New Delhi: Mukesh Ambani-owned Reliance Retail is open to partnering international players in case FDI is allowed in durables and electronics segment, from where it aims at garnering business worth over Rs15,000 crore in 3-4 years.
“If the government allows FDI in consumer durables and electronics sector, we will closely study and evaluate options to tie-up with foreign players to strengthen our position in the market,” Reliance Retail Consumer Durable IT and Telecom (CDIT) president and chief executive Ajay Baijal told PTI.
The pre-Budget Economic survey had mooted allowing 100% FDI in specialized retail chains like luxury brands, consumer durables and semi-durables, besides allowing a share for foreign equity in all retail trade.
Baijal said such partnerships would be viable as international players possess expertise because of their global presence, while Reliance enjoys a strong brand name in the country.
The company is targeting to capture about 10-15% of the estimated Rs65,000-70,000 crore electronic goods market. “The segment is growing at around 20-25% annually, and we would be happy if we have a market share of about 10-15% in the next 3-4 years,” he said.
At this rate of growth, Reliance Retail could be touching a turnover of Rs 15,348 crore in the next three years.
“It would be very easy for international players like Sony, LG and Samsung to perform in India as they have global linkages. In case of a partnership, the international company can bring in expertise like assortment planning, customer handling and supply chain, while Reliance has a wide retail presence, brand value and customer connect,” he said.