World’s largest tech investor , Silver Lake is about to invest an amount of Rs.7500 crore in the retail sector of Reliance Industries Ltd.
This deal will led to 1.75 per cent stake in Retail. According to a report by News18, The investment values reliance retail at Rs 4.21 lakh crore or about 57 billion US dollars. With this, Jio Platforms Reliance retail account for over Rs 9 Lakh crore of RIL valuation.
Apart from the deal, Here is something you must know about Reliance.
In 2006, Reliance Industries Limited was being divided between the brothers Mukesh and Anil Ambani. This was the time when the company entered into organised retail segment. The company came into the market with the launch of the first Reliance Fresh store in Hyderabad. Groceries and vegetable buying should be a nice experience at a general market price. The company invested 25,000 crores to execute this idea.
After Reliance Fresh, The company decided to expand and try hands at segments like electronics, fashion and cash-and-carry businesses. Thus in 2007, Reliance launched the consumer electronic retail chain. In 2008, it got into fashion and in 2011 the wholesale cash-n-carry segment came to surface.
Within a few years, it overtook Future Group in terms of revenue and became the largest retailer by 2014. Future Group’s overall retail revenues totaled up to Rs 13,666 crore on an annualized basis for the financial year ended March 2014, at a time when Reliance Retail’s revenue had shot up to Rs 14,496 crore.
Reliance further launched an online grocery store, reliancefreshdirect.com to deliver groceries in Mumbai. In 2016, Reliance came up with an online fashion platform ajio.com.
And then the ‘talk of the town’ i.e Jio the free telecom service was launched in September 2016. Reliance Retail continued to grow. It notched up $10 billion in revenue in 2018.
The company played in the international market in association with British Toy retailer Hamleys in 2019. Earlier this month, it also made a majority acquisition in online pharma company Netmeds for around Rs 620 crore and will take on the likes of Amazon and Flipkart in the segment.
Although,the company also got hit by the pandemic along with a number of Retailers. Reliance Retail’s revenue declined 17 percent to Rs 31,663 crore during the quarter ended June 30. The company reported a net profit of Rs 431 crore despite 50 percent of its stores being fully shut and 29 per cent operating partially.
Apart from this, JioMart, The online grocery platform has been loved widely and is very popular. It is planning to offer electronics and fashion along with Grocery. Notably, JioMart is receiving 2.5 lakh daily orders from 200 locations across India.