Reliance Industries Infuses ₹14,839 Crore into Reliance Retail for Strategic Expansion

Reliance Industries made ₹19,170 crore in total investments in Reliance Retail in FY24

Reliance Industries secures approximately ₹14,839 crore for its retail arm, Reliance Retail, as debt in the last fiscal year, underscoring its commitment to long-term growth and expansion initiatives. The funds, provided as an inter-corporate deposit by Reliance Retail Ventures, mark the largest infusion from the parent company in a decade, according to a report by The Economic Times.

This capital is aimed at supporting Reliance Retail's aggressive expansion into smaller towns and the development of innovative store formats, such as the value retail chain Yousta and Swadesh, a handicraft store brand. The financial boost reflects Reliance's strategy to fortify its retail operations, which have become a cornerstone of the conglomerate's business portfolio. In FY24, Reliance Industries invested ₹19,170 crore in Reliance Retail, out of which ₹4,330 crore was invested in equity. The retail arm also made significant strides in debt reduction, repaying ₹8,019 crore in long-term bank loans—a stark contrast to the ₹50 crore repaid in FY23. This move, which analysts suggest could be a precursor to an initial public offering (IPO), reduced the company’s non-current bank loan borrowings by 30% to ₹13,382 crore as of March 31, 2024.

While speculation about a potential IPO is rife, Reliance has not officially confirmed any such plans. The company’s focus on enhancing its supply chain infrastructure and omni-channel capabilities indicates a continued push towards solidifying its market position.