BackReliance Retail set to grow threefold in the next 3-5 years: Mukesh Ambani
The firm plans to acquire more consumer-focused businesses as it sharpens its omnichannel capabilities
PremiumNEW DELHI : Reliance Retail Ltd is on a “hyper growth trajectory" and is set to increase its business three times in the next three to five years, Mukesh Ambani, chairman and managing director, Reliance Industries Ltd (RIL), said at the company’s 44th annual general meeting (AGM) held virtually on Thursday.
“Reliance Retail continues to be among the fastest growing retailers in the world. We are committed to grow our business so that we are among the top 10 retailers globally. I am confident that Reliance Retail is on a hyper growth trajectory to grow at least 3x in the next 3-5 years," Ambani said.
Retail had revenues of ₹153,818 crore, and Ebitda of ₹9,842 crore, despite a challenging year, he said. “We are by far the leader in each category, grocery, electronics and apparel," Ambani said.
Reliance Retail, which is part of the oil-to-telecom conglomerate and runs several retail formats across consumer electronics, fashion and lifestyle, grocery and pharma retail in India, will step up investment in research, design, and product development capabilities and strengthen its sourcing ecosystem and also build supply chain infrastructure.
It also plans to acquire more consumer-focused businesses as it “sharpens its omnichannel capabilities".
“In the next year, we will set up design, research, technology, and innovation centres in key areas globally and nationally to develop differentiated offerings for our diverse customer groups. Second, we will further strengthen our sourcing ecosystem working closely with producers, micro, small, and medium enterprises, service providers, local and international brand companies," Ambani said.
The company will also invest in supply chain infrastructure across India by linking all major sourcing and consumption locations. “This will maximize efficiencies and minimize losses in the supply chain, so that we can share the gains with both consumers and producers," he said.
The company’s retail arm also owns online fashion-focused marketplace Ajio, which competes with Walmart-backed Myntra. Ajio hosts a portfolio of more than 2,000 brands and a listing of more than 500,000 options. Driven by innovation, Ajio now contributes to more than 25% of its apparel business, the company said. In the last fiscal the company added a record 1,500 stores across formats, Ambani said. Reliance Retail has a store footprint of over 12,700 stores.
JioMart registered more than 650,000 peak orders in a single day, he said. JioMart’s growth is a testament to its loyal customer base, 80% of whom are repeat shoppers.
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