surya reliance fresh

832019 Surya Reliance Fresh

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RELIANCE

Growth has no limit at Reliance I keep revising my vision Only

when you can dream it you can do it

Dhirubhai H Ambani

Founder Chairman Reliance GroupDecember 28 1932 - July 6 2002

RELIANCE GROUP

The Reliance Group founded by Dhirubhai H Ambani (1932-2002) is Indias largest private

sector enterprise with businesses in the energy and materials value chain Groups annual

revenues are in excess of USD 27 billion The flagship company Reliance Industries Limited is aFortune 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 petroleum



refining and oil and gas exploration and production - to be fully integrated along the materials

and energy value chain

The Groups activities span exploration and production of oil and gas petroleum refining and

marketing petrochemicals (polyester fibre intermediates plastics and chemicals) 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 25000 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

Reliance Industries Limited is India s largest private sector conglomerate (and second largest

overall) with an annual turnover of US$ 359 billion and profit of US$ 485 billion for the fiscal

year ending in March 2008 making it one of Indias private sector Fortune Global 500

companies being ranked at 206th position (2008) [1] It was founded by the Indian industrialist

Dhirubhai Ambani in 1966 Ambani has been a pioneer in introducing financial instruments like

fully convertible debentures to the Indian stock markets Ambani was one of the first

entrepreneurs to draw retail investors to the stock markets Critics allege that the rise of

Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhais

ability to manipulate the levers of a controlled economy to his advantage

Though the companys oil-related operation forms the core of its business it has diversified its

operations in recent years After severe differences between the founders two sons Mukesh

Ambani and Anil Ambani the group was divided between them in 2006 In September 2008

Reliance Industries was the only Indian firm featured in the Forbes s list of worlds 100 most respected companies

Subsidiaries of RIL

Reliance Petroleum

Ranger Farms Limited

Retail Concepts and Services (India) Private Limited

Reliance Retail

Reliance Global Management Services (P) Limited

Reliance Biopharmaceuticals

Reliance Ghatraj Services

Reliance Engineering Associates (P) Limited

Reliance Retail Limited



Reliance is gearing up to revolutionize the retailing industry in India Towards this end Reliance

is aggressively working on introducing a pan-India network of retail outlets in multiple formats

A world class shopping environment state of art technology a seamless supply chaininfrastructure a host of unique value-added services and above all unmatched customer

experience is what this initiative is all about

The retail initiative of Reliance will be without a parallel in size and spread and make India

proud Ensuring better returns to Indian farmers and manufacturers and greater value for the

Indian consumer both in quality and quantity will be an integral feature of this project By

creating value at all levels we will actively endeavour to contribute to Indias growth

The project will boast of a seamless supply chain infrastructure unprecedented even by world

standards Through multiple formats and a wide range of categories Reliance is aiming to touch

almost every Indian customer and supplier

With a vision to generate inclusive growth and prosperity for farmers vendor partners small

shopkeepers and consumers Reliance Retail Limited (RRL) a subsidiary of RIL was set up to lead

Reliance Grouprsquos foray into organized retail

With a 27 share of world GDP retail is a significant contributor to overall economic activity

across the world Of this organized retailing contributes between 20 to 55 in various

developing markets The Indian retail industry is pegged at $ 300 billion and growing at over

13 per year Of this presently organized retailing is about 5 This is expected to grow to 10

by 2011 RRL has embarked upon an implementation plan to build state-of-the-art retail infrastructure in India which includes a multi-format store strategy of opening neighbourhood

convenience stores hypermarkets and specialty and wholesale stores across India

RRL launched its first store in November 2006 through its convenience store format lsquoReliance

Freshrsquo Since then RRL has rapidly grown to o perate 590 stores across 13 states at the end of FY

2007-08 RRL launched its first lsquoReliance Digitalrsquo store in April 2007 and its first and Indiarsquos

largest hypermarket lsquoReliance Martrsquo in Ahmadabad in August 2007 This year RRL has also

launched its first few specialty stores for apparel (Reliance Trends) footwear (Reliance

Footprints) jewellery (Reliance Jewels) books music and other lifestyle products (Reliance

