TERM PAPER

ON
RELIENCE FRESH

SUBMITTED TO: - SUBMITTED BY:-

SACHIN JAIN SIR MANKESHWAR PRASAD
LECTURER (LSB) section:-326
LPU ROLL NO.:- 35
INDEX

SL.NO. PARTICULARS PAGE NO.

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 1 HISTORY 1 to5

IMPACT OF RELIENCE POLICY ON

2 5 to 6
FARMERS

6 to12
3 SLEPT ANALYSIS

COMPARATIVE DATA OF DIFFERENT

4 12 to 15
RETAIL STORE

5 NEWS ERA 16 to 19

6 SUGGESTION AND RECOMMENDATION 19 to 20

7 REFRENCES 20 to 22

HISTORY

RELIANCE GROUP
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The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's
largest private sector enterprise, with businesses in the energy and materials
value chain. Group’s annual revenues are in excess of USD 27 billion. The
flagship company, Reliance Industries Limited, is a Fortune Global 500
company and is the largest private sector company in India. Backward
vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies,
Reliance pursued a strategy of backward vertical
integration in polyester,fibre,
intermediates,plastics,petrochemicals,petroleumrefiningand oil and gas
exploration and production – to be fully integrated along the materials and
energy valuechain.The Group's activities span exploration and production
of oil and gas, petroleum refining and marketing, petrochemicals
(polyester, fiber intermediates, plasticsandchemicals), textiles and retail.
Reliance enjoys global leadership in its businesses; The Group exports
products in excess of USD 15 billion to more than 100 countries in the
world. There are more than 25,000 employees on the rolls of Group
Companies. Major Group Companies are Reliance Industries Limited
(including main subsidiaries Reliance Petroleum Limited and Reliance Retail
limited) and Reliance Industrial Infrastructure Limited.

FOUNDER PROFILE
"Growth has no limit at Reliance. I keep revising my vision. Only
when you can
dream It, you can do it."

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 Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002

Dhirubhai Ambani founded Reliance as a textile company and led its

evolution as a global leader in
the materials and energy value chain businesses.

BOARD OF DIRECTORS OF RELIANCE INDUSTRIES LIMITED

Mukesh D. Ambani
Chairman & Managing Director

Nikhil R. Meswani Hital R. Meswani H.S.Kohli

Executive Director Executive Director Executive
Director
RELIANCE FRESH

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APKA FRESH APKE PADAOS ME

India’s Fortune 500 private sector giant, Reliance Industries Ltd,

has, in fact, been first off the blocks by
Launching its first Reliance Fresh outlets in Hyderabad,

Reliance fresh is the retail chain division of reliance industries of India which
is headed by mukesh ambani. Reliance has entered into this segment by
opening new retail stores into almost every metropolitan and regional area
of India. Reliance plans to invest rs25000 crores in the next 4 years in their
retail division and plans to begin retail stores in 784 cities across the
country.
The reliance fresh supermarket chain is ril’s
rs25, 000 crore venture and it plans to add more stores across different, and
eventually have a pan-India footprint by year 2011. The super marts will sell
fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy
products and also will sport a separate enclosure and supply-chain for non-
vegetarian products. Besides, the stores would provide direct employment to
5 lakh young Indians and indirect job opportunities to a million people,
according to the company. The company also has plans to train students and
housewives in customer care and quality services for part-time jobs.

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 Reliance Fresh is the convenience store format
which forms part of the retail business of Reliance Industries of India which
is headed by Mukesh Ambani. Reliance has entered into this segment by
opening new retail stores at Hyderabad on 3 November 2006. Reliance
plans to invest 25000 crores in the next 4 years in their retail division and
plans to begin retail stores in 784 cities across India. The company already
has in excess of 560 reliance fresh outlets across the country. These stores
sell fresh fruits and vegetables, staples, groceries, fresh juice bars and
dairy products.

Post launch, in a dramatic shift in its positioning

and mainly due to the circumstances prevailing in UP, West Bengal and
Orissa, it was mentioned recently in news Dailies that, Reliance Retail is
moving out of stocking fruits and vegetables. Reliance Retail has decided to
minimize its exposure in the fruit and vegetable business and position
Reliance Fresh as a pure play super market focusing on categories like food,
FMCG, home, consumer durables, IT and wellness, with food accounting for
the bulk of the business. The company may not stock fruit and vegetables in
some states, Orissa being one of them.

