New Delhi, Aug 29 (PTI) India's largest retailer Reliance Retail is confident of delivering a 20 per cent CAGR over the next three years and is looking to scale its FMCG business by over eightfold in the next five years to Rs 1 lakh crore, besides investing invest Rs 40,000 crore to create Asia's largest food parks.

Reliance, which now eyes global expansion of FMCG business "will invest Rs 40,000 crore (USD 4.7 billion) to create Asia's largest integrated food parks with AI-driven automation, robotics, and sustainable technologies, securing lasting cost leadership", said Reliance Industries Director Isha Ambani, while addressing the AGM of the company on Friday.

Reliance Retail -- whose gross revenue crossed Rs 3.30 lakh crore in FY25 with 1.4 billion transactions, nearly matching the population of India -- is not just participating in India's consumption boom but propelling it, with the "structural growth tailwinds" across its business verticals.

Moreover, Reliance Retail, which operates nearly 20,000 stores across India is also amplifying its digital reach with e-commerce platforms as JioMart and AJIO and expanding coverage of hyperlocal delivery services, expects around one-fifth of the topline from it.

"Our online channels contribute a high single-digit share of retail revenues but will grow to over 20 per cent within three years," said Isha, who heads retail business.

Reliance Retail, which has a registered a customer base of 349 million, leads in hyperlocal quick commerce, with its vast store network, strategically located dark stores, and deep consumer data to offer faster, reliable deliveries than any competitor, she added.

"Looking ahead, we are confident of delivering 20%+ CAGR in retail revenues over the next three years," she said.

On its FMCG arm Reliance Consumer Products Ltd (RCPL), Isha said its among "growth engines" and the group now has ambitions to have a revenue of Rs 1 lakh crore in the next five years with global presence.

Moreover, the FMCG business will also be the "blueprint for expansion" into apparel, electronics, and other large and high-value consumer categories, Isha said.

"Our long-term ambition is to become India's largest FMCG company with a global presence. This will make RCPL a big new value-creating engine for the Reliance Group, comparable to our Retail business in size and profitability," she said.

RCPL, which is being demerged and is set to become a direct subsidiary of RIL, has just in three years of operations, had revenues of Rs 11,500 crore (USD 1.4 billion), becoming "fastest-growing FMCG player" in India.

On the demerger of RCPL, she said, "This will consolidate all our consumer brands into a single, sharply focused company".

It will also provide a "strategic approach" to grow in the 2 trillion FMCG industry, which is expanding at over 8 per cent annually.

"Our near-term ambition is clear -- to be the fastest consumer brands company to reach Rs 1 lakh crore (USD 11.7 billion) in revenue within 5 years. Our long-term ambition is to become India's largest FMCG company with a global presence. This will make RCPL a big new value-creating engine for the Reliance Group, comparable to our retail business in size and profitability," Isha said.

The company, which has acquired a host of brands and also launched in-house brands ranging from soap to cola, "has emerged as one of the fastest growing FMCG companies in India".

It acquired consumer brands TagZ Foods and the launch of new variants under Campa, Independence, Alan's, Enzo, Ravalgaon, etc, to cater to evolving consumer preferences.

On the performance of some key FMCG businesses, she said its beverage brand Campa Cola "now holds double-digit market share across many states" and broke the "30-year MNC duopoly".

Reliance, which entered the fast-growing beverage market in August 2022, after acquiring Campa Cola, is expanding its presence across the country by setting up the required infrastructure a supply chain, logistics network and bottling plants.

RCPL, which is directly competing with Coca-Cola and PepsiCo -- leading players in the cola segment -- has disrupted the segment with its aggressive pricing and higher margin to retailers. It has forced players to reduce prices in the selected markets where it is available.

Its own daily essentials brand, Independence, has crossed Rs 1,000 crore in revenue, Isha said.

"We started in India, have entered West Asia, Sri Lanka, and Nepal, and are now exporting to West Africa. Our target is to enter at least 25 countries in the next 12 months, building an Indian consumer brands powerhouse with global reach. We believe that Brand India will shine bright globally when Indian consumer and tech brands conquer global markets," she added.

Terming the growth of Reliance Retail, RIL Chairman Mukesh D Ambani said it is "one of the most impactful growth journeys" it is amongst the "fastest growing retailers globally, with scale and depth that is unparalleled in the world".

With its most advanced, scalable, and inclusive retail ecosystem, delivering the highest quality and widest choice at affordable prices across the country, it is now ready to write the next chapter of super growth. PTI KRH TRB