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Gurgaon News: Reliance industries of Mukesh Ambani group will start rolling out its retail outlets in the national capital region from Monday.
The group, which is planning to invest Rs 25,000 crore in the sector will start with nine locations in Ghaziabad, Noida, Faridabad and Gurgaon and within six months will ramp it up to 600 outlets in the region including Delhi.
The group has already started its retail food business in Chennai, Jaipur and
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Hyderabad. It is planning to set up retail chain in all the tier I and II cities in the country.
Retail sector in India is abuzz with the activities as foreign giants like Walmart and Carrefour are entering the market.
Walmart has already joined hands with Bharati group to enter the retail business in the country.
The Reliance Industries has recently bought land at 18 locations in Delhi for Rs 1,500 crore. It is learnt that the company is waiting for the New Delhi master plan to be notified as it would allow it to open similar stores at 30 locations in Delhi.
A senior realty consultant who is working with the company in buying land in the region, said the company has already bought space but at present it can't open the outlets as it is not allowed under the existing market plan.
In a recent DDA auctions, the company was bullish and bid aggressively to buy plots in areas like Dwarka, Vikas Puri and Vasant Kunj, where it cornered a number of plots to run its retail outlets.
In Dwarka, it offered a price of Rs 8.50 lakh per square meter to buy a plot of the size of 850 sq feet for Rs 75 crore.
The company has already bought over one million sq feet commercial space in the region. It is learnt that the company is planning to buy around 6 million sq feet space in the next six months.
A real estate consultant said the company is open to buy any property in Delhi with a permitted area of construction of over 2,500 sq feet.
It is also buying space at shopping malls for the purpose. Sources said it will also open outlets at Shipra Mall in Indirapuram in Ghaziabad.
To start with, the company will sell vegetables and other eatables from these stores. But soon it will diversify into consumer durables, IT hardware and apparel.
The company is planning to sell goods for both middle class and upper middle class people.
Since the company will source materials from primary sources, it would save commissions paid at various levels.
Therefore, it would be able to sell its product at highly competitive prices. For vegetables and eatables, it has started two distribution centers at Kaundali and Arti Nagar, which would act as group's private mandi where they would buy agricultural items directly from farmers.
For apparel and consumer durables, the company is contracting the manufacturing companies directly so that it could save on the dealers' commission.
by http://timesofindia.indiatimes.com
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