Reliance is owned by Asia’s richest man Mukesh Ambani (File)
Mumbai:
Reliance has denied a report that it was planning to promote a $20-billion stake in its retail enterprise to US rival Amazon in a deal that would upend the nation’s massively profitable e-commerce sector.
The report revealed by Bloomberg on Thursday stated that Reliance, owned by Asia’s richest man Mukesh Ambani, had provided Amazon a 40-percent stake in its retail subsidiary RRVL, citing an unidentified individual with data of the matter.
The deal, which might have been the most important for the nation and for the Silicon Valley behemoth in line with Bloomberg information, would have shaken up the retail sector, reworking the connection between two companies which have spent months locked in frenzied competitors.
However a supply on the oil-to-telecoms big disputed the report, which despatched Reliance shares up by greater than seven p.c in Mumbai, calling it “incorrect”.
“It is senseless for each the events to ascertain partnerships or collaborations,” the supply advised AFP on situation of anonymity.
An Amazon spokeswoman declined to touch upon the report.
Reliance has been combating Amazon and Walmart-backed Flipkart for a share of India’s on-line market, establishing its digital platform JioMart in Might.
After spending years battling native mom-and-pop retailers for purchasers, the retail giants are actually making an attempt to work hand-in-hand with the smaller shops that dominate India’s cities and hinterlands to carry them on-line.
Reliance final month introduced its acquisition of the retail, wholesale and logistics companies of India’s Future Group, which owns a number of the nation’s best-known grocery store manufacturers, including round 1,800 shops to its portfolio.
