In one of the biggest cost-saving exercises, Mukesh Ambani-led USD 35-billion conglomerate Reliance Group is working on setting up a shared service centre that will integrate core support functions, HR, training, commercials and IT services of all group companies into one unit in Mumbai, reports The Economic Times.
According to the report, Ambani first articulated the idea to the senior management in October this year, and has personally been involved with the project, which will eliminate talent and competency overlap in the management of all group companies.
“The group’s expanding businesses, including forays into new sectors, saw considerable duplication of core support functions. The shared service centre as envisaged will lead to substantial cost savings,” quoted a company executive in the report.
Further, two global consulting firms are working on the blueprint for consolidating core functions of group companies including Reliance Industries, Reliance Petroleum, Reliance Lifesciences and Reliance Retail, besides a host of subsidiary and associate companies, added the report.
— IndiaRetailing Bureau