BENGALURU/MUMBAI: Amazon.com Inc is in exploratory talks with Reliance Industries Ltd’s retail unit to buy an up to 26 per cent stake in India’s biggest brick-and-mortar retailer, the Economic Times (ET) reported on Thursday.
The conglomerate, controlled by India’s richest man Mukesh Ambani, was previously in talks with China’s Alibaba to sell a stake in Reliance Retail, but a deal could not be sealed due to differences in valuation, a person familiar with the matter said.
Having an online partner would help strengthen Reliance’s retail business, the person added, declining to be identified as the matter was private.
The Amazon-Reliance talks may not lead to a deal, according to the ET report. Reuters could not independently verify the talks.
Amazon declined to comment, while Reliance said it will make any disclosures to stock exchanges as and when necessary.
“As a policy, we do not comment on media speculation and rumours,” Reliance said in a statement. “Our company evaluates various opportunities on an ongoing basis.”
A partnership between Reliance and Amazon could be a win-win for both companies.
Reliance could potentially leverage Amazon’s global experience in technology, supply chain and logistics as it aims to connect grocery stores across the country digitally through its Jio telecoms network — the biggest in India by subscribers.
Amazon’s massive online presence could also help bolster Reliance’s consumer and private labels business, according to retail consultants. Reliance Retail’s revenue stood at Rs381.96 billion ($5.53 billion) for the June quarter. — Reuters
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