Informist, Friday, Aug. 29, 2025

--RIL: Reliance Retail aiming 20%-plus CAGR in retail revenue in next 3 yrs

--RIL: Reliance Consumer Products set to become direct subsidiary of co

--RIL: Expect to be fastest consumer brands co with INR 1 tln sales in 5 yrs

--RIL:Reliance Consumer Products has better growth potential vs existing ops

NEW DELHI – Reliance Consumer Products Ltd. will become a direct subsidiary of Reliance Industries Ltd., Isha Ambani, head of retail business, said at RIL's annual general meeting Friday. "This will consolidate our consumer brands into a single, sharply focused company," she said.

Ambani said Reliance Industries needed a strategic approach to seize the opportunity of India's growing consumer market, which is expanding at over 8% annually. Currently, Reliance Consumer Products is a step-down subsidiary of RIL. According to RIL's annual report for the financial year 2024-25 (Apr-Mar), RIL holds 83.6% stake in Reliance Retail Ventures Ltd., which in turns holds 100% shares of Reliance Consumer Products.

"Our near-term ambition is clear--to be the fastest consumer brands company" to reach INR 1.00 trillion "in revenue within five years," Ambani said. Apart from the domestic market, the company currently sells in Sri Lanka, Nepal, West Asia, and western Africa. "Our target is to enter at least 25 countries in the next 12 months, building an Indian consumer brands powerhouse with global reach," she said.

On retail operations, Isha Ambani said the company aims to deliver a compounded annual growth rate of more than 20% in retail revenue over the next three years. This will be powered by the three engines of the company's growth--offline, online, and business-to-business, she said.

The revenue from operations of Reliance Retail, which operates through physical stores, digital commerce, and new commerce platforms, rose 6.6% to INR 2.91 trillion in FY25. Its EBITDA margin inched up to 8.6% from 8.5% in the trailing financial year. RIL had incurred a capital expenditure of INR 245.06 billion in its retail business in FY25, according to the company's annual report.

Reliance Retail's largest consumption baskets--grocery, fashion & lifestyle, and consumer electronics--have structural growth tailwinds, Isha Ambani said. "Stores remain the backbone of our retail revenues, contributing around 70%, and will continue to grow through high single digit like-for-like gains, plus a steady expansion of 2,000–3,000 new stores annually," she said. The company added 2,659 stores in FY25, taking its total to 19,340 stores in around 7,000 towns.

Reliance Consumer Products "has the potential to grow larger than our existing business segments" in the future, RIL Chairman Mukesh Ambani said at the annual general meeting. The "phenomenal growth" of Reliance Consumer Products "is guaranteed by the consumption boom in India, our world-class supply chain, and advanced manufacturing capabilities," he said.

Friday, shares of RIL closed 2.1% lower at INR 1,357.20 on the National Stock Exchange. End

Reported by Rajesh Gajra

Edited by Rajeev Pai

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