Reliance Retail has newly appointed Mr. Hemant Kumar Ruia as the company’s CFO.Before joining Reliance, Mr. Ruia served as the CFO at Agro Tech Foods. He also has the experience of working with Reckitt Benckiser (India) and Larsen and Toubro, where he was a part of the finance team.
The previous CFO, Mr. Anurup Pruthigave his resignation in December, last year. After that the finance team of its parent company, Reliance Industries, was dealing with all the financial transactions of the retail arm. Sources informed that Mr. Pruthi joined New York’s retail company, The Children’s Place after exiting from Reliance.
Business of Reliance Retail
Reliance Retail runs convenience stores, wholesale cash and carry stores, supermarkets, specialty stores and hypermarkets across the country. The retailer has also joined hands with many prominent international brands like Diesel, Steve Madden, Hamleys, Marks and Spencer, Brooks Brothers, Ermenegildo Zegna, Kenneth Cole, Thomas Pink, Paul & Shark, Superdry, etc.
Reliance Retail emerged as the biggest retailer in Financial Year (FY) 2013 -2014. In FY 2014 – 2015, the revenue of the company grew by 21%. Reliance Retail’s revenue in FY 2014 – 2015 was around Rs. 17,640 croreand its profit after tax wasRs.193 crore.
In May, Reliance Retail announced that it will be obtaining Rs 4,500 crore through term loans and debentures. The company will be taking term loans worth Rs. 2,500 crore from State Bank of India. The remaining Rs. 2,000 crore will come from issuing convertible debentures. The amount will be received in different phases.This loan is planned to boost its upcoming e-commerce venture and also to expedite its store opening process. The company is planning to come up with an online portal for selling grocery and food products, too.
In the previous FY, Reliance Retail closed down around 100 of its supermarkets. It is because the company is focusing on its electronics and cash and carry businesses and its expansion. The company has also opened many new retail stores taking the total to 930, in last FY. 912 stores out of this operate in the consumer durables sector. Its wholesale venture, Reliance Market is also a significant focus as it was established to empower and assist small grocery stores, farmers and small manufacturers.
Reliance Retail’s upcoming venture
Reliance Retail wants to offer great value, choice and convenience to the customers. It will thus build its business both online and offline. The combined approach will also help the company to save on real estate. Moreover, the company will be able to reach to more and more customers. The online platform is being built to integrate with Reliance Jio’s forthcoming 4G and data services, too.
Industry experts are of the opinion that Reliance Retail’s large financial capital and existing logistics infrastructure will assist the company to lead in the e-commerce market. The e-commerce market in India is growing rapidly. It is expected to soar in the coming years. This is because more and more people are obtaining access to internet through cheap smartphones. Besides, e-commerce websites are coming up with a variety of payment options like mobile wallets, cash on delivery, etc.
After six months, Reliance Retail has filled the vacant post of CFO by appointing Hemant Kumar Ruia.