Though Reliance Fresh is not exiting the fruit and

vegetable business altogether, it has decided not to compete with local
vendors partly due to political reasons, and partly due to its inability to
create a robust supply chain. This is quite different from what the firm had
originally planned. When the first Reliance Fresh store opened in Hyderabad
last October, not only did the company said the store’s main focus would be
fresh produce like fruits and vegetables at a much lower price, but also
spoke at length about its “farm-to-fork’’ theory.

The idea the company spoke about was to source

from farmers and sell directly to the consumer removing middlemen out of
the way. Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz,
Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and
Reliance Super are various formats that Reliance has rolled out.

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 In addition, Reliance Retail has entered into an
alliance with Apple for setting up a chain of Apple Specialty Stores branded
as iStore, starting with Bangalore.

The company is planning on opening up 6 stores

in Bangalore by the middle of February (2006) and an additional 7 stores by
the end of February. The store’s size would vary from 1,500 sq ft to 3,000 sq
ft, which will stock fresh fruits and vegetables, staples, FMCG products and
dairy products. Each store is said to be within a radius of 1-2 km of each
other, in relation to the concept of a neighbour store. However, this is only
the entry roll-out that the company has planned. Bangalore is said to have
40 stores in all by the end of the year.

Reliance Fresh would carry fresh fruits and

vegetables, staples, top-up grocery, non-food items and dairy products and a
whole lot of other categories at very competitive prices. All the stores
opened in the city have an average area of about 1,800 sq ft and an average
of about 20 sales associates attending to customers in each store open from
8 a.m. to 9 p.m. on all seven days of the week.

IMPACT OF RELINCE FRESH MARKETING POLICY ON

FARMERS AND AGRI - PRODUCER

Farmers in Belgaum are only too happy to offer their

produce to Reliance at better rates and with the vegetable supply from
Belgaum. The unit at Halga is strategically based at the hub of the vegetable
growing hinterland of Belgaum district, where more than 60% of the farmers
in the district are engaged in growing vegetables. Reliance has been issued
licences to procure vegetables from farmers and the company has been
promptly paying the cess to APMC.

About 30 tempo loads of vegetables are supplied to

Goa everyday and more than 70% of the vegetables from Belgaum are sent
to the coastal areas. The farmers in the district are pleased with the new
development, as they are being paid a better rate as compared to the
brokers. We do not have to bother about the brokerage and other costs that
we earlier used to pay, said a farmer.

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Reliance FRESH’ is as yet an unfamiliar name at Velanthavalam, a sun-
soaked village in Palakkad district in north Kerala. So is ‘Ranger Farms’, a
Reliance subsidiary, which has discreetly occupied a warehouse in the heart
of the village. Every day between 30 and 50 tonnes each of an amazing
variety of vegetables are sold there. Commission agents estimated the daily
turnover for each of these vegetable varieties at between Rs.25 lakh and
Rs.35 lakh, with the tomato season from August to December bringing in an
additional Rs.50 lakh a day.

The atmosphere at the Reliance collection centre at

Kozhinjampara was strikingly different from the crowd, the commotion, the
dirt and the dust at the auction market at Velanthavalam. A young
agriculture graduate, the company’s collection official, evaluated the quality
of the produce, advised farmers on market trends and the company’s next
requirement and also paid farmers “in cash, on the spot”. The price was “at
least one or two rupees more” a kilogram than what farmers got from
commission agents at auction markets.

Reliance scouts are wooing farmers in several other

districts, offering them higher prices, electronic weighing, on-the-spot cash
payment, extension services and, importantly, an assured market for their
produce. In almost all the places where it has been able to commit groups of
farmers to be corporate suppliers, Reliance has encouraged them to try out
new varieties, to change their cropping and harvesting patterns and even
grow “exotic” vegetables for which they are offered a higher price and an
assured market Reliance’s sources disclose, with the company also buying
farm-fresh vegetables regularly for its fledgling wholesale business within
the State and fruits such as banana and pineapple and the entire range of
spices from various harvesting centers in Kerala to be sold (under its brand
name) in over 350 stores throughout India.

SLEPT ANALYSIS

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1) Social environment

Under the social environment effect hoping to usher in a socio-economic

revolution in Uttar Pradesh and Uttarakhand, Mukesh Ambani-led Reliance
Industries Ltd (RIL) is all set to create at least 500,000 jobs through its
jumbo Rs.80 billion investment in its agri-food retail network to be launched
Tuesday in the two north Indian states.

