Home Retail Reliance Retail to borrow Rs 4,500 cr for big ecomm rollout

    Reliance Retail to borrow Rs 4,500 cr for big ecomm rollout

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    Looking at the stupendous growth of e commerce in India, Reliance Retail reportedly plans to borrow Rs 4,500 crore through term loans and debentures to build a robust e commerce business and invest more on store openings in select formats.As stated in the board resolutions filed with the Registrar of Companies last week, the Mukesh Ambani-controlled retail company will avail term loans to the tune of Rs 2,500 crore from State Bank of India and raise another Rs 2,000 crore by issuing convertible debentures. The funds are expected to come in several tranches.

    “The potential of ecommerce combined with the network of physical store locations will offer tremendous choice and convenience at a great value to the consumer. The opportunity is to integrate an ‘offline-online’ model, which can truly differentiate the customer experience,” parent Reliance Industries said in its latest annual report.

    Increase in internet access through affordable smartphones and efforts by online retailers to develop payment channels such as cash on delivery, mobile wallets and streamlined logistics infrastructure are expected to boost ecommerce growth in the country.The company launched their pilot online grocery shopping platform last year in November in a few select areas of Mumbai, including Navi Mumbai, South Mumbai and Thane.

    Operated by Reliance Fresh, the website www.reliancefreshdirect.com allows consumers to place orders for fresh fruits and vegetables, groceries, dairy, confectionary, packaged foods and personal care items.

    The purchases are then home delivered through the closest Reliance Fresh outlet in the neighbourhood. There is also a pick-at-the-store option.