Perform or Perish: Reliance Retail's warning to stores
Live Events
Successful Streamlining
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Kolkata: Reliance Retail 's top deck has given an express direction that all new stores must break even within 6-12 months, failing which they will either be shut down or replaced with another retail format, executives aware of the details told ET.This marks a shift from the leading retailer's earlier practice of allowing up to two years to assess a new store, and reflects a sharper focus on profitability and margins as it prepares for an initial public offering (IPO).In a closed-door meeting with analysts last week, the company management had said the IPO plans will be shared in due course, one of the executives said.The ₹2.91 lakh-crore turnover company will also scale back its aggressive expansion, another executive said. It plans to open 500-550 new stores every year, down from more than 1,000 stores earlier.In FY23, the company had opened over 3,300 stores.Over the last three financial years, it had also shut over 3,650 stores that were not profitable.Reliance Retail sells electronics, groceries, apparel, shoes, beauty products, gold jewellery, eye wear, medicine and handicraft through its stores across several formats and brands including Reliance Fresh , Digital, Trends, and MyJio."The days of crazy expansion are over, but store count will definitely go up every year... Otherwise revenue growth rate will become slower," another person aware of the plans said."With higher due diligence in location selection, over 90% of the stores should achieve the breakeven target. Some may still not as market shifts by the time a store may come up," he said.At the end of March 2025, Reliance Retail owned and ran 19,340 stores pan India.An email sent to Reliance Retail remained unanswered till Thursday press time.Reliance is also pivoting towards a premiumisation drive across apparel and grocery retail. The luxury retail business will continue to be under Reliance Brands through which it sells global brands like Armani Exchange and Hugo Boss.Reliance Retail's chief financial officer Dinesh Taluja told analysts in an earnings call last week that its premium grocery formats Freshpik and Gofresh are finding very good acceptance and it plans to launch more of these in the affluent areas.The company is also repositioning its value fashion store Trends for younger consumers with latest technology in the lines of another format Azorte.To be sure, Reliance Retail has improved its margins in the last two fiscals with the clean-up "streamlining" exercise-a push to improve margins through store rationalisation and improved operational efficiency.The company's Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin improved to 8.3% in 2024-25 from 8.1% in the preceding year. In FY23 and FY22, it was 7.6% and 6.2%, respectively.Taluja told analysts the company is "pretty much done with the streamlining," but did not share any details.One of the executives cited above said streamlining was a one-time exercise to improve financial parameters and Ebitda. "Going forward, unit economics and profitability will dictate expansion and new initiatives. The improvement in Ebitda will also improve valuations," he said.Reliance is eyeing profit even in high cash burn areas like ecommerce. Taluja said the company intends to do its 30-minute online delivery business to take on quick commerce "in a profitable manner with a very strong unit economics."Deliveries will be made from the store nearest to the consumer, avoiding the need for the company to set up dark stores.Taluja said considerable fixed costs of dark stores are being taken care of by the store sales, whereas 30-minute delivery aids incremental sales with only an incremental cost incurred to deliver these orders.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
9 hours ago
- Time of India
Fur-taxi and the Furious: How India's pet cabs are rescuing the rides for furry passengers
TAIL WINDS Live Events LONG-DISTANCE WOOFS BIG BROTHER STEPS IN (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Maya, a wide-eyed indie with a nervous bark, trembled as the first Diwali crackers burst in the Bengaluru sky last year. Her pet parents, Rahul Chawda and Aarti Karwayun, knew the drill. Like every year, they had booked a pet-friendly stay in the countryside. But as usual, every regular cab they summoned turned back the moment they saw Maya.'Every year, the driver would either cancel or reluctantly allow her in, only to complain later. It was uncomfortable for everyone—driver, dog and us,' says a common story in urban India where pet ownership is climbing steadily. With over 32 million pets today—projected to rise to 51 million by 2028, according to India Brand Equity Foundation—more families are finding themselves stranded with furry dependents and no pet was during Covid-19 lockdowns that Mumbai-based Arpita Sandilya first felt the need for a pet transport service—not for emergencies, but to send rescued dogs to their adoption homes. 