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Tag: Reliance

  • Amazon in talks over Reliance Retail

    Amazon in talks over Reliance Retail

    Amazon is in talks with Reliance Industries Ltd’s retail unit to buy a stake in India’s biggest brick-and-mortar retailer, two sources with knowledge of the talks told Reuters.

    Amazon’s massive online presence could help bolster Reliance’s consumer and private labels business. More importantly, a partnership would help the duo counter Walmart, which last year invested US$16 billion in India’s Flipkart, in the battle for a bigger share of India’s fast-growing e-commerce market.

    In late December, India modified rules around foreign direct investment (FDI) in e-commerce, creating additional hurdles for companies such as Amazon and Flipkart, and giving companies such as Reliance an edge.

    Amazon had made the proposal to Reliance – controlled by Mukesh Ambani, India’s richest man – for the partnership, but it was not clear whether a deal would materialize, said one of the sources.

    The second source said Amazon had been pondering a proposal to purchase an up to 26 percent stake in the Reliance unit since at least February.

    “For Amazon, it is about neutralizing a major rival and allowing itself to grow,” said the second source, who added the company envisions helping Reliance’s roughly 40 brands and grocery products go online.

    Further details of the possible deal, first reported by India’s Economic Times newspaper last week, were not immediately clear.

    Amazon did not immediately respond to request for comment while Reliance said it would make any disclosures to stock exchanges as and when necessary.

    Reliance could potentially leverage Amazon’s global experience in technology, supply chain and logistics as it aims to connect grocery stores across the country digitally through its Jio telecoms network – the biggest in India by subscribers.

    For Amazon, picking up a stake in a Reliance unit could mean getting access to the Jio telecoms platform and its vast retail footprint of more than 10,600 stores across India. It might also add more firepower to their lobbying efforts, as the Ambani family is viewed as being well-connected politically.

    Seattle-based Amazon is keen to get a bigger share of India’s e-commerce market, which Deloitte expects to more than treble to $84 billion between 2017 and 2021.

    Reliance was previously in talks with China’s Alibaba to sell a stake in Reliance Retail, but a deal could not be sealed due to differences in valuation, according to a person familiar with the matter.

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  • Reliance to launch Tory Burch, Tiffany in India

    Reliance to launch Tory Burch, Tiffany in India

    Reliance Brands is launching two of its US brands – lifestyle label Tory Burch and jeweller Tiffany & Co in India.

    The brands will set up shop at Jio World Centre mall in Mumbai in April next year.

    The move is Tiffany & Co’s third attempt to establish a presence in India, following a growing network of international locations already set up in China, Australia, Canada, France, UK, Hong Kong, Japan, and the UAE. Tory Burch is primarily sold at specialty stores worldwide, including Saks Fifth Avenue, Harrods, Bergdorf Goodman, Bloomingdale’s and Nordstrom.

    Reliance Brands already retails several luxury labels in the territory, including Ermenegildo Zegna, Brooks Brothers and Bally.

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  • Hamley’s set to be sold to Indian Toy Retailer

    Hamley’s set to be sold to Indian Toy Retailer

    Toy retailer Hamleys is set to have its fourth owner in 15 years since it was taken private by an Icelandic investor.

    According to multiple Indian news media reports, Reliance Retail is in the final stages of negotiations with China’s C.Banner International, which has been trying to find a buyer since last October, after three years of ownership.

    C.Banner bought the business in 2015 for US$130 million, but has struggled to produce a profit. The company reportedly lost $15.6 million in 2017 on sales down 2.5 per cent to $86.5 million.

    Sources in India are speculating Reliance Retail will pay between $36 and $50 million, representing a substantial loss for C.Banner on exiting the brand.

    Reliance Retail, a subsidiary of the giant Indian conglomerate Reliance Industries, is in acquisition mode as it tries to expand its business by 30 per cent annually for a decade, an ambition on a scale probably only realisable in India right now. As at the end of last year it operated 9907 stores across 6400 Indian cities with a combined retail area of more than 21 million sqft. Its retail licenses and partnerships include Marks & Spencer, Diesel, Steve Madden and Kenneth Cole.

