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The retail arm of Reliance Industries (RIL) has cut its losses as a new centralised supply chain brought savings, and shoppers started spending more as the Indian economy returned to a high growth path after the slowdown of 2008. The retail business, which consists of a number of wholly-owned subsidiaries of RIL, ended the financial year 2010 with a loss of Rs 239.1 crore, down by 44% than Rs 424 crore in fiscal 2008-09. The combined topline for 2010 was at Rs 4,394.6 crore as compared with Rs 4,218.6 crore in the previous financial year. India's largest retail company Pantaloon Retail reported a turnover of Rs 6,349 crore for the year ended June 30, 2009.
Reliance's retail business is distributed over as many as 17 subsidiaries, according to the company's annual report and these numbers refer to cumulative results. Reliance Fresh, which runs stores selling grocery and household goods, posted a loss of Rs 135 crore on a turnover of Rs 2,083.9 crore. It had reported losses of Rs 249.3 crore during the financial year 2009.
Reliance Retail, yet another retail subsidiary of Reliance Industries, made a profit of Rs 18.2 crore. Reliance Hypermart reduced its losses to Rs 42.5 crore from Rs 51.8 crore while Reliance Supply Chain Solutions pared losses to Rs 3.1 crore from Rs 12 crore.
"We have brought in operational efficiencies by restructuring formats and centralising supply chain systems," said a person close to Reliance Retail. The retail division of India's largest private sector company expanded its network through strategic partnerships with companies like Hamley's and Marks & Spencer. Reliance Industries said in its annual report: "We plan to expand our Hamley's stores this year."
Gwyn Sundhagul, the former chief marketing officer and director at Tesco Lotus, Thailand, has recently joined as chief executive of its value retail format. Value formats sell goods such as soaps, biscuits and vegetables and contribute 70% to the total sales of Reliance Retail.
http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/RILs-retail-biz-loss-narrows-on-lower-costs-sales-pick-up/articleshow/5974920.cms