'That was my first real trigger, to be honest. I used my own car for rescues, and the idea just grew from there. I thought, why not start a service that helps rescuers and pet parents?' says Sandilya, who now runs a two-car fleet under her venture, TaxiForPaws Like many others in this space, she faces challenges. 'Finding pet-friendly drivers is hard. Not everyone is comfortable around animals or ready to clean the car after each ride.' Her cars are outfitted with blankets, bowls and custom-made dog-seat belts. 'Each trip ends with a deep clean—it is expensive, but essential.'Another Mumbai-based player, SDAASH Pet Cabs, started in 2022 after founder Pranav Lokhande lost his pet when no cab agreed to transport them. 'It cost us dearly,' says Heenal Lokhande , who runs the operations of two modifies its vehicles by removing the front passenger seat to create space for a soft bed. 'Some pets want to be beside their humans; others love their own space,' says TaxiForPaws, each ride of SDAASH is followed by a deep clean, and incidents like vomiting or peeing send the car straight to the wash station. The roadblock it faces is also similar—drivers. 'At times we ride the cab ourselves when drivers do not turn up, because we know the pain of not getting a cab on time.'In Delhi, FurryTaxi has faced similar hurdles. Founder Anurag Tripathi, who started the service with ad-hoc rescues in 2019 and later shifted to a structured service in 2022, now operates eight cars. 'In the past six months alone, we have done long-haul trips to Mumbai, Ahmedabad and Srinagar. It's growing,' says again, the crunch is drivers. 'Drivers must be pet-friendly, trained and calm even when a Rottweiler barks mid-ride.' Each driver goes through a vetting process: 'They accompany me for initial rides, then handle a few with owners onboard, before going solo,' says Tripathi. People use the service for veterinarian visits, boarding stations and airport visits. Pets can travel solo or their pet parents can accompany them in the demand comes from metro cities—Delhi, Mumbai, cross-country journeys, platforms like FidoJet and CarryMyPet are leading the FidoJet started in 2018 when its founders—Rajesh Sharma, Manjeet Swami and Nikhil Khalera—noticed that pets were often shipped like cargo. 'We were pet parents ourselves. Watching animals treated like packages was painful,' says cofounder began with road travel and now offer help with air and rail travel as well. It is supported by over 150 vehicles via vendor networks. Their cars come with booster seats, harness seat belts and non-slip routes are Delhi–Mumbai, Bengaluru–Kochi and Hyderabad–Goa. Pricing ranges from ₹12/km to ₹20/km depending on distance. 'Over 90% of the demand is from metros,' says Khalera. 'But we have handled everything from senior dogs to blind pets. Every case requires planning, patience and empathy.'No story captures this better than that of Dobby, a wheelchair-bound stray adopted during the pandemic. Carry My Pet helped relocate Dobby from Nagpur to Poland. 'The owner had every reason to leave Dobby behind. But she chose love,' says Faisal Islam , cofounder, Carry My Pet. 'We managed her journey across continents, with careful coordination and tailored care.'Carry My Pet, headquartered in Gurgaon, operates on an asset-light model, partnering with logistics firms across India. They offer multimodal pet relocation by air, train and road. Their pricing starts at ₹13/km for cabs, ₹10,000 for relocation via train and ₹25,000 for domestic notes that demand is rising about 10% year-on-year. 'Pet owners today want real-time tracking, transparency and expert help.'But it's not all smooth. Regulatory ambiguity, breed restrictions, lack of pet-friendly rail infrastructure and inconsistent airport facilities still pose hurdles. 'We have relocated thousands of pets with a zero-harm record, but every ride demands precision,' says relocation he recalls is moving a Labrador named Ludo from Delhi to Port of Spain, via a complex, multi-leg route through Miami and the Caribbean. 'It took weeks of planning, but seeing Ludo reunited with his family was worth everything.'Even tech majors are watching. Uber, for instance, has introduced Uber Pet in cities like Mumbai and Bengaluru. Pet parents confirm that while it's a welcome addition, the experience is still inconsistent.'Drivers often are not prepared, and there are no comfortable amenities,' says a Mumbai-based user. 'But it is better than nothing, especially when specialised services aren't available.'India's pet and pet-care market is forecast to double to $7 billion by 2028, according to consulting firm Redseer. As pets take centre stage in urban homes, pet-cab services have shifted from niche novelty to everyday essential
India.com
11 hours ago
- India.com
Mukesh Ambani and Nita Ambani's daughter Isha Ambani did not start her career at Reliance, she worked for...., her salary was...