"We propose to commence our retail business under the

Reliance Fresh brand name in seven major cities of Uttar Pradesh and one in
Uttarakhand on the eve of the Independence Day when we launch the first
phase of our jumbo operation," Reliance Fresh store would be spread over
4,500 sq. ft. and would serve as the neighborhood convenience store
offering fruits and vegetables, staple foods, dairy and FMCG (fast moving
consumer goods) products.

The hypermarkets would be spread over an

area of 150,000 sq. ft. and sell apparel, consumer durables, IT and lifestyle
products, and home furnishings besides all the goods available in Reliance
Fresh stores. Community facilities including a health centre and pharmacy,
and a vocational training centre to assist youth in tapping employment
avenues would also be provided at these centers. Sixty-eight Town Centers,
each spread over 130,000 sq. ft. would be in place in most of the 70 district
headquarters of Uttar Pradesh by the end of next year.

Poised to usher a new paradigm in rural areas,

the agri-business vision of Reliance Retail is to build infrastructure for
efficiency, value addition, logistics and market access to improve farm
incomes, create an efficient market place for the true price discovery of farm
produce, drive major initiatives to bring the best technology and thereby
bring about drastic improvements in farm practices

2) Legal environment
In this environment govt. plays his legal role to develop the mentioned
industry. He makes suitable law for the multi-dimensional growth of the

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industry. Govt. has also fixed a limited FDI in this sector, no body will invest
more money from this limit, but after liberalization govt. changes his policy.
Liberalization of the Indian economy and
rationalisation of business procedures have already ensured a high economic
growth with a rapidly expanding base for the manufacturing and hi-end
services sectors. Fresh avenues for gainful employment to a predominantly
young and talented population have created high disposable incomes that
translate in to higher consumption and thus better opportunities for all
verticals of retail to flourish. The country's dynamic retail landscape presents
a grand opportunity to investors from across the globe, to use India as a
strategic business hub.
prices than what they received from the erstwhile
traders/middlemen. Corporate retailers like ITC, Godrej, Reliance, AV Birla
and many others have already established the farm linkages. Indian farmers
are finally making good money, after centuries of social and economic
exploitation. The Indian government too has chipped in with a massive loan
waiver worth Rs 60,000 crore to lighten the farmers' debt burden

3) Economic environment

Currently, the India retail market is $332.8 billion (Rs 13,30,000 crore)
strong, growing at the rate of 10.8% per annum, as per Images F&R
Research estimates. Of this, the share of organised retail in 2007 is
estimated to be only 5.9%, which is $19.6 billion (Rs 78,300 crore). But this
modern retail segment grew at the rate of 42.4% in 2007, and is expected
to maintain a faster growth rate over the next three years, especially in view
of the fact that major global players and Indian corporate houses are seen
entering the fray in a big way. Even at the going rate, organized retail is
expected to touch $57.5 billion (Rs 2,300 crore) by 2010, constituting
roughly 13$ of the total retail market. With several states in the country
permitting retailers to purchase produce directly from farmers, the farmers

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too are adapting to the new opportunity to cultivate assigned crops and take
special care of the same. This gets them instant credit at higher.

At the heart of the India growth story is its

population, the generators of wealth, both as producers and consumers.
With the largest young population in the world - over 890 million people
below 45 years of age, India indeed makes a resplendent market. The
country has more English speaking people than in the whole of Europe taken
together. Its 300 million odd middle class, the 'real' consumers, has
attracted the attention of the world, and as the economy grows so does
India's middle class. It is estimated that 70 million Indians earn a salary of
over $19,500 a year, a figure that is set to rise to 140 million by 2011. The
number of effective consumers is expected to swell to over 600 million by
this time - sufficient to establish India as one of the largest consumer
markets of the world.

India's rural markets offer a sea of an opportunity for the retail

sector. The urban-rural split in consumer spending stands at 9:11, with rural
India accounting for 55% of private retail consumption. Currently the Indian
retail market is estimated at Rs 13,30,000 crore, and almost half of this
growing retail market at present lies in rural India, which is a tremendous
growth sector that needs to be tapped with care.

