Reliance Retail Sees Rs 11-cr loss

Reliance Retail Limited (RRL) has posted a net loss of Rs 10.99 crore on total earnings of Rs 259.85 crore in the first year of its commercial operations. The loss was on a total income of Rs 259.85 crore.

RRL is still in the roll-out phase and plans to establish around 5,000 stores by 2009-end. The company made large investments in the initial phase of operations and profits were quite less, which leaded to such a heavy loss.

Reliance Industries Limited (RIL) has plans to establish multi-format retail outlets across India. The chain will include convenience stores, hyper markets, especially stores and super markets. The development will be done in more than 1,500 cities and towns.

There are over 300 Reliance Fresh outlets open to customers. RRL holds capital worth Rs 4,051-crore capital with negative reserves of Rs 10.90 crore. The company invested Rs 365.18 crore as on March 31, 2007.

‘Ranger Farms’ is the latest B2B initiative of RRL. It has been launched to cater to the small retailers in Hyderabad. The company introduced its private label in the staples category under the ‘Reliance Select’ brand name.

News Published Under:   Retail Market in India |