Amnish Aggarwal, Head of Research of Prabhudas Lilladher in conversation with CNBC-TV18 spoke of Reliance Retail's fund raising drive and explained how retail sector is shaping up.
Talking about the Reliance Industries subsidiary, he said, "The organised retail market in India has got considerably consolidated in the past five years and now Reliance has got a base already in place. It is financially sound and a lot depends on how they integrate the entire piece and take it forward. The next couple of years are crucial if they are able to scale it up and then there could be significant unlocking for the shareholders in the longer term."
Sharing his views on the retail sector in India, Aggarwal pointed out, “As far as other retailers are concerned, in India, organised retail -- whether it is in the form of e-commerce or brick and mortar modern trade -- it is quite consolidated now. There are very limited number of players for a country with 130 crore population, so it is not that only one player will survive in the longer term. There is definitely a room for two to four players to survive in this entire scenario."
"It is going to be a market where not only one or two, but 3, 4 or 5 players can easily survive, and they will tweak their models in tune with the changing times," he added.Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.