Reliance Retail Ltd is creating a large distribution hub in Pataudi to service its stores in the New Delhi region.
Pataudi, about 60km from New Delhi and on the way to Jaipur, will have two separate distribution centres—one of them for fresh produce, and another for in-house (or own-brand) products, according to a person familiar with the situation, who did not wish to be identified. The two distribution centres will be around 120,000 sq. ft each.
A distribution hub 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.
The person said the hub is expected to be operational in a few months and will take the pressure off the company’s other distribution centres, including those at Kundli in Haryana, Greater Noida in Uttar Pradesh and one in central New Delhi that are already “overstretched”. “It will be a major hub of activities” on the supply chain, he said.
Reliance Retail plans to open more than 600 stores in the national capital region (New Delhi and its environs) in the next three years and more than half of it will be Reliance Fresh grocery stores.
The company also plans 30 hypermarkets and dozens of standalone outlets for health and wellness, apparel and jewellery, according to company officials, who asked not to be identified as they are not authorized to speak to the media. Reliance already operates more than 60 grocery stores and a consumer electronics store in the New Delhi region.
The retail unit of one of India’s most valuable companies, Reliance Industries Ltd, is also expected to roll out a store format in New Delhi selling a combination of books, music, stationery and toys as part of a three-store “pilot” next month.
The other two stores will come up in Bangalore and Kochi.