With the growing consumer demands, Reliance Retail, a subsidiary of Reliance Industries Ltd (RIL) emerges as the top most valued company in the world. According to the latest report, its total valuation is $68 billion, and it occupies the sixth position. Reliance Jio, another subsidiary of RIL, emerges as the seventh most valued company in the list of top most valued companies.
The success of these companies shows the profitability and the demands of their products and services among consumers. In the financial year 2020-21, Reliance Retail became the second largest customer of the future consumer group by purchasing goods of Rs 157.54 crore, which accounts for around 29.4 percent of its total sales. As per the annual report shared by the company, it generated a total sales of Rs 586.15 crore in this fiscal year. In this blog, we will discuss Reliance Retail and its performance so far.
Understanding The Business Model Of Reliance Retail
Reliance Retail, considered the retail arm of Reliance Industries Ltd, has been competing against some of the biggest players like Amazon, Flipkart, VMart, Big Basket, and more. However, in the past few years, Reliance Retail has performed exceptionally well and has a large market share. Its financial performance remained good and positively impacted Reliance Retail share price. Let’s understand the business model of Reliance Retail:
- It is India’s one of the largest retail companies with a diversified presence on omni-channels via its integrated stores and digital e-commerce platforms. Reliance Retail’s Unique Selling Point(USP) is to provide superior quality products and an unmatched shopping experience.
- Its retail business model is divided into segments: Grocery, Pharma, Fashion & apparel, and Consumer Electronics. Reliance Retail provides customers with unlimited choices and on-time delivery following its diversified business model.
- With its 15,196 retail stores in different cities of India, Reliance Retail has over a 196 million customer base, including households, kiranas, and merchants. The company’s operating model depends on its retail value chain, which consists of the MSMEs, local producers, and regional, local, and international brands.
Performance Summary Of The Reliance Retail
Talking about the performance of Reliance Retail in the last few fiscal years, it showed exemplary growth in terms of revenue and other financial metrics. Reliance Retail unlisted share price also increased with its yearly growth in the Pre-IPO market. As per the latest data, the company’s retail stores increased from 11,784 in FY 2019-20 to 15,196 in FY 2021-22.
The above performance chart of Reliance Retail shows the company’s financial growth from 2019 to 2022. Back in FY19-20, the retail arm of RIL earned a total revenue of Rs 1,99,749 crore, while it increased to Rs 1,57,702 crore in FY 20-21. However, the revenue touched the figure of Rs 1,99,749 crore at the end of FY 21-22.
During these years, Reliance Retail unlisted share price consistently increased, allowing investors to earn high returns on investment. Another financial metric that allows a company to become most valued is its EBITDA, Rs 9,695 crore in FY19-20, Rs 9,842 crore in FY20-21, and Rs 12,423 crore in FY 21-22.
Reasons Behind Reliance Retail’s Growth
Among the top most valued companies, Reliance Retail establishes itself as the trusted retail brand In India. You might wonder how a company founded in 2006 comes among the most valued companies globally. Here are some of the reasons behind the Reliance Retail growth:
Omni Channel Strategy
Reliance Retail’s omnichannel strategy allows it to serve customers’ demands within a specific timeline. The company creates an extensive ecosystem to capture a significant market share.
Growth In Small Towns & Cities
The company’s major strategy involves operating in small towns and cities and targeting customers through its diversified service. This allowed it a first-mover advantage across the cities that other retail businesses could not reach.
Focus On Health & Hygiene
Reliance Retail has always been a pioneer in identifying the latest consumer trends and focusing on health and hygiene. It creates an extensive range of home and personal products under its brand, allowing it to gain users’ trust.
Be A Part Of Reliance Retail’s Growth
The fast-paced growth of Reliance Retail is a good sign for investors who want to be a part of it. Having a 6th position in the top most valued companies allows this company to get global exposure. In the coming years, Reliance Retail plans to expand its reach by opening new stores and integrating with new e-commerce platforms. Undoubtedly, the company also performed in the Pre-IPO market, which resulted in a high Reliance Retail unlisted share price.
You can easily buy unlisted shares of Reliance Retail by using Stockify, an unlisted share brokerage platform. You can invest in other top-performing unlisted companies like OYO, Tata Technologies, and more there. Invest in top-performing unlisted shares of companies and become a part of their growth.