16 September 2025, Mumbai
Mukesh Ambani is reportedly preparing for the public listing of Reliance Retail a year after the planned IPO for Reliance Jio. According to sources, the retail arm is being streamlined to achieve a potential valuation of nearly $200 billion.
To boost its margins and prepare for the market, Reliance Retail has initiated the demerger of its fast-moving consumer goods (FMCG) business, Reliance Consumer Products, making it a direct subsidiary of Reliance Industries. This demerger is expected to be completed by the end of this month.
A key part of the strategy involves rationalizing its store network by closing down underperforming outlets. The goal is to push Reliance Retail's operating margin into the double digits. In the FY25 ending March 2025, the company reported an EBITDA margin of 8.6 per cent, which saw a marginal improvement to 8.7 per cent in the June quarter. For FY25, Reliance Retail posted an operating profit of $2.9 billion on revenue of $38.7 billion.
The public listing, which is reportedly being planned for 2027, would give early investors like Singapore's GIC, Abu Dhabi Investment Authority, Qatar Investment Authority, KKR, and Silver Lake an opportunity to exit. After the demerger, the company will focus on its key retail formats, including Reliance Smart, Freshpik, Reliance Digital, JioMart, Reliance Trends, 7-Eleven, and Reliance Jewels.
While preliminary talks about consolidating some of these formats have occurred, the primary focus is on boosting margins and preparing the retail giant for a massive IPO.
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