, who can not afford back-end support.
Currently, Germany’s Metro Cash & Carry chain, South Africa’s ‘Shoprite’ and home grown ITC’s Chaupal ‘Fresh’ are some of the players who have set shop in this format. However, competition is likely to hot up in a few months with the spread of these chains as well as the entry of the world’s biggest retailer Wal-Mart’s entry in the country with its Sam’s Club chain of stores.
The initial response to Rangers Farm format in Hyderabad has been very encouraging with more than 4,000 push cart vendors and small shopkeepers are said to be picking up supplies of food and vegetables in bulk, every day.
According to Reliance officials, the company is keen to garner Rs. 1 lakh crore revenue from this format in the next five years.