Mukesh Ambani’s Reliance Industries is in talks with Volvo, one of the biggest truck and logistic companies in the world, for a joint venture that will specifically cater to Reliance Retail’s back-end logistics requirements.

According to sources, the joint venture between Volvo India and Reliance Retail is likely to include a new manufacturing facility where Volvo will assemble completely knocked down trucks specifically for the retail major. Reliance is expected to invest in the JV and the trucks made by the venture could be co-badged both Reliance and Volvo. Sources say this unique arrangement between a retail company and its logistics vendor is unprecedented globally.

When contacted, a Volvo India spokesperson said, “We cannot comment on speculative reports.” As for Reliance Retail, its spokesperson declined to comment.