    “Due diligence for the Hamley’s deal is at an advanced stage,” a source told Money Control, itself a subsidiary of Reliance Industries. “Reliance Retail is aggressively pursuing the deal.”

    Reliance Retail is already the Indian licensee of Hamley’s and operates 50 stores under the banner, representing the toy brand’s largest market by store numbers. There are plans to open 150 more.

    Toy retailer Hamley’s was founded in 1760 as Noah’s Ark. It has about 129 stores globally, including a Regent Street, London flagship and stores in China, Germany, Russia, South Africa and the Middle East. A foray into Vietnam in 2015 ended in failure, however the company still sells toys online there.

    If the acquisition proceeds, it will help boost Reliance Retail’s portfolio. “Reliance can scale up Hamley’s business with its capabilities in supply chain management and strong distribution network.”

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  • Indian fashion chain Reliance Trends to open over 2,000 stores

    Indian fashion chain Reliance Trends to open over 2,000 stores

    Indian conglomerate Reliance Industries will expand its low-cost fashion store network Reliance Trends to 2500 locations within five years.

    The chain currently has just 557 stores in 160 cites, and will target a presence in 140 more, involving deeper penetration into tier 3 and 4 cities.

    The planned expansion will involve an integration with the firm’s online activities and will serve as a gambit to seize a commanding market share of consumer spending against e-commerce competitors Amazon and Flipkart.

    The move follows recent restrictions on foreign investment into India that have at least temporarily disadvantaged the online giants. The new legislation bans online retailers from making exclusive contracts with vendors, among other restrictions.

    The Reliance Trends expansion is expected to help the firm boost its own labels in a territory that is home to the world’s largest population of millennial consumers.

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  • Reliance has true potential to evolve into India’s Amazon or Alibaba

    Reliance has true potential to evolve into India’s Amazon or Alibaba

    A week after Reliance Industries (RIL) reported a 8.82 percent rise in consolidated net profit for its third quarter at Rs 10,251 crore, global financial services firm UBS on Thursday said the Mukesh Ambani-led RIL has the true potential to evolve from an integrated energy company into a consumer giant like Amazon or Alibaba.

    In a comprehensive 100-page report, UBS said RIL can become a market leader in telecom and media, while gaining a significant share in retail/e-commerce.

    “Its success could be built on an ecosystem or bundling strategy, and a home-court advantage, similar to Alibaba’s success in China, beyond explicit or implicit policy support,” noted the report.

    RIL posted a net profit of Rs 9,420 crore in the corresponding quarter of 2017-18. The company’s consolidated revenue from operations during the quarter in consideration at Rs 1,60,299 crore jumped a massive 56.38 per cent over Rs 1,02,500 crore earned in the October-December quarter of FY18.

    According to the UBS report, its China Internet analyst, Jerry Liu, has listed some comparables between Alibaba and Reliance such as pursuing an ecosystem or a bundling strategy in a high-growth fragmented retail sector with lower online penetration and home-turf advantage.

    “Similarly, Eric Sheridan, our US internet analyst, thinks Amazon’s core value proposition to customers is its Prime subscription, which offers free shipping and video and music content,” the report noted.

    “Our assessment of the capital framework, regulations, business positioning and emerging trends in each of its consumer-facing business indicates RIL can lead in telecom and media and gain significant share in retail/ecommerce,” it added.

    The report found another similarity RIL shares with Amazon and Alibaba – an ecosystem strategy.

    “The biggest difference is that the Chinese and American internet platforms do not own telecom networks.

    “But based on the success of Amazon Prime, and similar memberships such as Alibaba’s 88VIP and JD’s Plus in China, we believe bundling of products and services is a tried and true strategy, and this should play to Reliance’s advantage,” the report highlighted.

    Addressing the “Vibrant Gujarat Global Summit 2019” on January 18, Reliance Industries Chairman and Managing Director Mukesh Ambani announced that Reliance would double its investment and employment numbers over the next decade.

