Indian hypermarket and supermarket chain Reliance Fresh is ready for expansion after shareholders gave the nod to increase its borrowing limit.
Reliance Fresh said its shareholders passed a resolution which allows the grocer to borrow Rs15,000 crore in excess of its combined paid-up capital and free reserves.
Reliance Fresh will use the fund to support its expansion plans as it braces for competition after FDI has been granted for multi-brand retailers.
US retail giant Walmart is one of the multi-brand retailers which has confirmed plans to open its own stores in India within 18 months.
According to Technopak Advisors chairman Arvind Singhal, Reliance is a quick learner.
“The past six years would have taught the company what is working and now it is looking at a more informed and confident growth,” said Singhal.
“Reliance will be on a very strong footing by the time global retailers start ramping up in India,” he added.
GB