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Last Updated: March 12, 2007 19:37 IST
Reliance Industries chairman Mukesh Ambani, equipped with a war chest of an estimated Rs 100,000 crore (Rs 1000 billion), is understood to be on a global hunt for acquiring a retail giant of the size of Wal-Mart or Tesco.
Listed as world's 14th richest person by Forbes, Ambani is believed to have let loose his advisers to scout the globe, hoping to market India's agriculture produce, including fruits and vegetables that could fetch much higher value abroad than the domestic market.
After the merger of group company IPCL with flagship RIL, the Indian business tycoon is believed to have created a trust with cash up to Rs 25,000 crore (Rs 250 billion), which could be doubled with other investors for leveraging the equivalent debt for global acquisitions, a source in the know of the development said.
"Why should Mukesh Ambani not go global when international companies are looking toward India's retail market... he is looking for a global acquisition of a chain like Wal-Mart, Tesco or Carrefour," he said.
Officials of Reliance or aides of Mukesh Ambani could not be contacted for comments. Industry sources said a top-level team associated with Mukesh Ambani was in the US last week, possibly exploring the market.
Mukesh Ambani has already committed an investment of Rs 25,000 crore for the retail operations in India, which would comprise hypermarkets, supermarkets and speciality stores.
Going by the present level of real estate acquisition for the purpose, the investment in the domestic retail business could double.
Reliance Retail has already emerged as the single largest player in the fresh food format stores within months of its launch and Ambani is believed to be keen on taking his farm-to-fork project global.
Towards this, he is entering into massive contract farming and strengthening the supply chain, which includes creating a huge cold storage network and streamlining transportation.
The group has its own fleet of cargo aircraft, which could ensure supplies to any part of the globe overnight. The move comes amid a rush among global retail giants to enter India, one of the most promising retail markets with a population of over one billion.
While the likes of Wal-Mart, which has a revenue of around $320 billion, is looking at the Indian retail market worth $300 billion, sources said Ambani believes the value for Indian farm produce abroad could be ten times more than what it can fetch at home.
As such there are reports that Mukesh Ambani could also be looking for a major petrochemical entity to leverage his strong domestic supply of raw materials for high value products and markets in Europe and America.
WoW ...we shud announce a national holiday , if this ever happens !
Reliance Industries chairman Mukesh Ambani, equipped with a war chest of an estimated Rs 100,000 crore (Rs 1000 billion), is understood to be on a global hunt for acquiring a retail giant of the size of Wal-Mart or Tesco.
Listed as world's 14th richest person by Forbes, Ambani is believed to have let loose his advisers to scout the globe, hoping to market India's agriculture produce, including fruits and vegetables that could fetch much higher value abroad than the domestic market.
After the merger of group company IPCL with flagship RIL, the Indian business tycoon is believed to have created a trust with cash up to Rs 25,000 crore (Rs 250 billion), which could be doubled with other investors for leveraging the equivalent debt for global acquisitions, a source in the know of the development said.
"Why should Mukesh Ambani not go global when international companies are looking toward India's retail market... he is looking for a global acquisition of a chain like Wal-Mart, Tesco or Carrefour," he said.
Officials of Reliance or aides of Mukesh Ambani could not be contacted for comments. Industry sources said a top-level team associated with Mukesh Ambani was in the US last week, possibly exploring the market.
Mukesh Ambani has already committed an investment of Rs 25,000 crore for the retail operations in India, which would comprise hypermarkets, supermarkets and speciality stores.
Going by the present level of real estate acquisition for the purpose, the investment in the domestic retail business could double.
Reliance Retail has already emerged as the single largest player in the fresh food format stores within months of its launch and Ambani is believed to be keen on taking his farm-to-fork project global.
Towards this, he is entering into massive contract farming and strengthening the supply chain, which includes creating a huge cold storage network and streamlining transportation.
The group has its own fleet of cargo aircraft, which could ensure supplies to any part of the globe overnight. The move comes amid a rush among global retail giants to enter India, one of the most promising retail markets with a population of over one billion.
While the likes of Wal-Mart, which has a revenue of around $320 billion, is looking at the Indian retail market worth $300 billion, sources said Ambani believes the value for Indian farm produce abroad could be ten times more than what it can fetch at home.
As such there are reports that Mukesh Ambani could also be looking for a major petrochemical entity to leverage his strong domestic supply of raw materials for high value products and markets in Europe and America.
WoW ...we shud announce a national holiday , if this ever happens !
14% of care four would be even less then that.
