SHOP TALK

Can Reliance Retail double turnover in 3-4 years, as Isha Ambani says it will?

- SHARLEEN D'SOUZA

At Reliance Industries' annual general meeting (AGM) towards the end of August, shareholders were told that Reliance Retail would double its business in three to four years.

Is that a tall target? It sure seems so.

Reliance Retail is already the country's largest retailer. Its financial year 2023-24 (FY24) gross revenue stood at more than ₹300,000 crore. Doubling that will be akin to adding another Reliance Retail to itself.

However, there is another way of looking at this target. The Indian retail market is among the fastest growing in the world, allowing a lot of elbow room for growth.

For instance, Reliance Retail's growth in FY24, at the already sizeable base of the previous year, was 17.8 per cent, as Isha Ambani, one of the three scions of the Mukesh Ambani family, pointed out at the AGM.

If this rate can be sustained, Reliance Retail's gross turnover will touch ₹600,000 crore in four years. Add to that the fact that the Mukesh Ambani family is known to thrive on meeting tall targets.

Beyond Tier-III

Although already present across retail concepts, price segments, and fast-moving consumer goods in the country, Reliance Retail still has mileage left in the tank as it expands its stores into smaller towns beyond Tier-III, according to experts. They add that the aggression is fuelled by entering newer territories such as ethnic menswear and acquisitions.

“Reliance Retail is focused on expanding its current business and entering new businesses. Acquisitions as well will help them gain traction. There is a relatively decent pipeline of businesses that are available for acquisitions across the consumer space,” says Devangshu Dutta, founder of Third Eyesight.