RIL (Reliance Industries Limited)’s deep pockets have always enabled it to have a head start over others and is probably the conglomerate’s secret sauce to its unparalleled growth and success. After its entry into the retail sector, it walks the extra mile by building its own shopping mall in South Delhi. It intends to make its real estate business complimentary to its retail segment that will enable it to gain ground in both the arena.
A company official mentions that RIL will use the land Mukesh Ambani won in a Delhi Development Authority bid for around Rs.400 crore in 2007 to construct its 720,000 sq ft commercial complex at Alaknanda. It will use two- fifth of the retailing space to house brands owned by Reliance Retail (a subsidiary arm of RIL). It will have three basement levels along with parking space sufficient to accommodate more than 1000 cars and 700 two wheelers and ground level along with five storeys. The company will infuse capital in the range of 200 to 250 crore for construction and is projected to be executed by the end of 2014.
While it is waiting for a go ahead from the Delhi Pollution Control Committee, it already has the green signal from the Union environment and forest ministry, for this project. The committee’s minutes of the meeting held on June 15th has necessitated RIL to build more trees including tall canopied trees and jamun trees in its complex.
RIL was on a buying spree some years back and procured land in around 150 cities in India with the agenda of constructing shopping complexes and malls, mainly. Its real estate projects include Reliance Corporate Park in Navi Mumbai that serves to be convention center, a hospital in Mumbai that is at par with the intentional standards, to name a few. It is presently building four million square feet of retail space only in North India and has attained more than 20 sites in Delhi, which can be used for the construction of malls.
The company’s foray into the real estate will further enable it to tap a new market and enable it to support its retail business. The core business segments of Reliance Group include petrochemical , refining and oil and gas, with its subsidiary companies catering to textile, retail business, special economic zone (SEZ Development)and telecom / broadband.