Reliance AGM 2023: Following billionaire Mukesh Ambani’s introduction of his daughter Isha Ambani as the head of his conglomerate’s retail business the previous year, some of the main focal points at this year’s Annual General Meeting included the performance of acquired brands, as well as any declarations about upcoming releases, growth, and procurements.
Reliance AGM 2023 Updates
Speaking about Reliance Retail at the AGM, Mukesh Ambani, chairman and MD of Reliance Industries, said Reliance Retail posted an annual revenue of Rs 2,60,364 crore in FY23, registering a year-on-year growth of 30%.
“We delivered an EBITDA of Rs 17,928 crore and a net profit of Rs 9,181 crore.”
Reliance Retail is the only Indian retailer in the global top 100, and one of the fastest growing retailers in the world. Over the past few years, it has attracted investments from large and reputable global investment firms and sovereign wealth funds owing to its rock-solid fundamentals and compelling value proposition.
“I am delighted to welcome yet another world-renowned sovereign wealth fund, Qatar Investment Authority, as a valued investor in Reliance Retail, with an investment of USD 1 billion for an 1% equity stake. This investment values Reliance Retail at a pre-money equity value of Rs 8,28,000 crore,” he added.
“During the fund-raise in September 2020, the valuation of Retail Business stood at Rs 4,28,000 crore. In less than three years, the valuation of Retail 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 4 companies in India and top 10 retailers globally.”
Isha Ambani added that FY23 has been a landmark year for the Retail Business.
“Our immense faith and conviction in India’s retail story was amply rewarded when Reliance Retail crossed the milestone of 100 crore transactions, up 42% YoY,” she added.
She highlighted that the stores received more than 78 crore footfalls during the year. The number of registered customers grew to nearly 25 crore.
“We are delivering value to over 30% of India’s addressable population. All this has made Reliance Retail rank among the top-10 most visited retailers in the world,” she added.
“Our digital and new commerce sales contributed nearly Rs 50,000 crore, accounting for about a fifth of our revenues. We have invested over USD 10 billion in the past two years, focusing on building integration, growing in-house brands, and improving supply chain networks.”
She also added that over 3,300 new stores were opened last year, taking the total count to 18,040 stores, covering 6.56 crore sq. ft of retail space.
“Two-thirds of these stores are in Tier II, Tier III cities and smaller towns, a testament to our commitment of making retail inclusive.”
She added that Retail Business is built on the principle of 4Cs – Collaboration, Consumer Engagement, Creativity, and Care.
Meanwhile, before the AGM, investors were eagerly anticipating information about the schedule for the distinct listing of Reliance Retail. In the 2019 Annual General Meeting, RIL had announced its intention to list its telecommunications and retail divisions within the subsequent five years. As four years have already transpired, the majority of investors were anticipating a status update regarding the potential IPO timelines.
According to a report by CNBCTV18, during the 2022-23 fiscal, Reliance Retail registered a footfall of 780 million, which led to its customer base growing to 249 million during the year
During the year, Reliance Retail entered into the beauty segment by launching the “Tira” digital platform and opening its flagship store in Mumbai. The business also expanded its product basket through acquisitions and partnerships at both local and global levels like Metro, Campa Cola, GAP, Pret A Manger, Lotus, Sosyo, Maliban, and Toffeeman among others.
Following the launch of Sosyo and Campa Cola, Reliance Retail saw 11 times the growth in the first quarter of the current fiscal.
Most recently, the company announced the launch of its youth-focused fashion retail format, Yousta, with the opening of its first store in Hyderabad’s Sarath City Mall. This will be targeted at consumers in the age group of 15-25 years at affordable prices.
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