Reliance AGM 2023: Following billionaire Mukesh Ambani’s induction last year of his daughter Isha Ambani as his conglomerate’s head of retail, some of the main focuses at this year’s AGM were the performance of acquired brands, as well as any statements about upcoming releases, growth and procurement.
Reliance AGM 2023 Updates
Speaking about Reliance Retail at the AGM, Mukesh Ambani, Chairman and MD of Reliance Industries said that Reliance Retail recorded an annual turnover of Rs 2,60,364 crore in FY23, registering a year-on-year growth of 30%.
“We achieved EBITDA of Rs 17,928 crore and 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. In recent years, the country has attracted investment from large and reputable global investment firms and sovereign wealth funds due to its rock-solid fundamentals and compelling value proposition.
“I am delighted to welcome another world-renowned sovereign wealth fund, Qatar Investment Authority, as a valued investor in Reliance Retail, with a $1 billion investment for a 1% equity stake. This investment values Reliance Retail at a pre-money share value of Rs 8,28,000 crore,” he added.
“At the fundraising in September 2020, the valuation of Retail Business was Rs 4,28,000 crore. In less than three years, Retail’s valuation has almost doubled, despite the interim Covid-19 pandemic. Based on this valuation, had Reliance Retail been listed, it would have been among the top 4 companies in India and the top 10 retailers globally.”
Isha Ambani added that FY23 has been a milestone year for retail.
“Our tremendous belief and conviction in the Indian retail story was amply rewarded when Reliance Retail crossed the milestone of 100 crore transactions, up 42% year-on-year,” she added.
She stressed that the stores received more than 78 crore visitors during the year. The number of registered customers grew to nearly 25 crore.
“We deliver value to more than 30% of India’s accessible population. All this has made Reliance Retail one of the top 10 most visited retailers in the world,” she added.
“Our digital and new commercial sales contributed nearly Rs 50,000 crore, accounting for about a fifth of our revenue. We’ve invested more than $10 billion in the past two years, focusing on building integration, growing our own brands and improving supply chain networks.”
She also added that more than 3,300 new stores opened last year, bringing the total to 18,040 stores, covering a retail area of 6.56 crore square meters.
“Two-thirds of these stores are located in Tier II, Tier III cities and smaller towns, a testament to our commitment to making retail inclusive.”
She added that Retail Business is built on the principle of the 4Cs: Collaboration, Consumer Engagement, Creativity and Care.
Meanwhile, ahead of the AGM, investors eagerly awaited information on Reliance Retail’s separate listing schedule. At the 2019 Annual General Meeting, RIL had announced its intention to float its telecommunications and retail divisions within the next five years. With four years already passed, the majority of investors expected a status update regarding the potential timelines for an IPO.
According to a report by CNBCTV18During the 2022-2023 fiscal year, Reliance Retail recorded a footfall of 780 million leading to its customer base growing to 249 million over the year
During the year, Reliance Retail entered the beauty segment by launching the digital platform “Tira” and opening its flagship store in Mumbai. The company also expanded its product range through acquisitions and partnerships at both the local and global levels, including Metro, Campa Cola, GAP, Pret A Manger, Lotus, Sosyo, Maliban and Toffeeman, among others.
After the launch of Sosyo and Campa Cola, Reliance Retail experienced eleven times as much growth in the first quarter of the current financial year.
Most recently, the company announced the launch of its youth-focused fashion retail formula, Yousta, with the opening of its first store at Sarath City Mall in Hyderabad. It will be aimed at consumers in the 15 to 25 age group at affordable prices.
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