Reliance Retail to be worth $20 B

By agencies   |   Wednesday, 19 July 2006, 07:00 Hrs
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MUMBAI: India’s largest private sector company Reliance’s retail foray may after all be a well-planned initiative. In seven years time, the company will be worth $20 billion and garner five percent of the market.

According to a report by CLSA Asia Pacific Markets, Reliance Retail, which will launch its first shopping center by year-end, will become the biggest organized retailer in the country.

India’s retail market, now worth $250 billion, is the world’s fifth biggest retail market. CLSA said that based on today peer multiples, Reliance Retail will be worth $17.5 billion when it reaches its revenue targets.

India’s growing organized retail market, which is not yet open for foreign competition, has attracted a slew of domestic companies like Rahejas, Sahara group and India’s biggest private telecom operator Bharti that will launch retail operations to sell vegetables and fruits.

The report said Reliance has modeled a more conservative and gradual ramp-up that will see the target being achieved in seven years. Once the target is achieved, Reliance Retail would join the league of some of India’s biggest companies like ONGC, RIL, NTPC, Infosys and TCS with higher market capitalization.

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