RIL’s new businesses top petrochemicals in revenue

In June 2015, when Reliance Industries Ltd (RIL) chairman Mukesh Ambani said retail and telecom would be the sunrise sectors for the company, many investors were sceptical.

Three years on, these new businesses have jointly crossed revenues of RIL’s petrochemicals business, for long its second-largest revenue generator after oil refining and marketing.

During the July-September quarter, Reliance Industries’ retail, media and telecom businesses recorded a combined revenue of ₹44,615 crore, exceeding the ₹43,745 crore sales reported by the company’s petrochemicals segment.

Refining and marketing continues to be RIL’s biggest revenue generator, fetching ₹98,760 crore in the quarter.

Revenues in the retail and telecom businesses grew 121% and 52%, respectively during the quarter compared with those a year earlier, while revenue from petrochemicals grew 56%.

RIL’s consolidated revenue for the quarter stood at ₹1.56 trillion, up 54.5% from ₹1.01 trillion a year ago.

“This is a marked change for a company, which was identified by its refining and petrochemicals businesses,” an analyst tracking RIL said on condi-

MUMBAI:

Retail, media and telecom businesses of Reliance Industries together posted a revenue of Ĝ44,615 cr in the September quarter, surpassing Ĝ43,745 cr clocked by its petrochemicals segment.

Retail Mar 2018 Jun 2018 Sep 2018 0 (All figures in

Digital services crore) 10,000

Media 20,000

tion of anonymity.

Reliance Retail, which operates across various product categories and formats, saw its revenue more than double to ₹32,436 crore. Reliance Retail now has 9,146 stores across more than 5,800 towns and cities.

“Ifit’snotbig,it’snotexciting for RIL. So, when we realized that the concept of fresh fruits and vegetables could be turned into an organized retailing segment, we began our operations

Petrochemicals 30,000 40,000 50,000 Source: RIL website

with Reliance Fresh,” an RIL executive said on condition of anonymity. “And our bets turned sweeter with the consumption boom that is happening in India.”

Last year, Ambani had set Reliance Retail a target of 30% annual growth over the next 10 years. This growth, the executive cited above added, would be led by higher contribution from sales of high-margin goods, including electronics and apparel.