Wall Street powerhouse Morgan
Stanley has pegged the net asset value of Reliance
Retail at about $29 billion with increasing revenue
contribution from the e-commerce venture JioMart over the next three years.
E-commerce is expected to account for 15% of core retail
sales estimates by 2023, pegged at $19 billion, based on which the valuation
has been calculated. The core retail sales here exclude connecting revenues
(mobile recharges) and petro-retail, where it has sold a stake to British
Petroleum. The development comes as Reliance Retail looks to bring in strategic
and financial investors after the record $20-billion fund-raise by Mukesh
Ambani for his telecom business.
The recent capital infusion of $1.2 billion by Walmart in
Flipkart shows there is room for multiple expansion if JioMart’s execution of
growth plans improve and investor scepticism reduces, the report noted.
JioMart, according to a person aware of the matter, is also ramping up its
kirana on-boarding in non-metro cities as part of the acceleration of the new
commerce initiative.
“They have started it in several cities and towns like
Solapur, Kurnool, Madurai and Jalandhar. There is a separate platform that’s
gone live for kiranas to register to join JioMart, so they can express interest
and Jio can follow it up,” this person said. JioMart, which is clocking about
2.5 lakh orders daily in 200 cities, has also enabled business-to-business
orders for kiranas as now they can order through Reliance Wholesale.
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