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On June 26, 2006, Mukesh Ambani (Ambani), Chairman and Managing Director, Reliance Industries Limited (RIL), announced his company's plans to foray into the retail sector with an initial investment of US$5.6 billion.¹

The retailing business was to be carried out through Reliance's retail arm, Reliance Retail Limited (RRL). Commenting on its retail venture, Ambani said, "Organised retailing will be an overarching theme of the expansion and growth of Reliance in the near-term future."²

Reliance's retail venture was expected to be India's equivalent of Wal-Mart Stores Inc. (Wal-Mart), as it planned to cover the entire retail ambit. RRL was expected to have its presence across India.

Reliance also had plans to open restaurant outlets within its stores. Reliance expected a revenue target of US$ 20 billion through its retail operations by 2010.³ Over a span of five years, RRL expected a 20 percent return on investment.⁴ Reliance also had plans to enter the personal finance services through its retail arm in order to tap the growing consumer loan segment. In November 2006, RRL launched its first set of 11 retail stores under the 'Reliance Fresh' format at Hyderabad.

The 'Reliance Fresh' store would have an average space of 2,300 sq. ft and provide fresh fruits, vegetables, groceries and dairy products to consumers.⁵ Gunender Kapur (Kapur), President and Chief Executive, Foods Business, RIL, said, "Our intention is to bring high quality fresh food to the customers at an affordable price."⁶