"Not just ADAG, but another Indian corporate and an MNC have expressed interest in our retail venture. We are actively considering the proposals, and should be able to come to a final decision by the end of this month," said JS Shinde, general secretary, AIOCD, and president, Maharashtra State Chemists and Druggists Association.
It was earlier reported that ADAG's talks with AIOCD for a share in the Rs 25,000 crore (Rs 250 billion) organised medicine retail market in the country had failed.
However, Shinde said ADAG was very much in the race. ADAG officials refused to comment on the issue.
Talks about the younger Ambani entering the drug retail business has been doing the rounds for quite some time now. Last year, there was speculation that the group had lined up investment of over Rs 1,500 crore (Rs 15 billion) for a pharmacy chain.
"Several banks have also
approached us to fund the project. ICICI Bank, HDFC Bank, Bank of India, Saraswat Co-operative Bank want a share of the huge business on offer," Shinde said.
The AIOCD is planning to float 36 companies across the country in order to compete with big firms planning to enter the retail space.
The first of these companies will be set up in Mumbai at an initial investment of Rs 50 crore (Rs 500 million), which will be raised from the 40,000 medicine wholesalers and retailers in Maharashtra.
AIOCD says it will raise Rs 500-700 crore (Rs 5 to 7 billion) by March 2008 to set up such companies in other states across the country.
The drug retail foray could add teeth to Ambani's retail plans. Reliance Communications, an ADAG company, already has a significant retail presence through its WebWorld outlets.
Reliance Capital, another group firm, has invested in Giny & Jony and Vishal Retail, the promoter of Vishal Mega Mart.
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