 "Reliance Retail Director Isha Ambani")
Reliance Retail has invested $10 billion in the past two years in its business, Isha Ambani, director, Reliance Industries, told investors at its annual general meeting (AGM) on Monday.
The company said it opened over 3,300 stores last year, taking the total to 18,040 stores, which cover 65.6 million square feet of retail space.
Two-thirds of these stores are in Tier-II and Tier-III cities, and small towns.
Across all consumer categories, which cover food, fashion, and general merchandise, Ambani said the retail arm catered to more than 90 per cent of the daily needs of Indian households.
“In our grocery business, we sold over (1.8 million) metric tonnes of groceries during the year. In our consumer electronics business, we sold nearly (500,000) laptops and over (2.3 million) appliances during the year,” she said, adding that in its fashion and lifestyle business, it sold a record-breaking 500 million garments in the year. The company is present across segments and price points. Its fashion format, Trends, and the brand’s extension formats have consolidated their position as the country’s largest fashion destination.
AJIO, Reliance Retail’s online platform, had a strong FY23 and it continues to be the partner of choice for international brands across premium, bridge-to-luxury, luxury, as well as Indian designer wear.
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The retail arm posted an annual turnover of Rs 2.6 trillion in FY23, showing a growth rate of 30 per cent, and its earnings before interest, tax, depreciation and amortisation (ebitda) stood at Rs 17,928 crore and net profit Rs 9,181 crore.
“We are delivering value to over 30 per cent of India’s addressable population. All this has made Reliance Retail rank among the top 10 most visited retailers in the world,” she said.
Muskesh Ambani, chairman of Reliance Industries, said in his speech at the AGM: “Reliance Retail is the only Indian retailer in the global top 100, and one of the fastest-growing retailers in the world. Over the past few years, it has attracted investments from large and reputable global investment firms and sovereign wealth funds owing to its rock-solid fundamentals and compelling value proposition.”
Senior Ambani said several marquee global strategic and financial investors had shown a strong interest in Reliance Retail.
He added the Qatar Investment Authority had come in as an investor in Reliance Retail with $1 billion for a 1 per cent stake, which values the company at a pre-money equity value of Rs 8.28 trillion.
“In less than three years, the valuation of retail has almost doubled, notwithstanding the intervening Covid-19 pandemic. Based on this valuation, Reliance Retail, had it been listed, would have ranked among the top four companies in India and top 10 retailers globally,” he said.
He said as India grew from a $2,500 per capita economy to $10,000, Reliance Retail would be its fastest-growing business in revenue and ebitda.
At last year’s AGM, Isha Ambani had announced Reliance Retail’s entry into fast-moving consumer goods and since then, she said, the business had made a strong start by entering several categories through multiple brands and strategic partnerships.
