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RECOMMENDATION

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Business Type

Dominant Leader

Discover and get complete analysis on Reliance Retail Share Price & Information Like- Funding, Threats, Opportunities, Awards & Achievements, Strengths & Reliance Retail Net Profit Growth, IPO etc. At Planify you will get all latest information after reading research report

ISIN

INE742O01010

Face Value

₹10.00

Total Share

4,99,04,04,513

Total Income

₹1,37,206.81 Cr

Profit After Tax

₹4,598.97 Cr

EPS

₹8.64

P/E

416.67

P/B

82.16

Market Capitalisation

₹17,96,545.62 Cr

Enterprise Value

₹18,11,138.95 Cr

Book Value

₹43.82

Intrinsic Value

₹3,529.45

Earnings Yield

0.24 %

Sector

Consumer Discretionary

Sub-sector

Retail Department Stores

Category

Upcoming IPO

Cashflow - Operations

₹797.15 Cr

Cashflow - Financing

₹9,188.23 Cr

Reliance Retail Growth

Compounded Sales Growth

  • -5.24%

    1 Year

  • 9.08%

    2 Year

Pro Only

Compounded Profit Growth

  • -18.09%

    1 Year

  • 18.88%

    2 Year

Pro Only

Return On Equity

  • 21.03%

    1 Year

  • 36.31%

    2 Year

Pro Only

About Reliance Retail

  • Reliance Retail Limited ("Reliance Retail") is an Indian retail company, a subsidiary of Reliance Industries Limited which operates chain of neighborhood stores, supermarkets, wholesale cash and carry stores, specialty stores, and online stores in India. Its retail outlets offer food and grocery products, home and personal care products, general merchandise, consumer electronics, fashion and lifestyle products, jewelry, and other products. 
  • As operating curbs were progressively lifted, new store openings resumed with 1,432 stores being added taking the total store count stood at 12,178 stores, covering 31.9 million sq. ft. at the end of the year
  • The business launched and rapidly scaled-up JioMart and built last-mile fulfilment capacity a fresh to enable home delivery of essentials across 200 cities. The company also operates a distribution network includes approximately 8,200+ Jio stores and retailers for new customer acquisition and recharges; sells diesel, petrol, and LPG through its 519 petro retail outlets; and operates online stores that sell lifestyle, fashion, grocery, and electronic products. 
  • In addition, it operates JioMart, an online selling channel that offers fresh fruits and vegetables, cereals, packaged foods, bakery and dairy products, frozen and pet foods, household cleaning items, and beauty and personal care products. 
  • Reliance Retail Limited was formerly known as Reliance Fresh Limited. The company was incorporated in 1999 and is based in Mumbai, India. Reliance Retail Limited operates as a subsidiary of Reliance Retail Ventures Limited.
  • V Subramaniam is the CEO of the venture.
  • Reliance Retail is India’s largest grocery retailer and operates multiple store concepts – from neighborhood stores to destination supermarkets and JioMart.
  • It had a total of 12,711 stores in April 2021 in India with an area of over 38.8 million square feet across more than 7,000 towns and cities at the end of FY21.

  • Reliance Retail IPO Details

Currently, Company has no plan to raise funding through IPO

  • Reliance Retail Funding

Funded By Funding Amount Date of Investment Funding Round Fund Name
Reliance Industries ₹ 5027 Cr 31 Mar 2012 Growth Private Placement
  • Reliance Retail Merger & Acquisition

Acquisition

  • Reliance Retail Limited acquired 16% stake in KaiOS Technologies Inc. for $ 7 million on March 9, 2018. Under the terms of agreement Reliance Limited has acquired 1.9 million shares of KaiOS, mobile operating system provider, at $3.675 per share. Covington and Burling LLP acted as a legal advisor to Reliance Retail Limited.
  • Reliance Retail Limited acquired John Platers brand of ITC Limited on March 26, 2019 estimated at Rs 150 crore, Reliance has acquired the assets, which includes the brand and distribution rights through 750 stores, including 65 exclusive franchise outlets. The acquisition will help Reliance bolster its own-brand apparel business, which will be an important element of its upcoming e-commerce business.
  • Reliance Retail Limited acquired Creative Portico (India) Pvt. Ltd. from Creative Garments Ltd. on quarter ended September 30, 2021 on a slump sale.
  • Reliance retail has acquired 28% stake in Danzo for $240 mil. This will help merchants to get access to the hyperlocal delivery network of Dunzo to support their growth as they move their business online through JioMart. 
  • Reliance Retail Subsidiaries

  • Reliance Fresh
  • Reliance Smart
  • Reliance Digital
  • Reliance Jewels
  • Reliance Trends
  • Reliance Footprint
  • Reliance Living 
  • AJIO
  • Reliance Market.
  • Hamleys
  • Netmeds
  • Urban Ladder
  • Reliance Retail Insurance Broking Limited
  • Shri Kannan Departmental Store Private Limited

Reliance Retail Business Model

Reliance Retail caters to five key consumption baskets –

1) Consumer Electronics : Reliance Retail is India’s largest consumer electronics retailer with an extensive network of 8,600+ stores across 7,000+ towns. Consumer electronic purchase often necessitates a ‘touch and feel’ of the product and in many cases involves demonstration, installation, maintenance and after sales service.

