A source close to Reliance Retail – the stores division of conglomerate Retail Industries – told Indian reporters it would separate Reliance Fresh to create a business called Ranger Farm.
The change follows comments made earlier this month at the company’s AGM by Reliance Industries chairman Mukesh Ambani, who said that joint ventures and partnerships with global and domestic companies would be key to the conglomerate’s growth.
“Traditionally, Reliance has grown by owning businesses 100 per cent, save for exceptions. With globalisation and the constant quest for new initiatives, this approach may be inadequate across all product, market and technology contexts,” he said.
“Reliance envisages an ecosystem of partnerships with global companies that can be hugely value-accretive.”
Ambani added that the retail division is building global partnerships across all its categories, from electronics to luxury goods.
The formation of new offshoots, such as Ranger Farm, will make it easier for Reliance Industries to forge new alliances.
Reliance Digital, for instance, has an exclusive marketing alliance with Apple to sell the iPod in India.
The demerger of Reliance Fresh, which has 350 stores, will also allow Reliance Industries to focus on its food retail division, which faces opposition from India’s thousands of independent shop owners.
Reliance Retail is also understood to have been approached by Icelandic investor Baugur about forming a joint venture to take its portfolio of brands to India.
Baugur, which is understood to have held talks with a number of the country’s biggest retailers, wants to replicate a venture it has embarked on in Germany with licensing partner Arctic. Arctic will help secure sites and strike deals with retailers in Germany to enable Baugur to open 300 outlets for its fashion brands, which include Jane Norman, Principles and Oasis.
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