In the overall retail pie food and grocery is the

dominant category with 59.5% share, valued at Rs 7,92,000 crore (USD
198.2 billion), followed by Clothing and Accessories with a 9.9% share at Rs
1,31,300 crore ($32.9 billion). Interestingly, out-of-home food (catering)
services (Rs 71,300 crore/$17.8 billion) has overtaken jewellery (Rs 69,400
crore) to become the third largest retail category, with a 5.4% market share
- this largely reflects the massive employment opportunities to youngsters in
the services sector, larger number of nuclear families where normally both
male and female partners are employed, and accompanying changes in
consumer lifestyles.

4) Political environment

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This environment is very important from the view of these particular topics,
because every way would pass through the political coridor.The Government
of India has succeeded in its reform process; the economy is poised to grow
at an annual rate of 5% during 2005-2010. The reforms include policies to
woo foreign investors, make import duties in compliance with WTO
commitments and customize the EXIM policy to boost imports.

Due to some political region at least three

major cities saw protests in May against Reliance, India’s largest
corporation, entering the business of retailing fresh vegetables and fruits
through its brand Reliance Fresh. In Ranchi and Indore, the protests had
political backing and turned violent.

The protestors, mostly street vendors, fear the

company’s low prices will destroy their market. While it is too early to know
if their fears are founded in reason or hype, the protests also stem from the
fact that they feel cheated by a government that is in a hurry to promote
large retail businesses and refuses to keep its promises made to small
vendors and retailers, who control about 95 per cent of the country’s overall
retail business. India has an estimated 12 million street vendors in its cities
—the 2004 National Policy for Urban Street Vendors pegs it at 10 million—
and roughly 2.5 per cent of each city’s population is engaged in vending on
streets.

Many visible corporate brands are into the

retail business: Reliance, ITC, Bharti, Big Bazaar, Godrej and Subhiksha.
India has not allowed FDI in multi-brand retailing. But international
behemoths like Wal-Mart, which has a deal with Bharti, are raring for joint
ventures. (Wal-Mart is world’s largest retailer and the second largest
corporation. Labour unions, women’s rights groups, and grassroots
organizations have long argued that the reason for Wal-Mart’s cheap prices
is how shoddily it treats its employees. Wal-Mart had to leave Germany and
South Korea because it did not get the kind of room for its policies as in the
US and other countries.)

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5) Technological environment

India’s organized retail industry, constituting 3 per cent of the total retail, is
indeed on a growth path. It has necessitated the development of
sophisticated IT solutions to enable more profitability, efficiency and an
enriching customer experience. Retailing is the second largest income
generator in India after agriculture and constitutes 38 per cent to gross
national income. Dynamic Vertical Solutions Pvt Ltd, based in Gurgaon, has
already made a mark in the field by providing complete end-to-end solutions
for different types of retailers. Atanu Ghose, Technology Head at DVS and an
IT veteran with 37 years of experience, who was in Bangalore recently to
attend FRO2008 — the Franchise and Retail show — shares some of his
perceptions on IT deployment in retail sector.

Technology is a one-time investment but the return on

investment is continuous. For the first three years ROI may not be there but
then onwards there is no cost. Many of the large retailers spent crores of
rupees on doing up their premises but buy some cheap software at Point of
Sale (PoS) for computerized invoicing. I think it is a wrong strategy because
it doesn’t help you to find out who your customers are, it doesn’t generate
information on stocks and shelf space analysis is very critical. Why do some
products move faster while others don’t? Mere PoS computerization is not
going to help in these matters.

Technology-driven companies like Wal-Mart have minute

information, even to the point, let us say, which truck will reach their
warehouse in next 45 minutes. Proper supply chain is essential and
customer experience is very critical for retail success. The retailer has to
ensure that customer is not required to hang around or take too much time
to spot his product. If you are a large retailer, even a one percent saving
makes a huge difference. The problem with ordering through phone is that it
may not be properly registered or the person concerned might forget about
the call 15 minutes later. If you can’t provide the product or service, the
customer will go to next shop.

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COMPARATIVE DATA OF DIFFERENT RETAIL
STORE

Compiling data from various sources - Annual reports, Magazines, Websites

etc Here is how Pantaloon Retail, Vishal, Trent, Shoppers Stop and
Spencers stack up against each other in the following key factors.

