Durables Companies Will Not Meet Reliance Retail’s Demands
Jan 17, 2007
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According to the Financial Express, Mukesh Ambani-led Reliance Retail of India is in a deadlock with some of the country’s largest consumer durables companies over margins on products it intends to source from the domestic market. Majors like Godrej, LG, Samsung, Whirlpool, Onida, and Electrolux will not yield the 30 percent Reliance Retail is seeking, saying they will not yield more than 13-14 percent—what they give to retail associates now. Sources at the companies say no deal has been struck as of yet.

Reliance Retail is insisting on higher margins on the grounds that it is rolling out a network of thousands of stores. Durables companies say they cannot agree to this unless they see the rollout, reports the Financial Express.

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