BackReliance Retail invests ₹30,000 cr in FY22, customer base climbs 193 mn
Reliance Retail continued to invest in network and infrastructure expansion as well as strengthening its Digital and New Commerce capabilities during FY22.
PremiumReliance Retail made investments to the tune of ₹30,000 crore in the financial year 2021-22 (FY22). The company built capabilities through organic growth, acquisitions, and strategic partnerships in the fiscal. Also, the Reliance Industries-backed company continued to invest in network and infrastructure expansion as well as strengthening its Digital and New Commerce capabilities. RIL announced Reliance Retail funding for FY22 in their annual report for the fiscal.
In the annual report, RIL revealed that "Reliance Retail has built capabilities through organic growth, acquisitions and strategic partnerships with investments near ₹30,000 crore in FY 2021-22."
Further, in the financial year, Reliance Retail added over 11.1 million sq. ft. of warehousing space - which nearly doubles warehousing space to 22.7 million sq ft. Also, the company added over 8 million sq ft of retail space - taking the total retail space to more than 41.6 sq ft.
Also, the company added more than 2,500 new stores in the financial year FY22 which translates to an average addition of 7 stores every day. By end of FY22, the company's total store count came in at 15,196 stores covering 41.6 million sq ft in retail space.
The annual report said, "Reliance Retail continues to rapidly grow in scale on the back of new store expansion and favourable product mix resulting in high operating leverage. The business continues to provide unmatched value proposition and improve customer experience across all store formats."
Reliance Retail acquired Just Dial (B2B marketplace) which underlines its commitment to the New Commerce initiative by further boosting the digital ecosystem for millions of partner merchants and MSMEs.
During the fiscal, the RIL's retail arm further strengthened its sourcing ecosystem, working closely with producers, MSMEs, service providers, local and international brand companies.
"Reliance also built on its portfolio of brands, offering a superior value proposition and differentiated products to customers. Merchant partnerships and digital commerce now contribute nearly 17% of revenues compared to 10% in the preceding year," the annual report said.
In FY22, Reliance Retail's revenue jumped by 26.7% yoy to ₹1,99,749 crore and the segment EBITDA climbed by 26.2% to ₹12,423 crore. It said, "Despite challenges posed by the pandemic, Reliance Retail further consolidated its leadership position and continued to be India’s largest, most profitable, and fastest growing retailer."
Reliance Retail's all-time high revenues were recorded in fashion & lifestyle and grocery consumption baskets with strong growth momentum in consumer electronics. Overall a well-rounded growth driven by highest ever store sales and sustained growth momentum in digital and new commerce channels, it added.
During FY22, the company's merchant partners grew 3x Y-o-Y while digital commerce orders grew 2.5x Y-o-Y. The registered customer base of the company stood at 193 million, a growth of 24% Y-o-Y.
Despite the pandemic disrupting livelihoods, Reliance Retail added over 1,50,000 jobs to the economy.
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