the retail operations of Reliance Industries Ltd (RIL), India's largest private-sector conglomerate, are likely to turn profitable by next year, a company official told DNA.
At its annual general meeting on Thursday, Reliance announced that consumer-oriented businesses like retail would become important growth drivers for the group over the next few years.
Reliance Retail currently generates revenues of more than Rs 7,600 crore but that's still just a little more than 2 percent of Reliance's annual turnover.Chairman Mukesh Ambani said Reliance Industries is investing aggressively in this business to strengthen its leadership position in the sector. "We are targeting growth of five to six times in existing revenues to achieve Rs 40,000 to Rs 50,000 crore over the next three to four years," he said.
He also said Reliance Retail would become one of RIL's important growth engines in the next few years, boasting one of the highest growth rates and earnings potential.
Reliance Retail currently operates 1,300 stores across 18 states in two key formats: value (Reliance Fresh, Reliance Super and Reliance Mart) and speciality (Reliance Digital, Reliance Trends, and Reliance Footprint). The company is reported to be very optimistic about its latest format, Reliance Market, under which the first store was opened in Ahmedabad.
Stores under this format, which partners with kiranas and other small shopkeepers, are expected to rise to 40 by the end of this year, according to the source who spoke to DNA. He hinted thatRIL might also enter the ready-to-eat segment and is contemplating a manufacturing facility as well.
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