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India’s retail market is valued at $800 billion. Reliance’s current aim is to dominate this market.
Reliance Jio is the company that revolutionized internet data in India. Mukesh Ambani tried to demolish the business model of Reliance retail and telecom business together. He wanted to hand over the responsibility to his sons Isha Ambani and Akash Ambani.
Akash Ambani took charge of Jio last June. But Isha Ambani, who got the charge of Reliance Retail, has not officially taken charge. The information obtained is that they still play an important role in making decisions regarding the company.
Foreign companies are hampered by restrictions in entering the Indian retail market. Reliance is trying to take advantage of this situation to capture the field in the retail sector of the country. The company is well on its way to opening seven new stores a day. Reliance spent US$ 3.6 billion in the last financial year alone for business growth in the retail sector.
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Reliance Retail has 16,000 stores across India. Reports suggest that 17% of the company’s revenue comes from online purchases. It is an advantage that the company is able to dominate the textile business by using its own petrochemical products. Mukesh Ambani’s approach of moving ahead of investment interests will only benefit the company.
Reliance has announced that it will start its own fast moving consumer goods company by the end of this year. There are also reports that Reliance will acquire other brands for this.
This year also trying to increase the space of physical shops. Apart from trying to increase its offline presence, the company is also trying to increase its online business volume. The company is collaborating with WhatsApp for this.
In the quarter ended last September, Reliance Retail generated a revenue of around US$ 8 billion. The company earned a net profit of US$ 283 million. This is a growth of 36% on annual basis.
The general assessment is that the future of Reliance is bright as it has come out to capture the market by offering huge discounts.
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