Reliance Retail’s subsidiary Reliance’s Brands vertical operates on a franchise model. This has been a small vertical contributing only 2% of total revenues, but growing at 50%-plus. The company is consistently tying up with global brands and widening its product portfolio – given its wide distribution of over 100 branded stores under this model. We believe as clarity on FDI in retail emerges this brand relationship with good sales growth trajectory could potentially result in healthy returns going forward.
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