Brokers have valued Reliance Retail at just US $ 50 billion, half of what it was worth when it raised funding two years ago, raising concerns about decreasing sales, according to a Bloomberg report. As part of his attempt to diversify away from energy, Ambani has reportedly acknowledged to investors that his retail firm grew too quickly by branching out into numerous kinds of stores and locations.
The report claims that Mukesh Ambani and his daughter Isha Ambani are thinking about cutting expenses and jobs in order to make things better. This entails cutting back on marketing expenses, postponing the launch of new locations, merging Reliance Brands Ltd. with the larger retailer, and reassessing global brand partnerships. Furthermore, higher-paid employees will only be hired with permission from the chairman’s office.
According to the Bloomberg report, which cited business documents, Reliance Retail reduced the number of new stores it opened and laid off 38,000 workers in 2024. According to those with knowledge of the situation, the business also reduced marketing expenditures on its online platform, Ajio.
These modifications are an effort to show investors that the company is making progress, especially considering that several brokerages, including Sanford C. Bernstein and Kotak Institutional Equities, lowered its valuation last year, suggested the report.
