The contents of discussion would be
• • • • • •

Introduction Shri Ambani's achievements Growth through Value Creation Products & Brands Reliance Retail – The Mega Retail Story RIL’s Subsidiaries

• Shri Mukesh D. Ambani, age 50, pursued MBA from Stanford University, USA. • Joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibres and further into petrochemicals, petroleum refining and oil and gas exploration and production. • Largest & complex information & communication technological initiative in the form of Reliance Communication Ltd. • Shri Ambani is also steering Reliance's initiatives in implementation of a pan- India organized retail network spanning multiple formats and supply chain infrastructure.

Shri Ambani's achievements include:
• 'Global Vision' 2007 Award for Leadership in 2007. • Invited to be a member of the World Business Council for Sustainable Development (WBCSD). • Conferred 'ET Business Leader of the Year' Award by The Economic Times (India) in the year 2006. • Received the first NDTV-Profit 'Global Indian Leader Award‘, in the year 2006. • Had the distinction and honour of being the co- chair at the World Economic Forum Annual Meeting 2006 in Davos, Switzerland. • Ranked 42nd among the 'World's Most Respected Business Leaders‘ • Conferred the World Communication Award for the 'Most Influential Person in Telecommunications in 2004' by Total Telecom, October, 2004. • Conferred the 'Asia Society Leadership Award' by the Asia Society, Washington D.C., USA, May, 2004.

Growth through Value Creation
• Revolutionize the retailing industry in India. • Introducing a pan-India network of retail outlets in multiple formats. • Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity. • Contribute to India's growth. • Seamless supply chain infrastructure. • Aiming to touch almost every Indian customer and supplier.

Products & Brands
• • • • • The Company expanded into textiles in 1975. Exploration and production of oil and gas to the manufacture of petroleum products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals and synthetic textiles and fabrics. Retail business through a subsidiary Reliance Retail Limited. Reliance Infrastructure Ltd. is currently establishing infrastructure facilities The Company's operations can be classified into three segments namely:
– Petroleum Refining and Marketing business – Petrochemicals business – Others (including Crude Oil and Natural Gas Exploration & Production business.

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The Company's refinery at Jamnagar is the third largest refinery at a single location in the world. The Company is:
– – – – The world's largest producer of Polyester Fibre and Yarn 4th largest producer of Paraxylene (PX) 5th largest producer of Purified Terepthalic Acid (PTA) 7th largest producer of Polypropylene (PP)

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Reliance Retail – The Mega Retail Story of Rs 90,000 crore (US$ 20 billion) by 2010 A targeted sales turnover
with a planned investment of Rs 30,000 crore over the next 5 years. All set to achieve the status of being the flag-bearer of India Retail Inc, in record time. Reliance Industries Limited (RIL), is entering the Indian retail sector in a real big way. Blueprint for 800-odd Towns/Cities: Initial Investment Rs 3,350 Crore The Reliance Retail blueprint envisages nation-wide chains of hypermarkets, supermarkets, discount stores, department stores, convenience stores and specialty stores. The entire Indian retail sector is estimated to be at Rs 1050,000 crore (US$ 233 billion) – growing at 5% annually – and the estimated share of organised retail is only Rs 36,000 crore (US$ 8 billion), at present, albeit growing at over 30% every year.

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That makes Reliance Retail's proposed investments equivalent to about 10% of India's organised retail market. RIL Set To Become World's Largest Real Estate Property Owner Retail Will Become Core Business of RIL Reliance Industries Limited is the largest and one of the fastest growing private sector companies in India. All of Reliance Group production and services ventures have one common feature – global scale operations employing state-of-theart technology in all fields. With domestic market shares ranging from 40-80%, RIL is also ranked among the top 10 producers globally, for all its major product segments. It is one of India's largest business conglomerates with total revenues of Rs 1,00,650 crore (US$ 22.6 billion). It is being speculated within the industry that the ROIs made by RIL in the retail space will far out-shadow its existing core flagship businesses.

RIL's Retail Project will be through the following companies :
Major subsidiaries :• • • • • • • • • Reliance Retail Limited, Ranger Farms Private Limited, Retail Concepts and Services Private Limited, Reliance Retail Insurance Broking Limited, Reliance Dairy Foods Limited, Reliance Retail Finance Limited, RESQ Limited, Reliance Digital Retail Limited, Reliance Service Solutions Limited.

