It's rare to see by plain sight the change of the kind Reliance is planning to undertake. It has made a slew of announcements in its Annual General Meeting.
A group whose primary business and its cash cow - is oil exploration, refining, energy and chemicals is metamorphosing into a new age conglomerate.
Reliance retail is 13 years old and Reliance Jio (the group's telecom business) is 3 years old. In last 13 years Reliance retail touched $19billion in revenues to become the largest retailer in revenue. In three years Reliance Jio has crossed 340 million subscribers to become the largest telecom company - in terms of number of subscribers, revenues and profits.
To further expand its footprint Reliance has now announced its intention the launch of its wired broadband service (Jio Broadband) and its fiber (Jio fiber) across India. Its promising a minimum speed of 100Mbps to its subscribers. (This matches to the most developed countries in the world).
Consider this in light of what is going to happen in the digital economy in India. Here are some examples
A group whose primary business and its cash cow - is oil exploration, refining, energy and chemicals is metamorphosing into a new age conglomerate.
Reliance retail is 13 years old and Reliance Jio (the group's telecom business) is 3 years old. In last 13 years Reliance retail touched $19billion in revenues to become the largest retailer in revenue. In three years Reliance Jio has crossed 340 million subscribers to become the largest telecom company - in terms of number of subscribers, revenues and profits.
STOCK PRICE OF RELIANCE INDUSTRIES LIMITED (past 5 years)
STOCK PRICE OF RELIANCE INDUSTRIES LIMITED (past 1 year)
To further expand its footprint Reliance has now announced its intention the launch of its wired broadband service (Jio Broadband) and its fiber (Jio fiber) across India. Its promising a minimum speed of 100Mbps to its subscribers. (This matches to the most developed countries in the world).
Consider this in light of what is going to happen in the digital economy in India. Here are some examples
- There are over 300 million electricity meters in India which needs to be digitally connected for real time monitoring.
- Within 2 years it is estimated that there will be 2billion IOT (Internet of things) connected devices in India.
Surely Reliance wants to be number one in providing internet based interface. It changes the way business will be done in India by Indians.
One more thing - as data grows, data analytics grows and data storage grows. Govt. of India has made its intentions very clear - it wants data to be stored in India. This then means a growing demand for data warehouses (which store data). Surely then Reliance has announced plans to set up data warehouses in the country in collaboration with Microsoft.
More is coming....
and Reliance is changing fast to capture the change in the Indian economy - services is the way to go.
If the $15billion deal with Saudi Aramco goes through it will help reduce Reliance's debt considerably.
Surely one company to watch out for.!!
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