Ambani overtakes Kishore Biyani, becomes India’s largest retailer
Reliance Retail targets turnover of
50,000 crore in 3 years
From page C
NEW DELHI: Mukesh Ambani’s Reliance Retail is expected to emerge as the
largest player in India’s organised retail sector this year, overtaking
erstwhile market leader Future Retail.
It posted a turnover of ` 10,857 crore for the nine months ended December 31, 2013. Future group chairman Kishore Biyani had said in January that his group would clock revenues of about ` 11,000 crore for the full year. Reliance has already reached that figure in the first nine months of the year and so, is likely to be comfortably ahead by March 31, 2014.
Parent company Reliance Industries, which is sitting on a cash pile of ` 90,000 crore, has lined up massive expansion plans for the retail business. The target: a turnover of ` 50,000 crore from this segment by 2016-17.
“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,” Ambani had said at the company’s last AGM in June last year.
The company expects the bulk of this growth to come from the value and digital segments, where it can leverage its deep pockets, world class backend and well-oiled logistics chain to provide competitive prices.
“Retail is actually not as complicated a business as it is made
out to be. Reliance has proved this – a sharp focus on right store
formats and the ability to adapt and adjust to customer needs has been
the key to the company’s success,” Arvind Singhal, chairman of
Technopak, a retail consultancy firm, told HT.
Ambani, who entered the retail sector in 2006-07, has had to wait patiently for more than six years for his investments to pay off. His retail business, which incurred losses for the first five years, finally turned around in 2012-13 when it posted a profit of ` 78 crore. This year, it has earned a profit of ` 278 crore in the first nine months
` of 2013-14.
“Reliance Retail is growing at 40% year-on-year. It has touched the inflection point and I feel the business will get stronger in the coming months,” said Abneesh Roy, associate director, Edelweiss Financial Services, a leading financial services firm.
Ambani, who entered the retail sector in 2006-07, has had to wait patiently for more than six years for his investments to pay off. His retail business, which incurred losses for the first five years, finally turned around in 2012-13 when it posted a profit of ` 78 crore. This year, it has earned a profit of ` 278 crore in the first nine months
` of 2013-14.
“Reliance Retail is growing at 40% year-on-year. It has touched the inflection point and I feel the business will get stronger in the coming months,” said Abneesh Roy, associate director, Edelweiss Financial Services, a leading financial services firm.
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