Reliance Retail, the retail arm of Reliance Industries Limited (RIL) is slated to become one of its most profitable sectors. Mukesh Ambani, Chairman of RIL, in the company’s 39th Annual General Meeting (AGM) held on 6th June shared this above plan with his shareholders. He said, “We want to make retail business as one of our growth engines over the next few years. I am confident that our retail business would undertake multi-fold growth in the next few years by delivering over 50 percent revenue growth in various format sectors year-on-year and is on its way to achieve revenue target of Rs 40,000- 50,000 crore as shared by me in our last AGM.”
He further added that the results will demonstrate the underlying strength of our business and strategies to offer unparalleled choice of products and services to Indian customers. As a part of its expansion strategy, RIL has added 184 stores across format sectors. It is also planning to capture the consumers in tier-2 and tier-3 cities. Currently, the company owns around 1,500 stores in 130 cities across the country. With Rs.10,000 crore revenue in 2012-13, the retail business achieved cash breakeven said Ambani. It aims to become the largest retail chain in India. “Our multi-format strategy is paying huge dividends with most of the formats having positioned themselves as market leaders and is poised for strong growth in the future.” added Ambani. The second largest retail chain looks after consumer goods like apparels, jewellery, footwear, electronic appliances and food.
Reliance Retail is introducing novel ideas for promotion. Recently, Reliance One loyalty programme gathered over 13 million customers and contributed 65 percent to the sales during the year. “The value format has further consolidated its position as the largest grocery retailer in the country.” Ambani said. Reliance mart, the grocery arm of retail chain has introduced cash and carry concept, under which local traders and institutions are provided with complete packages which benefit them in price, service and range of products.
“Our Digital and Xpress stores continue to be the benchmark in product range, solutions and services offered in the market,” added Ambani.
He also said that the company will pursue growth in all parts of the business with greater efficiency and increased customer orientation. It will work relentlessly to make all the formats the most favored shopping destination for Indian customers.
Apart from this, RIL is planning to focus on its core-energy business. It plans to expand the gas and oil production from the wells located in the eastern coast of the country. The company will also invest a good amount of fortune on its upcoming 4G services under the brand name Reliance Jio Infocom.