Reliance Emphasizes Organic Network Growth Strategy
Mukesh Ambani’s Reliance Industries has decided to pursue independent growth in India’s burgeoning quick commerce sector, rejecting the idea of acquisitions due to cost concerns. The company aims to leverage its existing infrastructure and customer base to enhance its market presence. Reliance’s Chief Financial Officer, Dinesh Taluja, emphasized the challenges of integrating acquired companies into their current operations, highlighting the advantages of organic growth in this competitive landscape.
Reliance’s Independent Strategy
Reliance Industries has made a strategic choice to grow its quick commerce business independently rather than through acquisitions. Dinesh Taluja, CFO of Reliance Retail, explained that the company believes integrating new acquisitions into their existing network poses significant challenges. Instead, Reliance is focusing on expanding its operations organically, which allows them to utilize their established customer base effectively. Taluja noted that the company is committed to ensuring competitiveness in every market segment they enter. By opening dark stores—small warehouses designed for rapid deliveries—in high-demand areas, Reliance can better serve its customers while optimizing its existing infrastructure.
The decision to grow organically is also driven by economic considerations. Taluja pointed out that dark stores contribute positively to the company’s margins from day one, as they are strategically located in areas with high order volumes. This approach not only enhances efficiency but also ensures that Reliance can respond swiftly to customer needs, reinforcing its position in the fast-evolving quick commerce market.
Growth of Quick Commerce in India
The quick commerce sector in India has experienced remarkable growth, evolving into a $10 billion market with a gross merchandise value. This segment serves around 30 million users each month, reflecting a significant shift in consumer behavior. Initially, quick commerce was seen as a supplementary service for urgent grocery needs and small purchases. However, it has rapidly transformed into the fastest-growing sales channel, particularly for premium products. The sector has consistently doubled its contribution to e-commerce sales annually, although it still represents a modest share of 3-6% for most consumer goods companies.
Despite the rapid growth, challenges remain, especially in non-metropolitan areas where achieving profitable growth is difficult. Major metropolitan regions account for approximately 80% of total sales in the quick commerce sector. While established e-commerce players like JioMart, Flipkart, and Amazon maintain a strong presence, the quick commerce market is primarily dominated by companies such as Zepto, Blinkit, and Instamart. This competitive landscape underscores the importance of strategic positioning and operational efficiency for companies like Reliance.
Reliance’s Performance and Future Plans
In its latest quarterly report, Reliance Industries showcased impressive growth in its quick hyperlocal commerce operations, with daily orders increasing by 68% quarter-on-quarter and 175% year-on-year. This surge in demand aligns with a broader trend in the quick commerce sector, which saw a year-on-year growth of 150% during the first five months of 2025, according to a report by Redseer. The expansion of dark stores, a wider range of product offerings, and heightened competition have all contributed to this rapid growth, enabling companies to deliver products to consumers more quickly and efficiently.
Looking ahead, Reliance plans to continue relying on its existing retail stores to drive its quick commerce strategy. The company has adapted its delivery approach, shifting from next-day delivery to prioritizing faster, more immediate service in response to consumer preferences. While many competitors focus on metropolitan and tier-1 cities, Reliance aims to extend its reach beyond these markets, positioning itself to capture a larger share of the growing quick commerce landscape in India.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