Retail Space under Operations [in million sft at the end of March-2008]:

• Pantaloon Retail - 8.9

• Vishal - 2.2
• Shoppers Stop - 1.6
• Spencers - 1.2
• Trent - 1.1

Retail Sales for FY 2008 [in Rs million]:

• Pantaloon Retail - 55,218

• Vishal - 10,053
• Shoppers Stop - 11,901
• Spencers - 8,061
• Trent - 7,162

Retail Gross Margins [in %ge]:

• Pantaloon Retail - 33.7

• Vishal - 44.1
• Shoppers Stop - 36.7
• Spencers - 14.4 [Lowest in the Industry]
• Trent - 42

Retail Real Estate Expense as Percentage of FY08 Sales:

• Pantaloon Retail - 7.2

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 • Vishal - 6.0
• Shoppers Stop - 8.6
• Spencers - 8.8
• Trent - 3.5

Retail Space Addition in FY 2008 [%ge growth YoY]:

• Pantaloon Retail - 67.5

• Vishal - 68.6
• Shoppers Stop - 36.9
• Spencers - 133.8
• Trent - 27.3

Retail Revenue in INR / sft in FY 2008:

• Pantaloon Retail - 7,788

• Vishal - 5,838
• Shoppers Stop - 8,585
• Spencers - 9,113
• Trent - 7,575

SOURCE: - http://relianceretail.blogspot.com/search/label/India-Retail-
Business-2

SALES STATUS OF DIFFERENT RETAIL STORE

Top 10 Food and Grocery retailers in India as chosen by respondents
[Multiple selections were allowed]

Apna Bazaar - 42%, Subhiksha - 26%, Reliance Fresh - 21%, Trinethra /

More Retail - 11%, Food Bazaar - 11%, Hyper city -10%, Metro - 7%,
Spencer's 6%, Big Apple - 5% and Sabka Bazaar - 3%. It was really
interesting to note that Apna Bazaar was the most sought after place for
Food & Groceries.

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Top Lifestyle Store Retailers in India [Multiple selections were allowed]
Big Bazaar - 52%, Vishal Mega mart - 17%, Shopper's Stop -13%,
Landmark - 12%, Pantaloon - 10%, Globus - 8% , Westside -3% and Trent -
2%.

Most Frequently Visited Book and Music Store:

Crossword - 5%, oxford Bookstore -2%, Plant M - 2% and Books and
Beyond - 2%.

Most Frequently Visited Consumer Electronics Store:

Next - 11%, e-Zone - 4%, Reliance Digital -3% and Future Bazaar 2%. I am
not sure why don't we see Tata Croma electronics in this segment.

RETAIL VALUE OF DEFFERENT RETAIL STORE

Value Retail same store sales (SSS) growth rebounded in Nov'07 to 40%
after a 25% decline in Oct'07, due to late Diwali this year. This implies a
growth of mere 2.8% in the festive season (Oct-Nov’07 combined).
Lifestyle SSS growth in Nov is at 30% as against a decline of 7% in Oct.
Collectively in the festive season SSS growth is 9% compared to over 20%
growth maintained for most of the months of the previous fiscal. The chart
below represents sales mix of Pantaloon Retail India Ltd. Big Bazaar and
Food Bazaar still account for bulk of the sales for the company.

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 The company has added retail sales space
aggressively in last financial year. In FY2005, the company added 1 mn sft
while it declined to 0.85 mn sft in FY06 and zoomed to 2.7 mn sft in FY07.
This FY, the company has been little bit slow due to unrealistic realty prices
and has managed to add mere 1.5 mn sft till the end of Nov.The company is
expected to clock sales of Rs 7,400 crore for FY2008 but going by the recent
reported numbers, a slowdown is imminent.

NEWS ERA

1) Reliance Fresh: Move to Delhi

Source: - Food Business review/Date-30th Jan 2008

Reliance's move into Delhi is part of a second

expansion push following the firm's successful entry into retail, which was
initiated through its opening of 11 Reliance Fresh outlets in Hyderabad in
November last year. So far, the growing number of 2,300 square foot stores,
offering around 200 SKUs of vegetables and staple foods, has been well
received. As well as the obvious benefits of freshness and cheap prices,
customers are impressed by unprecedented standards in store fit out, strong
merchandising and the availability of an albeit limited range of chilled and
frozen products. Pleased with its development so far, Delhi is an obvious
next step for Reliance Fresh.

