Reliance Retail Poised for Unprecedented Growth, States Chairman Mukesh Ambani
- ByStartupStory | August 28, 2023
RIL Chairman Mukesh Ambani announced on Monday that Reliance Retail has garnered immense interest from several esteemed global strategic and financial investors, including Qatar’s sovereign agency, which recently invested $1 billion in the company. He noted that if Reliance Retail were to be listed based on its current valuation, it would rank among the top four listed entities. Ambani highlighted the doubling of Reliance Retail’s valuation in under three years, emphasizing that this value creation rate is unparalleled on a global scale.
The Chairman indicated that multiple distinguished global investors have expressed robust interest in Reliance Retail, and he plans to provide further updates on their progress. He introduced his daughter, Isha, to report on the progress of the Retail business.
Referring to Qatar Investment Authority’s (QIA) recent acquisition of around 1% stake in Reliance Retail Venture Ltd (RRVL), Ambani remarked that the valuation has doubled in less than three years. He shared, “Just for context, during our fund-raise in September 2020, the valuation of our Retail business stood at Rs 4.28 lakh crore. In less than three years, the valuation of Retail has almost doubled, notwithstanding the intervening Covid-19 pandemic.” Ambani revealed that based on this valuation, Reliance Retail would have ranked among the top four Indian companies and top ten global retailers if it were publicly listed.
While welcoming QIA’s investment, Ambani praised Reliance Retail’s commitment to quality, innovation, customer-centricity, and adaptability. He emphasized the company’s strategic investments, digital transformation, and focus on delivering exceptional experiences. Ambani expressed his confidence that as India’s economy grows from $2,500 to $10,000 per capita, Reliance Retail will become the fastest-growing business in terms of revenues and EBITDA.
In 2020, RRVL had secured Rs 47,265 crore (approximately $6.4 billion) from global private equity funds for a 10.09% stake, valuing the company at over Rs 4.2 lakh crore. RRVL has aggressively expanded its operations through acquisitions and obtaining franchise rights for leading international brands in the Indian market. In the latest annual report, RIL highlighted that Reliance Retail achieved a significant milestone of surpassing a billion transactions and has grown its registered user base to 249 million. In FY23, Reliance Retail’s digital commerce and new commerce segments contributed 18% to its revenue, totaling Rs 2.60 lakh crore.
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