The next discussion would be about
• India Retail Sector Analysis (2006-2007) • Key Findings • Why Retail For Reliance? • Profile of Reliance Retail • Retail Plans & Strategies

India Retail Sector Analysis (2006-2007)
• • Phenomenal growth in the last 5 years (2001-2006). Organized retailing has finally emerged and is contributing significantly to the growth of Indian retail sector.

Key Findings
 Organized retail will form 10% of total retailing by the end of this decade (2010).  From 2006 to 2010, the organized sector will grow at the CAGR of around 49.53% per annum.  Cultural and regional differences in India are the biggest challenges in front of retailers.  Hypermarket is emerging as the most favorable format for the time being in India.  As per a report by KPMG the annual growth of department stores is estimated at 24%.  The arrival of multinationals will further push the growth of hypermarket format.

Why Retail For Reliance?
• In the last 15-20 years the retail sector has started catching the attention of large corporate houses in India. • Self-sustaining buoyant Indian economy growing at the rate of 8% an year. • Economy is expanding, the consumption habits and patterns of people are changing real fast in India. • Country’s demography – youngest population. • India’s 300 million – odd middle-class, the real consumers is catching the attention of the world. • Hital Meswani remarked, at the IRF ’05, that change in demand patterns have provided a huge opportunity to organised retail, as it realigns itself with global trends in value-oriented shopping experience. • Change in supply trends provides the greatest challenge to retailers.

Profile :
• Reliance Retail India (RRL) has revolutionized the retail industry and will spearhead organized retail revolution. • Focus on ‘competitive offerings’ to Indian consumers across several verticals: – Integrated food and grocery – Daily household items – Apparels and footwear – Electronic goods – Lifestyle products – Home essentials and improvements – Farm implements – Distribution of energy products and services – Others • The company would have a pan India presence.

Retail Plans & Strategies
• Manoj Modi and Hital Meswani, flanked by a core team of trusted lieutenants and business aides, constitute the top hierarchy in Reliance Retail. • Targets 90,000 Crore Turnover by 2010 • RIL has set a revenue target of Rs 90,000 crore (US$ 20 billion) from its retail operations by year 2010, almost 10 per cent the size of the current organised retail business in the country. • RIL's plans include a pan-India footprint of its stores, across multiple formats and categories, in more than 800 cities and towns, and in record time. • Multiple Formats with Investment of Rs 30,000 Crore • A low cost pan-India supply-chain model that will involve massive economies of scale.

• The strategy is to set up a chain of hypermarkets, supermarkets, discount stores, speciality stores, and convenience store formats in 800-odd cities and towns across the length and breadth of the country at an investment of around Rs 30,000 crore (US$ 8 billion). • First Phase: 1,575 Outlets by March 2007 • In the next 2-3 years, Reliance Retail plans to establish a pan-India presence of all its formats, targeting not only the major metros and cities, but also the 2nd-tier towns and semi-urban and even rural centres. • F&B to Generate 40% Sales Revenue, Direct Employment to Over 5 Lakh • The food and beverages category will account for as much as 40% of the total revenue generated from the Reliance Retail venture. • About 23 CEOs across multiple functions and categories will oversee the retail operations. • RIL has roped in leading retail consulting firm, Technopak Advisors, and management consulting firm AT Kearney.

Next we would be discussing about
5 Formats of Reliance Retail • • • • • Reliance Reliance Reliance Reliance Reliance Fresh Mart Digital Trends Wellness

5 Formats of Reliance
• • • • •

RetailFresh Reliance
Reliance Reliance Reliance Reliance Mart Digital Trends Wellness

Reliance Fresh
Reliance Fresh Supermarkets

Reliance Fresh
• Opening new retail stores into almost every metropolitan and regional area of India. • Plans to invest 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. • Rs 25,000 crore venture and it plans to add more stores and have a pan-India footprint by year 2011. • The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. • Provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people. • Plans to train students and housewives in customer care and quality services for part-time jobs.

• Reliance Fresh recently (24th Jan, 2007) opened several "Fresh" outlets in Chennai, New Delhi, Hyderabad, Mumbai, Chandigarh, Ludhiana increasing its total store count to 40. • According to Deccan Herald, the company is planning on opening new stores with store-size varying from 1,500 sq ft to 3,000 sq ft. • Following the concept of a neighbour store.

