Reliance Industries on Sunday launched its first retail format called Reliance Fresh in Hyderabad. Spread over 2,000-5,000 sq ft, 11 such Reliance Fresh neighbourhood convenience stores will come up in the city beginning November 3.

These stores will sell fresh fruit and vegetables besides staples (dal, atta, rice) as well the company’s in-house brand, Reliance Select.

RIL is targeting not only the households but also streetside vegetable sellers. According to sources, RIL is setting up Ranger Farms — outlets that will specifically service streetside vegetable sellers who can stock up on fresh farm produce.

The Ranger outlets will open at 2 a.m. and continue selling produce to vendors till 9 a.m. The Ranger format is something in the lines of German major Metro Cash & Carry’s operations in India. But while Metro targets larger retailers such as restaurant chains and bulk consumers, RIL is expected to forge a relationship with streetside vegetable sellers through the Ranger concept. It is not yet clear whether separate outlets will be opened for Ranger Farm or the existing Fresh outlets will function as Farms by the night.

Guninder Kapoor, president and CEO of Food Business at RIL, says the Fresh stores at Hyderabad are part of a pilot project. “This is a pilot project which will help us understand customer needs. The pilot for this format will be taken to many other cities over the next few months.”

Next on the company’s list are bigger cities, including Delhi and Mumbai.

RIL has already said that it will invest close to Rs 25,000 crore over the next five years in the retail business. The company plans to establish 4,000 retail outlets across various formats by then, and is eyeing sales of Rs 1,00,000 crore over the five-year period from the retail business.

Besides Reliance Fresh, the company also plans to launch larger format stores called “Feel Fresh Plus” which will be spread over 10,000-15,000 sq ft. The Fresh Plus stores will stock fruit and vegetables as well as apparel, consumer electronics, FMCG items and even medicines.

From Hyderabad, these stores will travel to Mumbai and Delhi where Reliance has identified up to 80 locations each.

But even as the retail debut kicks off with fruit and vegetables, it seems the company is doing a rethink on whether to get into the larger formats such as hypermarkets and
supermarkets. These two formats require over 1 lakh sq ft of space and may not come up at prime city locations. Instead, Reliance is contemplating tapping alterative sites such as the SEZs for opening hypermarkets.

The retail rush
11 Reliance Fresh neighbourhood convenience stores will be launched first in Hyderabad
These stores will be set up soon in Mumbai and Delhi where Reliance has identified up to 80 locations each
RIL is also setting up Ranger Farms — outlets that will specifically service vegetable vendors
Ranger outlets will open at 2 a.m. and continue selling produce to vendors till 9 a.m.
Company plans to establish 4,000 retail outlets across various formats in the country

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