Reliance Retail eyes Bata stores

Mumbai: Talks are said to be on between shoe retailer Bata and the Mukesh Ambani controlled Reliance Retail for a tie-up.

Reliance is planning to get into footwear retailing and is targeting a turnover of Rs3,000 crore from this segment in three years.

If the tie up fructifies Bata showrooms across India would retail the footwear brands planned by Reliance and in turn Bata brands will find space on Reliance Retail shelves.

Reliance is believed to be aggressively pushing for the deal because it would give them immediate access to a 1,000 plus Bata stores, across the country located mostly in prime shopping districts.

The two companies have been in talks for over a year now but no agreement seems to be in sight. Sources say that the sticking point has been Reliance''s insistence on equity participation which Bata is unwilling to accept.