Reliance Retail, the retail arm of oil-to-telecom conglomerate Reliance Industries, is set to foray into the fast moving consumer goods (FMCG) segment, the company’s director Isha Ambani announced at the 45th Annual General Meeting on Monday.
“I am excited to announce that this year, we will launch our fast-moving consumer goods business. The objective of this business is to develop and deliver high quality, affordable products which solve every Indian's daily needs,” said Ambani.
With this foray, Reliance Retail will be competing with the likes of FMCG behemoths like Hindustan Unilever, Nestle, Britannia, etc in an industry which is valued at over $110 billion in the country.
Reliance Retail already has a presence in the segment through its various private labels which are sold in the company’s grocery chain stores such as Reliance Smart, Reliance Mart, and its online grocery platform JioMart. Brands like Yeah!Colas and Snac Tac noodles are a few private label brands in FMCG segment by the company. The private labels (including in the fashion and lifestyle segment) contribute 65 percent to the company’s revenue.
Besides this, the company, informed Ambani, will soon start marketing quality goods produced by tribals and other marginalised communities across India.
“This will not only provide these communities gainful opportunities for employment and entrepreneurship but also help preserve the incredibly rich talent, skill sets and knowledge base of our traditional Indian artisans, especially women,” she added.
Reliance Retail in the financial year 2022 crossed the milestone of Rs 2 lakh crore turnover in the year gone while clocking an EBITDA of Rs. 12,000 crore. The company, said the chairman Mukesh Ambani, is among the top ten retailers in Asia.
According to Isha Ambani, the company’s digital platforms witnessed 4.5 billion visits in FY22, a jump of 2.3 times as compared to the last year. The number of orders from e-commerce platforms also jumped by 2.5 times and about nearly six lakh orders were delivered every day, she said.
“Our strategy of integrating with millions of small merchants and providing them a platform to prosper is now well proven on the ground. Since our launch two years ago, we have grown our merchant partners base to over 20 lakh partners,” she added.
The company now plans to partner with 1 crore merchants as it expands its presence across the country in the next five years.
Also Read: Jio 5G by Diwali: Fastest network to connect India's every corner by end-2023: Mukesh Ambani
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