Retail business to be fastest growing segment for RIL, says Mukesh Ambani
retail business will be the fastest growing segment for Reliance Industries in the days to come, chairman Mukesh Ambani said on Monday. Reliance has invested $10 billion for the expansion of the retail business in the past two years.
Addressing shareholders in the company's 46th annual general meeting held virtually, Ambani said as «India grows from a $2,500 per-capita economy to a $10,000 per-capita economy, Reliance Retail will be our fastest-growing business in revenues and Ebitda.» Ebitda is earnings before interest, taxes, depreciation and amortisation, or the operating profit.
Based on the latest investment by sovereign wealth fund Qatar Investment Authority in Reliance Retail, the valuation of the business has touched ₹8.28 lakh crore.
This is in contrast to the last round of fundraising in September 2020 when the valuation was ₹4.28 lakh crore, he said.
«In less than three years, the valuation of retail (business) 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 ten retailers globally.
The pace of this value creation is unmatched globally,» said Ambani.
Reliance Retail director Isha Ambani told shareholders that the company has invested over $10 billion in the past two years «focusing on building integration, growing in-house brands and improving supply chain networks».
She said the company opened more than 3,300 new stores last fiscal year, taking the total count to over 18,000 stores and that two-thirds of them were in tier-II, -III cities and smaller towns. The digital and new commerce sales contributed nearly ₹50,000 crore last fiscal, accounting for about a fifth
