NEW DELHI: Reliance Retail continues to be on an acquisition spree. Even as it has launched a mega hunt for retail space through the length and breadth of the country, it is leaving no stone unturned in its quest for acquiring state-owned retail chains - such as Delhi’s Super Bazar and Himachal Pradesh’s HPMC.
The company has submitted the highest bid for the ailing Super Bazar at Rs 288 crore, well above the Rs 70 crore bid made jointly by the Indian Labour Cooperative Society and Indian Potash Ltd. Included in its proposal to revive the ailing Super Bazar is an investment of Rs 143 crore in revamping the chain and expanding into retailing of pharmaceuticals, fruit and vegetables, online shopping as well as institutional sales.
Reliance also plans to pump in almost a similar amount of money in the share capital and working capital of Super Bazar. During its submission, the company has projected that Super Bazar would achieve an annual revenue of Rs 1,000 crore within the next in two-three years.
Considering that the chain posted an accumulated loss of Rs 56.73 crore in 2001-02 before being shut down, RIL is sure making big plans for reviving Super Bazar
The government has 50 per cent holding in Super Bazar, which has a employee strength of 2,200. Super Bazar falls under the purview of Department of Consumers Affairs and has been under liquidation since 2002. Later, the court intervened on a petition filed by the Employees Union against the regulator’s decision to wind up the retail chain.
Employing a similar strategy in Mumbai, RIL has already bought out the Sahakari Bhandar chain; it also eying Kendriya Bhandar outlets in Delhi for a similar arrangement.