Digital commerce, merchant tie-ups formed 10% of RIL’s retail revenues in FY21

The company also entered into an agreement to acquire the retail and wholesale business and the logistics and warehousing business of Future Group for a consideration of Rs 24,713 crore. This acquisition is awaiting requisite approvals.

The digital commerce and merchant partnerships business of Reliance Industries (RIL) accounted for about 10% of the retail segment revenues in the financial year 2020-2021, according to the company’s annual report.

The rise in e-commerce and online buying has stepped up this share significantly, which was near zero in the preceding year.

Related News

  • Reliance Industries, Mukesh amabani, Jio

    RIL Annual Report: Key highlights from Jio, Retail, other segments of Reliance Industries

  • Infosys, ITC, RIL, PVR, Route Mobile

    Infosys, ITC, RIL, PVR, Route Mobile, Motherson Sumi, Manappuram Finance stocks in focus

  • RIL, Reliance Industries, Oberoi Realty, Godrej Properties, stocks to buy

    Stocks to buy: RIL, Oberoi Realty, Godrej Prop stocks may rally up to 21% in next 3 months, charts suggest

During the course of the year, the retail business omni-enabled its store network, strengthened digital commerce platforms across the business and built capacities for home deliveries. Reliance Retail also invested in acquisitions to strengthen its capabilities in the supply chain, technology, and product portfolio. These include the acquisition of online pharmacy platform Netmeds, furniture and home decor retailer Urban Ladder, and lingerie and intimate wear brand Zivame.

The company also entered into an agreement to acquire the retail and wholesale business and the logistics and warehousing business of Future Group for a consideration of Rs 24,713 crore. This acquisition is awaiting requisite approvals.

In a bid to grow the retail business, financial 2020-2021 was also marked by some significant fundraising by RIL’s subsidiary Reliance Retail Ventures (RRVL). The company raised nearly Rs 47,265 crore last year via sale of 10.52% stake to seven marquee investors that include Public Investment Fund (PIF), Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA. The company said it is actively investing in building a state-of-the-art supply chain infrastructure to link all major sourcing locations through an automated, reliable and scalable warehousing, logistics and last-mile fulfilment ecosystem.

In a letter to the shareholders in the annual report, RIL chairman and MD Mukesh Ambani said, “In our retail business, we expanded our customer outreach by growing physical and digital footprint with store additions, strengthening of supply chain infrastructure and launch of JioMart.”

The retail revenues during the year stood at Rs 1.54 lakh crore, down 5.6% from the previous year, impacted by store closures, significantly lower footfalls which was 65% of last year, and operational disruptions through the year. Ebitda increased 1.5% at Rs 9,842 crore with the business posting its all-time high profit, driven by the gradual rebound of revenue streams, judicious cost management initiatives and boosted by higher investment income.

The company has also seen its retail area increase from 22 million sq ft in 2018-2019 to nearly 34 million sq ft in the financial year ended March 31, 2021. There has been a sharp 25% increase in Reliance Retail’s loyal customer base compared with last year which now stands at 156 million, with over one lakh customers served every hour.

Reliance Retail opened 1,456 new stores during the year, taking the total store count to over 12,700 stores across the country. The company has 263 warehouse and distribution centres. The business generated over 65,000 new jobs during the year.

RIL’s gross debt as on March 31, 2021, stood at Rs 2,51,811 crore while Reliance Retail had a gross debt of Rs 9,030 crore.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Source link


Gold schemes fetch record Rs 20,227 crore in FY21

Nevertheless, the current monetisation scheme has witnessed a marked improvement upon an earlier one under which the government had garnered only two tonnes...

How much zinc tablets are effective in eye allergy?

Eyes Allergies are the sixth most common allergic disease in the United States. They are estimate to affect more than 17 million people, including...

Sebi ups overseas investment limits for individual mutual funds to $1b

MUMBAI: The Securities and Exchange Board of India on Thursday relaxed certain investment limits for mutual funds that make overseas investments after consultation...

Volcanos and New Proof Methods are great, but Bitcoin's Energy Problem Falls on the Community

The environmental cost of blockchain technologies and cryptocurrencies is high, but the answer doesn't only lay with energy production and better proof methods Read...

What are the advantages of taking Cobra 120 pills?

Were you searching for a herbal product to help you burn fat, enhance digestion, and decorate your metabolism? This will guarantee suitable average fitness...