Shares of Reliance Industries gained as much as 1.5 percent on Thursday after a wholly-owned subsidiary of Reliance Retail Ventures Ltd (RRVL), 7-India Convenience Retail Ltd, has inked an agreement with US-headquartered 7-Eleven Inc for the launch of 7-Eleven (SEI) convenience stores in India.

These convenience stores will sell beverages, snacks, delicacies specifically curated to appeal to local tastes, small personal care goods, and other items of daily use. The stores would lay special emphasis on affordability and hygiene, according to RRVL's communique.

Read Here |

Reliance Retail to launch 7-Eleven stores in India, starting with Mumbai

Isha Ambani, RRVL Director, said, “7-Eleven is among the most iconic global brands in the convenience retail landscape. The new pathways we build together with SEI will offer Indian customers greater convenience and choices within their own neighbourhoods.”

In a similar vein, Joe DePinto, SEI President and Chief Executive Officer, said, “Our strategic relationship with RRVL will bring 7-Eleven’s brand of convenient products and services to millions of Indian consumers starting in the city of Mumbai.”

The development comes on the heels of SEI mutually terminating its agreement with debt-ridden Future Retail to open small-format shops across India’s top cities.

Texas-based SEI is the premier name in the convenience retailing industry. In addition to 7-Eleven stores, SEI operates and franchises Speedway, Stripes, Laredo Taco Company and Raise the Roost locations. Known for its iconic brands such as Slurpee, Big Bite and Big Gulp, SEI has expanded into high-quality sandwiches, salads, side dishes, cut fruit and protein boxes.

At 11:01 am, shares of RIL were trading 0.7 percent higher at Rs 2,578.60.

RIL's stock has risen 22 percent in the past three months and has generated 148 percent returns during the past three years.

The scrip is merely 1.71 percent away from its 52-week high of Rs 2,623.

Earlier this week, Morgan Stanley had sharply hiked its target price on RIL's stock to Rs 2,925 from Rs 2,269.

The firm expects silicon and hydrogen to emerge as the next decade’s ‘new oil’ for Reliance. It is a USD 60 billion potential opportunity in terms of value creation if everything falls into place by 2025.

Although, RIL is up 27 percent YTD, it just reversed the YTD performance as compared to the market and Morgan Stanley is of the view that no value is being attributed to the new energy business.

Catch LIVE market updates here.

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

(Edited by : Ajay Vaishnav)

First Published:Oct 7, 2021 11:29 AM IST