Reliance Retail, the retail division of India’s largest listed company Reliance Industries (RIL), has gained favor among global investors due to its expansive portfolio of over two dozen brands, partnerships, and growing labels. Its valuation has doubled in three years, reaching Rs 8.28 lakh crore from Rs 4.28 lakh crore in September 2020, following Qatar Investment Authority’s acquisition of a 1% stake for $1 billion. This surge places Reliance Retail among the top 4 Indian companies and the top 10 global retailers.
Mukesh Ambani, Chairman of Reliance Industries, is confident that Reliance Retail will be the company’s fastest-growing segment, contributing significantly to revenues and EBITDA. With a revenue of Rs 260,364 crore in FY23, Reliance Retail caters to over 90% of the daily needs of Indian households, spanning staples, food, fashion, FMCG, home, personal care, and general merchandise. Analysts agree that the retail business will serve as the conglomerate’s primary growth engine, having shown remarkable growth with a 27% CAGR in revenue and 48% in segment EBITDA from FY18 to FY23.
ICICI Securities highlights Reliance Retail’s global stature as the only Indian retailer in the top 100 list globally and one of the top 10 most visited retail companies. The report emphasizes its focus on digital and new commerce channels, which contributed Rs 50,000 crore in revenue (20% of total retail) and received a $10 billion investment over the past few years. While the retail business’s revenue in FY23 was Rs 2.6 lakh crore, it’s still less than half of the income generated by RIL’s oil-to-chemicals business, which amounted to Rs 5.94 lakh crore.
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