Alibaba, Reliance Retail in JV talks

Alibaba, Reliance Retail in JV talks
Alibaba, Reliance Retail in JV talks

China's Alibaba Group Holding Ltd has initiated talks with Mukesh Ambani's Reliance Retail Ltd to form a mega Indian retail joint venture (JV), with an investment of at least $5 billion to challenge the dominance of Flipkart and Amazon in the world's fastest-growing economy. Alibaba Group has proposed to acquire a large stake in Reliance Retail to create a behemoth in the digital marketplace and also expand Alibaba's physical retail businesses in India. The talks indicate that the battle for India's booming e-commerce market may only intensify further, with two large and deep-pocketed companies planning to come together to take on the market leaders. Alibaba's executive chairman, Jack Ma, met Reliance Industries Ltd chairman Mukesh Ambani in July-end in Mumbai to discuss the proposal. The two discussed several issues, including a plan to create a large omnichannel retail entity through the proposed joint venture. The joint venture, if it goes through, will be the largest investment by Alibaba in an Indian company. Reliance Retail, a unit of Reliance Industries Ltd, is the largest retailer in India in terms of revenue. Its retail outlets offer food, groceries, apparels, lifestyle and home-care products, consumer electronics, farm implements and so on.

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