Chinese e-commerce giant Alibaba has initiated talks with India-based retailer Reliance Retail to form a mega Indian retail joint venture, with an investment of about $5 billion.
Alibaba has proposed to acquire a large stake in Reliance Retail to create a behemoth in the digital marketplace and also expand its physical retail businesses in India.
The two companies discussed several issues, including a plan to create a large omnichannel retail entity through the proposed joint venture.
U.S. investment bank Goldman Sachs is advising Alibaba on the proposed venture. In the year ended on March 31, Reliance Retail’s profit before depreciation, interest, and taxes more than doubled to $362.7 million.