Reliance targetting Subhiksha

With 54 outlets of Gujarat based Adani Super Markets almost already in its pocket, Reliance Retail, according to media speculation, is looking at acquiring smaller players in the modern retail space.

Reliance Retail, it may be recalled, has so far rolled out 17 ‘Reliance Fresh’ neighbourhood, convenience stores, in two clusters of 11 and six stores, in Hyderabad.

The need for quick growth has become all the more urgent after announcement of the entry of Wal-Mart with Bharati in India. Bharati is preparing to roll out several hundred stores across the country beginning August, 15, 2007. The inorganic growth route would suit Reliance’s Rs. 25,000 crore retail initiative most.

The name of Subhiksha, among possible targets, keeps cropping up every now and then despite Subhiksha having flatly denied any such possibility several times in the past. Subhiksha, it may be recalled, is expanding at a scortching pace through what it likes to call as a carpet bombing strategy in which it simultaneously opens a number of stores in a particular geography. According to the plans already announced, Subhiksha will have up to 700 stores up and running by March, 2007 and up to 1,200 stores by March, 2008. If true, acquiring Subhiksha, can give Reliance a shot in the arm as Subhiksha has acquired a large presence across various states in the country.

Another name doing the rounds is that of Landmark, which is the book and music store chain owned by Trent– a Tata group retail arm.

Source : IndiaRetailBiz