Reliance Retail Ventures Limited (RRVL) has secured an impressive Rs 4,966.80 crore investment from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). This substantial capital injection places RRVL among the top four companies in India by equity value, underlining the company’s rapidly evolving success story.
The strategic partnership was announced on October 6, and it signifies ADIA’s support for RRVL’s inclusive and transformational business model. The investment translates into an equity stake of 0.59% in RRVL on a fully diluted basis, valuing RRVL at an impressive pre-money equity of Rs 8.381 lakh crore.
However, as the news broke, shares of Reliance Industries witnessed a slight dip of 0.4 percent in early trade, with trading at Rs 2,340.15 on the NSE as of 9.28 a.m.
RRVL, with its network of over 18,500 stores and a robust digital commerce presence, stands as India’s largest, fastest-growing, and most profitable retail business, serving an astounding 267 million loyal customers. It caters to a broad spectrum of consumer needs, including grocery, consumer electronics, fashion, lifestyle, and pharma consumption.
RRVL’s vision is clear: it aims to energize the Indian retail sector through an inclusive strategy that serves millions of customers, empowers micro, small, and medium enterprises (MSMEs), and collaborates closely with global and domestic companies to deliver exceptional benefits to Indian society. Their New Commerce business has been a game-changer, digitizing more than 3 million small and unorganized merchants, providing them with advanced technology tools and an efficient supply chain infrastructure to enhance their offerings.
Isha Mukesh Ambani, Executive Director, of Reliance Retail Ventures Limited, said, “We are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures Limited. Their long-standing experience of decades of value creation globally will further benefit us in implementing our vision and driving the transformation of the Indian retail sector. ADIA’s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy, and execution capabilities.”
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department, ADIA, said, “Reliance Retail has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace. This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end markets. We are pleased to partner with the Reliance Group, and increase our exposure to India’s dynamic and fast-growing consumer sector.”
While the transaction is subject to customary approvals, this development marks a pivotal moment in the retail sector, promising transformation and growth.
About Reliance Industries Limited (RIL)
Reliance Industries Limited, with a consolidated revenue of Rs 9,74,864 crore ($ 118.6 billion), is India’s largest private sector company. The conglomerate is involved in hydrocarbon exploration and production, petroleum refining, petrochemicals, renewables, retail, and digital services. Notably, RIL is featured in Fortune’s Global 500 list of “World’s Largest Companies” and Forbes Global 2000 rankings.
About Reliance Retail Ventures Limited (RRVL)
RRVL operates an integrated omni-channel network of over 18,500 stores and digital commerce platforms. The company’s New Commerce initiative has partnered with over 3 million merchants. RRVL reported a consolidated turnover of Rs 260,364 crore ($ 31.7 billion) and a net profit of Rs 9,181 crore ($ 1.1 billion) for the year ending March 31, 2023.
About ADIA
Established in 1976, the Abu Dhabi Investment Authority (ADIA) is a globally diversified investment institution that prudently manages funds on behalf of the Government of Abu Dhabi. ADIA has a strong history of investing in private equity and is known for its focus on long-term value creation. The Private Equities Department at ADIA collaborates with partners and company management teams to maximize value and support agreed-upon strategies.
