Gearing up for competition in anticipation of the much-awaited opening of the Indian retail market and the arrival of global players like Wal-Mart and Carrefour, Reliance Industries, the leading Indian corporate conglomerate, has said that it would enter the retailing industry with a US$5.6 billion investment and one million employees over the next few years, reports the International Herald Tribune .

Reliance Industries Chairman Mukesh Ambani told shareholders at the annual general meeting in Mumbai that the company had set up a subsidiary, Reliance Retail, with equity of US$2.24 billion to propel "a retail revolution in the country." The first of a planned 5,500 retail outlets will open later this year in the state of Gujarat .

Soaring economic growth and an increasingly affluent middle class, with growing aspirations and a craving for newer consumer experiences, make India an attractive market for domestic and international retailers. A recent study by the management consulting firm A.T. Kearney, reported earlier in delWine, detailed India's appeal to overseas retailers.

" India is at the peak of attractiveness for retailers right now, with a US$350 billion retail market expected to grow 13% this year," said Fadi Farra, author of A.T. Kearney's annual study of retail investment in 30 emerging markets.

Piquing overseas investors' interest, India this year allowed foreign direct investment of up to 51% in single- brand retailer businesses, triggering the entry of names like Tommy Hilfiger, Nike and Timex.

Under current regulations, foreign retailers cannot own stores in India, but they can make franchise agreements, as has Marks & Spencer of Britain, or operate wholesale stores like the Germany-based Metro.

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( http://www.iht.com/articles/2006/06/27/business/reliance.php )