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Reliance Retail (RRL) and Reliance Fresh, two subsidiaries of Reliance Industries in the retail sector, suffered losses as the textiles-to-oil major sought to build market share and expand its presence in one of the world's fastest growing economies.According to data available in RIL's consolidated balance sheet, RRL has incurred a net loss of Rs 20.2 crore in the financial year ended March 2009, compared to Rs 0.82 crore in 2007-08. Revenue came down to Rs 622.3 crore from Rs 1,486 crore.
The company posted a net loss of Rs 10.9 crore on total earnings of Rs 259.9 crore in the first year of its commercial operations during 2006-07. The decline in topline in the fiscal 2008-09 was entirely because Reliance Fresh, earlier a part of Reliance Retail, now operates as a separate subsidiary of RIL.
Reliance Fresh reported a loss of Rs 249.3 crore on total income of Rs 1,778 crore during 2008-09, according to the annual report of RIL. The combined topline of the two subsidiaries, at Rs 2,400 crore, represents a growth in excess of 60 percent over the 2007-08 figure.
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