Saturday, July 12, 2008

Reliance Fresh is banking on these benefits to win this war

Reliance Fresh is banking on these benefits to win this war. The company has already unveiled its contract farming plans and hopes to untangle the supply chain of intermediaries and eliminate waste by going to the farmer directly. This implies fresher products at lower costs. Company officials say that it is indeed a win-win situation for both the farmers and the consumers. “In many states like Punjab, West Bengal and Haryana, we have tied up with farmers to facilitate them in production and coming out with better crops. We have a hub in each of these centres, where we are providing a ready market to the farmers,” avers Nathwani.

An exasperated Raghu Pillai, Chief Executive (Strategy & Operations) of Reliance Retail told 4Ps B&M that no one could stop Reliance Retail’s plans as the company was not doing anything illegal or manipulating any social norms. “For instance, if we are in Bengal, from the wages we pay to our workers; to the rate at which we buy our vegetables, everything is as per the standard in the state. There is no manipulation,” he points out. Despite the brave words, last fortnight Pillai announced putting further roll out plans in the North and East on the backburner. Concerns over the rising furor against his company’s food and grocery retail foray, apart from testing his boss’s mettle, must really be the toughest challenge he’s faced in his entire career.

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Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative