Reliance Retail: Setting New Benchmarks
Reliance Retail debuts on the list of Most Respected Companies for FY23 riding on a robust performance and another year of strong revenue growth and profit performance
Scoring high on the parameters of trustworthy leadership, strong financial returns and effective growth plan in a perception-based survey conducted by our knowledge partner, Reliance Retail has broken into BW Businessworld's Most Respected Companies list for FY 2023.
In her address to the shareholders, Isha Ambani, Executive Director, Reliance Retail and RIL termed FY23 as a "landmark year for the retail business". "Our immense faith and conviction in India's retail story was amply rewarded when Reliance Retail crossed the milestone of 100 crore transactions, up 42 per cent year-over-year (YoY). Our stores received more than 78 crore footfalls during the year. The number of registered customers grew to nearly 25 crore. We are delivering value to over 30 per cent of India's addressable population. All this has made Reliance Retail rank among the top 10 most visited retailers in the world," Ambani said.
High Growth
For FY23, the company's digital and new commerce sales contributed nearly Rs 50,000 crore, accounting for about a fifth of RIL revenues. The company witnessed investments of over $10 billion in the preceding two years, focusing on building integration, growing in-house brands, and improving supply chain networks, Ambani added.
The company opened over 3,300 new stores in FY23, taking the total count to 18,040 stores, covering 6.56 crore sq. ft of retail space. Two-thirds of these stores were in Tier-2, Tier-3 cities and smaller towns, a testament to Reliance Industries' commitment to making retail inclusive. The business recorded gross revenues of Rs 260,364 crore for FY23, a growth of 30 per cent over the previous fiscal year. And this was driven by broa-based growth across consumption baskets. With focus on store network expansion, the retail business grew its store footprint across consumption baskets.
Investments in boosting supply chain infrastructure remained a priority, with the addition of 12.6 million sq. ft. of warehouse space during FY23. The business continued to innovate, launch and scale up new retail formats to serve diverse customer segments. FY23 also witnessed a number of new format launches including Smart Bazaar, Azorte, Centro, Fashion Factory and Portico. Leveraging omni channel capabilities, digital commerce platforms led by JioMart and AJIO sustained growth momentum and continued to serve customers far and wide, Ambani stated.
Reliance Retail sold over 18 lakh metric tonnes of groceries during FY23. In its consumer electronics business, it sold nearly 5 lakh laptops and over 23 lakh appliances whereas in its Fashion & Lifestyle business, it sold a record-breaking 50 crore garments in FY23. "We have democratised fashion in India, catering to customers across segments," Ambani said. Trends and Trends extension formats also consolidated their position as India's largest fashion destination in FY23 while AJIO had yet another strong year, with its catalogue size crossing 13 lakh options, making it a one-stop shop for all fashion needs.
Mega Jobs Generator
Reliance Retail also emerged as one of the largest employers in the country in FY23, with nearly 2.5 lakh on-roll employees. Additionally, it generated indirect employment for lakhs of Indians across multiple value streams. "We will continue to play a pivotal role in creating employment opportunities for the aspirational Indian youth," Ambani added.
