Reliance Retail

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Reliance Retail
TypeSubsidiary
ISININE002A01018
IndustryRetail
Founded2006; 15 years ago (2006)
FounderMukesh Ambani
HeadquartersMumbai, Maharashtra,
India
Number of locations
11,784[1] (2020)
Area served
India
Key people
Mukesh Ambani (chairman)
Services
RevenueIncrease ₹162,936 crore (US$22 billion)[2] (2020)
Increase ₹9,654 crore (US$1.3 billion)[1] (2020)
Total equityUS$62 billion[3]
Owner
    • RIL (85.12%)
    • Vanishree Commercials (4.7%)
    • Infotel Infocomm (0.6%)
    • Sovereign wealth funds (5.86)
    • Private equity firms (4.32%)
Number of employees
139,000+ (2020)[1]
ParentReliance Industries Limited
Subsidiaries
Websitewww.relianceretail.com

Reliance Retail is an Indian retail company and a subsidiary of Reliance Industries Limited. Founded in 2006, it is the largest retailer in India in terms of revenue.[4] Its retail outlets offer foods, groceries, apparel, footwear, toys, home improvement products, electronic goods, and farm implements and inputs. Apart from physical outlets, the company also sells products on its e-commerce channels.

Financial position[]

It had a turnover of ₹337 billion in the financial year 2016–17. Reliance Retail announced revenues of ₹450 billion for the nine months ended December 2017 for financial year 2017–18, showing over a 90% jump from the corresponding previous period. The company also reported a profit of ₹7 billion for the period.[5][6][7] In financial year 2019–2020, the company reported record breaking revenue of ₹1.62 trillion and EBITDA of 9,654 crore growing 55.7% year over year. The company also became the country's largest retailer by reach, scale, revenue and profitability.

In September 2020, it was announced that American investment firm Silver Lake has bought 1.75% stake in Reliance Retail for ₹7,500 crore (US$1.0 billion) valuing the business at ₹4.28 trillion (US$57 billion).[8] On 23 September, it was announced that KKR has bought 1.28% stake for ₹5,500 crore valuing the venture at ₹4.28 trillion or $58 billion.[9]

In October 2020, Singapore's GIC bought a 1.22% stake for $752 million, while TPG acquired a 0.41% stake for $250 million giving Reliance Retail a pre-money evaluation of $58.5 billion.[10]

Acquisitions and partnerships[]

On 29 August 2020, Reliance Retail announced that it is acquiring the retail, wholesale, logistics and warehousing business from the Future Group for ₹24,713 crore (US$3.3 billion) adding 15 lakh square meters of retail space to the company.[11]

On 15 November 2020, Reliance Retail announced that it had acquired a majority ownership of the furniture and decorating company Urban Ladder.[12]

On 7 October 2021, the company announced its partnership with 7-Eleven to open its stores in India.[13] The announcement came a day after Future Group announced the end of its partnership with 7-Eleven, citing the inability to meet the target of opening stores and payment of franchisee fees. The first 7-Eleven in India opened in Mumbai.[14]

Subsidiaries and divisions[]

A Reliance Trends Woman store in Kollam.
A Reliance Trends Woman store in Kollam.

There are over 45 subsidiaries and divisions of Reliance Retail.[15] Following is a list of major divisions:

No. Name Note
1 Reliance Fresh Retail outlets of fruits, vegetables and groceries.[16]
2 Reliance Smart Reliance Smart offers a one-stop shopping experience by offering fresh produce, bakery, dairy products, home, and personal care products, general merchandise, fruits, vegetables, and groceries.[17]
3 Reliance Digital Consumer electronics retail stores. It had 689 stores in October 2014.
4 Reliance LYF 4G mobile handset manufacturer based in Mumbai, founded in 2015.
5 Reliance Jewels Jewelry retail; it had revenues of about ₹8 billion in financial year 2012–13.[18]
6 Reliance Trends Apparel and clothing. It had revenues of about ₹16 billion in financial year 2012–13 with a store count of 287.[18]
7 Reliance Footprint It had revenues of about ₹1.6 billion in financial year 2012–13.[18]
8 AJIO E-commerce, fashion shopping website, officially launched at the Lakme Fashion Week SS16.[19]
9 Hamleys Hamleys, one of the oldest and largest toy retailers in the world, was acquired by Reliance Retail in 2019.[20]
10 JioMart JioMart is the e-commerce venture of Reliance Retail that provides grocery delivery from neighbourhood Kirana stores. It operates in 200 cities in India and was started as a joint venture between Reliance Retail and Jio Platforms.[21]
11 Shri Kannan Departmental Store Shri Kannan Departmental Store is a retail store chain that sells fruits, vegetables, dairy, staples, home, and personal care, and general merchandise. It operates 29 stores in Coimbatore.[22]
12 Future Group The acquisition of Future group by Reliance Retail is yet to be approved by competition commission of India and there is also an ongoing tussle between amazon and the promoters of Future group regarding the selling off the company to Reliance Retail. Future group is known for having a significant prominence in Indian retail and fashion sectors, with popular supermarket chains like Big Bazaar and Food Bazaar, lifestyle stores like Brand Factory, Central, etc. The group also has a notable presence in integrated foods and fast-moving consumer goods manufacturing sectors.[23]
13 Netmeds Netmeds is a licensed e-pharmacy based in Chennai. Reliance Retail acquired a 60% stake in Netmeds' parent Vitalic for approximately ₹620 crore.[24]
14 Urban Ladder Urban Ladder is an omnichannel furniture and decor retailer based out of Bangalore, India. Urban Ladder currently has 3 stores in Bangalore and distribution across 75+ cities in India through its website.[25]

