Mukesh Ambani Asia’s richest man is spearheading a major overhaul of Reliance Retail Ventures aiming to increase its valuation to $125 billion Bloomberg reported. The initiative is being closely managed by Ambani and his daughter Isha Ambani as they focus on cost-cutting measures and operational efficiency. Reliance Retail is facing slowing sales and a drop in valuation and according to media reports analysts are now estimating it at $50 billion which is half of its previous $125 billion valuation. To address this below Cost-cutting measures are being taken according to the report. Limiting Store Expansion: Reliance Retail is slowing the growth of its physical store network to optimize existing operations. Reducing Marketing Budgets: Marketing expenses are being curtailed to ensure cost efficiency. Streamlining Operations: The company plans to merge Reliance Brands with Reliance Retail and is reviewing partnerships with global brands to align with its strategic goals. Centralized Hiring: Approvals for hiring employees above a certain pay grade now require clearance from the chairman’s office ensuring tighter control over recruitment costs. These steps come after Ambani acknowledged to investors that the company’s rapid expansion had resulted in operational inefficiencies according to Bloomberg sources. Addressing Valuation Concerns Brokerages currently estimate Reliance Retail’s valuation at around $50 billion significantly lower than the $125 billion target. The previous valuation was achieved during funding rounds two years ago but the new push aims to double the figure through more efficient operations and strategic scaling. The plan is designed to position Reliance Retail more competitively against rivals like the Tata Group Amazon and other quick commerce platforms. By adopting slimmer operations the company also aims to face a broader economic slowdown impacting consumer spending. Reliance Retail IPO Plans Reliance Retail is preparing for an initial public offering (IPO) targeting a $125 billion valuation with a 5% stake dilution. Early investors including Qatar Investment Authority and General Atlantic who collectively invested $8.24 billion between 2020 and 2023 for an 11.9% stake will have limited opportunities to exit through the IPO. Reliance Retail Financial Performance Reliance Retail reported impressive numbers for the 2023-24 financial year with revenue of Rs 2.73 lakh crore profit of Rs 11100 crore and customer base of 34 crore registered customers across over 19100 stores and four apps as of December 31.