Reliance Industries is preparing the ground for a public listing of its retail arm, Reliance Retail, which could be valued at close to $200 billion, according to sources familiar with the developments.
The move comes as chairman Mukesh Ambani has already announced plans for Reliance Jio’s initial public offering (IPO) in 2026.
As part of its preparation, Reliance has begun streamlining operations within Reliance Retail, India’s largest retail business. A key step is the demerger of Reliance Consumer Products, the fast-moving consumer goods (FMCG) business, which will become a direct subsidiary of Reliance Industries. The demerger is expected to be completed by the end of September once regulatory approvals are in place.
Alongside, the company has been rationalising its store network by shutting down under-performing outlets, a move aimed at improving operating margins and strengthening valuations ahead of a public listing. Sources indicated that some consolidation of formats is also being considered, though discussions remain at an early stage.
While no final decision has been taken, sources suggest that a listing of Reliance Retail could take place in 2027, a year after Reliance Jio’s IPO. The move is expected to provide an exit window for global investors such as Singapore’s GIC, Abu Dhabi Investment Authority, Qatar Investment Authority, KKR, TPG, and Silver Lake, which currently hold stakes in the company.
Following the carve-out of Reliance Consumer, Reliance Retail will continue to operate through multiple formats, including Reliance Smart, Freshpik, Reliance Digital, JioMart, Reliance Trends, 7-Eleven, and Reliance Jewels.
Reliance Retail has been focused on achieving double-digit operating margins. In the financial year 2024–25, the company reported an operating profit of $2.9 billion on revenue of $38.7 billion. Its EBITDA margin stood at 8.6% in FY25, improving marginally to 8.7% in the June quarter.
The rationalisation of its vast store network and the restructuring of business units are being positioned to boost profitability and investor confidence as Reliance Retail edges closer to its market debut.
