Reliance Industries (RIL) is entering into a strategic alliance with the Container Corporation of India (Concor), India's largest container train operator.
Both entities are already in advanced stages of talks and an MoU detailing the agreement is expected to be announced shortly. Under this strategic partnership, RIL will have access to several infrastructural facilities of Concor, which includes almost 60 terminals all over the country.
According to sources familiar with these talks, RIL intends to utilise these facilities as key warehousing points for its mega retailing venture--Reliance Retail. In addition, Concor will also provide multi-modal connectivity to RIL, through its rail and road network, for the movement of both the bulk commodities and other imports, sourced for its retail venture.
"The process of dialogue has reached an advanced stage and we should be announcing the detailed working agreements soon now," said a senior Concor official requesting anonymity. The official, however, refused to offer more details on this alliance.
According to sources close to the development, RIL is contemplating to operate this venture through its supply chain arm Reliance Logistics. Earlier, RIL had been toying with the idea of running its own trains on the Indian Railways system by purchasing the container train licence, but it seems that the move has been put on the back burner. And RIL has since decided to team up with Concor.
Ever since its inception, Reliance Logistics has been a silent entity, with concentration entirely in the transport of RIL's oil venture. In a recent move that was widely speculated, it has started playing a key role in firming up the back end of Reliance Retail operations.
In fact, the entity, over the last couple of months has also been aggressively hiring personnel, from the road transportation sector to build up its own road transport network, which would be crucial to its retail operations.
"Reliance Logistics has been hiring people from the 3PL (Third Party Logistics) service providers to set up a road network division. Building that division is very crucial to our retail operations," said a senior Reliance Retail official, who requested anonymity.
Both entities are already in advanced stages of talks and an MoU detailing the agreement is expected to be announced shortly. Under this strategic partnership, RIL will have access to several infrastructural facilities of Concor, which includes almost 60 terminals all over the country.
According to sources familiar with these talks, RIL intends to utilise these facilities as key warehousing points for its mega retailing venture--Reliance Retail. In addition, Concor will also provide multi-modal connectivity to RIL, through its rail and road network, for the movement of both the bulk commodities and other imports, sourced for its retail venture.
"The process of dialogue has reached an advanced stage and we should be announcing the detailed working agreements soon now," said a senior Concor official requesting anonymity. The official, however, refused to offer more details on this alliance.
According to sources close to the development, RIL is contemplating to operate this venture through its supply chain arm Reliance Logistics. Earlier, RIL had been toying with the idea of running its own trains on the Indian Railways system by purchasing the container train licence, but it seems that the move has been put on the back burner. And RIL has since decided to team up with Concor.
Ever since its inception, Reliance Logistics has been a silent entity, with concentration entirely in the transport of RIL's oil venture. In a recent move that was widely speculated, it has started playing a key role in firming up the back end of Reliance Retail operations.
In fact, the entity, over the last couple of months has also been aggressively hiring personnel, from the road transportation sector to build up its own road transport network, which would be crucial to its retail operations.
"Reliance Logistics has been hiring people from the 3PL (Third Party Logistics) service providers to set up a road network division. Building that division is very crucial to our retail operations," said a senior Reliance Retail official, who requested anonymity.
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