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Reliance Retail has dumped its cash & carry business, or wholesale trading plans, with the entire operational management headed for an exit, a business daily reported. The move to defer cash & carry operations, at least for the time being, is part of the firm’s strategy to conserve cash in a deteriorating market, quoted company sources in the report.Multiple sources quoted in the report said the 36-member cash & carry team headed by Harsh Bahadur was on the way out after the firm decided not to proceed with the business plan. Bahadur had joined Reliance in 2007 after spearheading German giant Metro’s cash & carry foray into India for five years.
After talking to potential international partners, Reliance Retail decided to foray into cash & carry trading on its own with 15 locations -- mostly tier-II centres like Jalandhar, Ludhiana, Rajkot and Salem -- identified as initial destinations for the venture, the report said.
It is believed that Reliance Retail has decided against burning cash on new business initiatives, especially on those projects where the firm is on its own. As mentioned already, Reliance wanted to go solo into cash & carry given the fact that foreign partnerships would have restricted its consumer base, the report added.
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