Reliance Retail posted a net profit of Rs. 175.52 crores for the financial year, 2014. Reliance Retail, initiated in 2006, has around 1700 outlets in India. This is the first year in which the company has posted profits.
Reliance Retail has multiple brands like Reliance Fresh, Reliance Footprint, Reliance Trends and Reliance Digital under it. These brands operate their retail outlets in 146 cities.
The Chairman of Reliance Industries, MukeshAmbani had shown optimism in retaining the retail business investment, in June, this year. He had confidence that Reliance Retail has a lot of potential to bring profit to its parent company. He had great expectations from the retail market. In the annualgeneral meeting, he had told the shareholders that, "In the coming years, retail will emerge as a major growth engine for our consumer business."
Reliance Retail's performance in the recent years
In 2010-11, Reliance Retail had gross revenue of Rs. 6,144.17 crores and net loss of Rs. 530.64 crores. In 2011-12, the gross revenue grew to Rs. 7,670.3 crores while the loss decreased to Rs. 448.68 crores. In 2012-13, the gross revenue grew to Rs. 10,820.9 crores and loss further reduced to Rs. 211.93 crores. With the tremendous change in the scenario, 2013-14 became the luckiest year for Reliance Retail. With gross revenue of Rs. 14,438.8 crores, Reliance Retailmade a whooping profit of Rs. 175.52 crores.
Position of other big operators
Very few big organised retailers have earned a profit. Reliance Retail is one of them. Big names like Aditya Birla Retail, Spencer's Retail and Star Bazaar, are still struggling with losses. In the financial year of 2014, Aditya Birla Retail suffered loss of Rs. 596 crores. The company witnessed a loss of Rs. 13 crores more than their previous year's loss of Rs 583 crores. On the other hand, R. P. Goenka (RPG) group owned, Spencer's retail posted a net loss of Rs. 165.8 crores. They have managed to reduce their losses from the previous year but are yet to make a profit.
About Reliance Retail
Reliance Retail Limited, a subsidiary of Reliance Industries Limited, was started in 2006. The company's retail outlets provide grocery, clothing, footwear, electronics, lifestyle and home decor products and farm implements and inputs. It was started with an aim to give growth opportunities to farmers, vendor partners, small shopkeepers and consumers. Some of the brands under Reliance Retail are:
Reliance Fresh:Reliance fresh sells fruits, vegetables, dairy products, packaged foods, drinks and other FMCG products. It operates in more than 93 cities with more than 700 stores and 13 million customers.
Reliance Digital: Reliance digital sells electronic goods. It has around 150 global and local brands with more than 4000 products of big names like Sony, LG, Nokia, Samsung, Panasonic, etc.
Reliance Trends: Reliance trends, started in October 2007, gives fashionable apparels for men, women and children. It operates in 52 cities with 83 outlets and incorporates more than 100 brands.
Reliance Footprint:Reliance Footprint began as a single outlet in 2007,in Bangalore and now has 200 outlets in more than 96 cities. It sells accessories, luggage and big brands footwear for men, women and kids.