The growth of Reliance over the years has triggered a large transformation on an extraordinary scale in India
Billionaire Mukesh Ambani-led Reliance Industries became the first Indian company to clock revenue of US$100 billion in a year. The oil-to-telecom conglomerate’s profit came in at Rs 16,203 crore for the quarter that ended March 2022, marking an increase of 22.5 percent from Rs 13,227 crore during the same period last year. Its revenue from operations jumped 37 percent annually to Rs 2,11,887 crore. A sharp jump in profit came on the back of solid growth in the oil to chemicals business, the country’s most valuable company said.
India’s US$900 billion retail market has emerged as one of the most dynamic industries and is expected to reach anywhere between US$1.3-US$1.5 trillion by 2025. Organized retail is seen gaining a 15% market share in the overall retail space, while food & grocery and apparel, and lifestyle may account for 80% of India’s retail market by 2025.
Reliance is Everywhere
In the Grocery consumption basket, Reliance Retail operates Reliance Fresh Signature, SMART, Smart Point, Freshpick, etc, as well as general merchandise items.
In the Consumer Electronics consumption basket, Reliance Retail operates Reliance Digital and MyJio Store formats offering a wide range of consumer electronics, home appliances, computing and mobility products, latest gadgets and accessories. In the Fashion and Lifestyle consumption basket, Reliance Retail operates a portfolio of formats that serves customers across value, mid, premium, and luxury segments.
Partnerships and Acquisitions
The large market offers significant opportunities. And it looks like Reliance Retail has seized it, with its massive omnichannel retail play of physical stores, B2B with kiranas, and e-commerce. The company went on an acquisition spree and partnerships in the last three years, adding to its portfolio some of the biggest names, including Hamleys, Dunzo, Zivame, etc.
It has also partnered with the famous global retail chain 7-Eleven. Catering to India’s affluent consumers, Reliance, meanwhile, houses some of the most iconic brands such as Versace, Armani Exchange, GAP, GAS, Jimmy Choo, and Michael Kors among others. The premium segment has become one of the fastest-growing categories.
As Isha Ambani mentioned during RIL’s 45th AGM the objective of this business is to develop and deliver high-quality, affordable products which solve every Indian’s daily needs. As part of the commitment to India’s rich culture and heritage, Reliance will soon start marketing quality goods produced by tribals and other marginalized communities across India.
She said this would not only provide these communities gainful opportunities for employment and entrepreneurship but also help preserve the incredibly rich talent, skill sets, and knowledge base of our traditional Indian artisans, especially women.
Addressing shareholders, RIL chairman Mukesh Ambani said that Reliance Retail was now among the top 10 retailers in Asia. Reliance Retail achieved a record of Rs 2 lakh crore turnover and an EBITDA of Rs 12,000 crore. This year Reliance Retail served over 200 million registered customers, equivalent to the collective population of the UK, France, and Italy, at Reliance Retail’s physical stores and digital platforms.
Reliance Retail Expansion Spree
Reliance Retail is the retail initiative of Reliance Industries Limited and is central to the group’s consumer-facing businesses. Reliance Retail has been at the forefront of bringing about the Organized Retail revolution in India.
Reliance Retail’s operating model unleashes the aspirational energy of the new, resurgent India. Its guiding philosophy rests on the tenets of enabling inclusion, growth and building sustainable societal value for millions of Indians. In a short period, it has forged strong and enduring bonds with millions of consumers by providing them unlimited choice, outstanding value proposition, superior quality, and unmatched shopping experience across all its stores. Reliance Retail’s growth over the years has triggered a large socio-economic transformation on an extraordinary scale in India.