Reliance, the India-based retailer which operates across several formats, in an attempt to capture the potential market for premium food, is in advanced talks with US-based fresh fruit and vegetable suppliers Dole and Chiquita and meat retailers Sadia of Brazil and Doux of France.

Reliance Fresh and Reliance Super, the company’s small and large format supermarkets, have been sourcing vegetables and fruits mostly through the traditional route of mandis and middlemen. At the latest Reliance Industries annual general meeting, chairman Mukesh Ambani cited ‘strategic alliances’ as a key to the growth of the group’s retail business.

India’s rapid economic growth and multiplying income of its middle class has attracted a number of premium brands ranging from apparel to watches to set up shop in the country. Now it’s the turn of premium food companies to cash in on the potential which India’s elite and fast growing upper-middle class offers. Lately, this segment of the population has been more than willing to pay a premium for high quality fresh or processed food. This can partly be attributed to the growing consciousness towards health and nutrition among the middle class.

Lately, the retailer has also started offering non-vegetarian food under the brand name ‘Delight’. This is one of the first attempts by a major retailer in the country at organised meat retailing. Besides getting access to the premium quality of fruits, vegetables, juices and flowers, Reliance Retail’s tie-up with these foreign companies will also give the company access to processes and technology, a critical requirement for the company aiming for a larger share of the growing market.

It’s not clear yet if the partnerships will get into production in India. If they do, it will mean a new venture for Reliance Retail, which has so far limited itself to retailing. Reliance Retail is the retail arm of Reliance Industries, India’s largest privately-owned firm.

In other news, Ambani said that Reliance is planning to start a retail university by 2008-09 and is in discussions with learning partners across the country.