3x growth in 5 years, 1 mn jobs: Mukesh Ambani's blueprint for retail biz

Reliance Retail had added 1,500 stores in FY21 and had taken its total store count for the year to 12,711 outlets across multiple formats
Mukesh Ambani, chairman of Reliance Industries (RIL), will set up more stores, sharpen omnichannel capabilities, and acquire new businesses as he looks to scale up operations of his retail division, the largest organised player in the country.


Addressing shareholders at the company's 44th annual general meeting on Thursday, Ambani, 64, said Reliance Retail was on a "hyper-growth trajectory". It would grow at least "3x in three to five years", providing 1 million jobs to people in the near future.


Ambani also outlined a five-point agenda for the division as it sought to be amongst the top 10 global retailers in the next few years.


"Reliance Retail continues to be among the fastest-growing retailers in the world. To expand the circle of shared prosperity, we will be focusing on five key initiatives, including research, design and product development capabilities, sourcing ecosystem, supply-chain infrastructure, expanding store footprint multi-fold, and acquiring businesses," he said of the division's future road map.


The RIL chairman, however, chose to steer clear of announcing any listing plans for Reliance Retail, whose 2020-21 (FY21) turnover stood at Rs 1.53 trillion - over 6x the nearest competitor in retail.


Reliance Retail had added 1,500 stores in FY21 and had taken its total store count for the year to 12,711 outlets across multiple formats, including grocery, electronics, and apparel.


The division's earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at Rs 9,842 crore in FY21, with Ambani indicating that retail and Jio were together contributing to half of RIL's total Ebitda of Rs 98,000 crore for the year.


“RIL’s apparel business sold nearly 500,000 units per day and over 180 million units during the year. This is equivalent to dressing up the entire population of the UK, Germany, and Spain once," said Ambani.


Ajio, the online fashion and lifestyle platform of Reliance Retail, had emerged as one of the leading digital commerce destinations with a portfolio of over 2,000 brands, Ambani said.


“Driven by innovation, Ajio now contributes to over 25 per cent of our apparel business," he added.


“We further consolidated our position in consumer electronics and sold 45 million units of electronics last year (FY21), which translates into over 120,000 units per day," he added.


As India’s largest grocery retailer, Reliance Retail sold over a billion units of groceries, or about 3 million units per day.


JioMart, the new commerce platform launched in May last year by the company, had registered over 650,000 peak orders in a single day, said Ambani.


Since its launch, over 300,000 merchants or shopkeeper partners across 150 cities were onboarded on JioMart. The plan is to increase the number to over 10 million in the next three years.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel