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Reliance Retail in negotiations to set up alliance
India-based Reliance Retail is in preliminary negotiations with a large retailer to set up an alliance for its main retailer business comprising 750 stores, the local press has reported. The negotiations may get a boost from last week’s announcement on new foreign direct investment (FDI) rules, which will affectively allow FDI in multi-brand retail. The details of the partnership are not clear but could be at the level of value formats; however the Reliance Group is not looking for equity investments at the level of reliance retail. "The potential partner is likely to revert to Reliance with its terms and conditions by the end of February,” sources have been reported as saying. The sources were also reported as having said that the company is not facing any cash-flow problem as it has no major debt-payment obligation and is funded by a cash rich parent.
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