NEW DELHI: Reliance Industries entry in the fast-moving consumer goods (FMCG) business as a part of its expansion plan and partnering with one crore merchants in the next five years can provide a fillip to the MSME sector.
As per a report by CRISIL, the FMCG sector is set to double-digit its growth in the financial year 2022 to 10-12 per cent. FMCG is the country’s fourth-largest sector. In FY22, Reliance Retail strengthened its presence by launching several new products across the categories as staples, home, personal care and general merchandise.
At 84%, India holds the largest share in general trade when compared to developed nations, including the US and the UK. In our country, which has over 8000 towns and 665k villages where the bulk of the population resides, there are multiple barriers to organized brick-and-mortar adoption. It is the unorganized general trade channel that is driving India’s retail market and will continue to grow, doubling in size from $0.7 tr to $1.4 tr by 2030, finds a report by Redseer Strategy Consultants.
The biggest players in the FMCG market include Reckitt Benckiser, Dabur, HUL, P&G and others. The Indian FMCG market is estimated to be over $100 billion.
According to market research firm Nielsen the sector grew at 10.9% in the April-June quarter against 6% in the preceding quarter. This growth was mainly price-led with 11.6% coming from increase in prices and -0.7% from volumes. The volumes during the quarter, although negative, improved from –4.1% in January-March quarter to –0.7% in April-June, thus indicating consumption revival.
Elaborating on the company’s plan, Reliance Retail Ventures Ltd (RRVL) director, Isha Ambani, said, "Reliance Retail's strategy is to integrate with millions of small merchants and provide them with a platform to prosper. Since the launch two years ago, it has grown its merchant partners base to over 20 lakh partners. We are on course to partner with one crore merchants, as we expand our presence to cover the entire country, serving over 7,500 towns and 5 lakh villages in the next five years.”
At the AGM, Mukesh Ambani had introduced his daughter Isha as leader of his conglomerate's retail business. RRVL is the holding company of all the retail companies of Mukesh Ambani-led Reliance Industries group. It almost became a Rs 2 lakh crore company with its value of sales and services at Rs 1,99,749 crore in FY22. In his speech, the RIL chairman congratulated Reliance Retail for its performance and said it is among the top 10 retailers in Asia.
In a bid to help the MSME sector, Reliance Industries will expand its product and design capability while strengthening its logistics and supply-chain capabilities. As of June 2022, Reliance Retail was operating 15,866 stores with an area of 45.5 million sq ft covering all corners of the country. In FY22, Reliance Industries invested Rs 30,000 crore in its retail business and added 2,500 stores. On average, Reliance Retail had added seven stores per day.
(With inputs from agencies)
As per a report by CRISIL, the FMCG sector is set to double-digit its growth in the financial year 2022 to 10-12 per cent. FMCG is the country’s fourth-largest sector. In FY22, Reliance Retail strengthened its presence by launching several new products across the categories as staples, home, personal care and general merchandise.
At 84%, India holds the largest share in general trade when compared to developed nations, including the US and the UK. In our country, which has over 8000 towns and 665k villages where the bulk of the population resides, there are multiple barriers to organized brick-and-mortar adoption. It is the unorganized general trade channel that is driving India’s retail market and will continue to grow, doubling in size from $0.7 tr to $1.4 tr by 2030, finds a report by Redseer Strategy Consultants.
The biggest players in the FMCG market include Reckitt Benckiser, Dabur, HUL, P&G and others. The Indian FMCG market is estimated to be over $100 billion.
According to market research firm Nielsen the sector grew at 10.9% in the April-June quarter against 6% in the preceding quarter. This growth was mainly price-led with 11.6% coming from increase in prices and -0.7% from volumes. The volumes during the quarter, although negative, improved from –4.1% in January-March quarter to –0.7% in April-June, thus indicating consumption revival.
Elaborating on the company’s plan, Reliance Retail Ventures Ltd (RRVL) director, Isha Ambani, said, "Reliance Retail's strategy is to integrate with millions of small merchants and provide them with a platform to prosper. Since the launch two years ago, it has grown its merchant partners base to over 20 lakh partners. We are on course to partner with one crore merchants, as we expand our presence to cover the entire country, serving over 7,500 towns and 5 lakh villages in the next five years.”
At the AGM, Mukesh Ambani had introduced his daughter Isha as leader of his conglomerate's retail business. RRVL is the holding company of all the retail companies of Mukesh Ambani-led Reliance Industries group. It almost became a Rs 2 lakh crore company with its value of sales and services at Rs 1,99,749 crore in FY22. In his speech, the RIL chairman congratulated Reliance Retail for its performance and said it is among the top 10 retailers in Asia.
In a bid to help the MSME sector, Reliance Industries will expand its product and design capability while strengthening its logistics and supply-chain capabilities. As of June 2022, Reliance Retail was operating 15,866 stores with an area of 45.5 million sq ft covering all corners of the country. In FY22, Reliance Industries invested Rs 30,000 crore in its retail business and added 2,500 stores. On average, Reliance Retail had added seven stores per day.
(With inputs from agencies)
Get Unlimited Access to The Economic Times
