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India Retail Wars – Reliance Retail Versus Pantaloon Retail

October 17, 2006


Here is the outlook of Indian Retail Sector. A major corporate battle to reign supremacy in the Indian retail sector is underway. The main opponents are Pantaloon Retail India Limited Versus Reliance Industries Limited, retail wing, Reliance Retail Limited.

Reliance insiders have been publicizing that a major blood bath can be expected in retail when Reliance starts it’s operations. Sure, we did see a blood bath when Reliance launched it’s Infocomm with all the hype and after 3 years it is still loss making with poor service.

Sailing will not be smooth for Reliance as it is no more his Father’s India where bribing and all sorts of underworld/hand deals was the order of the day. With rising Real Estate prices in India, entry costs will be very high for Reliance. Reliance has poor knowledge about retailing and is totally dependent on executives it has poached from other giants but it is not likely to work because of the Meswani-Ambani management style won’t be admired by professionals. Indian market is beyond the scope of one or two corporate houses and will continue to mature to produce worldclass professional business houses like Bharti Tele-Ventures Limited.

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