Mukesh Ambani's Reliance Retail Trumps Old And The New As It Surpasses Combined Market Valuation Of Century-Old Rivals ITC, Britannia, HUL And New-Age Players DMart, Nestle, Tata Consumer

Reliance Retail, the retail arm of Mukesh Ambani-led Reliance Industries Ltd. (RIL), has achieved a new milestone by surpassing the combined annual sales of India’s top seven consumer giants. The company’s valuation has also soared, surpassing that of leading fast-moving consumer goods (FMCG) companies.

What Happened: Reliance Retail’s annual sales for the fiscal year 2024 have reached a staggering ₹3 lakh crore, exceeding the combined sales of major consumer giants including ITC, Hindustan Unilever Ltd. (HUL), DMart, Nestle India, Britannia Industria, Tata Consumer, and Godrej Consumer, Moneycontrol reported, citing a report by ICICI Securities.

Reliance Retail’s valuation, estimated at approximately $110 billion (₹ 9.17 lakh crore approx) by various brokerages, has now surpassed that of FMCG giants like ITC and HUL. This valuation is nearly three times the company’s FY24 sales, as per a report by ICICI Securities following the Q4FY24 results.

FMCG CompaniesValuation/Market Cap (as of the last closing)
Reliance Retail₹ 9.17 lakh crore (approx.)
ITC₹ 5.49 lakh crore
HUL₹ 5.22 lakh crore
DMart₹ 2.97 lakh crore
Tata Consumer₹ 1.05 lakh crore

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Analysts at ICICI Securities anticipate robust growth in Reliance Retail over the next two to three years, driven by its expanding presence in both online and offline sectors, consistent margin improvement, and a rising share of private labels.

Why It Matters: The latest valuation and sales figures for Reliance Retail come on the heels of a series of significant developments for the parent company Reliance Industries.

Earlier this month, Morgan Stanley had expressed optimism about RIL’s stock, citing potential growth across its various sectors.

This was followed by a 1.8% YoY decrease in net profit for the March quarter, alongside an 11% YoY increase in revenue.

Moreover, talks of a potential joint venture between RIL and Tesla for a manufacturing facility in India have been ongoing. If this venture materializes, it could further bolster RIL’s position in the Indian market.

Reliance Retail’s recent achievements underscore its growing dominance in the Indian retail sector, with its valuation and sales figures now outpacing those of major consumer giants.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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Posted In: EquitiesNewsRetail SalesMarketsbenzinga neuroBritanniaDMartGodrej Consumer ProductsHindustan UnileverITCMukesh AmbaniNestleNestle IndiaReliance IndustriesReliance RetailTata Consumer