What Reliance Industries’ Annual Report Says About Related-Party Transactions

Reliance Retail Ventures and Reliance Brands

Reliance Retail Ventures holds an 80% stake in Reliance Brands. It invests by subscribing or purchasing securities/debt instruments and/or provides loans, advances, and guarantees to Reliance Brands for business purposes.

The monetary value of Reliance Retail Ventures’ investments through subscription or purchase of securities, debt instruments and/or by providing loans, advances, and guarantees to Reliance Brands is estimated at Rs 1,900 crore in FY23 and up to Rs 2,900 crore in each years between FY24 and FY27.

As on March 31, 2022, the outstanding value of such investments and loans was Rs 4,153 crore.

Reliance Projects And Property Management Services

It is one of the biggest infrastructure providers to various Reliance subsidiaries.

RPPMSL provides execution of engineering, procurement and construction works and sale and supply of assets/materials, along with fit-outs for all the retail stores across formats.

It also provides business support services, including renting of store premises, operation and maintenance and security. In case of business support services, the pricing is based on the percentage of revenue earned by Reliance Retail, and for other services pricing it’s on a cost-plus-margin basis.

With Jio Patforms

Jio Platforms is expected to provide services to Reliance Projects worth Rs 1,700 crore in FY23 and up to Rs 3,000 crore each year between FY24 and FY27. Reliance Projects will provide services worth Rs 400 crore in FY23 and up to Rs 700 crore in each of the four fiscals.

With Reliance Retail

The monetary value of transactions for execution of EPC works, store fit-outs, business support services provided by Reliance Projects to Reliance Retail and allied transactions is estimated at Rs 28,500 crore for FY23 and up to Rs 56,200 crore each year between FY24 and FY27.

With Reliance Retail Ventures

The monetary value of transactions for execution of EPC works, store fit-outs, business support services worth Rs 11,800 crore in FY2022-23 and Rs 23,300 crore each year between FY24 and FY27.

With Reliance Jio Infocomm

The monetary value of transactions is estimated at Rs 11,000 crore in FY23 and up to Rs 19,200 crore each year between FY24 and 27.