Reliance Retail aiming for up to Rs 50K crore revenue in 3-4 years
Mumbai: Identifying its retail arm as one of the future growth drivers of the group, RIL Chairman and MD Mukesh Ambani on Thrusday said Reliance Retail is eyeing a turnover of up to Rs 50,000 crore in the next three to four years.
Addressing shareholders at the annual general meeting of Reliance Industries Ltd (RIL) here, Ambani said in the five years of operations "Reliance Retail has achieved revenues of over Rs 7,600 crore".
"We are targeting a growth of five to six times in existing revenues and achieve Rs 40,000-50,000 crore over the next three to four years," he said.
Abmani further said: "Reliance Retail will be one of our important growth engines in the next few years and will have amongst the highest growth rates and earnings potential."
Claiming that Reliance Retail has "attained clear leadership position", he said: "This initiative has now grown into a 1,300 store business spanning 18 states."
RIL's retail venture operates a variety of stores, including value formats -- Reliance Fresh, Reliance Super and Reliance Mart; speciality formats -- Reliance Digital, Reliance Trends and Reliance Footprint.
Reliance Retail is looking to grow customer base by over three-fold to over one crore people every week in 3-4 years from about 30 lakh people visiting its retail stores every week currently, Ambani said.
On the profitability of the retail arm, he said: "With scale, supply chain integration and continuous learning, we expect this business to be profitable within the same time period and achieve a satisfactory return on capital."
Commenting on the company's partnerships with foreign brands, Ambani said Reliance Retail has strengthened portfolio of global brands through several additional partnerships.
"We have entered into partnerships with international brands like Brooks Brothers, Iconix, Kenneth Cole, Quicksilver, Roxy, Steve Madden and Thomas Pink.
"We have built a sustainable growth model for our retail business. We will continue to invest in partnerships with producers, consumers and brands to significantly expand our stores and offerings across the country," he added.
Ambani further said that Reliance Retail through its newest format Reliance Markets is partnering kirana stores and small retailers to supply them products at low prices.
"We aim to be a supplier of choice for kiranas and small retailers... We will grow in retail in partnerships with small retailers," he added.
In terms of employment provided through Reliance Retail, Ambani said the firm has created new employment opportunities for over 50,000 people, of which 25,000 are directly employed by the company.