Timeout) auto accessories and service format (Reliance AutoZone) and also an initiative in the

health and wellness business through lsquoReliance Wellnessrsquo In each of these store formats RRL is

offering a unique set of products and services at a value price point that has not been available

so far to the Indian consumer Overall RRL is well positioned to rapidly expand its existing

network of 590 stores which operate in 57 cities

During the year RRL also focused on building strong relationships in the agri-business value

chain and has commenced marketing fruits vegetables and staples that the company sources



directly to wholesalers and institutional customers RRL provides its customers with high quality

produce that has better shelf life and more consistent quality than was available earlier RRL has

made significant progress in establishing state-of-the-art staples processing centres and expects

to make them operational by May 2008

Through the year RRL also expanded its supply chain infrastructure The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner

Recognizing that strategic alliances are going to be a key driver to its retail business in FY 2007-

08 RRL established key joint ventures with international partners in apparel optical and office

products businesses Further RRL will continue to seek synergistic opportunities with other

international players as well This year RRL will continue its focus on rapid expansion of the

existing and other new formats across India

Popular Profiles at Reliance Retail

Management team

Name Designation

Mr Mukesh Ambani ChairmanampManaging Director

Nikhil R Meshwani Executive Director

Hital R Meshwani Executive Director

Madhumita Mohanti Deputy General Manager

Akashay Lokhande Area Manager-Operation ampSales and NSO

Devandra Chawla Vice-President-Business Head Merchandise

Head

Zubin Nowrojee Mangement State Head Category

Formats of Reliance RETAIL



Reliance Fresh

Reliance Mart

Reliance Digital

Reliance Trendz

Reliance Footprint

Reliance Wellness

Reliance Jewels

Reliance Timeout and Reliance Super

RELIANCE fRESH

APKA FRESH APKE PADAOS ME

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 rs 25000 crores in

the next 4 years in their retail division and plans to begin retail stores in 784 cities across thecountry The reliance fresh supermarket chain is rilrsquos rs 25000 crore venture and it plans to add

more stores across different g 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

BACK GROUND

We can see many examples of businesses where first we grow and then think of expanding but

Reliance is quite different Reliance has developed such huge amount of resources and capital

over the years that whenever it steps into any segment it is not required to wait for growing

signal thatrsquos why it always thinks of expanding without any boundaries Reliance retail is next

Step by RIL which will be a pan India project

Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by


almost every metropolitan and regional area of India Reliance plans to invest Rs 25000 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 RILrsquos Rs 25000 crore venture and it plans to

add more stores across different g and eventually have a pan-India footprint by year 2011The 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

The company is planning on opening new stores with store-size varying from 1500 sq ft to

3000 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 neighbor 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

In a dramatic change due circumstances prevailing in UP West Bengal and Orissa It was

mentioned recently in News Dailies that Reliance Retail is moving out stocking 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 wellness and auto accessories 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 didthe company said the storersquos main focus would be fresh produce like fruits and vegetables at a

much lower price but also spoke at length about its ldquofarm-to-forkrsquorsquo theory The idea the

company spoke about was to source from farmers and sell directly to the consumer removing

middlemen out of the way

FARM TO FORK



The Reliance retail company sources say it is setting aside Rs 50000 crore to build its

farm-to-fork linkage Reliance has drawn up plans for a presence in 784 towns and 6000

mandi (wholesale market) towns with 1600 rural business hubs to service these It has

already rolled out 177 Reliance Fresh stores across major towns in 11 states According

to a company report RIL is targeting a turnover of Rs 40000 crore in the next few years



TRADITIONAL MODEL OF RETAIL RELIANCE ldquoFARM

TO FORKrdquo



Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds

of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration

by modern retail so farReliance industries which always looking for new business opportunities just started a

new era with its introduction of new concept stores named Reliance Fresh with opening

convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very

different from what modern retail has offered in India so far and with this reliance is

planning to establish strong retail network in India in food and farm sector They have

started with new eleven stores in the last week and they are thinking to add 100 more

stores to their feather by the end of this year

Letrsquos do a SWOT analysis on the Reliance Fresh

Strengths

Reliance is the first into enter into this unorganized sector of vegetables and fruits

According to them its intentions to have100 farm fresh foods in their new retail

stores It is also adding shortly a juice bar and even a large counter for puja flowers In

fact over 60 per cent of the floor space has been dedicated to fresh fruits and

vegetables the rest to other food products like staples spices bakery etc But reliance

has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the

industries like Food world Big Bazaar and Nilgiris But over come the short comings of

these specialized stores they are also introducing new Reliance full-fledged supermarket

called Shakhari Bhandar which offers each and everything from the staple to soap Most

of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g

channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos

own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays

chips there is very little shelf space given to the big brand owners in the country

