'Reliance Retail's revenue may grow 10-fold in 5 yrs'

MUMBAI: Reliance Industries’ (RIL) retail arm will see a 10-fold growth in revenue over the next five years to become a Rs 45,000-crore entity, its chairman said on Friday.

“Over the next five years, I can realistically foresee this business growing 10-fold from current levels, and becoming a significant value creator for Reliance in the coming years,” Mukesh Ambani told RIL shareholders at the company’s 36th annual general meeting.

Reliance Retail recorded sales of Rs 4,500 crore in the financial year ended March 2010. It operates nearly 1,150 stores in 86 cities across 14 states. India’s largest retail company Pantaloon Retail has reported a turnover of Rs 6,349 crore for the year ended June 30, 2009.

According to Mr Ambani, organised retail in India is poised to take off to the next level. “Your company is well-equipped to be a national leader in this space,” he said. Launched in 2006, Reliance Retail met with initial resistance in some states, but has grown to become one of the largest players in the organised retail market wherein it is competing with Future Group, Aditya Birla Group and Tata Group.

Reliance Retail has strategic tie-ups with a few international brands such as Marks & Spencer, Pearle Europe, Asics Corporation (Japan) and British toy major Hamleys. The company reported a decline in its losses to Rs 239 crore in the year ended March 2010 from Rs 424 crore a year ago.a