Reliance to setup 55 stores on home appliances

Reliance Industries Ltd on Friday said it would set up 55 stores on home appliances and electronic goods across the country over the next two years.

“We have planned to open 55 stores on home appliances and electronic goods across the country over the next two years under the Reliance Digital brand” Reliance Retail Ltd President and Chief Executive (Consumer Durable IT and Telecom) Ajay Baijal said in Chennai. Declining to elaborate on the investments for the stores, he said the stores would be multi-brand showrooms having all home appliances and electronic goods.”It would have all products including mobile phones to iPods” he said.

Baijal was here to officially inaugurate the company’s first outlet ‘iStore’ under Reliance Digital – the consumer durables arm of Reliance Retail Ltd which houses entire Apple range of products. Responding to a query on why they have selected to house only Apple’s products in their iStore, he said “it is one of the coolest brands and we have right from the Shuffle (which is an two GB iPod) to the latest Apple iPhone”.

The first outlet ,which was opened in Chennai on Friday, is the company’s ninth ‘istore and is built on 1,100 sq ft, he said. The company already has two iStores in Bangalore, one in Hyderabad, Mumbai, Ahmedabad, Bhopal, Jaipur and Ludhiana’. The iStore would offer specific training modules from different ”Mac applications” like iPhoto, iMovie, Mac OS, X Leopard through regular training modules, he said.

Sources:-The Financial Express

Jashanmal brings Kuwait’s Xcite electronics retail chain to India

Tony Jashanmal, one of the promoters of the Middle-East business group Jashanmal, has struck a franchisee agreement with Kuwait-based conglomerate Alghanim to launch large format multi-brand electronics retail chain in India. The retail chain branded Xcite has been launched through an Indian firm Impact Retail, which is owned by Tony Jashanmal.

Xcite joins the list of new breed of specialised electronics retail chains Croma, Ezone, Reliance Digital, among others.

Alghanim, which has diversified business interests, including manufacturing and Xcite branded electronics retail chain in the Gulf, also operates Kirby Building Systems, which is engaged in pre-engineered building systems in India.

It was earlier eyeing various routes to enter the Indian retail sector. However, foreign investment norms doesn’t permit international firms in multi-brand retailing in the country. But Indian nationals and NRIs are allowed to operate multi-brand retail companies through franchisee arrangements with foreign retailers.

As per the deal with Tony Jashanmal, Alghanim will lend its retail brand Xcite besides giving technical know-how. According to Impact Retail CEO Srikant Gokhale, the retail venture will also launch the private label brand Wansa, which is owned by Alghanim, to the retail business in India.

“We are looking at investing Rs 200 crore in the venture by 2009. We have just opened our first store in Hyderabad and this year we will have eight stores in various locations, including Gurgaon, Pune, New Delhi and Bangalore. By 2009 we would have around 30 stores which would all be operated by us and are planning to concentrate on the top five brands in each product category,” according to Mr Gokhale.

Source: Economic Times