Earlier this week, Reliance Industries Ltd (RIL) transferred a sum of Rs 5,150 crore to its InvIT infrastructure investment trust (InvIT) entity, as confirmed in an earnings statement released by Reliance Retail on Friday. This transfer of assets to the warehouse-based InvIT entity was completed on October 25, 2023.
This transaction has now been accounted for in the ‘Other Financial Assets’ category, as of September 30, 2023. RIL has established this InvIT to enable the group to monetize the warehousing and logistics assets supporting its retail business.
Reliance Retail, responsible for managing the retail operations of the Reliance Industries conglomerate led by billionaire Mukesh Ambani, formally registered this trust with the Indian market regulator, the Securities and Exchange Board of India (SEBI), in February of this year.
The proceeds generated through this InvIT will be directed toward the acquisition of assets related to warehousing and logistics, facilitated through a special-purpose vehicle.
Reliance Retail is actively expanding its footprint across various retail channels and is making substantial investments in the infrastructure that supports its operations, encompassing warehousing, supply chain management, and logistics facilities.
As of September 30, 2023, Reliance Retail was operating a network of 18,650 stores covering an expansive area of 71.5 million square feet.