Reliance Mart
Reliance Mart, the first hypermarket of Reliance Retail

Reliance Mart
• Planning to come up with mega retail stores by sewing up real estate deals fast. • Signed deals for over 50 million sq ft through franchise and direct route. • Envisions a target of 100 million sq ft by 2011 to open its hypermarket business. • Chosen Ahmedabad for its first hypermarket whereas the second and third hypermarkets will come up in Jamnagar (Gujarat) and Gurgaon (Haryana) in September 2007. • Jamnagar and Gurgaon would have the hypermarkets ranging between 1,65,000 – 2,00,000 sq ft. • The hypermarkets will offer a comprehensive array of digital, food, and other lifestyle products. Reliance Mart is a part of the Reliance Group’s $5.5 billion ‘farm to fork’ retail initiative, with the targeted revenues of $23 billion by March 2011.

Since October 2006, Reliance Retail has set up more than 200 convenience and neighbourhood stores under the ambit of the Reliance Fresh Chain

Reliance Digital
Reliance Digital brings iApple store to India Reliance Retail goes Digital with new consumer durable format

Reliance Digital
Reliance Retail introduces its first pilot Consumer Electronic store Reliance Digital
• Reliance Retail and Apple have partnered to announce an exclusive marketing and distribution deal. • In major cities in India, Reliance has planned to build up a 10 iStores by Reliance Digital that will showcase Apple products. • This tie up is the first alliance for Reliance Retail with an International brand. • Later this month, the company plans to launch the first of these stores in Bangalore. • The products include Macs and iPods. Apple iPhone, probably will also be available when launched in the country. • Earn around Rs 100,000 crore revenues in the next five years. • 10-15 per cent of which will be contributed through retailing of consumer durables at its Reliance Digital stores and hypermarkets.

• • •

One-stop shops for all technological solutions. Their own consumer durable private labels. Fighting for a share of the $5.6-billion domestic market, which is dominated by South Korean brands LG and Samsung and Japan's Sony. • Most competitive prices. • Pre- and post sales services through its in-house RelianceresQ vertical.

• Offer finance schemes for consumers for which the retail majors are in talks for tie-ups with several financial institutions, Citi Financial being one of them. • Offering customers RelianceOne, a common membership and loyalty programme across all its formats. • An investment of Rs 25,000 crore. • Reliance Digital is the second format of stores • Built around Reliance Retail’s core philosophy – consumer centricity and a hassle free store experience. • Offer over 4,000 products spread across 150 brand along with countless solution bundles. • Highly skilled and trained staff. • Open 7 days a week from 10:00 am to 9:00 pm. • Follows the philosophy of ‘Earn Anywhere, Spend Anywhere’.

The next two formats
• Reliance Trends • Reliance Wellness

Reliance Trends
Reliance Trends store plans a century in 3 years

Reliance Trends
• Ambi mall offers some of the best (100+) Indian and International brands . • Democratizing fashion and making it attainable to the masses. • Offering solutions to common maintenance problems through its state of the art innovative products. • Product Quality has been ingrained into the DNA of Reliance Trends and is integral to its mission of “Grahak Devo Bhava”. • Some of the quality standards that are being followed are American Association of Textiles, Chemists & Colorists, American Standard, ISO & BIS test methods. • For the first time in organized retail, Reliance Trends is introducing a Made to Measure tailoring service, offering customized fits at reasonable prices. • Reliance Trends is offering a homogeneous mix of private labels and brands across men’s, women’s and children’s categories.

• • • • •

• •

The DNMX range has been developed with a clear focus on the youth of India, offering them exclusively crafted fashion garments like Denims, T shirts etc. Sparsh range of Indian wear for women, offers the finest collection of Salwar Kurtas, Churidars and a fast evolving Mix n Match range of garments. An exclusive label. Panda , has been developed for infants and toddlers. Frendz range of garments would compliment the wardrobes the growing generation of boys and girls. Apart from these private labels, the store is also offering some of the most renowned brands in the country like Lee, Wrangler, Peter England , John Players, Black berry’s, Gini n Jony , Liliput , Indigo Nation , Biba and designer labels. Continuing the tradition of reaching out to the middle class of the country, the current offering from Reliance Trends is easily affordable to the Indian consumer. Taking forward the vision of Shri. Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd. Reliance Trends delivers unmatched affordability, quality and choice of products and services to the consumer. The beginning of transforming Indian retailing with benefits for the Consumer.

