Reliance Industries Limited (RIL) plans to integrate its telecom and retail arms, Reliance Jio and Reliance Retail in
order to create an omnicommerce business model.
Mukesh Ambani, Chairman and Managing Director of RIL, stated that the company intends to widen
its reach with the help of online-offline product distribution. The private conglomerate will create a seamless user
experience to augment its reach across channels by providing value-added offerings to the Indian market.
Reliance Industries’ annual report stated some of the Reliance Retail 2.0 initiatives like e-commerce, fashion, and
lifestyle. The plan which will be carried out in phases, focuses on raising an ecosystem that will enhance the
dissemination of Reliance Jio’s 4G services.
Reliance Retail
Reliance Market is the largest cash and carry player in the industry and enjoys a partner base of more than 200 million
members. The Mukesh Ambani-led Reliance Industries earned Rs. 20,000 crore in terms of revenue, making it the country’s
largest retailer. The retail chain experienced a 29% compounded annual growth rate (CAGR) over the last five years.
Reliance Retail added 624 stores to its already existing fleet in 2016. Currently, the chain operates 3,383 stores
across the country which, cover 12.8 million sq. ft. in terms of area. Mukesh Ambani stated that Reliance Fresh continues
to dominate the list of trusted national brands in India.
In FY 2016, Reliance Retail experienced a growth of 21.3%, earning it pre-taxation revenue of Rs. 506 crore which
followed the Rs. 417 crore earned in FY 2015. The brand experienced a rise from Rs. 17,640 crore in FY 2015 to Rs. 21,612
crore in FY 2016.
Reliance Jio
Reliance Jio is RIL’s digital arm and reportedly, the prices of its 4G services are comparatively reasonable, which may
prove to be tough competition to the heavily competitive telecom tariff war developing in the country. Jio, the world’s
largest start-up, believes that the key to the digital revolution is affordability.
The Jio network has been created with the full optimization of resources in mind. This helps it offer quality services
at a substantially lower rate as compared to other players in the market.
Mukesh Ambani explained how the network is
built with four key principles in mind; wide coverage, quality network, affordable services, and enhanced data
capacity.
Commercial launch
Reliance Jio is soon to launch its services on a commercial scale later this year. The network is ready for operations
all over the country, except in four telecom circles. The four circles might take up to six weeks in order to be fully
functional which suggests that the much-awaited commercial release may occur over the upcoming months.
Summary
Reliance Industries Limited will employ the omnicommerce business model in order to extend its customer reach by
integrating Reliance Jio and Reliance Retail.