Reliance Industries’ ₹4,330 Crore Infusion into Reliance Retail

According to the latest regulatory disclosure to the Ministry of Corporate Affairs, Reliance Industries infused ₹4,330 crore into its flagship retail entity, Reliance Retail, during the last fiscal year, i.e., FY 2024. This funding, a departure from the previous fiscal year, involved both equity and debt, facilitated through its wholly-owned subsidiary, Reliance Retail Ventures (RRVL), which oversees all retail operations within the conglomerate’s portfolio.

As part of the transaction, Reliance Retail transferred its supply chain assets to Reliance Logistics and Warehouse Holdings (RLWH) at a valuation of ₹8,000 crore, a move approved by Reliance Retail’s board in March. The capital infusion of ₹4,330 crore was structured in two parts: ₹4,000 crore through equity and ₹330 crore through redeemable preference shares. Following these allotments, the portion of the debt, including unsecured loans from banks and the holding company, totalled ₹73,602 crore as of July 2023.

RRVL continues to operate India’s largest retail business in terms of sales, profitability, and store network through its subsidiaries and associated entities.

In the fiscal year 2024, Reliance Industries reported a historic annual consolidated revenue of ₹1,000,122 crore ($119.9 billion), marking a 2.6% year-on-year increase. Profit after tax also grew by 7.3% year-on-year to ₹79,020 crore ($9.5 billion). Notably, Reliance Retail achieved an annual net profit exceeding ₹10,000 crore.

Sharing his thoughts about Reliance Retail’s financial performance, Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited, said, “Reliance Retail continued to provide customers endless choices through its robust omnichannel presence. We continue to offer product differentiation and a superior offline experience through store remodelling and layout revamping. Our digital commerce platforms also provide newer solutions to users with a broad brand catalogue. Reliance Retail also works towards strengthening millions of merchants through its unique initiatives in new commerce space.”

About Reliance Industries

Reliance Industries Limited is a Fortune 500® company and India’s largest private sector corporation. They are involved in various business activities, such as energy, petrochemicals, retail, digital services, media and entertainment, etc.

On July 4, 2024, the share price of Reliance Industries Ltd opened at ₹3,114.00, touching the day’s high at ₹3,135.00, as of 10:59 AM on the NSE.

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