RIL’s organized retail business registers 104.9% YOY growth in FY’18
By Satarupa Chakraborty | April 30, 2018
RIL’s organized retail business has witnessed a whopping growth of 104.9% in FY’18. With various retail identities under this portfolio, Reliance has added expansively on store network, enhancing in-store experiences and building efficiencies on supply chain managements and sourcing.
Segment Revenues of Reliance India Limited’s (RIL) organized retail business for FY18 grew by 104.9% Y-o-Y to INR 69,198 crore from INR 33,765 crore. The FY18 revenues are equivalent to US$ 10.6 billion, first retailer in India to achieve this scale. PBDIT for FY18 grew by 114.5% Y-o-Y to INR 2,529 crore from INR 1,179 crore. Segment Revenues for 4Q FY18 increased by 134.1% Y-o-Y to INR 24,183 crore from INR 10,332 crore. PBDIT for 4Q FY18 grew by 208.5% Y-o-Y to INR 1,086 crore from INR 352 crore.
Reliance Fresh and Smart stores have recorded robust growth backed by strong supply chain and sourcing efficiencies. Fresh and Smart added 11 stores during 4Q FY18. With net addition of 23 stores during FY18, Reliance Retail now operates 513 Fresh and Smart stores.
Reliance Retail was awarded a contract through a tender process to support fair price shops across 10 districts in the state of Andhra Pradesh. This is a voluntary program facilitated by the government of Andhra Pradesh. Reliance Retail has contracted for over 700 fair price shops and operationalized 41 shops during the quarter providing ~400 SKUs across staples, food, home and personal care.
Reliance Market added 4 new stores in Kolkata, Jalandhar, Patiala and Nizamabad during 4Q FY18.
Reliance Digital continues to outperform market growth across all key product categories and witnessed strong growth during the quarter. Further enhancing customer experience journey, Reliance Digital is creating personalized experience zones to allow customers to touch, play, feel and explore the latest technology and products across its stores. Reliance Digital and Jio stores added 20 stores during 4Q FY18. With net addition of 40 stores during FY18, Reliance Retail now operates over 2,000 Reliance Digital and Jio stores.
The scale of new store opening undertaken by Reliance Retail during the period has been unprecedented. To further enhance its distribution reach for consumer durables and connectivity solutions, Reliance Retail has operationalized 3,736 Jio Points in over 3,700 towns. These towns are key feeder markets and would provide access to untapped semi urban and rural market for Reliance Digital. Jio points will serve as a nodal point for consumers to obtain and recharge Jio services and facilitate sale of mobility, connectivity and consumer durable products directly and through catalogues, kiosks and other modes.
Rapid expansion for Reliance Trends continued with 39 new stores opening during the quarter. Trends has added over 100 stores during the year with nearly 1 million sq. ft. of retail space. This is the largest expansion by a fashion retailer in India in a year. Trends today has 458 stores across 223 cities in 28 states.
Project Eve, the differentiated experiential store concept launched during the year, rolled out 4 more stores during 4Q FY18 and is drawing strong customer affinity. Swadesh a pure play handloom brand developed by Reliance Retail was launched across all Project Eve stores during the quarter.
Reliance Brands further augmented the store presence of its partner brands. It opened 7 stores during 4Q FY18 and 38 stores during FY18 led by Hamleys, Superdry and Scotch & Soda. Hamleys opened its 50th store in India and operates 51 stores, making it the largest toy chain in India. The portfolio of brands under Genesis Luxury Fashion also continued to broaden their reach through store expansion and operates 59 stores as on 31st March, 2018.