Reliance Wellness
Reliance enters wellness format; opens outlet in Hyderabad

Reliance Wellness – the fifth format
• • Hyderabad has become the launch pad for Reliance Retail's newest foray - Reliance Wellness. The chain of 1,200 stores, to be set up in 51 cities over the next 3 years, will offer a range of health and lifestyle products. Targeting the country’s Rs 38,400-crore health and medical products market and the Rs 16,000-crore personal care and beauty care products market. Retails both domestic and international brands in the health and personal care section as also books on health issues. Attract and retain customers. Planning to open its second store in Bangalore soon.

• • •

• • • • •

Home to some 5,000 products in different categories, including general nutrition, sports nutrition, skin and personal care, books, music and pharmaceuticals. Houses an optical shop backed by a qualified ophthalmologist to test and prescribe lenses. Comprises a pharmacy, offers medicines and remedies in allopathic, ayurvedic and homeo medical systems. Introducing a ‘Medical Compliance Program’ for customers who are on long-term medication. Free health insurance cover under RelianceOne, the customer loyalty programme. Consultant doctors would be available at the stores.

The subsequent topics to be discussed are
• • • • • Competitor Mapping Latest Events Future Initiatives Predicted Future Conclusion

The major names that have or will dominate the retail space are namely: – BAL-MART: (Wal-Mart Bharti retail Joint Venture), – The Future Group, – ITC, – RPG Enterprises, – Raheja’s, – Piramals, – Tata’s, – Carrefour, – Target, – Metro, – Sears and – Tesco

Mukesh Ambani Group marketcap crosses Rs 5 trillion mark
• Mukesh Ambani on Sunday became the first Indian to head a group of companies with a combined market value of over Rs five trillion. • His group Reliance Industries became the country's first firm crossing the capitalisation of Rs four trillion. • RIL's share price soared above 5 per cent to close at Rs 2,827, taking its market capitalisation to Rs 4,11,041.95 crore (nearly 104.22 billion dollars). • Combining the market cap of all three listed Mukesh Ambani group firm's -- RIL, Reliance Petroleum and Reliance Industrial Infrastructure -- the group's valuation crossed Rs 5,00,000-crore level

• Expecting a revenue target of approximately Rs. 94,000 crore by 2010. • Expecting a 20 per cent ROI within 5 years’ time. • Also looking at overseas market. • Expected to invest Rs. 25,000-30,000 crore as per its plans by 2010. • Plans to launch other retail formats like ‘Reliance Fresh Plus’ where people would get apparel consumer electronics, FMCG items and medicines, in addition to fresh fruits and vegetables. • And a format for retailing groceries and condiments called as ‘Reliance Select’.

• Opened on 3rd Nov,’06 • In Andhra Pradesh (21), Jaipur (7), Chennai (12)

First Cluster of Reliance Retail Stores

Reliance retail opened 9 ‘fresh’ stores in NCR, target 1 trillion in revenues • Moved into National Capital region (NCR) on Jan 29 ‘07.
• In Noida, Greater Noida, Gurgaon, Ghaziabad and Faridabad. • Within the next 3 months, Reliance wants to take the tally of these ‘Fresh’ stores to 100 in the Delhi- NCR region. • Believed to have invested about Rs. 1,100 crore in this region.

Reliance’s new Ranger Farm stores in 3 AP towns
• Launching three new stores in Vijayawada, Guntur and Vishakhapatnam in Andhra Pradesh. • Format is in the same mould as Metro AG’s Cash & Carry stores in Bangalore, Kolkata and Hyderabad as well as ITC’s Chaupal Fresh stores in Hyderabad, Pune and Chandigarh. • Open at an unearthly hour of 2 AM in the morning, • Supply fresh fruits, vegetables and food in bulk to small shop keepers including push cart vendors. • Remain open for business until 11 AM. • The initial response has been very encouraging in Hyderabad.

Predicted Future
• Expects to launch 1,000 stores before the year end. • Occupying an aggregate retail space of about 1,10,000 square feet • Offer quality horticulture, grocery and dairy products at competitive prices. • Also makes supplies at wholesale prices to push-cart vendors and small kiryana merchants through its wholesale format “Rangers Farm.”

• RIL's retail foray is sure to have far reaching social and economic implications • Chalked out a Rs 2,000 crore investment over the next five years, and had plans to hit the primary markets with an IPO in 2009. • RRL will be able to achieve as much as 5% market share by 2010 instead of earlier target of 6.8% market share in the next three years. • The company plans to have 150-200 malls up and running by December 2008 and 500 all over the country by 2010. • Reliance also plans to have 100 million sq ft of retail space in the next three to five years and targets Rs 12,000 per sq ft per year for hypermarkets.

Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002

"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it."

Thank You !!!!

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