Why Reliance bought Future Retail in Largest Deal – Insider View

After getting series of funding into Akash Ambani run Jio Platforms, Reliance Industries CMD, Mukesh Ambani set his sight on his daughter Isha Ambani Piramal managed Reliance Retail Ventures Ltd .

Talks had progressed in the backstage between the Reliance Group & Kishore Biyani’s Future Group for quite sometime. Reliance through its newly formed group company Reliance Retail Ventures Limited will acquire Future Enterprise Ltd (Future Retail, Future Lifestyle Fashions, Future Supply Chain, Future Consumer, Future Market Networks would first be merged into Future Enterprise), on a slump sale basis for an enterprise value of Rs247 bn, subject to regulatory approvals. This marks a major consolidation in the Indian organized retail sector, with two of the top three players merging.

How Reliance Retail Compares with Future Retail Ltd (FRL) ?
Reliance Retail revenue in FY20 was Rs346 bn and that of Future Retail annualized revenue of FY20 (based on 9M FY20 results) was ~Rs100 bn. Future Retail has (more…)

Reliance Retail – Good Performance in Difficult Times

Reliance Trends Retail Results Review Reliance Retail has significantly stepped up the pace of store operations across various segments over the past few years and now operates 11.7mn sq ft of retail space. Reliance Retail has emerged as the largest retail chain in the country and is now closing in on Future Retail in terms of revenue (for comparable value formats). Below are key highlights of the company’s performance in Q4FY14 and FY14.

Despite difficult Economic situation under the Corrupt Congress Regime, Reliance Retail added 225 stores over FY14 taking total store count (more…)

Reliance Retail Footprint Expands to 142 Cities with 1577 Stores

Reliance Retail Business UpdateIn the past three years, organized retail players have seen their profitability erode on the back of rising rentals, high power costs, levy of service tax and above all a poor consumer sentiment. Amidst these headwinds, Reliance Retail has seen its retail business report a strong performance. Reliance Retail, now a pan India player has a presence in 141 cities with 1,577 stores covering over 10.7mn square feet. In terms of profitability, the company turned around at the end of FY13 at the EBIDTA level.

We expect penetration of organized retail to continue to increase as the presence (more…)

Reliance Retail – Good Performance by Loyalty Club Members

Reliance Trends ShoppingReliance Retail added 184 stores over FY13, taking its total store count to 1,466. Total space as of end-FY13 was 9mn sqft across 129 cities. The fashion & lifestyle segment witnessed the highest store additions, followed by electronics.

Store additions for value formats were relatively low. Retail space is concentrated more in the south (40% share of retail space) and west (33% share), followed by the north at 19% and the east at 8%.

Reliance Retail posted relatively (more…)