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On Split of Businesses of Reliance Retail

November 1, 2007


In a section of the press, their are reports that Reliance Retail maybe hived off as 34 independent entities. The press was merely interested in getting a Hot Story for its Greedy readers who are interested in boosting the valuation of the RIL scrip and nothing else. However, Mukesh Ambani as a Chairman is more likely to propose Reliance Retail as a holding company for every format of retailing Reliance will be into. In the light of protests on Reliance Fresh Openings, the clever folks have changed the name of the holding company to Ranger Farms thus disassociating itself from the Reliance brand label which makes lots of people envy about their success.

We personally think that this is a momentary thought on part of Reliance to run all 34 retail formats independent of each other. The synergy each will lose because of such an action will be huge and will directly hit the bottom line. Ranger Farms maybe an eye washing tactic, but a good one to escape from the jealous neighbor 🙂

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