Home / Knowledge / News / Textiles / Reliance Retail clocks stupendous growth of 33% last year
Reliance Retail clocks stupendous growth of 33% last year
06
Aug '13
The retail arm of Reliance Industries Limited (RIL), Reliance Retail is growing at a high speed. This year, it has already crossed revenues of Rs 10,800 crore and achieved a break-even with an EBITA of Rs 78 crore. It is an achievement for the company while other retail players are struggling in this segment.

Furthermore in the last Annual General Meeting, Chairman Mukesh Ambani said that their retail business would grow rapidly in coming years. He expected that its revenue would grow by 50 percent each year, so that the company achieves its goal of annual revenue of Rs40, 000-50,000 crore. To achieve this goal, the key drivers would be from volume generated by cash-and-carry stores, value formats and high margin specialty formats such as Reliance Trends and Reliance Jewels.

“The bottom line of Reliance Retail will come from its specialty formats, while top line growth will be driven by food and grocery segment,” said Bijou Kurien, President and Chief Executive, Lifestyle Reliance Retail.

Going by the figures, this leading retail chain brand grew at an overall CAGR (Compound Annual Growth Rate) of 33 percent in the last year. Its highly profitable areas turned out to be value format brands like Reliance Fresh, Reliance Super, Reliance Mart that grew at a CAGR of 19 percent and contributing Rs6,100 crore in the total revenue.

Apart from this growth factor, another piece of news that is making industry observers happy is that EBITA has turned positive for the company. EBITA is an acronym that refers to a company’s earnings before the deduction of interest, tax and amortization expenses. “It is happy news that Reliance has turned EBITA positive is definitely an achievement but it is just the starting point. Going up to a sales turnover of Rs 10,000 crore has generated enough volumes for it to break even,” says B.S.Nagesh, Vice-Chairman, and Shopper’s Stop.

Any retail investment becomes less viable with the cost of rents that come for its stores. For Reliance, its growing retail business won’t turn out to be an asset-heavy model as it owns some properties of Trends and Footprints. Its cash-and-carry stores are prospering also because other multinational companies in this segment are charged with heavy taxes.

This comes out to be an advantage for Reliance that will stimulate its profitability. Today, almost 40 percent of Reliance Retail’s sales come from the food and grocery segment. It is a market norm that food and grocery have never enjoyed good margins, but the company has managed a good balance between its food and non-food formats such as apparel, footwear and jewellery.

Mukesh Ambani had announced an investment of Rs 25,000 crore when its retail chain was launched in 2006. Backed by a rich cash-reserve of RIL, the retail chain will face no major down-turns.

Reliance Industries Limited


Must ReadView All

UK Prime Minister Boris Johnson (Right) in virtual conversation with New Zealand PM Jacinda Ardern Pic: GOV.UK

Textiles | On 21st Oct 2021

UK, New Zealand agree to comprehensive trade agreement

The UK and New Zealand have agreed to a comprehensive trade agreement ...

Pic: Shutterstock

Textiles | On 21st Oct 2021

China's FDI inflow up by 19.6% in first 9 months of 2021

Foreign direct investment (FDI) into the Chinese mainland, in actual...

Pic: Shutterstock

Textiles | On 21st Oct 2021

India’s cotton consumption to rise in market year 2021-22

The highly competitive prices of Indian cotton fibres in the global...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Uniform designing is a numbers game

Gaurav Davda, Jindal Worldwide Ltd

Gaurav Davda
Jindal Worldwide Ltd

Indian MMF sector to become globally competitive

Textile Industry, Head honchos

Textile Industry
Head honchos

Great step towards realising end goal of 'AtmaNirbhar Bharat'

Susan Bhaktul,

Susan Bhaktul

Established in 2000 as a liaison with the Government of India, Industree...

Rishav Bajoria & Subham Sengupta,

Rishav Bajoria & Subham Sengupta

Launched in October 2020, the Gumti app could not have come at a more...

Meghavi Suthar,

Meghavi Suthar

Founded by NIFT graduate <b>Meghavi Suthar </b>in 2017, Kala is an...

Thomas Ong P S, NanoTextile

Thomas Ong P S
NanoTextile

Malaysian company NanoTextile Sdn Bhd taps into the potentials of...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by <b>Aprajita Toor</b> were born out of a deep desire to...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah &amp; Sandeep is a luxury menswear label...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search