Mumbai: Reliance Retail’s luxury brand arm Reliance Brands aims to merge itself with its parent to avoid duplication of work and consolidate overlapping functions, according to sources within the company. The $10 billion retail behemoth accounts for about 15% of the total revenue for the Reliance group, after years of aggressive expansions and acquisitions to boost market share.
Reliance Brands has partnerships with more than 85 global luxury and lifestyle brands, including Tiffany & Co, Bottega Veneta, Pret A Manger, Burberry and others. It has spearheaded Reliance’s presence in the retail landscape, allowing reputed global brands to enter the country through the right source.
Despite a 13% increase in revenue to Rs.2,303 crore, the company’s losses widened to Rs.288.4 crore from Rs.185.16 crore reported last year, a 55% increase. Reliance has had to close more than 2000 stores this year due to poor sales, even as many of its brands continue to underperform.
After the pandemic, the Mukesh Ambani-led company has been aggressively expanding its offerings, flush with cash from Reliance’s parent company and investments from leading global venture capital firms. The company is aiming to replicate the Jio playbook to dominate the retail market, but not everything seems to have gone to plan.
A consumption slowdown in 2023 along with lower discretionary spending power has forced the company to scale back, though it still aims for an IPO later this year.
