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Reliance Retail Gets Major Investment From Reliance Industries Worth INR 4,330 Crore in FY24 Reliance Industries has pushed heavily in their retail presence in FY24 with a total investment of INR 4,330 crore.

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In the latest financial year, Reliance Industries propelled its flagship retail arm, Reliance Retail, with an infusion of INR 4,330 crore, according to regulatory filings with the Ministry of Corporate Affairs. The investment is a mix of equity and debt, marking a strategic pivot from the previous fiscal year, when funding was exclusively debt-based. The funding was channelled through Reliance Industries' wholly-owned subsidiary, Reliance Retail Ventures (RRVL), the holding entity for all the conglomerate's retail operations. As per ET, the disclosure also revealed that Reliance Retail has transferred its supply chain assets to Reliance Logistics and Warehouse Holdings (RLWH) at a valuation of INR 8,000 crore, a move approved by the board in March.

"Reliance Retail is strategically unlocking value from key assets to ease cash flow pressures while securing long-term value through leasing arrangements," quoted Mohit Yadav, founder of AltInfo, to ET. "This move aligns with the previous InvIT strategy, capturing smaller assets that were initially excluded," he added.

The filings detail, as reported by ET, the INR 4,330 crore capital infusion occurring in two tranches of INR 4,000 crore in equity and INR 330 crore in redeemable preference shares. Previously, ET also reported Reliance Retail's total debt at INR 70,943 crore at the end of FY23, largely driven by debt-financed expansion efforts.

India wears the latest trend

India's fast fashion sector has emerged as a beacon of growth in the country's retail landscape, outpacing the overall fashion industry's modest 6 per cent year-over-year (YoY) growth in FY24 with an impressive 30-40 per cent surge. This remarkable performance marks the beginning of a promising journey for fast fashion in India.

Despite currently trailing behind global giant Shein, which boasts a larger market share, the Indian fast fashion market, valued at $10 billion, has immense potential for expansion. According to a report by Redseer Strategy Consultants, the fast fashion market in India is projected to balloon to over $50 billion by FY31, presenting a vast and lucrative opportunity for growth. Read more

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