Reliance Retail clocks record Rs 2.3 lakh cr revenue in FY23 on back of FMCG and e-grocery play

Reliance Retail (RRL), country's largest retail company, clocked a record Rs 2.3 lakh crore operating revenue in FY23 as its e-commerce, and grocery businesses registered healthy growth. Its operating revenue jumped 32 per cent over the previous year from Rs 1.74 lakh crore, while EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 45 per cent to Rs 17,928 crore from Rs 12,381 crore.

As the company aggressively expanded its presence in the recently entered fast moving consumer goods (FMCG) space, RRL increased its warehousing capacity significantly. According to the company, it added nearly 12.6 million square-feet of warehousing space during the year. “Investments in boosting supply chain infrastructure remained a priority to deepen warehousing and fulfilment capabilities,” it said in a statement.

Apart from supporting its rapidly growing retail businesses, increasing its warehousing capabilities is a key ingredient in RRL’s objective of improving supply chain efficiencies, expanding its retail reach to the hinterlands and offering products at a competitive price to the consumers in smaller towns. According to the company, in FY23 its EBITDA margin to net sales improved by 140 basis points to 7.6 per cent “driven by favourable mix, sourcing benefits and operating efficiencies”.

“Retail business registered excellent growth numbers backed by expansion of physical and digital footprint and a significant increase in footfall. We continue to expand our product base across consumption baskets, ensuring our customers get world-class products at affordable prices. Our retail team has an unwavering focus on enhancing consumer experience and ease of shopping.,” said Mukesh D Ambani, Chairman and Managing Director, Reliance Industries.

JioMart, the flagship e-commerce venture of RRL, reported its best quarter with robust growth across categories. The platform augmented its catalogue by 34 per cent sequentially across categories to widen its offering. It strengthened its seller base by 56 per cent on a quarter-on-quarter basis during Jan-Mar. In the grocery business, RRL has been working with many small and medium scale entrepreneurs in branded food segment to fill up gaps in several markets, where its presence is low.

“Our focus on customer-centricity backed by investments in technology, innovation and new business segments have helped us create operational excellence and steer the transformation of India’s retail sector,” said Isha M Ambani, Executive Director, Reliance Retail Ventures Ltd, which that owns RRL.