RIL chairman Mukesh Ambani says company to partner global leaders across all its businesses

Addressing the shareholders at Reliance Industries '(RIL) Annual General Meeting, Chairman and Managing Director Mukesh Ambani on Thursday said that partnerships will be key to RIL's future growth and the group would partner global leaders across all its businesses.



Talking about the company's track record, Ambani said the company was entering its 35th year since its IPO in 1977.

"Reliance has a unique track record of organic growth in all these years that is unparallelled among global peers... Rs 1000 invested at the time of IPO in 1977 has grown to Rs 7.8 lakh," said Ambani, who has been on RIL's board all these 35 years.

Ambani also said that the group's retail venture was aiming to grow its revenue 5-6 times and achieve sales of Rs 40,000-50,000 crore in the next three to four years.

"We are investing aggressively in this business (Reliance Retail)... We are targetting 5-6 times of existing revenue and achieve sales of Rs 40,000-50,000 crore and would turn profitable within this time period," Ambani told shareholders.

He further said that Reliance Retail will be one of the important growth drivers for the group.

Ambani further said that the business has grown strong in five years of its beginning with over 1,300 stores and has created a leadership position.

He further said that Reliance Retail has provided new employment for 50,000 people, including 25,000 people directly by Reliance.

Business Today in its cover story The Devil is in retail for the current edition featured how Reliance Industries has been tinkering with its retail model. Several of its companies handled different formats, such as hypermarts, neighbourhood stores, and lifestyle stores. In December 2011, it merged nine companies into Reliance Fresh Ltd, a subsidiary of Reliance Retail Ltd. Companies that handled back-end operations were also merged into Reliance Fresh. Functions such as human resources and finance are handled by the parent, Reliance Industries.

In 2010, Reliance hired Gwyn Sundhagul, former head of the Thailand arm of British retailer Tesco. As CEO of Reliance Retail, he helped set up processes for retail operations. In 2011, Sundhagul moved to Reliance Industries, and Rob Cissell , former COO of Walmart China, took over the reins of Reliance Fresh's value formats. Brian Bade was brought in from Big Lots Stores, Inc to head Reliance Digital. Tesco has been in business for more than 90 years, and Walmart for 50.

Many changes followed. "The height of shelves at stores and number of bays were increased so more merchandise could go in," says Cissell. "Non-food FMCG products had to increase at Reliance Fresh outlets. All the hypermarts are being renovated." Trent has tied up with Tesco, and the Bharti Group with Walmart, for back-end processes and cash and carry .

The company was looking to grow its customer base by over three-times from about 30 lakh people visiting its retail stores every week currently to over one crore people every week in 3-4 years, he said.

New agency PTI further reports Ambani has said that Reliance Retail through its newest format Reliance Markets is partnering kirana stores and small retailers to supply them products at low prices.

"We aim to be a supplier of choice for kiranas and small retailers... We will grow in retail in partnerships with small retailers," he added.

"We have strengthened our portfolio of global brands through partnerships... We will continue to invest in partnerships with consumers, brands and producers," he said.

With PTI inputs