Mukesh Ambani readying for a 'High Street' fight with Tata, Max and Shoppers Stop?

Reliance is spoiling for a high street fight with Tata's Zudio, Landmark Group-owned Max and Shoppers Stop's new value format InTune. The firm is reportedly in talks with UK retailer Primark for an India debut.

Primark is owned by London-listed Associated British Foods and runs over 400 stores globally. The firm, according to an Economic Times report, has been eyeing the India market for the past few years and may partner with Reliance via JV or licencing route.

BT could not independently verify the report.

With Primark, Reliance may try to tap into an expanding opportunity for value brands. India's value fashion market is ripe for disruption. Reliance may be looking to challenge established players by offering competitive pricing akin to global rivals such as H&M and Uniqlo.

The value apparel segment is projected to witness a compound annual growth rate (CAGR) of 6% from 2020 to 2025, but the organized sub-sector is expected to surpass this, achieving a 13% CAGR, according to a Motilal Oswal Financial Services report.

India is second to China as Primark's source country. Reliance is upping its consumer portfolio for the past few years.

On Wednesday, Reliance Consumer Products, the FMCG arm of Reliance Retail, announced a partnership with Sri Lanka-headquartered beverage maker Elephant House to manufacture and sell beverages under the Elephant House brand across India. This would be the second major beverage brand for RCPL which had earlier acquired soft drinks brand Campa.

The development comes amid the beverage industry gearing up for summer, its peak season for sales. Elephant House is owned by Ceylon Cold Stores PLC, a subsidiary of John Keells Holdings PLC, Sri Lanka's largest listed conglomerate. Reliance Retail, which has the ambition to be a formidable player in the FMCG segment, is building a wide portfolio of globally recognised brands and products.