Skip to main content

Pandemic-Marred Quarter Shows How Reliance’s ‘New Commerce’ Can Pay Off


Large retail chains struggled in the quarter ended June as Indians stayed indoors amid the raging pandemic and stores remained shut. But for Reliance Retail Ltd., India’s largest retailer, the period shows how Mukesh Ambani’s marriage of content, carriage and commerce is paying off.

Indians faced the world’s most punishing restrictions after Prime Minister Narendra Modi announced a complete lockdown in March 24. Economy remained frozen for nearly two months, but for supply of essentials. Consumption of everything except staples collapsed.

The pandemic forced Reliance Retail, operator of supermarkets, India’s largest consumer electronics retail chain, fast-fashion outlets and a cash-and-carry unit, to shut nearly half of the stores. Footfalls, the company said in its earnings presentation, tumbled nearly 57%, and about 39% in June alone. Revenue contracted 17%.

Yet, it could have been much worse had it not been for connectivity, or the data recharges by Reliance Jio Infocomm Ltd.’s subscribers, and the grocery business. Both these verticals grew during the quarter when everything else contracted.

The two businesses are central to Ambani’s bid to offer everything consumers through a hybrid offline and online retail model. And these are part of his effort to build a digital behemoth that rivals the likes of Alibaba Group, Tencent Holdings and Amazon Inc.

Data recharges through Jio outlets, housed under the retail business, spiked as Indians consumed more content during the lockdown. Jio, Ambani’s first step in creating a digital conglomerate, has upended India’s telecom market by offering cheap data, causing the consumption of online content to explode in India.

And the grocery business, an essential service during the lockdown, grew as the company launched and quickly scaled up JioMart, an online platform that lets people order from Reliance Retail stores via WhatsApp.


Sandip Ginodia , CEO

ALTIUS INVESTECH PVT LTD

We deal in over 60 unlisted companies with 15 years of experience 
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Labels:

Comments

Post a Comment

Please leave your name and email id along with the comment .
Get the updates from this blog direct to your inbox . Fill in your email id on the home page.

Popular posts from this blog

HDFC Life inks distribution tie-up with Catholic Syrian Bank

HDFC Life  has entered into a  bancassurance  (the selling of life assurance and other insurance products and services by banking institutions) tie-up with Catholic Syrian Bank to distribute its individual life insurance products to the private lender’s customers. HDFC Life will offer its leading range of individual life insurance, health and pension products to the Catholic Syrian Bank’s  1.5 million  customer base across all its branches over a period of time. Sandip Ginodia , Director   A LTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com
1 comment
Read more

Stock broker SMC Global files for IPO

F inancial services company SMC Global Securities has filed draft red herring prospectus with SEBI for public issue of 1,58,67,380 equity shares of face value of Rs 2 each. The issue comprises a fresh issue of 79,33,690 equity shares by the company and an offer for sale of 79,33,690 shares by Millennium India Acquisition Company Inc. As of September 30, 2012, "We service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region," the company said. SMC has reported a loss of Rs 0.42 crore and total revenues of Rs 292.24 crore in the year ended March 31, 2012. "The proceeds of the fresh issue shall be utilised for margin maintenance with stock exchanges; part repayment of term loan; investments into subsidiary, SMC Comtrade; and general corporate purposes," according to p...
10 comments
Read more

NBI Industrial Finance Limited

NBI Industrial Finance Limited , Strand Road, Kolkata-700001 NBI Industrial Finance Limited was originally incorporated in Lahore in 1935 as The New Bank of India Limited. Dr. Ganeshi Lal Aggarwal and Mr. Kohli were the original promoters. After 1947 the Registered office was shifted to New Delhi. To provide for the losses due to partition the face value of the share was reduced from Rs. 10 to Rs. 5 . Later, The New Bank of India Ltd. was nationalised. Most of the non promoter shareholders took cash compensation. The Registered Office of the Company was shifted from Connaught Place, New Delhi to Strand Road , Kolkata. The share's face value was consolidated to Rs. 10. Share Capital : Rs. 1 cr 12 lakh Reserves : Around Rs.11 cr  NBI Industrial Finance Company is , now , the investment holding Company of Bangurs ( Benu Gopal Bangur of Shree Cement group ). They were the promoters of New Bank of India at the time of nationalisation. As the Company has holding of Shree Cement Ltd. it...
8 comments
Read more