Overview of Reliance Retail Limited Unlisted Shares

    (i) Reliance Retail is the retail initiative of the Reliance group and is central to consumer-facing businesses. It has in a short time forged strong and enduring bonds with millions of consumers by providing them an unlimited choice, outstanding value proposition, superior quality, and unmatched experience across all its stores. Reliance Retail was founded with a view to revolutionizing retail in India. Today, it is the largest, fastest-growing, and most profitable retail company in India with a diversified omnichannel presence through integrated store concepts and digital commerce platforms. It is the only Indian retailer to feature in the list of ‘Global Powers of Retailing’. As a market leader, Reliance Retail caters to five key consumption baskets – 1) Consumer Electronics 2) Fashion & Lifestyle 3) Grocery 4) Pharma Retail and 5) Connectivity. (ii) Reliance Retail has adopted a multi-prong strategy and operates a chain of neighbourhood stores, supermarkets, wholesale cash & carry stores, specialty stores, and online stores and has democratised access to a variety of products and services across diverse segments for Indian consumers. (iii) Serving the food and grocery category Reliance Retail operates Reliance Fresh, Reliance Smart, and Reliance Market stores. In the consumer electronics category RelianceRetail operates Reliance Digital, Reliance Digital Express Mini stores, and Jio stores, In the fashion & lifestyle category, it operates Reliance Trends, Trends Women, Project Eve, Reliance Footprint, Reliance Jewels, and AJIO.com in addition to a large number of partner brand stores across the country. (iv) The operating model is based on customer-centricity while leveraging common centers of excellence in technology, business processes, and supply chain. More importantly, it has built a strong and unwavering foundation through its extraordinary people. The nationwide network of retail stores offers a world-class shopping environment and unmatched customer experience. (v) Reliance Retail has emerged as the partner of choice for international brands and has established exclusive partnerships with many revered international brands such as Diesel, Superdry, Hamleys, Ermenegildo Zegna, Marks and Spencer, Paul & Shark, Thomas Pink, Kenneth Cole, Brooks Brothers, Steve Madden, Payless Shoesource, Grand Vision and many more. (vi) Reliance Retail reported a turnover of Rs. 1,30,566 crore for the financial year 2018-19. As of 31st Mar 2019, Reliance Retail operates 10,415 stores across 6,600+ cities with a retail area of over 22 million sq. ft. (vii) Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Limited is the holding company of Reliance Retail Limited which operates the retail business. Reliance Retail Annual Performance in FY20-21 1. Despite the spread of COVID-19 and the lockdown imposed by the government of India, Reliance Retail delivered a resilient performance last year. On a consolidated basis, Reliance Retail delivered revenue of 1,55,209 crore against 1,60,965 crore for the previous year. 2. The revenues were impacted on account of store closures (80% of stores operational), lower footfalls (65% of last year), and operational disruptions throughout the year. 3. The Company delivered a consolidated EBITDA of  8,373 crores for FY 2020-21 against 9,518 crores for the previous year, driven by the gradual rebound of revenue streams and judicious cost management initiatives. 4. The Company has earned a profit after tax of 4,587 crores against 5,540 crores for the previous year.

Business Analysis of Reliance Retail Limited Unlisted Shares

1. The petro-retail dealership between Reliance Industries Limited (‘RIL’) and the Company’s subsidiary Reliance Petro Marketing Limited (‘RPML’) has ended. Consequently, the consolidated revenues of the Company have been impacted. RPML has continued to operate its bulk Lubricants business and packing and distribution of Liquefied Petroleum Gas business. 2. Reliance Retail has transferred its supply chain business to Reliance Retail Ventures Limited (‘RRVL’), its holding company as a ‘going concern’ on ‘slump sale’ basis. 3. Reliance Retail business continued to attract and serve millions of customers across the country far and wide. The registered customer base now stands at 15 Crores, a growth of 25% Y-o-Y. 4. Reliance Retail business has been launched and rapidly scaled up Jio-Mart and built last-mile fulfillment capacity afresh to enable home delivery of essentials across 200 cities. 5. Jio-Mart has since grown to become India’s leading hyperlocal delivery platform with more users, more orders, and more products with each passing month. Industry Trends in the Retail Market 1. India’s retail market is estimated at US$822 billion in FY 2019- 20 and is expected to grow at a CAGR of 10% over next five years to reach US$1,315 billion by FY 2024-25. 2. The penetration of the organized retail market is estimated at 11% in FY 2019-20 and is expected to grow to 18% by FY 2024-25. 3. The unorganized retail market is poised to grow to over US$1 trillion over this period, making it amongst the most attractive consumer sector opportunities across the world. Important Financial Parameter of Reliance Retail Limited Unlisted Shares

Particulars (in Cr)	March-22	March-21	March-20
Revenue	174980	1,37,906	1,30,627
EBITDA	10537	8245	9405
PAT	4900	4598	5539
EPS	9	8.92	10.5

Valuation of Reliance Retail Limited Unlisted Shares 1. Reliance Retail Limited Unlisted Shares = 3200 ( as on 09.09.2022) 2. Weighted Average Shares after dilution of CCPS = ~900 Crores 3. Valuation (Basic) = 28 Lakh Crores The current valuation (as on 09.09.2022)  of Reliance Industries is ~17 Lakh Crores and Reliance Retail is trading at ~28 Lakh Crores which is insanely valued in the unlisted market. The main reason is very low equity available in the unlisted markets and demand is very high. As per News in the media, Reliance Industries is looking to do value unlocking by bringing IPOs of Reliance Retail and JIO. And, Reliance Retail IPO will come at ~8 Lakh Crores. So, at current valuation of ~28 Lakh Crores, it is highly overvalued.  

Frequently Asked Questions:

1. How can I buy unlisted shares in Reliance Retail? Ans. You can easily buy Reliance Retail Limited Unlisted Shares from the Unlistedzone platform. 2. Will Reliance Retail be listed? Ans. Yes, in the future Reliance Retail will be listed on the stock market exchange. 3. Is Reliance Retail Public or private? Ans. Reliance Retail is a private subsidiary of the Reliance group and is central to consumer-facing businesses. 4. What is Reliance Retail’s Business Model? Ans. Reliance Retail is a consumer-facing business so it operates mainly in : 1) Consumer Electronics 2) Fashion & Lifestyle 3) Grocery 4) Pharma Retail 5) Connectivity.