Cash & Carry format will be relaunched by RIL
Reliance Industries Ltd plans a strong comeback after three years of experimentation with cash-and-carry retail crackle out.
So far companies like US major Walmart in joint venture with Bharti Enterprises, German giant Metro and French heavyweight Carrefour are following the cash & carry format and now, Mukesh Ambani announced in its annual general meeting today to relaunch this format.
Few years back RIL was not supportive to this format due to a number of reasons, including a growing unrest towards organized retail.
Representatives of the RIL announced that their first retail outlet will soon be launched in Ahmedabad but does not elaborate much on the plan.
Cash-and-carry stands for an opportunity worth $140 billion of the $350-billion annual retail business in the country.
In this format, goods will be sold to wholesale outlets or warehouses. In order to buy these goods from these outlets, retailers, professional users, caterers, institutional buyers and other businesses will have to acquire special licences. In this format there will be no restriction on foreign direct investment.
Foreign players are not allowed in front-end multi-brand retailing. FDI will be limit to 51% in case of single brand retail.