    He said Reliance Jio and Reliance Retail would soon launch a new commerce platform for small retailers — a mega mission which will first be launched in Gujarat and then across the country, urging Prime Minister Narendra Modi to lead a fight against ‘data colonisation’.

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  • Reliance Retail Q3 revenue up 89.3 percent

    Reliance Retail Q3 revenue up 89.3 percent

    Healthy festive season sales and new store openings led Reliance Industries’ organised retail business — Reliance Retail — to report a 89.3 per cent rise in its revenue for the third quarter of 2018-19. The firm’s revenue figure was disclosed under the Reliance Industries (RIL)’s third quarter results, on Thursday. Accordingly, the firm’s revenue for 3Q FY19 grew by 89.3 per cent to Rs 35,577 crore from Rs 18,798 crore reported for the corresponding quarter previous year.

    The company’s Earnings Before Interest and Taxes (EBIT) rose 210.5 percent on a year-on-year (Y-o-Y) basis to Rs 1,512 crore from Rs 487 crore demonstrating strong operating profit during the quarter.

    In addition, EBIT margin for the segment improved by 160 basis points to 4.2 percent reflecting scale benefits. Retail now has 9,907 stores with a reach across more than 6,400 towns and cities

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  • Reliance to open Pottery Barn in India

    Reliance to open Pottery Barn in India

    Williams-Sonoma and Reliance Brands plan to launch Pottery Barn and West Elm in India through a franchise agreement. The opening of the brands’ first stores will be in Mumbai in early 2020, along with the launch of e-commerce websites.

    President and CEO of Williams-Sonoma Laura Alber said the partnership with Reliance marks part of the company’s continued global expansion. “We are looking forward to opening our first stores in Mumbai and introducing our distinctive brands, excellent customer service, and exceptional products to customers in India.”

    Executive VP, Global of Williams–Sonoma Ronald Young said the company currently operates its own and franchised stores across the world with company-owned stores in the US, Canada, Australia and the UK.

    “Our franchise network includes countries throughout the Middle East, South Korea, the Philippines and Mexico. Adding Reliance to our franchisee network is a significant step in our continuing global expansion.”

    President & CEO of Reliance Brands Darshan Mehta said the company is confident of the  success of Pottery Barn and West Elm in India, believing the brands’ heritage and designs will resonate with Indian consumers.

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  • Reliance Jewels unveils its flagship outlet in Ranchi

    Reliance Jewels unveils its flagship outlet in Ranchi

    Reliance Jewels, one of India’s leading fine jewellery brands, launched its flagship showroom in Ranchi. As Jharkhand, a state with immense natural resources races towards being the new business destination in eastern India, Reliance Jewels is glad to be part of its journey.

    Reliance Jewels’ Ranchi showroom is the third showroom in Jharkhand after Jamshedpur and Dhanbad.

    Reliance Jewels Ranchi showroom was inaugurated by Parimal Nathwani, Member of Parliament (Rajya Sabha) from Jharkhand and Group President (Corporate Affairs) of Reliance Industries Limited.

    On this occasion he stated “I am happy to bring the best of the brands and experience to Ranchi, the state capital of my Karmabhoomi, as we pave way for a better tomorrow. Reliance Retail with its many brands has a formidable presence in Jharkhand today and the addition of Reliance Jewels is sure to enhance the shopping experience for its patrons in Ranchi with its beautifully designed jewellery and unique shopping experience”.

    Speaking on the launch of the new showroom in Ranchi, Sunil Nayak, CEO, Reliance Jewels said, “We are delighted to be a part of such an esteemed city, and are extremely keen on amplifying the charm and enhance the grace of our brand and its offerings here. This showroom will showcase a plethora of designs and will offer contemporary as well as traditional pieces along with an assurance of quality and purity. We are looking forward to serve the people of Ranchi by offering a wide range of exquisite pieces as part of our diverse jewellery collection along with a unique shopping experience.”

    Standing by the philosophy of ‘Be the Moment’ Reliance Jewels as a brand firmly believes that every moment is special and needs to be celebrated. Celebrating millions of such special moments in their patron’s lives over the last 11 Years, Reliance Jewels is excited to be part of Ranchi.

