Reliance Fresh braces for competition

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.

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