Retailigence

“Club of Knowledge Hunters”

Reliance to push retail in countryside

Posted by retailigence on September 8, 2008

Reliance Retail is piloting a Rural-Business-Hub (RBH) model in a Gujarat village, which if successful and implemented could rival that of DSCL’s Hariyali Kisan Bazaar and Future Group’s Aadhar a run for their money. RBH would offer farm input, food, grocery, consumer durables, and financial and health services. It will also provide farmers a platform to sell their produce, an equivalent of village haat.

A typical RBH would be spread over 3-5 acre and require an investment of around Rs 5 crore, besides the cost of land. The company plans to set up at least 40 hubs in Gujarat alone in the first phase.

RBH will serve twin functions for Reliance rural retail as well as sourcing for its urban retail centres. Reliance has over 40 collection centres in Rajasthan, Jharkhand, Tamil Nadu, Gujarat and Madhya Pradesh. The company feels rural hubs may not initially turn profits, but is banking on big volumes to sustain the business. For its RBH business, the company aims to avoid states dominated by politics of a different hue such as UP, West Bengal and Bihar.

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