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 The city has a conurbation of 15 million people and is
a key region enjoying economic growth and a resultant burgeoning middle
class. These shoppers are increasingly aspiration and keen to spend. This
current pipeline of stores planned for Delhi is likely to range in size from
2000-5000 square feet. And looking ahead, Reliance has greater ambitions
still. It plans to open stores across the country of up to 10,000 square feet
under the Reliance Fresh Plus fascia by the end of the year, with the
possibility of hypermarkets in excess of 100,000 square feet. That India's
consumer economy offers tremendous potential does not really come into
question, but one should not lose perspective. Of India's 1.1 billion
populations, the middle class is estimated to stand at around 150 million
people.
The rest are poor - many living in conditions of
extreme poverty. Also, serious issues surrounding India's weak transport
infrastructure, poor standards of public health and a need to alleviate an
imminent shortage of skilled workers should not be underestimated. There
are undoubtedly significant challenges ahead for Reliance. However, by
leveraging its brand strength and emerging logistical infrastructure, it is well
placed to capitalize on the new opportunities presenting themselves and to
defend itself from the pending onslaught of competition from both home and
abroad.

2) Reliance Fresh opens six more retail stores in AP

Source: - Reliencefresh.info

The Reliance Fresh retail rush is on. The

company opened six more stores at Saket, Dilsukhnagar, Bowenpally,
Vengalraonagar, Miyapur and Uppal, taking the total to 17 in the city.

According to company sources, "It is an ongoing

process and only six more stores have been opened. But when we reach a
substantial figure, we will definitely come out in a big way." The sources said
that the 17 stores put together have been averaging around Rs 15-16 lakh
daily and around 800-1,200 footfalls daily.

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 The six stores with a size of 2,500-4,000 sq ft each
made around Rs 6.5 lakh in the first one week, he added. In the first phase,
the company opened 11 pilot stores on November 3, offering fresh
vegetables, fruits, flowers and grocery items. It plans to touch a figure of 40
stores in the twin cities in the coming days.

"Company is very glad that it is opening about 40

stores in Andhra Pradesh alone by this March end. By June, we hope to open
between 75 and 100 stores in the State on the Fresh format. There are 21
stores in Hyderabad, and seven in Vijayawada and Guntur bringing the total
to 56 excluding the three opened here,"

3) Reliance fresh store in Chennai & Bangalore recently

Source: - Business Today/ 25th January 2007

Reliance Fresh opened 12 "Fresh" outlets in

Chennai increasing its total store count to 40. Reliance is still testing its retail
concepts by controlled entry beginning in the southern states. The company
is planning on opening up 6 stores in Bangalore by the middle of February
(2006) and an additional 7 stores by the end of February. The store’s size
would vary from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and
vegetables, staples, FMCG products and dairy products. Each store is said to
be within a radius of 1-2 km of each other, in relation to the concept of a
neighbour store. However, this is only the entry roll-out that the company
has planned. Bangalore is said to have 40 stores in all by the end of the year.

4) Reliance Fresh Belgaum retail outlet and

Distribution Unit
Source: - Oheraldo.in

Admire Reliance Fresh initiative to help farmers

paying them directly and eliminating middlemen, I wish the Belgaum

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distribution unit would grow bigger in near future, creating employment and
opportunities, Reliance fresh should tie up with Agricultural collages in
Belgaum to promote seed development and more emphasis on biotic
plantation then chemical and hybrid vegetables. Farmers in Belgaum are
only too happy to offer their produce to Reliance at better rates and with the
vegetable supply from Belgaum. Belgaum district, where more than 60% of
the farmers in the district are engaged in growing vegetables.Sudhatai
Hiremath, Secretary of the Agriculture Produce Market Committee (APMC),
the apex body controlling the procurement and sale of vegetables and other
farm produce, said Reliance has been issued licences to procure vegetables
from farmers and the company has been promptly paying the cess to APMC.
Officials disclosed that Reliance plans to open seven outlets in Goa and
attempts are being made to supply farm-fresh vegetables from Belgaum at
rates cheaper than that offered by the Belgaum vegetable traders. This is
because Reliance will buy vegetables directly from farmers, eliminating
middlemen in the process. About 30 tempo loads of vegetables are supplied
to Goa everyday and more than 70% of the vegetables from Belgaum are
sent to the coastal areas.

5) Reliance eyes Punjab as new agro-retail hub

Source: - The Tribune/Date-21st March 2006

Reliance has also entered into collaboration with Punjab Agro Food
Corporation so that farm & retail linkages with local communities can be
executed with ease. Punjab will become RIL’s agricultural hub as well as a
mainstream centre for Reliance's other retail plans in north India. The fruits
and vegetables from Himachal Pradesh and other states will come into these
centers. These centers will also help farmers get the latest technical know-
how & quality farm equipment through PAFC.

