Reliance Industries Limited (RIL)’s retail business arm, Reliance Retail will execute further expansion of its digital format stores in Tier -1 and Tier- 2 cities across the country. Mukesh Ambani led RIL is considering the digital sector as one of its prime contributing factors for the growth verticals of its retails business. Reliance Retail had crossed Rs 10, 000 crore turnover milestone in 2012-2013 fiscal as per the annual report of the company.
Furthermore, Reliance Digital will add more stores to its name and also come up with a new chain of stores under the brand name of Reliance Digital Express. Currently, Reliance Digital operates a total of 139 stores, out of which 46 were added in the last fiscal year. Essaying the overall performance and future of Reliance Retail, Mukesh Ambani said, “We are delighted to see our retail business achieving a milestone of annual revenue crossing Rs 10, 000 crore in FY 2012-2013. Our revenues have grown by 42 percent on a year on year basis.”
Another important thing for this retail arm is that it has turned EBITDA positive last year. In the last fiscal, the company has opened 184 new stores in the country, the total number which now reaches to 1466 stores.
RIL is keen to capture the market of consumer durables, IT and telecom (CDIT) segment ,the estimation of which is forecasted to reach Rs 2,15, 000 crore by 2016. The company is also looking forward to strengthen its client service arm ResQ along with its expansion of stores.
“Digital sector would be one of the growth verticals for the coming year. Reliance Digital Stores and Digital Express stores would be rolled out in Tier-1 and Tier-2 cities and would bring a world class shopping experience for consumers.” RIL stated in its Annual Report for 2012-2013. It also mentioned that the penetration of CDIT products in the Indian markets is comparatively slow as compared to other developing markets. But the belief prevails that as the disposable income increases, more people would adopt technology products. New technology innovations and trends will drive the replacement and overall market behavior.
The company will also focus on multi-product, multi- brand servicing at multiple locations. For this, it will strengthen ResQ, the service arm of the digital format. ResQ brings in strong service orientation towards meeting the requirements of the customers during the entire product life-cycle. Reliance Retails is currently growing at a rate of 10 percent each year.
Mukesh Ambani is keen to make Reliance Retail one of the leading retail chains of the country as well as is investing huge amounts to bring a world-class shopping experience for Indian consumers by bringing international and multiple brands under one roof.