NEW DELHI: With more than two dozen brands, numerous sub-brands, partnerships and ever-growing labels under its giant wing, Reliance Retail, the retail arm of country’s largest listed company - Reliance Industries (RIL) - has become a favourite among global investors with its valuation doubling in just three years. Its valuation, following Qatar Investment Authority’s stake purchase of 1% for $1 billion, has surged to Rs 8.28 lakh crore from Rs 4.28 lakh crore in September 2020.
Based on the valuation, Reliance Retail is ranked among the top 4 companies in India and top 10 retailers globally. Mukesh Ambani, Chairman of Reliance Industries, is confident that Reliance Retail will emerge as RIL’s most rapidly expanding business and the biggest contributor of revenues and EBITDA. Reliance Retail reported a revenue of Rs 260,364 crore in FY23. “From staples, food, fashion, and FMCG, to home, personal care, and general merchandise, Reliance Retail caters to over 90% daily needs of Indian households,” Mukesh Ambani said in his address in the Annual General Meeting of the company recently.Analysts tracking the company also maintain that for the Mumbai-based conglomerate, the
retail business is going to be the growth engine.
“RIL’s retail business has seen phenomenal growth over the last three-four years, with a CAGR of 27% in revenue and 48% in segment EBITDA over FY18-FY23. RIL retail is now the only Indian retailer in the list of top 100 globally, and ranks in the top 10 most visited retail companies,” said brokerage ICICI Securities in a report on Tuesday. It added, “RIL has seen higher growth for its digital and new commerce channels aggregating Rs 50,000 crore in revenue (20% of total retail). It has invested $10 bn in this business over last few years focusing on building integration, growing in-house brands, and improving supply chain networks.” The retail business (with Rs 2.6 lakh crore revenue in FY23) is less than half of its oil-to-chemicals business, which generated Rs 5.94 lakh crore income.