Mukesh Ambani’s retail business subsidiary Reliance Retail Ventures Ltd (RRVL) is getting a rush of investors and the Abu Dhabi Investment Authority (ADIA) on Tuesday announced an investment of Rs 5512.50 crore for 1.20 per cent equity. This is the eighth investment proposal in India. The investment of ADIA is at RRVL’s pre-money equity value of Rs 4.285 lakh crore.
With the investment of ADIA, Rs 37710 crore has been invested in RRVL for 8.48 per cent from eight investment proposals of seven investors within a month. RRVL’s global investors include Silver Lake, KKR, General Atlantic, Mubadla, GIC and TPG. Silver Lake has two investment proposals.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, said on ADIA’s investment, “We are pleased with the current investment and continued support of the Abu Dhabi company and look forward to RRVL’s benefit from its four decades of global strong track record. This investment by ADIA reflects the strength and potential of Reliance Industries to initiate an overall transformation in the business sector.
Hamid Shahwan Aldaheri, executive director of ADIA said, RRVL has emerged as a force to reckon with in the Indian retail market and has made a strong mark in the physical and digital supply chain. The company has moved strongly on the path of potential growth. Reliance Retail Limited has around 64 crore buyers annually in its more than 12 thousand stores spread across the country. It is India’s largest and fastest growing retail business.
Reliance Retail also owns the country’s most profitable retail business, Tamga. The company wants to develop a system of retail global and domestic companies, small industries, retail traders and farmers to serve consumers at affordable prices and generate millions of jobs. Reliance Retail has started digitizing small and unorganized merchants as part of its new commerce strategy.
The company aims to connect two crore merchants to this network. This network will enable merchants to deliver better value to customers with better technology. RRVL recently acquired the Future Group for over three decades in the country’s retail business for Rs 24713 crore.
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