In a bid to boost the expansion of its retail business, Mukesh Ambani's Reliance Industries has sold 1.75 percent stake to Silver Lake for Rs 7,500 crore investment in the retail unit of RIL.
The partnership is aimed at bolstering Reliance's retail business to take on rivals, including Amazon India and Walmart-owned Flipkart.
Commenting on the transaction with Silver Lake
, Ambani said, “We believe technology will be key to bringing the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner
in implementing our vision for Indian Retail.”
Also Read: Here's all you want to know about Reliance Retail
RIL on September 3 bought Kishore Biyani's Future Retail for 24,713 crore. The mega transaction, which includes the wholesale, logistics and warehousing business of the Future Group, has positioned Reliance Retail as the undisputed leader in the organised retail segment.
The Future Group houses leading retail formats, including supermarket chain Big Bazaar, upmarket food stores Foodhall, and bargain clothing chain Brand Factory.
Addressing company's shareholders at RIL's 43rd annual general meeting, Reliance Industries (RIL) Chairman and Managing Director Mukesh Ambani had hinted at partnering with global investors.
He had said that the company has received strong interest from strategic and financial investors in Reliance Retail. "We will induct global partners and investors in Reliance Retail in the next few quarters. I will keep you informed about the progress of Reliance Retail, which is at the doorsteps of continued exponential growth," he said.
He added, "Reliance Retail is India's largest and most profitable retail business. It is the fastest-growing retailer in the world, and the only Indian Retailer to feature in the Top 100 global retailers."
He further said that in the last five years, Reliance Retail's revenue has grown 8 times and profits 11 times. "This positions us well in the years ahead to continue delivering on our promise of exponential growth," he said.
Addressing company's shareholders, Ambani said that more than two-thirds of nearly 12,000 stores are operated in Tier II, Tier III and Tier IV towns. "Tens of thousands of farmers have helped us source over 80 percent of our fresh fruits and vegetable directly from farmers," he said.
Reliance Retail launched an online grocery service named JioMart in May and now sells a raft of items such as electronics, jewellery, apparel and vegetables, among others. It acquired British toy chain Hamleys last year, and also runs the outlets of global brands such as Burberry, Armani and Jimmy Choo, among others, in India.Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol.