In continuing our coverage about Retail Business Analysis in India, this week have exclusive coverage on Reliance Retail venture by headed Mr. Mukesh D. Ambani. This will be covered in two parts.
Over the last two years, retailers have grown significantly in terms of space and sales. Reliance Industries Ltd – RIL owns 98.74% stake in the retail business and we understand that Reliance Retail is the parent company and each format has been housed in a separate subsidiary.
For the FY ended Mar-08, Reliance Retail had total assets of Rs 48bn and sales revenues of Rs22bn and loss of Rs974m. Reliance Retail operates through a number of subsidiaries. The top 5 subsidiaries w.r.t sales in FY2008 are,
- Reliance Fresh sales of Rs 3.5 bn
- Reliance Dairy Foods with sales Rs 658 mn
- Reliance Digital reported sales of Rs 400mn
- Reliance Hypermart – Rs 291 mn
- Reliance Wellness Stores – Rs 284 mn
Other Subsidiaries of Reliance Retail are,
- Reliance Home Store
- Reliance Footprint
- Reliance Leisures
- Reliance Autozone
- Delight Proteins
- Reliance Trends
- Reliance Gems & Jewels
- Reliance Brands [For collaborating with foreign brands]
- Reliance Lifestyle Holdings
Reliance Retail is structured in such a way that Logistics is handled by Reliance Supply Chain Solutions, Manpower by Strategic Manpower Solutions, Food Processing by Reliance Agri Products Distributions and Reliance Food Processing Solutions.
The only profit making subsidiary of Reliance Retail is the financial arm Reliance Retail Finance [Issues Credit Cards and Loyalty Points to Reliance customers]. Other subsidiaries are Reliance Financial Distribution & Advisory, Reliance Retail Insurance & Broking and Reliance Retail Travel & Forex Services. Part-II of Reliance Retail business analysis will continue.