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Q.

RIL claim losses of Rs 8000 crores from their retail business. Can it be true? If so why they are into this business segment? Should they not leave this sector to small guys? Please comment.

Asked by Good Citizen, 03 Mar '09 12:17 pm
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Answers (3)

 
1.

The RIL enetered the retailing sector with a blg bang. Apart from the Reliance Fresh supermarkets, they have barged into the LifeStyle segments like foot wear etc. Regarding the retail arena where Reliance Fresh is operating, other Supermarket chains of stalwarts like the Tatas, Birlas, Spencers etc and other big time players like BigBazzar and local heavyweights are all competing. So, the competion is really tough and it is no easy cakewalk foe anyone of the players. This scenario would have been envisaged by the RILand they will be knowing certain that they cant hope of a break even before say five years. And, regarding their venture into the high risk lifeStyle segment, which operate only in the Metros and those class A and B+ cities, the break even will take even more. The management surely has taken the decision to enter the retail sector after reckoning all these risk dactors. Most importantlt, they have the economic clout to wait for any number of years for their venture to br ...more
Answered by thampy chacko, 03 Mar '09 03:08 pm

 
  
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2.

Gestation period is a normal phenomenon with all busines.In organised retail, likeRIL the length of the period is a bit more.Once it start breaking even ,there will be no stoppage.So ,8000 crore loss for Reliance retail is not big enough .considering the future profitability.About clearing the field for small guys,it is a police decesion of the Govt.However,as an ordinary citizen,I think both can co exist.
Answered by Damodar Biswal, 03 Mar '09 12:24 pm

 
  
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3.

Http://www.financialhub.in/phpBB3/stocks-f29/reliance-industries- down-stock-trading-at-1223-t2764.html

http://www.financialhub. in/phpBB3/stocks-f29/ril-rpl-merger-announcement-t2748.html
Answered by Financial Hub, 03 Mar '09 12:47 pm

 
  
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