Shares of Reliance Industries jumped 3% after CLSA said it expects US $ 550 billion retail opportunity as the company stated last year that it wanted to be the largest consumer company.
While the core refining business is expected to be weak, the big story could be the massive growth in Reliance Retail. Highlighting the potential of retail and telecom segments of the company, CLSA said Reliance Retail and Jio are getting into the next leap of growth.
Reliance is riding the premiumisation wave with its wide portfolio of premium- fashion brand joint ventures. The two verticals, telecom and retail now form 26 percent of consolidated EBITDA and the growth from these two quarters will aid overall profitability of Reliance Industries.
Mukesh Ambani, Chairman and MD, has articulated an ambition of crossing Rs.1,00,000 crore (US $ 294 billion) in EBITDA from the new consumer-facing businesses in the next decade by 2027 and closer to where Alibaba stands currently.
Meanwhile, the retail major will announce its December quarter earnings on January 17.
