Amazon and Walmart-owned Flipkart are spending billions on retailing India and are relieving themselves of the recent obstacles of regulation, the two companies have faced a new task: Mukesh Ambani, Asia’s wealthiest person.
Reliance Retail and Reliance Jio, two Ambani’s Reliance Industries companies, said they launch JioMart, their online retail company in part of the state of Maharashtra, Navi Mumbai, Kalyán and Thane, in close cooperation with the neighborhood businesses.
The e-commerce company is currently selling a catalog of 50,000 food items, which is being sold as “Desh Ki Nayi Dukaan.” The company is offering free express delivery. “Desh Ki Nayi Dukaan”
Ambani, the founder of Reliance Industries, India’s largest industrial group, said he wants to serve tens of millions of retailers and shop owners across the country.
If in India there is anybody able to compete with Amazon and Walmart with a strong support, then that is him. In 2006, Reliance Retail was founded as the country’s largest sales retailer. The company operates nearly 10,000 physical stores in over 6,500 towns and cities in India, serving over 3,5 millions customers each week.
Amazon and Flipkart have both expanded their offerings and joined new companies to make their markets more appealing for Indians.
In recent quarters both platforms started to sell food and also operate in the retail of food. Amazon has purchased shares in several Indian stores, including the Future Retail’s Future Coupons, the Indian More supermarket chain and the Shope Shopper’s Store Chain, which is the second largest Indian retail chain.
Who are Ambani’s
Mukesh Dhirubhai Ambani(born 19 April 1957) is an Indian corporate magna, and the founder, executive officer and major shareholder of the business of Fortune Global 500, the Reliance Industries Ltd. (RIL), the most profitable Indian company, is the most affluent man in Asia and the 10th richest man in the world since December 2019, according to Forbes magazine.
The earlier Ambani project has already been shown to be successful, requiring nearly $50 billion of capital expenditure.
The Group’s wireless carrier Reliance Jio Infocomm Ltd, which launched in 2016, is now the number one operator in India and has over 350 million subscribers. With free calls and cheap data, the company has been positioning the second-largest market in the world, pushing other incumbents to leave or merge with rivals.
Through online retail as well, Ambani is trying to replicate the success. The tycoon called the “new trade” in August and announced its objective to “transform fully” the unorganized retail market of India mainly mom-and-pop shops comprising 90 per cent of the national industry.