Reliance Industries Plans To Set Up 2,000 Retail Outlets This Fiscal

Mumbai, April 29 | Updated: Apr 30 2004, 05:30am hrs
With about 400 retail outlets (ROs) under construction, Reliance Industries Ltd (RIL) is planning to set up 2,000 retail outlets across the country by the end of the current financial year. The company at present operates 11 ROs.

However, majority of the ROs would be set up in the western region. RIL vice-chairman and managing director Anil Ambani said the RO concentration would be, in what he termed as the economic zone. RIL operates a 33 million tonne per annum refinery at Jamnagar in Gujarat. He denied that the company was facing any location problems in setting up ROs.

The throughput from these 11 outlets is equivalent to 50 run by its competitors (the public sector oil companies), claimed Mr Ambani. On the competition of pricing of petroleum products, he added that the company would explore offering discounts if consumers considered it value for money.

Regarding the ongoing discussions for offtake of products from its Jamnagar refinery by PSUs, Mr Ambani said that negotiations are on and the PSUs could lift the products on a take or pay basis. He added that petroleum products were currently being sold at the same price as the beginning of the year. The company has the option to export the products as it had been doing in the past, he added.

With the upcycle in the petrochemicals business, RIL, which is Indias largest player, announced a capex of Rs 6,000 crore in this sector for 2004-09.

The company is planning a 20 per cent addition in capacity in the current year, taking the total capacity to 15 million tonne.