2) Fashion & Lifestyle: Stores across 850+ cities. Reliance Retail operates multiple specialty store concepts with an extensive portfolio of own and partner brands catering to all consumer segments through value, premium, bridge-to-luxury and luxury. 

3) Grocery: Reliance Retail is India’s largest grocery retailer and operates multiple store concepts – from neighborhood stores to destination supermarkets and hyperlocal platform JioMart. 

4) Pharma Retail: Reliance Retail forayed into pharmacy retail during FY 2020-21. It aims to lead the category by pioneering an omni-channel 

pharma strategy encompassing physical stores, digital platform Netmeds.com, and partnerships with connected local pharmacies. This integrated and inclusive offering will enhance accessibility and affordability of medicines for Indian customers

5) Connectivity: Reliance Retail works as the master distributor for Jio connectivity services. The distribution network comprises 8,200+ Jio stores and a vast network of retailers across the country for new customer acquisitions and recharges. 


  • Reliance Retail Revenue Segmentation

  • Organised Retail
  • Petro Retail
  • Others
  • Reliance Retail Product & Services

  • Food & Groceries
  • Fashion & Apparels
  • Electronics & Tele-Communication
  • Footwear
  • Jewelries 
  • Reliance Retail Assets

  • Company has been focusing on technological advancement and digital footprint reach hence there has been an increase of Rs. 2645.90 Cr. worth of softwares which amounts to total Rs. 3056.21 Cr. worth of softwares in total.
  • Company own Rs. 2651.03 Cr. worth of equipments, electrical installations worth Rs. 2387.70 Cr and leasehold improvements worth Rs. 1194.25 Cr. to design and restructure their retail outlets.
  • Company owns Furnitures and fixtures worth Rs. 1831.14 Cr.
  • Reliance Retail Industry Overview

Industry Statistics

  • The Indian retail industry is segregated into two sectors: organized and unorganized retailing. Organized retailing comprises the kind of trading activities that are undertaken by retailers who are registered for sales tax, Income tax etc. Corporate backed hypermarkets, retail chains, privately owned large retail businesses are some of the examples of organized retailing. Unorganized retailing mainly comprises local Kirana shops, owner-managed general stores, street vendors, convenience stores etc.
  • Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10% of the country’s gross domestic product (GDP) and around 8% of the employment in 2021. India is the world’s fifth-largest global destination in the retail space. 
  • India’s retail market is estimated at US$822 billion in FY 2019- 20 and is expected to grow at a CAGR of 10% over next five years to reach US$1,315 billion by FY 2024-25. The organized retail market is estimated at US$88 billion in FY 2019-20 and is expected to grow at a CAGR of 19% over the next five years to reach US$231 billion by FY 2024-25.
  • The pandemic has created a new set of challenges for a sector that is fairly unorganised and already dealing with several structural changes. Trends that were on a multiyear trajectory saw a dramatic acceleration and the retail industry witnessed more innovation in the past year than it did in the prior decade.
  • Customers have the ever-increasing choice of products at the lowest rates. In terms of post covid impact, consumers are likely to remain value-conscious which will benefit hypermarkets as they are better placed to offer discounts due to their volumes. The comeback of non-essential sales is likely to aid recovery and growth across supermarkets. E-commerce is creating the biggest revolution in retail industry, and this trend is likely to continue in the years to come. 
  • On the other hand, traditional grocery retailers are likely to maintain their popularity as their easy accessibility and a loyal customer base remain their strengths. These outlets will also play a critical role in last-mile deliveries for e-commerce players. The unorganised retail market is poised to grow to over US$1 trillion over this period, making it amongst the most attractive consumer sector opportunities across the world.
  • As hypermarkets and supermarkets are large format stores, expansion opportunities in metro cities could be limited. However, low penetration of modern grocery retailers, lower real estate costs and availability of large spaces offers tremendous expansion opportunities in tier II and tier III cities.
  • India’s retail sector attracted US$ 6.2 billion from various private equity and venture capital funds in 2020
  • Companies are now looking to hire tech-savvy people to cope with ever changing environment. Moreover, customers too are now looking for an alternative mediums to shop as well as a variety of items which they can buy online. This clearly shows that the future of shopping is going to be technology-driven.
  • Long-term outlook for the industry looks positive, supported by rising income, favourable demographics, entry of foreign players, and increasing urbanisation.

