Investors Take On Reliance Retail’s Acquisition Of V Retail

Reliance Retail, a subsidiary of Reliance Industries, is on an expansion spree. In the last few years, it has acquired brands like German firm Metro AG’s wholesale operations in India, Lotus Chocolate, Campa Cola, and Sosyo. The company has been strict in its intent to strengthen its position in the fast-moving consumer goods market. Reliance Retail understands that FMCG is expendable, so their demand stays high. Moreover, various analyses predict a growth of 13.9% in the Indian footwear market in the coming year. The data indicate that India’s footwear industry has risen from the depths of the pandemic and has registered a 22% growth in 2022. Therefore, it is no wonder that Reliance Retail went on to acquire V Retail Pvt. Ltd.  However, it will be interesting to see how the move will affect Reliance Retail unlisted share price

Reliance Retail – Performance In FY 2022

Reliance Retail was established in 2006 as a subsidiary of Reliance Industries. The company has a wide array of products, expanding over categories such as apparel, foods, footwear, groceries, home appliances, electric goods, etc. The company is India’s largest retail service provider, with an annual revenue of Rs. 1.9 trillion in FY2022.

The organisation has witnessed a story of steep growth in its yearly revenue. Moreover, the profit in the year 2021-22 was 7.6% high, valuing Rs. 49.34 billion. The Chairman and Managing Director, Mukesh D Ambani, remarked, “Our Retail business delivered record performance with a strong revival in footfalls, store additions, and digital integration. Reliance Retail continues to provide a compelling proposition of great shopping experience and superior value across consumption baskets and price.

Reliance Retail has more than 16000 retail stores and 280 thousand employees working nationwide. The company increased its workforce by 70 per cent last year, recruiting 150,000 new employees, making it one of the most significant hires in 2022.

Reliance Retail Share Price, Valuation, And Subsidiaries

It is no wonder that being one of the largest companies in India, Reliance Retail unlisted share price has always been in trend. Ahead of the Reliance Retail IPO, its current unregistered share price is Rs. 2645. The company has Rs. 13.12 trillion valuations and is expected to grow exponentially. Reliance Retail has many subsidiaries, such as Reliance Smart, Reliance Fresh, AJIO, Netmeds, Reliance Market, Reliance Digital, etc. In addition, the company owns numerous Jio Marts and Jio stores that have gained consumers’ trust at the local level. Reliance Retail’s online apparel unit AJIO has gained increased popularity and trust among Indian youths and is giving neck-to-neck competition to companies like Myntra and Flipkart in its domain. It is clear that the business model of Reliance Retail is quite extensive and has the potential to consolidate retail marketing in India and end up dominating it. 

The Factors And The Outcomes

Reliance Retail is now seeking to solidify its footing in the retail business in India. It has gone on a spree of acquisitions, with the addition of V Retail in the last quarter. V Retail began in 2009 as a distribution house, and over time it grew to become one of the largest retail chains in southern states. It has 31 stores in Andhra Pradesh, Karnataka and Telangana, with 15 in Hyderabad. The company plans to expand to tier 2 and 3 cities and establish nine more South and Central India stores. 

V Retail’s extensive product selection is partnering with brands like TOMS. The retailer built quite a reputation for being comfortable, trendy and eco-friendly among its users and the apparel industry. Moreover, with the growth predictions in footwear demands in India and the trends of increasing fascination for shoes and heels in Indian youth, the acquisition isn’t as unlikely. The country’s youth has grown more fashion-conscious thanks to digital platforms and social media. Therefore, taking over V Retail is a very profitable deal for Reliance Retail with the promise of great long-term returns.
The incredible performance and new projects with a bright future make Reliance Retail unlisted share a golden opportunity for retail investors. You can learn more about investing in unlisted shares at Stockify if you want to dig deep into the potential benefits the chance offers and learn more about the type of investment you should make. Stockify is a one-stop for all your investment needs, from buying and selling unlisted and listed shares to experts’ guidance and support. All you have to do is connect to the professionals at Stockify, and you are all set to experience hassle-free stock trading.

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