Reliance Industries is preparing the ground for what could be one of the biggest retail listings in India, with Reliance Retail eyeing a valuation close to $200 billion. According to people familiar with the matter, the company has begun a process of restructuring its operations to maximise efficiency and profitability ahead of a public issue, expected around 2027. This timeline will follow the proposed listing of Reliance Jio, Reliance’s telecom arm, which is scheduled for 2026.
Demerger and Store Rationalisation Drive Reliance Retail’s Growth Strategy
The streamlining exercise involves significant steps, beginning with the demerger of Reliance Consumer Products, the fast-moving consumer goods (FMCG) division. Once separated, it will operate as a direct subsidiary of Reliance Industries, with the demerger slated for completion by the end of this month, subject to regulatory clearance. At the same time, Reliance Retail has been rationalising its store network, shutting down under-performing outlets while strengthening profitable formats such as Reliance Smart, Freshpik, Reliance Digital, JioMart, Reliance Trends, Reliance Jewels, and 7-Eleven.
Insiders suggest that these measures are aimed at improving operating margins to double-digit levels, enhancing the attractiveness of the retail arm for investors. In FY25, Reliance Retail reported revenues of $38.7 billion and an operating profit of $2.9 billion, with an EBITDA margin of 8.6 percent, which inched up to 8.7 percent in the June quarter. Further consolidation of formats is also being explored, though discussions remain at an early stage.
Reliance Retail IPO to Provide Exit Route for Sovereign and PE Investors
A public listing would offer an exit route to Reliance Retail’s global investors, which include sovereign wealth funds and private equity firms such as GIC of Singapore, Abu Dhabi Investment Authority, Qatar Investment Authority, KKR, TPG, and Silver Lake. While Reliance has not officially commented on the matter, industry watchers believe the groundwork being laid today signals serious intent for a blockbuster market debut in the next two years.
Summary:
Reliance Retail, valued near $200 billion, is restructuring operations ahead of a potential 2027 IPO following Reliance Jio’s 2026 listing. Steps include demerging Reliance Consumer Products, rationalizing stores, and improving margins. The listing will provide exit opportunities for global investors like GIC, ADIA, QIA, KKR, TPG, and Silver Lake.
