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Rivalary between the Ambanis and Politicians
by Vijay on Aug 24, 2007 02:42 AM

This is basically an outage due to the rivalry between the two Ambani's and UP Political muppets.

The SP couldn't have touched Mukesh's Reliance Fresh without approval from his younger brother - this coup basically sponsored by Anil.
Mayawathi does not have any bad blood with Mukesh compared to Anil yet she as a CM does her best to diffuse the problem.

Regarding retailing outlets,
To start with an ordinary vegetable grocer is not a millionaire - in the sense he doesn't make big profits out of his businesses.

As for Reliance they procure products from the source without any middlemen as a wholesale unit and thus they were able to make profits.

Also its hard to understand Reliance strategy they are suspicious lot in whatever businesses they undertake. They aint a big retailing outfit like WalMart, yet they sell quality products for peanuts. Now if you take a retailing outlet it generally has luxuries like three or four touch screen monitors, Air conditioned, carriers etc and also employs 10-15 persons etc..

No rental expenses as the Ambanis would've bought the place yet considering the maintenance costs (salaries, electricity etc etc) and the infrastructure investments, every retailing outlet should sell heavily for the owners to have some kind of profit.

Note: They are also selling at a cheap price. They are doing that to wipe out other businesses
yet I really doubt they are making big profit









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Reliaance Fresh outlets close