Tuesday, January 16, 2007

The Mukesh Ambani’s Reliance group has been showed its presence in India’s growing retail sector. Now, the Rs 65,000 crore group has another plan for business expansion. It is planning to enter the money-spinning automotive servicing sector. This will be the latest initiative as the part of the group’s retail plans in which the group on way for setting up of hypermarkets, supermarkets, convenience stores and malls in different cities in India. A team of executives professional, who have the experienced in service at automobile companies has been hired by the group. The team of highly experienced professionals has been started working on the standardization process for spares and quality levels. According to the reports, the company is also looking for the support from automobile manufacturers to add to the credit value of the venture. This is a common practice in the developed market that people get their car washed or serviced while they go for malls for shopping. It is going to be a regular feature in India too. The MNC retailers are coming to India and Reliance is now gearing up for this. There will be a chain of such workshops in shopping malls in India soon. However, there is no any period reported for the service stations to start operations. The team has been working on this proposal and plan for over six months. The TOI has reported that the service stations will come up with the Reliance retail establishments in big cities. It can take 12-18 months to begin its operations. On this new idea of the Reliance group, the Industry experts have said that if Reliance successfully establishes its credibility in the automobile service and support space, The new venture could be a good stand alone business with a good margin of about 200-300%.

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