The Abu Dhabi Investment Authority (ADIA) is putting about $750 million into Reliance Retail Ventures Ltd., a subsidiary of Reliance Industries, the Mumbai-based parent company announced Tuesday (Oct. 6).
The investment gives the Abu Dhabi sovereign wealth fund a 1.2 percent stake in Reliance Retail, the announcement states.
Reliance Retail “operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its (roughly) 12,000 stores nationwide,” the announcement said. “Reliance Retail’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians.”
“We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally,” Reliance Industries Chairman and Managing Director Mukesh Ambani said in a prepared statement. “The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational New Commerce business model that it is rolling out.”
Hamad Shahwan Aldhaheri, executive director of private equity investing at AIDA, said in a prepared statement, “Reliance Retail has rapidly established itself as one of the leading retail businesses in India and, by leveraging both its physical and digital supply chains, is strongly positioned for further growth. This investment is consistent with our strategy of investing in market leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement.”
Other investors that have bought substantial stakes in Reliance Retail in the last month include Silver Lake, KKR, General Atlantic, Mubadala, GIC and TPG.
Reliance Industries says it’s the largest privately held company in India, generating a profit of $5.3 billion for the fiscal year that ended March 31. The conglomerate’s promotional materials say its businesses “span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.”
Two weeks ago, the company asked suppliers to produce a smartphone that will sell India for just $54.
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