Reliance Retail Aims to Double Revenues and EBITDA in 3-4 Years

RIL AGM: Reliance Retail expects to double revenues, EBITA in the next 3-4 years

Reliance Retail plans to double its revenues and EBITDA over the next 3-4 years. It is venturing into luxury and fashion jewellery, launching new retail formats for mobiles and laptops, and expanding grocery retail in smaller towns. The company will enhance its presence in beauty and FMCG sectors while leveraging technology for better operations.India's largest retailer, Reliance expects to double revenues and earnings before interest, taxes, depreciation, and amortization (EBITDA) for the business in the next 3-4 years, while it has plans to expand the jewellery business into luxury and fashion segments. The company is also launching a new retail format for the latest mobiles and laptops. Reliance Industries chairman and managing director Mukesh Ambani told shareholders during the company's 47th annual general meeting held virtually on Thursday that Jio and retail are expected to double their revenues and EBITDA in the next 3-4 years. Reliance Retail recorded gross revenue of Rs 3,06,848 crore in 2023-24 which grew by 17.8% over last year with an EBITDA of Rs 23,082 crore which went up by 28.4% year-on-year and net profit of Rs 11,101 crore up by 21% year-on-year. At 8.5%, the EBITDA margin continued to show improvements and grew 70 basis points year-on-year. In FY24, Reliance Retail undertook an equity fund raise of Rs 17,814 crore achieving a valuation milestone of $100 billion. Mr Ambani said Reliance Retail is using "Deep Tech with real time dashboards, integrated AI workflows to make operations AI-enabled across the value chain" and building "significant capacities in data analytics and personalisation for best-in-class customer experience." Reliance Retail Ventures director Isha M. Ambani said the company has "ambitious plans to enter the luxury jewellery segment with a curated, design-led experience and are exploring the fashion jewellery and accessories segment to broaden market reach." Reliance Retail Ventures, a subsidiary of Reliance Industries, is the holding company for all the retail businesses of Reliance. The company is expanding its big-box Reliance Digital format apart from a "new productivity-focused format for the latest mobiles and laptops," said Ms Ambani. ET had broken about this expansion into a new format in October 2022. Ms Ambani said Reliance's investments in brands like Kalanikethan, Zivame, Clovia, Amante and Urban Ladder have given it a strong foothold in these categories. She said Reliance's own brands like Avaasa, Netplay and DNMX each surpassed the Rs 2,000 crore annual sales milestone in FY24, while John Players and Teamspirit crossed Rs 1,000 crore in sales. In grocery retail, Ms Ambani said Reliance is expanding at 2.5 times the rest of modern trade driven by focus on smaller towns where over two-thirds of the new stores are opening. "In many of these markets, we are the first modern retailer to establish a presence. At the same time, we are selectively expanding our premium formats, Fresh Signature and Freshpik, in large cities," she said. Ms Ambani said in beauty, Reliance is building presence through an omni-channel strategy across multiple formats like Tira, Sephora, Kiko Milano and Blushlace, while enhancing beauty and personal care offerings across existing formats such as grocery, fashion and pharma both online and offline. "Our investment in Insight Cosmetics is enabling us to create our own brand portfolio," she said. In the FMCG business, Ms Ambani said the early success of its brands like Campa, Lotus Chocolates and Sosyo gives Reliance the "confidence that we are on the right path." She said Reliance has built a robust pan-India supply chain through its own facilities and strategic partnerships to offer products at highly competitive prices. The R&D facility in Bengaluru is able to quickly develop world-class food products.

RIL AGM: Reliance Retail expects to double revenues, EBITA in the next 3-4 years

India's largest retailer, Reliance expects to double revenues and earnings before interest, taxes, depreciation, and amortization (EBITDA) for the business in the next 3-4 years, while it has plans to expand the jewellery business into luxury and fashion segments. The company is also launching a new retail format for the latest mobiles and laptops. Reliance Industries chairman and managing director Mukesh Ambani told shareholders during the company's 47th annual general meeting held virtually on Thursday that Jio and retail are expected to double their revenues and EBITDA in the next 3-4 years. Reliance Retail recorded gross revenue of Rs 3,06,848 crore in 2023-24 which grew by 17.8% over last year with an EBITDA of Rs 23,082 crore which went up by 28.4% year-on-year and net profit of Rs 11,101 crore up by 21% year-on-year. At 8.5%, the EBITDA margin continued to show improvements and grew 70 basis points year-on-year. In FY24, Reliance Retail undertook an equity fund raise of Rs 17,814 crore achieving a valuation milestone of $100 billion. Mr Ambani said Reliance Retail is using "Deep Tech with real time dashboards, integrated AI workflows to make operations AI-enabled across the value chain" and building "significant capacities in data analytics and personalisation for best-in-class customer experience." Reliance Retail Ventures director Isha M. Ambani said the company has "ambitious plans to enter the luxury jewellery segment with a curated, design-led experience and are exploring the fashion jewellery and accessories segment to broaden market reach." Reliance Retail Ventures, a subsidiary of Reliance Industries, is the holding company for all the retail businesses of Reliance. The company is expanding its big-box Reliance Digital format apart from a "new productivity-focused format for the latest mobiles and laptops," said Ms Ambani. ET had broken about this expansion into a new format in October 2022. Ms Ambani said Reliance's investments in brands like Kalanikethan, Zivame, Clovia, Amante and Urban Ladder have given it a strong foothold in these categories. She said Reliance's own brands like Avaasa, Netplay and DNMX each surpassed the Rs 2,000 crore annual sales milestone in FY24, while John Players and Teamspirit crossed Rs 1,000 crore in sales. In grocery retail, Ms Ambani said Reliance is expanding at 2.5 times the rest of modern trade driven by focus on smaller towns where over two-thirds of the new stores are opening. "In many of these markets, we are the first modern retailer to establish a presence. At the same time, we are selectively expanding our premium formats, Fresh Signature and Freshpik, in large cities," she said. Ms Ambani said in beauty, Reliance is building presence through an omni-channel strategy across multiple formats like Tira, Sephora, Kiko Milano and Blushlace, while enhancing beauty and personal care offerings across existing formats such as grocery, fashion and pharma both online and offline. "Our investment in Insight Cosmetics is enabling us to create our own brand portfolio," she said. In the FMCG business, Ms Ambani said the early success of its brands like Campa, Lotus Chocolates and Sosyo gives Reliance the "confidence that we are on the right path." She said Reliance has built a robust pan-India supply chain through its own facilities and strategic partnerships to offer products at highly competitive prices. The R&D facility in Bengaluru is able to quickly develop world-class food products.