Reliance Retail is likely to merge its subsidiary companies floated for its various private label categories with itself to bring about operational efficiencies into the business.
The retail company had subsidiaries for its private label brands in categories ranging from dairy to soaps.
It is now looking at streamlining its operations with its vendors and suppliers in both its private label and general business by merging the operations with the parent retail company.
“We had hived off the operations of the private labels under different companies, but now we are looking at having seamless operations with common buying and sourcing teams as there is duplication,'' said a Reliance official.
Reliance Retail had floated subsidiaries such as Reliance Dairy Foods (for its Dairy Pure brand) and Reliance Home Products (for its other food products) and these private companies had independent sales, sourcing and buying teams for the respective private labels of the company.
“All these separate companies will now come under the Reliance fold. Amalgamating the operations is also expected to drive margins in the retail business.
http://www.thehindubusinessline.com/industry-and-economy/marketing/article2427396.ece