Reliance Retail Ventures Ltd, a subsidiary company of Reliance Industries Limited (RIL), is reportedly planning to go public after June this year, a media report said.
Mint, citing people aware of the development, said that the company is expecting a good response. It added that RIL chairman Mukesh Ambani is betting big on the company’s consumer businesses — Reliance Retail Ltd and Reliance Jio Infocomm Ltd — to double sales in about seven years.
Last month, Reliance Retail jumped 95 places on Deloitte's Global Powers of Retailing 2019 index, to reach the 94th spot as revenues soared on the back of growth in grocery, consumer electronics, and fashion and lifestyle businesses.
Reliance Retail "was a new entrant in the Fastest 50 list FY2016 (released last year) and continued its rapid growth by nearly doubling its retail revenue (in local currency) in FY 2017. This was also reflected in its climb of 95 places to number 94 in the top 250," Deloitte said.
The company's "retail segment witnessed the robust operating performance, driven by major growth across its grocery, consumer electronics, and fashion and lifestyle businesses," it said.
Reliance Retail, which operates 9,907 stores in over 6,400 towns and cities, is India's largest retail chain, both by revenue and the total number of stores. In the first nine months of the current fiscal, the company reported more than doubling of revenue to Rs 93,903 crore and a profit of Rs 4,278 crore.
Reliance Retail reported an over twofold jump in its pre-tax profit to Rs 1,680 crore for the December 2018 quarter, driven by healthy festive season sales and new store openings.
"Revenues have nearly doubled for five consecutive quarters and EBITDA has nearly tripled for four consecutive quarters. Year-to-date revenues and profits have surpassed the whole of FY18," said RIL in a statement in January.
Reliance Retail's grocery stores led by Reliance Fresh and SMART delivered a robust revenue growth during the quarter backed by healthy volume growth across food and non-food categories.
While in fashion and lifestyle segment, it has added 100 new stores being during the quarter, extending its reach to 25 new cities, it said. During the quarter, area operated by Reliance Retail was also increased 42% to 20.6 million sq ft as against 14.5 million sq ft of the corresponding period.
With PTI inputs
(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)
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Updated Date: Feb 25, 2019 17:30:50 IST