Qatar Investment Authority buys $1bn Reliance Retail stake
INDUSTRIAL NEWS
Qatar Investment Authority (QIA) has announced today (August 23) an investment of â‚ą8,278 crore ($1 billion) into Reliance Retail Ventures Limited (RRVL), a subsidiary of Indian business conglomerate Reliance Industries Limited (Reliance Industries).
QIA’s investment will translate into a minority equity stake of 0.99% in RRVL on a fully-diluted basis, said the company in a statement.
RRVL, through its subsidiaries and associates, operates India's largest, fastest growing, and most profitable retail business with a network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma.
QIA pointed out that the investment in Reliance Retail was a demonstration of its diversified approach to global investment and confidence in India’s fast-growing economy.
India’s growth trajectory and national focus on innovation aligns with QIA’s investment approach to support companies in India with high-growth potential, it stated.
Its recent investments in India included companies in the technology, media and telecoms sector, retail sector, and in green energy investments.
Lauding the investment, Isha Mukesh Ambani, Director, said: "We are delighted to welcome QIA as an investor in the Reliance Retail Ventures Limited. We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop the RRVL into a world class institution, driving transformation of the Indian retail sector."
"The investment by QIA is a strong endorsement of a positive outlook towards Indian economy and Reliance’s retail business model, strategy and execution capabilities," he added.
QIA Chief Executive Officer Mansoor Ebrahim Al Mahmoud said: "We are committed to supporting innovative companies with high-growth potential in India’s fast growing retail market. We are looking forward to RRVL with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India."
RRVL’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers, empowering micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians.-TradeArabia News Service
