Imagine yourself having your own small grocery shop and suddenly you feel threatened by big names such as reliance. There is certainly a legitimate basis to this very real fear as the risk of significant loss to earnings is real. What reliance should have done in the first place is to come up with a plan to placate this fear in the concerned people. They should be willing to part with 30-50% of their profits to employ the top ten successful grocery shop owners in a neighborhood by providing them with plum positions in their stores (with high sounding names such as Senior Manager, junior manager, accounts executive etc) and offering salaries and benefits that they would not reject. In the best case this will help employ people with very good experience in the grocery business and in the worst case (assuming it is 50% successful) will help divide the opposition from such grocers and dilute its political power to isrupt their expansion. The key here is the willingness to share the massive profits companaies like Reliance are likely to make and the next is to divivide and conquer.
Mukesh Ambani is building his new residence in Mumbai which is a Waqf board land and used to be a Muslim 'Kabristan' earlier. He is erecting his 27th storied residence on the same land.This is the sign of entire reliance going into 'Kabristan' very soon
RE:Reliance Retail
by sridhar T on Oct 08, 2007 06:05 PM Permalink
Now see folks...when Mukesh can't pay his own supplier(s), what is the gaurantee that he is paying tax as per books and those books are properly accounted???!!!!....so it is not a great surprise to all that Mukesh is 17th richest person in the world by just sucking one's blood...in way people in WB, Orissa & UP are safe not letting this guy to step in
Organised retail is an ideamore suited to american life style.India has a long history of trade,both in wholesale and retail which is well oiled and quite organised.The talk of removing middleman is absolutely nonsense. Has all these new retailer hvae eliminated wholesalers/distributors/stockists-read middlemen while marketing their products in other businesses? NO. farmer getting higher price is equally untrue.The reason is small farm holdings.Thus an individual farmer has to be dependent on mandis and traders(i.e.Middleman). Yes,we do need reforms in retail business in areas of meteriology,quality,packing.storage,payment gateways etc.where the customers are being usually short changed.
RE:Big Retail's big mistakes
by slash on Oct 08, 2007 06:11 PM Permalink
if thereal middlemen are removed, better storage facilities and food loss stopped, and prices come down by a third, give farmers thier due then we can appreciate the big retailers.
RE:true
by sridhar T on Oct 08, 2007 05:59 PM Permalink
You r absolutely right Pratap. Mukesh is finding good oppurtunity to double/tripple/.... of his wealth by just cheating common man. All essential commodities are well available at a better price compared to so called 'hyper/super markets'....
RE:true
by slash on Oct 08, 2007 06:09 PM Permalink
yu arent highlighting the problems of the small kiranas. there are enough problems with them too. but the one to one appraoch of the kiranas, make yu forgive them
Don't believe that stupid Leftist lie. When the retail chains raise prices, the smaller dukhaandars become more attractive. The market corrects itself. No need for any political/ socialist intervention that only succeeded in keeping India wedded to poverty.