Future Prospects

  • The retail industry in India is in the midst of paradigm shift, transitioning from an unorganised sector to an organised venture. Small enterprises are working towards the formalisation of their companies for a better growth prospective. The ongoing Coronavirus pandemic has furthered the shift towards organised industry since retailers have been forced to adopt technology and automation to forward their businesses.
  • Online retail market in India is projected to reach US$ 350 billion by 2030 from an estimated US$ 55 billion in 2021, due to rising online shoppers in the country. In 2020, the most common payment methods online were digital wallets (40%), followed by credit cards (15%) and debit cards (15%). Online penetration of retail is expected to reach 10.7% by 2024 versus 4.7% in 2019
  • The penetration of organised retail market is estimated at 11% in FY 2019-20 and is expected to grow to 18% by FY 2024-25.
  • Another prevalent emerging trend in the retail industry is the application driven-shopping experiences. The end consumers now prefer mobile apps while shopping since it eases the process for them, while saving time - for both the buyer and the seller.

Government Initiatives

  • Government has been giving more tax relaxation to young FMCG brands that can also boost retailers. Charging young brands less GST than incumbents will lead to competitive prices and some part of it can be passed on to retailers by such brands in the form of more margin. The Indian government has been laying impetus on enhancing the digital infrastructure and Digital India has been one of the ambitious initiative taken by the government. 
  • In October 2021, the RBI announced plans for a new framework for retail digital payments in offline mode to accelerate digital payment adoption in the country.
  • The Minister of MSME announced inclusion of retail and wholesale trades as MSMEs. Retail and wholesale trade will now get the benefit of priority sector lending under the RBI guidelines.
  • Government of India has allowed 100% FDI in online retail of goods and services through the automatic route, thereby providing clarity on the existing businesses of E-commerce companies operating in India.


Reliance Retail Awards & Achievements

  • Reliance Retail received the Annapoorna Food Retailer of the Year Award 2019 conferred by the Retailers Association of India (RAI) in association with the Federation of Indian Chamber of Commerce and Industry (FICCI).
  • Reliance Retail featured in the Global 100 Top Retailers – the only Indian company to do so.
  • Reliance Retail has topped the list of 50 fastest-growing retailers globally in Deloitte’s Global Powers of Retailing Report, 2020.
  • Indian Retail Awards 2019 – National Retailer of the Year by Franchise India
  • Indian Retail Awards 2019 – CDIT & Electronics Retailer of the Year by Franchise India.
  • Reliance Digital won Gold for Grand Prix Award for the Most Admired Brand of the Year and Silver for Excellence in Brand Awareness at the ACEF Asian Leadership Award 2018.
  • Reliance SMART won ‘Rapid Expansion with SMART Hyper Model’ award at IMAGES South India Retail Awards 2018.

Reliance Retail Strengths

  • Reliance is the largest, fastest growing, and most profitable retail company in India with a diversified omni-channel presence through integrated store concepts and digital commerce platforms.
  • Reliance Retail has set up and continues to invest in building design and product development centres to offer relevant, contemporary, and high quality products to meet the diverse needs of its customers, increasing customer satisfaction.
  • The company is investing in state-of-the-art supply chain infrastructure in India by connecting all major sourcing locations via an automated, modular, dependable, and scalable warehousing, logistics, and last mile fulfilment ecosystem, resulting in a broad reach across the country.
  • It is an Indian retail chain with 12711 stores in 7000+ cities in India, which shows that it has a strong sales funnel coming from all over India.
  • Reliance Retail invested in acquiring businesses, including leading physical and digital commerce platforms like Netmeds, Urban Ladder, and Zivame, to augment its business portfolio to drive operating efficiencies and strengthen omni-channel capabilities.

Reliance Retail Shortcomings

  • Company needs to look after the management of its working capital, the current ratio (indicator of Short-term solvency) is lower when compared to the other listed peers.
  • Poor inventory control at certain some part of Tier II and Tier III areas because the lack of distribution network for such areas.
  • The efficiency of a company's assets in generating revenue or sales has been declining year on year(YOY).
  • Even though the Reliance Retail has integrated technology in the backend processes but it still has not been able to harness the power of technology in the front end processes.

Reliance Retail Opportunities

  • Large potential to reduce operation cost in cities using strong supply chain
  • Reliance Retail can use the increasing disposable income to build a new business model where customers start paying progressively for using its products.
  • Reliance Retail can explore adjacent industries to further market growth especially by extending the features of present products and services and that can leverage this trend to reduce the number of offerings in the market and focus the marketing efforts on the successful products.
  • Another opportunity, which Reliance Retail can capitalise on, relates to it rolling out more products under its own brand instead of being a forwarding site for third party products. In other words, it can increase the number of products under its own brand instead of merely selling and stocking products made by its partners.

Reliance Retail Threats

  • Operating cost is too high
  • Walmart is the biggest competitor when it comes to sourcing/ backward integration.
  • Reliance Retail operates in an industry where there is a culture of sticky prices this can lead to inability to increase prices that its premium prices deserve.
  • Their business model can be replicated in Tier I cities which can lead to aggressive competition. 
Reliance Retail Rating

  • RECOMMENDATION

    Buy

  • Reliance Retail Detail Info

Industry Statistics

PRIVATE LIMITED

Registered In

India

last Updated

02/12/2021

Registered Date

29/06/1999

Planify Ticker

rrl

Reg Office: 3rd Floor. Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai- 400002, India

Website: http://www.relianceretail.com