Mukesh Ambani has announced plans for the initial public offering (IPO) of Reliance Industries’ telecom unit, Reliance Jio, set for next year. Concurrently, he is working on the anticipated listing of Reliance Retail, projected to reach a valuation of approximately $200 billion, according to sources familiar with the situation.
The process to streamline Reliance Retail, the largest retailer in India, has already commenced with the demerger of its fast-moving consumer goods (FMCG) division, now known as Reliance Consumer Products, which will operate as a direct subsidiary of Reliance Industries.
Sources suggest that this demerger, along with the ongoing closure of under-performing stores, is intended to enhance the margins of Reliance Retail, thereby positioning it favorably for market valuation ahead of its IPO. Early indications point towards a potential public listing in 2027, likely following the debut of Reliance Jio.
The upcoming listing is expected to provide exit opportunities for investors including Singapore’s GIC, Abu Dhabi Investment Authority, Qatar Investment Authority, KKR, TPG, and Silver Lake.
After the demerger, Reliance Retail will continue to operate various formats, such as Reliance Smart, Freshpik, Reliance Digital, JioMart, Reliance Trends, 7-Eleven, and Reliance Jewels. Completion of the demerger of Reliance Consumer is anticipated by the end of this month, pending regulatory approvals.
In addition, discussions surrounding the consolidation of these retail formats are ongoing, but remain in the preliminary stages. Reliance Industries Limited (RIL) has not provided comments on its strategic plans.
In recent quarters, Reliance Retail has been rationalizing its store network by shutting down lower-performing outlets, aiming for a double-digit operating margin. For FY25, the company reported an operating profit of $2.9 billion on revenues totaling $38.7 billion, with an EBITDA margin that increased from 8.6 percent to 8.7 percent in the most recent quarter.
Published on September 15, 2025.
