Reliance Retail confident of 20% revenue CAGR over 3 years: Isha Ambani

Isha Ambani says Reliance Retail will expand offline, online, and B2B channels, adding 2,000-3,000 stores annually

Reliance Retail is confident of delivering more than 20 per cent compound annual growth rate (CAGR) in revenue over the next three years, its Director Isha Ambani told shareholders at the company's 48th annual general meeting (AGM) on Friday.

 

She told shareholders in the opening speech: “It is a prediction grounded in the scale of our capabilities and the depth of opportunity before us, which no other retailer in India possesses. It is anchored in the fact that every engine of our growth — offline, online, and B2B (business-to-business) — is already proven, profitable at scale, and primed for acceleration.”

 

 

Isha Ambani also said that each one of the company’s larger consumption baskets, which include grocery, fashion & lifestyle, and consumer electronics, has structural growth tailwinds.

 

In the previous financial year of 2024-25 (FY25), the company added 2,659 new stores, taking its total to 19,340, covering 77 million square feet (msf) in over 7,000 towns. The country’s largest retailer still sees around 70 per cent of its revenue coming from its stores.

 

“…will continue to grow through high single-digit like-for-like gains, plus a steady expansion of 2,000-3,000 new stores annually,” she added. 

 

Reliance Retail’s online channel currently contributes a high single-digit share to the retail revenue but the company aims for it to contribute over 20 per cent within three years.

 

“We also lead in hyperlocal quick commerce (qcom), using our incomparable store network, strategically located dark stores, and deep consumer data to offer faster, more reliable deliveries than any competitor. Our registered customer base has grown to 349 million, up 15 per cent year-on-year (Y-o-Y). We processed around 1.4 billion transactions in the year (FY25) — nearly matching the population of India — a scale that only reinforces our ability to grow profitably,” she said.

 

Talking about the 20 per cent CAGR for retail revenue, she said there are eight growth enablers, including knowledge of the Indian consumer, the company’s product development engine, its sourcing ecosystem, farm-to-fork in grocery, and a 30-day mind-to-shelf cycle in fashion, which help move products from concept to the consumer faster than its competitors.

 

Isha Ambani also said that the company’s omni-channel architecture integrates the best of digital and physical retail. The company’s market reach of stores supported by tech-enabled supply chain enables 10-minute qcom in metros and scheduled deliveries in remote villages. Also, the company’s network of 4.2 million merchants includes kirana traders and HoReCa (hotels, restaurants and catering) businesses through its B2B forms like Metro and JioMart Digital.

 

Its tech-led capabilities include artificial intelligence (AI)-driven demand forecasting, and robotics-enabled warehouses, which are supported by the company’s strength of 250,000 employees.

 

“Retail will continue to grow in both B2B and B2C (business-to-consumer) spaces, with our customer-centric, omni-channel strategy. I can clearly see its revenue grow multifold in the coming years,” Mukesh Ambani, chairman and managing director (CMD) of Reliance Industries Ltd (RIL), said in his speech at the AGM. He added that Reliance Consumer Products Limited (RCPL) has the potential to grow larger than its existing business segments.

 

RCPL is the fast-moving consumer goods (FMCG) arm of the Reliance group, responsible for its consumer products business. RCPL is in the process of becoming a direct subsidiary of RIL.  

Talking about the near-term ambition for RCPL, Isha Ambani said: “Our near-term ambition is clear — to be the fastest consumer brands company to reach ₹1 trillion in revenue within five years. Our long-term ambition is to become India's largest FMCG company with a global presence. This will make RCPL a big new value-creating engine for the Reliance group, comparable to our retail business in size and profitability.”