What: Qatar expands its investments and looks into Indian retail.

Why it is important: The Indian market is evolving fast and chances are that Reliance might feel eady to go beyond the borders very soon, just like what happened in China 10 years ago.

Qatar Investment Authority (QIA) will invest USD1 billion for a 1% stake in Reliance Retail Ventures, the retail branch of Mukesh Ambani's Reliance Industries, increasing its valuation to approximately USD100 billion.

Reliance Retail, the largest retailer in India, has been forming global partnerships with brands like Burberry and Tiffany to grow in India. In 2020, the company raised USD 5.72 billion from investors such as KKR, the Saudi Public Investment Fund, and the UAE's Mubadala. Headed by Isha Ambani, the retail unit includes international collaborations, consumer goods, e-commerce, and numerous outlets.

Recent valuations placed the company between USD 92-96 billion, hinting at a potential initial public offering. Mukesh Ambani has expressed plans to list the retail division, but details remain undisclosed.

This move aligns with QIA's evolving investment focus on sectors like retail (Harrods), tech and healthcare, moving away from assets like London's Shard skyscraper. QIA's past investments in India revolved around online retail ventures like Swiggy and Flipkart. Morgan Stanley and Goldman Sachs were the financial advisors for the transaction.

Qatar takes a $1 bn stake in India’s Reliance Retail