Reliance Retail to invest Rs100 crore for distribution centre in Haryana

Reliance Retail distribution centre in Jhajjar, Haryana, will be on the lines of Amazon’s fulfilment centres as the hub seeks to expand the firm’s retail network across India


Reliance Retail will expand its retail network to cover the entire country, much beyond the 500 towns where its physical stores are operational, by using a hybrid online-offline model. Photo: Mint
Reliance Retail will expand its retail network to cover the entire country, much beyond the 500 towns where its physical stores are operational, by using a hybrid online-offline model. Photo: Mint

New Delhi: Reliance Retail is planning to invest Rs.100 crore in setting up a 4 lakh square feet national distribution centre at Model Economic Township, Jhajjar, Haryana, according to a person familiar with the matter.

The investment is part of the company’s larger expansion plan to cover the entire country.

Reliance Retail will expand its retail network to cover the entire country, much beyond the 500 towns where its physical stores are operational, by using a hybrid online-offline model, Mint had reported on 8 August.

A national distribution centre, similar to Amazon’s fulfilment centres, is a location to which a company’s suppliers ship in products and from where sorted, packaged, and tagged products are sent to the company’s stores.

Reliance Retail didn’t respond to Mint’s questionnaire.

Also Read: Reliance Retail to expand beyond 500 towns

Reliance Retail’s revenues grew at 22.5% to Rs.21,612 crore in financial year 2016. It makes up about 7% of Reliance Industries Ltd’s consolidated revenues. During the year, Reliance Retail added 624 stores, taking its total store count to 3,383.

Model Economic Township Ltd, formerly known as Reliance Haryana SEZ Ltd and spread over 8,000 acres, is a subsidiary of Reliance Industries Ltd, set up in 2006 to develop an industrial hub in Jhajjar, due to its closeness to Delhi-National Capital Region.

Model Economic Township had also signed an MoU with Haryana government in March at the Happening Haryana global investors summit to develop 450-acre electronic manufacturing clusters and 500-acres footwear park with an investment of Rs.1,300 crore.

The investment by reliance retail is separate from the ones announced in the MoU with Haryana government, said the person.

Model Economic Township expects that the electronic hub and footwear park would attract a further investments of Rs.2,600 crore from units to be established inside it while generating about 20,000 employment opportunities.

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