RIL to hive off Reliance Fresh into independent firm

A large-size restructuring is in the offing at Reliance Retail, Reliance Industries’ consumer retail project. As part of the exercise the company has decided to hive off Reliance Fresh into a separate company, Ranger Farm, for single point accountability.

A source said Reliance Fresh that sells food, fruits and vegetables and consumer products is a high-volume business which requires integration and dedicated focus, especially when opposition to organised retail in this particular category has taken political colour.

The source also said the management may knock down more verticals and spin them off into separate companies as and when they attain scale. RIL’s other formats like the hypermarket, consumer durables chain and apparel store are in their infancy with only one or two stores each. There is speculation that the number of companies that will be spun off from Reliance Retail will eventually be in double digits.

Read more in The Economic Times article.

Jay Shree Tea share soars 5% on retail push

Jay Shree Tea shares surged over 5% on Friday after the company said it was in talks with retail majors to sell branded packaged tea through their outlets.

“We are talking to a few retail majors to sell our branded tea through their outlets. We have already tied up with Reliance Fresh,” RK Ganeriwala, president, Jay Shree Tea & Industries, was quoted as saying.

The stock ended 5.4% higher at Rs 114 with volume traded at 75,385 as against two-week average of 19,769 shares.

The company has installed the latest blending and packaging systems and will invest at least Rs 5-6 crore in modernising the existing packaging system, he said.

Shareholders passed resolutions for amalgamation of subsidiaries Birla Tea, Darjeeling Consolidated and Marionbari Tea. With consolidation of these subsidiaries, the company would produce more 12 lakh kg of tea including 6 lakh kg of high quality Darjeeling tea.

Read more in The Economic Times article.