Reliance Industries Will Set Up An Infrastructure Investment Trust (InvIT), 

According to sources, Reliance Industries, the largest company in the nation by market value, has begun the process of establishing an infrastructure investment trust (InvIT), which would allow the company to monetize the back-end warehouse and logistical resources of its retail business.

They stated that the market regulator Securities and Exchange Board of India (SEBI), which oversees the retail business of Mukesh Ambani-led Reliance Industries, has already registered a trust with Reliance Retail.

The warehouse assets that the group plans to sell will be kept in the trust.

The assets that might be transferred to the InvIT are worth between $2.4 and $3 billion (19,000 to 25,000 crore), according to media sources. As more assets are added and put into use, this is likely to happen.

O2C, Retail, Digital Services, and New Energy are the four main business sectors in which Reliance Industries operates. O2C is made up of the business' petrochemical facilities, retail petroleum businesses, and oil refineries. Retail includes both traditional brick-and-mortar businesses and online sales platforms. The business's telecom division, Jio, is included under the digital services category. New energy is Reliance Industries' fourth business vertical.

According to the research, Reliance Retail is investing in backend infrastructure such as warehouses, supply chain, logistics infrastructure, and facilities as it aggressively expands its footprint across channels.

Management recently disclosed its aim to quadruple its retail business over the next three to five years at its annual general meeting (AGM), relying on a broader reach, an improved product lineup, and a deeper online penetration.

At the end of December 31, 2022, it had 33.6 million square feet of total warehouse and fulfilment space. From 10.6 million square feet in Q3 FY20, it has increased thrice.

The overall number of stores had increased dramatically from 3,616 at the end of 3QFY17 to 17,225 at that time, and the total space had increased significantly from 13.5 million square feet to 60.2 million square feet.

The fastest-growing retailer in the world, Reliance Retail, claimed a 1.99 lakh crore revenue for the fiscal year 2020–2021.

Through many acquisitions, Reliance Industries has been increasing its market share in the FMCG and consumer products industries. By relaunching the Campa brand, it has joined the cola business. The 'Independence' CPG brand was introduced by Reliance Consumer Products in December of last year, with financial support from RRVL.

Disclaimer: ThinkWithNiche does not endorse the opinions or suggestions expressed above by specific analysts or brokerage companies.