Under attack from small traders and farmers, big Indian companies aspiring to set up western-style retail chains are looking for new strategies to break into a largely unorganised industry worth an estimated $350 billion.

Front-runner Reliance Retail, facing pressure from protesters, decided six months ago to halt expansion of Reliance Fresh, a grocery chain. It is now concentrating on less-sensitive sectors and has launched a dozen speciality stores selling goods including electronics, footwear, books, music and bicycles. It has also launched an exclusive chain selling Apple electronics products.

Reliance Retail, part of Reliance Industries, India’s largest business group, began its $6 billion retail foray in late 2006 with aggressive plans. But it was ordered to shut down stores in Uttar Pradesh – the largest Indian state – by the government last year after violent protests by small traders. It had to shelve the launch in the communist-ruled West Bengal and delay its plans in several other states after similar protests.

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