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Mukesh to revive Super Bazar

Mukesh to revive Super Bazar

Reliance is favoured because of its financial capacity and development plan for reviving Super Bazar.

New Delhi: Mukesh Ambani-controlled Reliance Industries has submitted a Rs 288 crore bid to revive the ailing shopping coopertive Super Bazar, a move that would help the corporate house's ambitious foray into consumer retail segment.

Reliance's offer follows Government's decision to invite bids in May after the Supreme Court asked Centre to examine ways to revive the cooperative.

Government has 50 per cent holding in Super Bazar, which has a membership of 40,000 and employees strength of 2,200.

Super Bazar falls under the purview of Department of Consumers Affairs and has been under liquidation since 2002 until the court intervened on a petition filed by the employees union against the regulator's decision to wind up the retail chain.

Reliance is believed to have proposed to invest Rs 60 crore in the share capital of Super Bazar, with another Rs 85 crore for working capital, sources said, adding the company would also spend Rs 143 crore to revamp the chain and expand it to retailing pharmaceuticals, fruit and vegetables, online shopping and institutional sales.

An evaluation committee is understood to have favoured Reliance because of its financial capacity and development plan for reviving Super Bazar.

Reliance has also proposed to settle dues of over Rs 10 crore to government agencies and Rs 25.58 crore to suppliers besides retain all staff.

first published:August 10, 2006, 17:16 IST