Reliance Cash & Carry is a B2B chain. The Ahmedabad facility, which opened two months ago, is spread over 8 acres.

The store issues membership cards to customers. Two people can enter per card and the minimum purchase bill is set at Rs 1,000. Retail customers are not permitted. The plan is to establish a chain in tier II cities.

Products on offer run the gamut from furniture to white goods and eatables, akin to a hypermarket.

Several products sold are unbranded or private label and the goal is to supply goods at prices lower than the distributor price; ladder pricing is also available.

The store functions as a warehouse-cum-showroom and the strategy is to play the volume game.

This model may affect the local wholesale market. However, since the company does not provide a credit facility, shopkeepers may continue to buy from regular wholesalers/distributors that provide goods on credit.

Eoin Treacy's view The rollback of the Indian government's decision to allow foreign retailers entry to the domestic market was a disappointing outcome for investors. However the above piece suggests that Indian companies such as Reliance may move ahead with large scale cash & carry type operations and challenge the status quo. This is not an ideal situation in terms of development but it could help to provided supply chain efficiencies.