Mukesh Ambani working on listing of Reliance Retail with $200-billion valuation

By Admin

16 Sep, 2025

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, is steering his retail empire toward one of the most anticipated public listings in India’s corporate history. After announcing that Reliance Jio’s IPO will debut next year, Ambani is now parallelly preparing the groundwork for the listing of Reliance Retail, which sources suggest could command a staggering valuation of close to $200 billion.

FMCG Demerger to Unlock Value

A key step toward the listing has been the demerger of Reliance Consumer Products, the fast-moving consumer goods (FMCG) arm, which will now become a direct subsidiary of Reliance Industries. This move is designed to sharpen Reliance Retail’s focus and boost profitability, ensuring a stronger valuation when it eventually hits the market. The demerger is expected to be completed by the end of this month, with regulatory approvals already in progress.

Rationalisation of Store Network

Reliance Retail, the country’s largest retailer, has also initiated a process of streamlining its store network. Under-performing stores are being shut down to strengthen margins and move toward double-digit operating profitability. In FY25, Reliance Retail reported an operating profit of $2.9 billion on revenues of $38.7 billion, with its EBITDA margin improving from 8.6% in FY25 to 8.7% in the June quarter. The rationalisation exercise is expected to accelerate this momentum.

Formats Driving Growth

Post the carve-out of Reliance Consumer, Reliance Retail will continue to operate across a wide range of formats, including Reliance Smart, Freshpik, Reliance Digital, JioMart, Reliance Trends, 7-Eleven, and Reliance Jewels. Sources indicate that consolidation across some of these formats is also under consideration, though discussions remain at a preliminary stage.

Timeline for Listing

While Reliance Jio is set to list in 2026, sources suggest Reliance Retail could go public in 2027. The listing will not only provide an opportunity for retail investors but also create an exit route for Reliance Retail’s marquee global backers such as Singapore’s GIC, Abu Dhabi Investment Authority, Qatar Investment Authority, KKR, TPG, Silver Lake, and others.

Strategic Outlook

Industry insiders view these moves as a calculated strategy to enhance operational efficiency and maximise shareholder value. The consolidation of formats, the FMCG demerger, and the aggressive push toward profitability all point toward Ambani’s long-term vision of positioning Reliance Retail as a global retail powerhouse.

As Reliance Retail prepares for what could be India’s biggest-ever retail IPO, all eyes are now on its execution strategy. A $200-billion valuation would not only mark a new milestone for the company but also redefine India’s standing in the global retail landscape.