What segment hauls in the largest chunk of revenues for Reliance Retail?
Answer: the value format (along with others) accounts for 55 percent of revenues of the retail business, according to its annual report for 2013-14.Value formats focus primarily on food and groceries, which accounts for nearly 60 percent of the Indian consumption basket.
Reliance’s value format stores are best exemplified by Reliance Market, Reliance Fresh and Reliance Mart outlets.
The digital (Reliance Digital stores) segment accounted for the next big chunk of revenues (21 percent), while fashion and lifestyle (Reliance Trends and Reliance Footwear, a partnership with Marks and Spencer) brought in 13 percent.
The jewellery segment (Reliance Jewels) accounted for 9 percent, while brands (tie-ups with international companies for brands such as London Fog, Umbro, Cannon, Hamleys, Dune, Stuart Weitzman, etc)accounted for 2 percent.
The retail business generated revenues of Rs 14,496 crore in FY2014, up from 34 percent the previous year. It broke even on a net profit basis during the year, the annual report notes.
The consolidated net profit for FY14 was Rs 182 crore, according to the annual report.Reliance Retail operates 1,691 stores across 146 cities, covering an area of 11.7 million square feet.
Given the growing buzz about India’s e-commerce market, it’s no surprise the company is planning to foray in the booming online marketplace this year. “The business is poised to launch multi-channel shopping in the coming year,” it says in its annual report. “The potential of e-commerce combined with the network of physical store locations will offer tremendous choice and convenience at a great value to the consumer.”
Flipkart-Myntra, Amazon and ebay will have to watch out.
(To access RIL’s annual report, click on this link.)

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