Saturday, December 29, 2007
Reliance Retail to become supplier
After continuing to face protests against Reliance Fresh, Reliance Retail is becoming a trader and will be entering the food trading sector so that it can restructure its food and grocery business. Reliance Retail has already created 2 supply chains; one to trade commodities at mandis and a second to supply merchandise to its own Reliance Fresh outlets. Food prices will be increasing significantly in the coming year, and Reliance has understood the importance of being a trader. Reliance is setting up its stores at mandis where it will stock fruits, vegetables as well as other staples. At these stores it will be able to make a profit without worrying about costly overheads or having to give discounts to consumers. The company already has signed agreements to supply fresh fruits and vegetables to Spencers’ retail chain as well as other retailers.