Qatar Investment Authority (QIA) has struck a deal to invest Rs. 8,278 crore in Reliance Retail, a key player in India's burgeoning retail sector. The strategic investment will grant QIA a 0.99% minority equity stake in Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited. RRVL operates an extensive network of over 18,500 stores across various segments in more than 7,000 cities. This collaboration aims to leverage QIA's global experience and Reliance Retail's strong presence to further elevate the company's position. The investment from QIA follows previous investments by other entities, including Saudi Arabia's Public Investment Fund and Abu Dhabi Investment Authority.
Qatar Investment Authority (QIA), a company dedicated to supporting innovative high-growth potential firms within India's rapidly expanding retail market, has entered an agreement to invest Rs. 8,278 crore in Reliance Retail. This strategic investment is set to mutually benefit both companies and contribute to the overall economy. The outcome of this collaboration will grant QIA a minority equity stake of 0.99% in Reliance Retail Ventures Limited. The investment from QIA will be facilitated through a wholly-owned subsidiary. As part of its expansion strategy, RRVL has been acquiring companies and securing franchises to bolster its business.
Reliance Retail oversees the retail and consumer business segment of Reliance Industries Limited. Reliance Retail Ventures Limited (RRVL) operates an extensive network of over 18,500 stores catering to grocery, electronics, fashion, and pharma consumption goods across more than 7,000 cities. The Ambani family holds a 49.11% share, while the remaining 50.89% is in the hands of public shareholders.
RRVL stands as the largest, fastest-growing, and most profitable retail business, serving a loyal customer base of 267 million individuals. In 2020, RRVL raised Rs. 47,265 crore from global investors, securing a 10% equity stake. This elevated Reliance to the ranks of the top four companies in the country by total equity value. In the same year, RRVL reported a revenue of $31.7 billion and a profit of $2.2 billion, operating across a total store area of 66 million square feet. Throughout 2023, Reliance Industries' stock has appreciated by approximately 9%.
Isha Mukesh Ambani, the Director of Reliance Industries, expressed enthusiasm about leveraging QIA's global experience to elevate RRVL into a world-class institution. Mukesh Ambani ranks as the second-richest individual on the list of the world's 100 richest people. He oversees Reliance Industries, which reported a revenue of $100 billion in the fiscal year 2022-23. The company operates across retail, oil and gas, petrochemicals, and telecommunications sectors. Additionally, Reliance has extended its reach to encompass brands in the FMCG category, personal care, beauty products, and beverages.
Upon securing a 1% stake in Reliance Retail Ventures, Qatar Investment Authority will tap into India's rapidly growing market. Previously, Saudi Arabia's Public Investment Fund invested $1.3 billion for a 2.04% stake in RRVL, while Abu Dhabi Investment Authority contributed Rs. 5,513 crore for a 1.3% stake. Similarly, the UAE's Mubadala invested Rs. 6,248 crore for a 1.4% stake. Together, these three entities acquired a 10.09% stake in Reliance Retail. Apart from selling stakes, Reliance has also developed a notable real estate portfolio.
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