Reliance Fresh

Type Industry Founded Headquarters Key people Website

Supermarket Retail October 30, 2006 Mumbai, India Mukesh Ambani www.ril.com

A Reliance retail.
Full name Reliance Fresh Ltd. Headquarters Building No. 2, Ground Floor, B Wing, Reliance Corporate Park, NOCIL Complex, Thane Belapur Road, Ghansoli; Mumbai; Maharashtra; 400701 Status: Non-Listed Legal Form: Limited Liability Company Operational Status: Operational Financial Auditors: SV Ghatalia & Associates (2011) Tel: 91 22 4477 0000

COMPANY DESCRIPTION Reliance Fresh falls under Reliance Industries. It is the first retail venture of the Group. The company offers fresh fruits and vegetables, staples, groceries, fresh juice bars, FMCG products and dairy products and nonvegetarian items.Reliance Fresh Limited operates food retail outlets. The company was incorporated in 1999 and is based in Navi Mumbai, India. Reliance Fresh Limited operates as a subsidiary of Reliance Industries Limited. COMPANY ANALYSIS According to the Individual - Audited financial statement for the Year of 2011, total net operating revenues increased with 38.71%, from INR 2,085.39 tens of millions to INR 2,892.64 tens of millions. Operating result decreased from INR -150.72 tens of millions to INR -482.35 tens of millions which means -220.03% change. The results of the period decreased -155.86% reaching INR -345.82 tens of millions at the end of the period against INR -135.16 tens of millions last year. Return on equity (Net income/Total equity) went from -32.82% to -32935.24%, the Return On Asset (Net income / Total Asset) went from -8.00% to -7.27% and the Net Profit Margin (Net Income/Net Sales) went from -6.48% to -11.96% when compared to the same period of last year. The Debt to Equity Ratio (Total Liabilities/Equity) was 453209.52% compared to 510.07% of last year. Finally, the Current Ratio (Current Assets/Current Liabilities) went

from 3.57 to 3.12 when compared to the previous year.

Reliance Fresh is the convenience store format which forms part of the retail business of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest in excess of 250 billion in the next 4 years in their retail division. The company already has 453 Reliance Fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice, bars and dairy products. A typical Reliance Fresh store is approximately 30004000 square feet and caters to a catchment area of 23 km.

After launch, in a dramatic shift in its positioning and mainly due to the circumstances prevailing in UP, West Bengal and Orissa, it was mentioned recently in news dailies that Reliance Retail is moving out of stocking fruits and vegetables Reliance Retail has decided to minimise its exposure in the fruit and vegetable business. The company may not stock fruit and vegetables in some states. Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with local vendors partly due to political reasons, and partly due to its inability to create a robust supply chain. This is quite different from what the firm had originally planned. When the first Reliance Fresh store opened in Hyderabad last October, not only did the company say the stores main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke

at length about its farm-to-fork" theory. The idea the company spoke about was to source from farmers and sell directly to the consumer, removing middlemen out of the way. Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various formats that Reliance has rolled out. In addition, Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple Specialty Stores branded as iStore, starting with Bangalore Recently their stores in Jharkand faced the ire of mobs of local vegetable vendors. They vandalised and attacked the stores claiming that they were stealing their livelihoods. In August 2007, Uttar Pradesh Chief Minister Mayawati ordered to close 10 new stores keeping view of Law & order situation. In November 2007, Reliance Fresh stores were attacked by Bharatiya Janshakti

Party supporters headed by Uma Bharti.

ASSIGNMENT ON:-

RELIANCE FRESH RETAIL STORE

SUBMITTED BY:Rajkumar Dickson(11101025) IV SEM BBM A-SEC