Will Reliance Group join Fortune Top 20 league by FY2022-23?

Reliance Group will join the Fortune Top 20 league in 6 years i.e. FY2022-23 thanks to excellent growth both in retail and digital segment.

Speaking at the Reliance Family Day (RFD) event being celebrated across the country by the employees and families of Reliance Industries and other group companies, Mukesh Ambani said, “In its first four decades, the company has already achieved global and national leadership positions in its various businesses and therefore well positioned to accomplish even greater goals in its golden decade.”

Ambani articulated his five point dream that he would like Reliance to achieve: To be among the Top 20 companies in the world; become a leading provider of clean and affordable energy to India; become a leading global producer of innovative new materials; Jio to digitally transform the nation in entertainment, financial services, commerce, manufacturing, agriculture, education and healthcare; and Reliance and Jio to be even a stronger partner to our nation so that India can become a global super power.

As per the Fortune 500 list, the 20th company in the list is Fannie Mae with revenues of $107.2 billion so in order to become the 20th company, Reliance Group’s revenue has to increase from $51 billion to more than $107 billion. With 15 per cent growth every year, the company plans to reach more than $107 billion in its 6th year i.e. FY2022-23.

Fortune 500 Companies: 

Source: Fortune 

Reliance Group is focusing in a big way in verticals like refining & marketing, petrochemical, oil& gas, organised retail, media and digital services. In the Top 20 list, the companies which have similar line of business i.e. Oil & Gas, retail and digital in comparison to Reliance are Walmart, Exxon Mobil, AT&T. Amazon, Verizon Communications and Chevron.

Reliance Revenue Break-up:

Revenue from Operations – Rs. 190,063 Cr – 20.4%

NA Stands for Not Available 

Source: Reliance Industries 

In case of Reliance, Refining & Marketing and Petrochemical has grown by 16.8% and 23.9% respectively whereas Organised Retail has grown by more than 77.8% and even Digital Services has shown tremendous potential. Digital and organised retail are the two bright stars in Reliance portfolio which will help the company to achieve $100 billion revenue within six years.

To be among the Fortune Top 20 company, Reliance has to focus in a big way in Organised Retail and Digital as this will add around 30 – 40 per cent of its overall revenue in years to come. Both these segments have lot of potential and it offers lot of opportunities for the Reliance Group in future. Clean, green and renewable energy is another area which Reliance is working on but it is too early to talk about its impact in absence of information.