Products and services[]

Private label products[]

Although Reliance Retail's grocery businesses primarily markets products of third party FMCG players, they also sell inhouse brands including: Best Farms, Good Life, Enzo, Mopz, Expelz and Home One.[26][27][28]

References[]

  1. ^ a b c "Integrated Annual Report 2019–20". Reliance Industries Limited.
  2. ^ "Revenue of Reliance Retail from financial year 2010 to 2024" at statista
  3. ^ [1]
  4. ^ Annual Report, RIL (20 July 2020). "Reliance Retail sales cross $23 bn mark". Reliance Industries Limited. Retrieved 11 September 2020.
  5. ^ "Reliance Retail's pre-tax profit jumps 40% in FY17 - ET Retail". ETRetail.com. Retrieved 13 September 2018.
  6. ^ "Reliance Retail's total revenue up by 21.2 percent - ET Retail". ETRetail.com. Retrieved 13 September 2018.
  7. ^ "Reliance retail reports highest ever quarterly turnover of Rs 6,042 crore in Q3". The Economic Times. 2016. Retrieved 13 September 2018.
  8. ^ Dsouza, Sharleen (11 September 2020). "Brokerage view on Silver Lake investment in Reliance retail". Bloomberg Quint. Retrieved 11 September 2020.
  9. ^ news, moneycontrol (23 September 2020). "KKR-Reliance Retail deal: American buyout firm to invest Rs 5,550 crore for 1.28% in RIL unit". Moneycontrol. Retrieved 23 September 2020.
  10. ^ "TechCrunch". TechCrunch. Retrieved 5 October 2020.
  11. ^ Deb, Aparna (29 August 2020). "Reliance Retail buys Kishore Biyani's Future retail for Rs 24,713 crore". Times Now.
  12. ^ Singh, Manish (November 15, 2020). "Reliance Retail buys Urban Ladder for $24.4 million". TechCruch. Retrieved 15 November 2020.
  13. ^ "Reliance Retail to launch first 7-Eleven store in India this week; Mukesh Ambani takes master franchise". The Financial Express. 7 October 2021. Retrieved 7 October 2021.
  14. ^ Livemint (7 October 2021). "Reliance Retail to launch 7-Eleven convenience stores in India". mint. Retrieved 7 October 2021.
  15. ^ "Subsidiaries of Reliance Retail Limited". ril.com. Archived from the original on 12 August 2013. Retrieved 27 August 2013.
  16. ^ "Few RIL retail arms still making losses". Business Standard. 11 May 2013. Retrieved 27 August 2013.
  17. ^ "Reliance SMART JioMart"
  18. ^ a b c "Reliance Retail's growth trail". The Hindu Businessline. 31 July 2013. Retrieved 19 August 2013.
  19. ^ Gandhi, Forum. "Reliance Retail's AJIO to start selling luxury brands". @businessline. Retrieved 17 November 2020.
  20. ^ "Reliance Brands completes acquisition of Hamleys". The Economic Times. Retrieved 17 November 2020.
  21. ^ "Mukesh Ambani's JioMart expands to 200 Indian cities in challenge to Amazon and Flipkart"
  22. ^ "Reliance Retail acquires Shri Kannan Departmental Store for ₹152.5 crore"
  23. ^ "Reliance Retail buys Future Group's businesses for ₹24,713 crore". mint. 29 August 2020. Retrieved 17 November 2020.
  24. ^ Sharma, Samidha; Peermohamed, Alnoor. "Reliance retail acquires majority stake in Netmeds' parent for Rs 620 crore". The Economic Times. Retrieved 17 November 2020.
  25. ^ "Reliance Retail acquires Urban Ladder for ₹182 crore – at a sixth of the startup's peak valuation in 2018". Business Insider. Retrieved 17 November 2020.
  26. ^ "Mukesh Ambani's Reliance Retail plans to sell in-house brands in kirana stores". www.businesstoday.in. Retrieved 10 March 2021.
  27. ^ Pathak, Kalpana (29 July 2019). "RIL plans a big push for private-label brands". mint. Retrieved 10 March 2021.
  28. ^ Pathak, Kalpana (25 May 2020). "For Reliance Retail's JioMart, private labels are the way to go". mint. Retrieved 10 March 2021.

External links[]

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