    The new showroom spread over 2,200 sq.ft will not only treat their patrons to new look and design that spells grandeur, but will also showcase exclusive collections of traditional and contemporary gold, diamond, platinum, and solitaire jewellery, along with one of a kind shopping experience. The new showroom with its distinct ambient lighting and eye catching display complemented by delightful customer service is sure to win hearts of patrons.

    Customers will be able to choose from an extensive range of lustrous Diamond jewellery and Solitaire collections, and a wide range of Gold jewellery collections in royal antique, Nakashi & Temple designs, Kundan, Classic yellow Gold Filigree designs and jewellery embellished with precious and semi-precious colour stones that are exquisitely crafted with finesse & precision by our artistes. The showroom will also feature traditionally crafted heritage gold jewellery along with a range of contemporary designs, suitable for every occasion. Patrons will be further treated to a viewing experience of the brand’s popular award-winning collections, which have also been put on display exclusively at this new showroom.

  • India Reliance to borrow US$2.5 billion to refinance debt

    India Reliance to borrow US$2.5 billion to refinance debt

    Owned by India’s richest man Mukesh Ambani, Reliance is negotiating with more than a dozen banks to arrange the loans in single or multiple tranches as it rolls out an optical-fiber network and sets up more retail stores.

    This loans are to refinance existing offshore debt raised about two and a half years ago and would reduce average borrowing costs or extend maturities, the daily added.

    The conglomerate, whose interests range from petroleum to retail stores, has an ambitious plan to roll out its fixed-line broadband service Jio GigaFiber for 1,100 cities of India.

    Meanwhile India’s leading telecom service provider and Reliance rival Bharti Airtel is also looking to raise $1 billion overseas to refinance its high-cost debt.

    It wants to expand its fourth-generation (4G) mobile-phone technology network in order to face stiff competition posed by Reliance Jio.

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  • Reliance Group launches dedicated IoT venture

    Reliance Group launches dedicated IoT venture

    Indian conglomerate Reliance Group, parent company of Reliance Communications (RCom), has teamed up with Cisco Jasper to launch a new dedicated IoT venture in the market.

    The new venture, UNLIMIT, will provide enterprise customers throughout India with a service that combines the RCom mobile network with Cisco Jasper’s IoT connectivity management platform.

    As part of the partnership, Cisco will also improve its IoT engineering talent base in India by hiring more expert staff for its Cisco Innovation Center in Bangalore.

    Indian customers seeking to expand their IoT services to new overseas markets will be able to take advantage of Cisco Jasper’s partnerships with operator groups representing more than 120 mobile networks worldwide.

    The new service is also expected to play a key role in supporting the government’s Digital India project, which aims to transform 100 cities across the nation into smart cities.

    “IoT is a critical enabler for India’s growth, and businesses throughout the country are already utilizing its huge potential to help deliver innovative new services to their customers, while reducing cost and increasing revenue,” commented Juergen Hase, CEO of Reliance Group’s Unlimit IoT business group.

    “We are delighted to partner with Cisco Jasper, and this strategic partnership will strengthen the market position of UNLIMIT significantly.”

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  • Reliance Industries retail chain now largest in India

    Reliance Industries retail chain now largest in India

    Reliance Retail is not just the largest retailer in India in terms of revenues, but is also the biggest in most of the categories it operates in. With 1,000 stores, Reliance Digital has become the largest consumer durables and electronics retail chain in the country. Tata-owned Croma runs 97 stores while Videocon’s durables chain, Next, owns about 800 stores. Reliance Industries gave out its retail figures in the financial results for the quarter ended March 2015 on Friday.

    Reliance Digital Xpress Mini at more than 800 stores is now the largest mobile phone retail chain in the country. Essar-owned The Mobile Store runs over 800 stores in the country.

    Reliance Retail has a clear lead when it comes to cash and carry stores. Started four years ago, Reliance operates 43 such outlets called Reliance Market stores. Set up seven years ago, US-based Walmart runs 20 stores and Germany’s Metro, which had started more than 10 years ago, operates 17 outlets.

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