“Combining records in order to reduce number of records in a feature class”
We’ve a feature class that contains walls (line features). Each wall consists from multiple number of lines which leads to have around 800000 records. This high number of records causes a significant delay in performance. We’re trying to reduce the number of features by combining records together. How we can achieve this in the least time possible.
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What kinds of performance problems are you having? Drawing slowness? Drawing slowness can be just as much, if not more, impacted by vertex density as it can by the total number of records. The screenshot you show doesn't appear to have that many records in it, if it draws slow at that scale, I would look into whether reducing vertices is an option: About simplifying and smoothing a feature—Help | ArcGIS Desktop
Given the size of the file, it may be your computer. Have you tried to improve the settings using available options?
And have you tried to dissolve to see if it improves the load time?