Reason private labels offer far better profit margin to the retailer than branded

products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A

supermarket may need as much as 8000-10000 sq ft

Weakness

This is definitely an interesting business venture but it may miss out on the opportunity



to capture a greater share of the customerrsquos wallet For customers too this could be

irksome as they would have to visit another store to pick up essentials Reliance could

easily fix this problem by adding a few small counters for some basic non-food

products According to their official this format is not final one they are accepting the

new changes which are required to attract the large number of customers

Opportunities

Reliance wants to build a high-profitability business and food is perhaps the best

venture to start That is because the Indian food supply chain is grossly inefficient

There are several intermediaries each of whom adds his own profit margin to the cost

Besides there is huge wastage in transit This offers potential for savings and profits

To reduce the cost and increase the profit it has been sourcing out its requirements

from the farmers For example the leafy vegetables brinjals tomatoes and green

chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi

Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply

chain already has been backed by few hundred farmers the number is estimated to

touch million in next five years The main aim of the reliance is to eliminate the

intermediaries in the sector and reduce the cost Smaller stores have two advantages

They bring down the cost of real estate (and increase profits) It is easier to find space

for small convenience stores in a quiet neighborhood than for supermarkets in high

streets

Threats

This model is engineered to clock a faster turnover of inventory mdash Reliance expects

consumers to visit the store at least twice a week for their top-up groceries Each store

will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate

on thin margins Reliance Retail is looking at a fairly high-margin business model

Deliberately stopped short of being a full-fledged supermarket rather it has limited

itself to a food and grocery convenience store They also have a threat from the

existing supermarkets which provides all the services to its customers For Example

Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores



RELIANCE

Growth has no limit at Reliance I keep revising my vision Only

when you can dream it you can do it

Dhirubhai H Ambani

Founder Chairman Reliance GroupDecember 28 1932 - July 6 2002

RELIANCE GROUP

The Reliance Group founded by Dhirubhai H Ambani (1932-2002) is Indias largest private

sector enterprise with businesses in the energy and materials value chain Groups annual

revenues are in excess of USD 27 billion The flagship company Reliance Industries Limited is aFortune 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 petroleum







retail



















Subsidiaries of RIL

Reliance Petroleum



Reliance Retail






















































Management team

Name Designation







Head





Reliance Fresh

Reliance Mart

Reliance Digital

Reliance Trendz

Reliance Footprint

Reliance Wellness

Reliance Jewels


RELIANCE fRESH














BACK GROUND


































FARM TO FORK











TO FORKrdquo













Strengths

















Weakness









Opportunities














streets

Threats















retail



















Subsidiaries of RIL

Reliance Petroleum



Reliance Retail






















































Management team

Name Designation







Head





Reliance Fresh

Reliance Mart

Reliance Digital

Reliance Trendz

Reliance Footprint

Reliance Wellness

Reliance Jewels


RELIANCE fRESH














BACK GROUND


































FARM TO FORK











TO FORKrdquo













Strengths

















Weakness









Opportunities














streets

Threats

























































Management team

Name Designation







Head





Reliance Fresh

Reliance Mart

Reliance Digital

Reliance Trendz

Reliance Footprint

Reliance Wellness

Reliance Jewels


RELIANCE fRESH














BACK GROUND


































FARM TO FORK











TO FORKrdquo













Strengths

















Weakness









Opportunities














streets

Threats











Reliance Fresh

Reliance Mart

Reliance Digital

Reliance Trendz

Reliance Footprint

Reliance Wellness

Reliance Jewels


RELIANCE fRESH














BACK GROUND


































FARM TO FORK











TO FORKrdquo













Strengths

















Weakness









Opportunities














streets

Threats













BACK GROUND


































FARM TO FORK











TO FORKrdquo













Strengths

















Weakness









Opportunities














streets

Threats



















TO FORKrdquo













Strengths

















Weakness









Opportunities














streets

Threats





















Strengths

















Weakness









Opportunities














streets

Threats
















Opportunities














streets

Threats









surya reliance fresh

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