Mukesh Ambani says received strong interest from strategic investors for Reliance Retail

Kolkata: Reliance Industries chairman Mukesh Ambani said the company will induct global partners and investors for the retail business, Reliance Retail, in the next few quarters.

Addressing shareholders in RIL's 43rd annual general meeting held virtually on Wednesday, Ambani said the company has "received strong interest from strategic and financial investors in Reliance Retail."

"Today the world recognizes our hyper-growth inclusive model," he said.

Ambani also outlined plans to add newer categories like electronics, fashion, pharmaceutical and healthcare into its omni-channel venture, JioMart. JioMart was rolled out in May amidst the Covid pandemic across 200 cities selling food and grocery products.

"In the coming years, we will cover many more cities, serve many more customers across India, and expand to many
more categories," said Ambani.

JioMart, which Reliance calls as new commerce, will have an hybrid model of hyperlocal partnership with kiranas and local stores for delivery of products across segments, apart from the inventory model of fulfillment from Reliance Retail stores.

ET broke the story in its online edition on Wednesday before the AGM about plans of JioMart. The foray into newer categories and expansion into 400 cities will be completed by Diwali, industry executives said.

Ambani said Reliance is accelerating the rollout of JioMart after the successful pilot on grocery with kirana partners.

"Within a few weeks of launch, we have reached over 2.5 lakh orders a day and the numbers continue to grow each day.
JioMart is now focused on scaling its geographical reach and delivery capabilities," he said.

Reliance Retail is India's largest and most profitable retailer. In 2019-20, Reliance Retail revenue was Rs 1,62,936 crore and earnings before interest, taxes, depreciation and amortization (EBITDA) was Rs 9,654 crore.

Ambani said in the last five years, the retail business revenue grew 8 times and profit 11 times. "This positions us well in the years ahead to continue delivering on our promise of exponential growth," he said.

Around two-thirds of nearly 12,000 Reliance Retail stores are operated in tier II, III and IV towns, Ambani said.