Mukesh Ambani-led Reliance group is looking to rope in more international partners in its retail business, on top of the joint ventures already announced for various store formats.
Reliance Industries has recognised "strategic alliances" to be a key driver to its retail business, and accordingly, it established key JVs with international partners in apparel, optical and office products businesses in 2007-08, the company said in its annual report being sent to the shareholders.
The company said that Reliance Retail would "continue to seek synergistic opportunities with other international players as well."
Besides, Reliance Retail would continue its focus on rapid expansion of the existing and other new formats across India in the current fiscal, the annual report noted.
Drawing parallels with the urban and industrial prosperity brought in by sectors like IT and communications, Reliance Industries said that its retail business would bring about prosperity in the rural part of the country.
In his letter to shareholders, RIL's Chairman and MD Mukesh Ambani said that Reliance Retail continued its roll out of stores during the last fiscal.
"With 590 stores in 57 cities, spanning 13 states, and over 3.5 million square feet of trading space, I am confident that our newest business will scale the same heights as all our other businesses have," he noted.
"I believe that with the stated aim of generating one million jobs in retail, this is a truly transformational venture whose success will further our national priorities," Ambani said.
"We began building an unbreakable bond with our shareholders in 80s. Today, through our Retail business, we are extending this business principle to create strong ties with consumers by delivering quality at affordable prices," RIL said.
"At the same time, we are also forging strong and enduring partnerships with millions of farmers. Organised retailing along with a next generation physical distribution system is at the core of this transformational initiative."
RIL said that Reliance Retail would usher in enormous spin-off benefits for Indian economy by delivering better returns to farmers and producers by connecting them directly to Indian and global consumers and would create one million jobs in the ensuing years.
"Just as information technology and communication enabled a new wave of urban and industrial prosperity, our organised retailing initiative will bring about a new wave of rural prosperity. It will carry the benefits of globalisation and reform to the doorsteps of Indian farmers," RIL said.
Detailing the financial performance of its various retail subsidiaries, RIL mentioned a loss after profit of Rs 82 lakh (Rs 8.2 million) for Reliance Retail.
RIL noted that with a 27 per cent share of world GDP, retail is a significant contributor to overall economic activity in the world. Of this, organised retail contributes between 20-55 per cent in various developing markets. The Indian retail industry is pegged at $300 billion and growing at over 13 per cent per year. Of this, presently, organised retailing is about 5 per cent and is expected to grow to 10 per cent by 2011.
