RIL’s retail grip is getting stronger

RIL’s retail grip is getting stronger

India’s retail market is worth $883 billion and Reliance Industries wants to maintain an iron grip on it. through Reliance Retail, it has launched 7-Eleven stores in India and also snapped up stakes in firms owned by designers Manish Malhotra and Ritu Kumar. all this just in the last two weeks. 

Forrester Research's data projects the retail sector’s growth to $1.3 trillion by 2024. be it clothes, footwear, jewellery, toys, or even groceries, Reliance Retail caters to each segment. 

the addition of high couture brands is a logical extension for the company. it bought 40% stake in Malhotra’s MM Styles and 52% in Kumar’s firm Ritika. these mergers and acquisitions (M&As) have also helped boost the stock price, which hit a 52-week high of ₹2,750 on October 19.

so what’s the plan, really?

through its retail play, RIL wants to dominate the sector. premium and super premium were categories where the company hadn’t made its mark. now, the stake purchases will help build this segment.

Reliance Retail operates retail chains including Reliance Fresh, SMART, Reliance Digital, Trends, Reliance Jewels, Project Eve, 7-Eleven, and Hamleys in India. 

it now wants to build on this portfolio. during the Ritu Kumar tie-up, RIL said that this partnership will help build sustainable fashion and innovation in Indian textiles. partnering with an established designer also helps in scaling up. 

further, Reliance Ventures’ director Isha Ambani wants to use these stake buys to take Indian textiles and weaves globally. the brand name of the designer coupled with capital from Reliance. these acquis

grocery and mass retail push

simultaneously, 7-Eleven will fuel the grocery dreams of the conglomerate. RIL plans to scale JioMart aggressively and 7-Eleven would be an opportunity to build their brand. the company will also get the early mover advantage before the Tatas launch their SuperApp.

getting Future Group’s BigBazaar would be the last leg of this massive expansion, but their ongoing agreement with Reliance Retail for a buyout is not yet complete.

despite the Covid-led lockdown and local restrictions, Reliance Retail’s numbers have seen growth. Reliance Retail saw a 123% year-on-year rise in Q1 with its net profit at ₹962 crore. the company’s gross revenues rose 22% to ₹38,547 crore, even as store timings were curtailed across states. 

super exclusive global names are also slowly entering the market as Covid troubles subside. jewellery brand Tiffany & Co. has launched an e-commerce platform in India by partnering with Reliance. 

with its list of brands getting longer, the retail dreams of Reliance are only getting wider and stronger.