Gulf investors in talks with Reliance Retail for stakes

By Backend Office, Desk Reporter
Reliance Industries
Representational Image

The global investors and sovereign wealth fund (SWF) has been eyeing the retail unit of the Asian billionaire Mukesh Ambani’s Reliance group since his digital firm Jio Platforms raised $15.2 billion.

The SWFs from the UAE – the Abu Dhabi Investment Authority (ADIA) and Mubadala Investments, along with Saudi Arabia’s Public Investment Fund (PIF) are in negotiations with India’s Reliance Retail Ventures (RRVL).

The US-based firms L Catterton, KKR & Co, Carlyle Group and the Japanese holding company Softbank are other overseas investors seeking to invest in the RRVL. Interestingly most of these firms have already invested in Jio platform, the digital wing of Reliance Industries.

Reliance Industries is planning to give 15 percent of share from RRVL to private equity firms and strategic investors. Reports suggested that it has reserved 40 percent stake for the tech giant Amazon, but the news was later dismissed by Reliance. 

The fastest-growing retail giant of India had announced its acquisition of the retail, logistics and warehousing of Future Group for about $3.2 billion and has indicated that it may also take up a 13 percent stake in Kishore Biyani’s remaining business under Future Enterprises.

As per reports the Mubadala investments and ADIA are considering investing an amount of $750 million in the RRVL while PIF will be investing as much as $1.5 billion.

The American-based private equity firm Silver Lake will be granted a 1.75 percent stake in RRLV which is worth $1.02 billion.

The Reliance industries have been increasing its presence in the retail sector through acquisitions, developing beyond its oil-industries business. The company has clarified that it is focusing to attract more investors to its retail sector for further expansion.

In the past quarter, the RRVL had further expanded its reach in online space by starting its eCommerce platform JioMart, a joint venture between RRVL and Jio Platform.