The farm produce would be marketed by

Reliance at a pre-fixed price for all its supermarkets. Many exciting & new
opportunities are opening up in Punjab as the sudden upsurge & rush of
corporate into the state continues. The state has long been the breadbasket

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of the country. But now it looks like it's graduating into a real hub for India
on the global scale as India finally wakes up to the agriculture opportunity.

6) Reliance Retail faces problems in Mumbai

Source: - By Bullish Indian

Reliance Retail has ambitious plans of having 100

Reliance Fresh stores in Mumbai by this year end. However Reliance retail is
facing severe margin pressures because of the extremely low prices offered
and also due to the high cost of inventory stored. Sources from reliance retail
say that they are willing to incur losses initially in order to boost their market
share. Reliance sure has the financial power to follow the loss-leader
strategy and kill smaller competitors.

SUGGESTION AND RECOMMENDATION

 To be improved the parking facility.
 Range of products should be maintained.
 Pricing of products compared to other stores should always monitor.
 Freshness & quality of products should be always checked.
 Teach the counterman how to behave with customer and maintain
Courtesy and helpfulness of store staff.
 There is a long delay at the billing/payment counter, mainly because of
less number of billing machines.
 There is always a lot of crowd at the weighing counter of the vegetable
section. People do not follow queue system but charge directly to the
counter without considering that other people are in the line. The
placement of the weighing counter is also not appropriate, creating lot
of inconvenience of shopping.

 Generate employment in that area in which the retail store is situated.

 Company should do some CSR initiatives in that area to develop the
economic condition of people living in that area.

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  Customer facility should always be under watch.
 Store should provide free home delivery facility.
 Company should take initiative to open new outlets in sub-urban area
also to improve the life standard of people living there.
 Company should ensure that quality and quantity of the commodity is
accurate.
 Company should provide regular training to their staff and aware him
with the modern technique of selling and customer dealing.

REFRENCES

For successfully completing this term paper, following web portals, books,
News paper are consulted.

 http://timesofindia.indiatimes.com/RIL_among_worlds_100_most_res
pected_companies/articleshow/3453197.cms
 http;//ril.com/major Subsidiaries & Associates :: Reliance Industries
Limited "Toluene" Reliance Industries award
 "Conference on "Environment-Awareness-Enforcement" New Delhi.
 http://www.hindu.com/2007/09/30/stories/2007093057550100.htm
date :Sept. 30 2007
 http://relianceretail.blogspot.com/2007/07/dairy-pure-milk-in-
reliance-fresh.html
 http://www.foodreview.com/article_feature.asp?guid=E30CA41D-
30F2-4486-8964-796B4FBC6262
 http://www.relianceinsider.com/2008/12/reliance-retail-india-job-
layoff-cut-mukesh-ambani/
 http://www.livepunjab.com/news/reliance_eyes_punjab_as_new_agro
_retail_hub-21860.html

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  http://www.bullishindian.com/reliance-retail-faces-problems-in-
mumbai/379/
 http://www.business-standard.com/india/news/weakness-continues-
sterlite-mm-plunge-8/15/51/50474/on
 http://www.dancewithshadows.com/business/reliance-fresh.asp
 http://www.ril.com/html/business/business_retail.html
 http://belgaumnri.blogspot.com/2008/01/reliance-fresh-belgaum-
retial-outlet.html
 http://findarticles.com/p/articles/mi_hb5936/is_/ai_n23950565
 http://indiaretailbiz.wordpress.com/2006/11/03/11-reliance-fresh-
open-to-customers-petty-traders-have-no-reason-to-worry-say-
reliance-officials/
 sushubh.net/1483-reliance-retail/comment-page-25 - 49k –
 www.livemint.com/articles/2007/08/27005400/UP-govt8217s-
decision-is-a.html - 95k -
 www.india-today.com/btoday/20061231/cover1.html - 61k
 www.tribuneindia.com/2007/20070509/jplus1.htm - 40k -
 www.andhranews.net/India/2008/July/26-Reliance-TimeOut-Comes-
55815.asp - 14k -
 www.uk.reuters.com/article/rbssTechMediaTelecomNews/idUKBOM323
91920080112 - 56k –
 www.businessworld.in/index.php/Miscellaneous/Foods-With-
History.html - 73k -comparison

Following News paper are consulted given below:-

1) Business Today.
2) The Times of India.

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 3) The Tribune.

Magazines:-

1) Business world.
2) India Today.

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