Entry With An Impact

The apparel industry was set abuzz this past October when Reliance Industries (RIL) launched its very own apparel business operation - RElan. Reliance is making a strategic entry into the market by co-branding its specialised RElan fabric with other apparel brands. Samir Alam finds out about how this move by Reliance will impact the market.

- Samir Alam

Reliance is starting strong across various product categories such as denim, ethnic wear, formal wear and womenswear. With this launch, Reliance Industries has added another market segment to its ever-increasing portfolio which already includes digital services, media, telecommunications, petroleum R&M, petrochemicals and polyester, oil and gas, and consumer retail. Reliance Industries has always been considered a major player across numerous industries in India and its entry into the Indian apparel segment has caused a significant amount of speculation. Concerns range widely - from the impact this will have on small and medium-sized manufacturers and brands to hopes that this will help the overall Indian export market bring in much needed revenue. As of yet, the brand simply appears to be making what appears like an obvious business decision to diversify and leverage its existing market potentials. However, the concerns floated are not without good reason and we consider them to discern what the next year may hold for Reliance and the domestic apparel industry.

RELIANCE THE GIANT

Reliance Industries Ltd is one of India’s largest and most successful private sector company. The company was originally established in 1958 by Dhirajlal Hirachand Ambani or Dhirubhai Ambani, as he came to be known. The business began with the exports of textiles and spices, and since then has added a wide assortment of activities over time. In 2006, the company was split across business lines, with Mukesh Ambani becoming the company chairman and managing director of Reliance Industries. In 2017, the company is estimated to have the largest market capitalisation in the country’s history of over six trillion rupees (USD 90 Billion) with an annual revenue of over USD 51 billion and profits of USD 4.7 billion.

CHANGING THE GAME