Isha Ambani with parents Mukesh Ambani and Nita Ambani. (File) Isha Ambani, the daughter of Mukesh Ambani and Nita Ambani, has emerged as a successful young businesswoman in recent years, transforming Reliance Retail– the retail arm of Reliance Industries– into India's largest retailer which has partnerships with major international brands such as Versace, Amiri, Armani, and Balenciaga. But did you know that Isha Ambani did not start her professional career at Reliance Industries. Yes, despite being the heiress to India's most valued company, Isha chose to work for a New York-based company after completing her studies. Isha Ambani worked for this company Prior to joining her father's expansive oil-to-telecom conglomerate, Isha Ambani briefly worked as a business analyst at McKinsey & Company, a US-based multinational strategy and management consulting firm that offers professional services to corporations, governments, and other organizations. In 2014, Isha Ambani, then 22, earned her bachelor's degree in psychology and South Asian studies from the prestigious Yale University, and joined Mckinsey & Company as a business analyst. According to industry insiders, the move was aimed to groom Isha for a future leadership role at Reliance. The prophecy was fulfilled as Isha Ambani, following a brief stint at Mckinsey, joined the her father's expansive oil-to-telecom conglomerate, and currently heads Reliance Retail, a subsidiary of Reliance Industries. Isha Ambani salary While there is no publicly available information about Isha Ambani's salary at McKinsey & Company, its believed that she may have received some 'token amount', as the stint was primarily meant to groom her for a future role at Reliance. Isha Ambani net worth According to various reports, Isha Ambani owns assets worth Rs 800 crore and has an annual income of Rs 4.2 crore. Isha Ambani career Isha Ambani, the only daughter of Asia's richest man Mukesh Ambani, runs Reliance Retail, India's largest retailer which is a partner brand of major international brands such as Versace, Amiri, Armani, and Balenciaga, bringing reputed international brands, into the Indian market. Under Isha's leadership, Reliance Retail, which has an estimated value of around Rs 8.3 lakh crores, has witnessed exponential growth in a short period of time, opening 3,300 stores across the country in 2023. Apart from serving as the Managing Director of Reliance Retail Ventures Limited, the 33-year-old also sits on the board of several Reliance Industries companies, including Reliance Retail Ventures, Reliance Jio Intercomm, and the Reliance Foundation. Additionally, Isha Ambani is also the co-founder of the Tira Beauty platform and serves as its Executive Director.
Time of India
13 hours ago
- Time of India
India hits China, Japan and EU with fresh anti-dumping duties on vitamin and rubber chemical imports
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Indian government has imposed anti-dumping duties on imports of Vitamin-A Palmitate and Insoluble Sulphur from China, Japan, Switzerland and the European Union (EU). The move aims to protect domestic manufacturers from low-priced imports that affect the local duties, which will remain in place for five years, were announced by the finance ministry in a notification issued late on Friday. The decision follows investigations by the Directorate General of Trade Remedies (DGTR), which found that both substances were being exported to India at unfairly low prices, either below cost or under their fair market value, thereby undercutting Indian products are essential to major industries in India. Vitamin-A Palmitate is used in pharmaceuticals, food, and cosmetics, while Insoluble Sulphur plays a key role in tyre manufacturing In its findings, the DGTR said there was 'material injury' to domestic producers of Vitamin-A Palmitate due to large-scale dumping from China, the EU and Switzerland. The compound, commonly used in small quantities, remains heavily import-dependent in duties, which take effect immediately, will range from $0.87 to $20.87 per kilogram. Chinese exporters other than Shangyu NHU BioChem Co. Ltd. will face the highest duty of $20.87/kg. Shangyu NHU BioChem will be subject to a lower duty of $14.95/kg. Swiss company DSM Nutritional Products Ltd. will attract a duty of $0.87/kg, while all other Swiss exporters will face $8.2/kg. Imports from the EU will be charged a flat rate of $11.09/ Vitamin-A Palmitate in the strength of 1.6 MIU/Gm, used in animal feed, has been excluded from the imported $48.6 million worth of Vitamin-A Palmitate in the financial year 2024-25, with most of it sourced from China and Europe, according to commerce ministry duties must be paid in Indian rupees, based on the exchange rate notified by the Revenue Department on the date the bill of entry is a related move, the government also imposed five-year anti-dumping duties on imports of Insoluble Sulphur from China and Japan. This compound is mainly used by tyre manufacturers to improve rubber vulcanisation. DGTR investigations revealed that exporters from both countries had been dumping the product at low prices, affecting the profitability and pricing strength of Indian on the exporter, the duties on Insoluble Sulphur will range from $259 to $358 per metric tonne. Chinese imports will face a flat duty of $307/MT. Among Japanese companies, Shikoku Chemicals will be charged $259/MT, while all other Japanese exporters will face the maximum rate of $358/MT.
